How to Refinance Your Title Loan

Title loans can be a helpful solution for immediate financial needs, but the high interest rates and short repayment terms can sometimes make them difficult to manage. If you are having a hard time dealing with your current title loan or you just want to get a better deal, you could opt for refinancing. Eagle Title Loans makes it easier to reduce the interest rates you are charged, the repayment period given to you and your repayment schedule.

In this article, you will learn how to refinance title loans and some tips that will help you make a transition successfully.

What Does It Mean to Refinance a Title Loan?

Title loan refinancing is a process in which you get a new loan to pay off the existing title loan. The new loan, which is taken ideally, has better features like a lower rate of interest or a longer tenure which can be easily managed by the borrower.

Benefits of Refinancing

Lower Interest Rates: 

Refinancing also implies that you can get a better interest rate than the current one meaning that the cost of the loan shall be lower.

Extended Repayment Period: 

An extended repayment period may reduce monthly payments, and thus make it easier for you to manage your finances.

Improved Cash Flow: 

Lower payment can be useful as it releases money for other purposes.

Avoid Default: 

Through refinancing, one is able to manage his or her current loan repayment by making the repayments cheaper thus preventing one from being in a position to default his or her current loan.

How to refinance your title loan

Step 1: Self evaluation of the existing loan

When thinking about refinancing, first, read all the information about the title loan you have, very carefully. 

Interest Rate: 

The interest rate at the time of taking the loan or the current interest rate whichever is higher.

Remaining Balance: 

The total amount of money which is still to be paid on the loan.

Monthly Payments: 

The regular monthly payment you make towards the repayment of the loan.

Loan Term: 

The time you have left till the end of your loan term.

Fees and Penalties: 

All charges that may be incurred in prepayment or refinancing of the loan.

Step 2: Check Your Eligibility

Different lenders have varying criteria for refinancing title loans. At Eagle Title Loans, we consider several factors to determine your eligibility:

Vehicle Value: 

The current market value of your vehicle.

Age:

Borrowers should be 18 years old or older.

Information about Residence:

You should be US citizen or permanent resident 

Repayment History: 

Your payment history on the current loan.

State Regulations: 

Specific state laws and regulations regarding title loan refinancing.

Step 3: Compare Lenders and Loan Offers

Research and compare different lenders to find the best refinancing terms. Consider the following factors:

Interest Rates: 

Look for a lower interest rate than your current loan.

Loan Terms: 

Consider the length of the repayment period and monthly payment amounts.

Fees: 

Be aware of any fees associated with refinancing, such as application fees, processing fees, or prepayment penalties.

Lender Reputation: 

Choose a reputable lender with positive customer reviews and transparent terms.

Step 4: Apply for Refinancing

Once you have selected a lender and loan offer, complete the refinancing application. At Eagle Title Loans, our application process is straightforward and designed to be as quick and convenient as possible. You can apply online or visit one of our local offices to get started.

Step 5: Review and Sign the Loan Agreement

After your application is approved, you will receive a new loan agreement outlining the terms and conditions of your refinanced loan. Carefully review the agreement, ensuring you understand all aspects of the loan, including:

1. Interest Rate: 

Confirm the new, lower interest rate.

2. Monthly Payments: 

Ensure the new payment amount is manageable within your budget.

3. Loan Term: 

Verify the length of the repayment period.

4. Fees and Penalties: 

Be aware of any additional fees or penalties.

Once you are satisfied with the terms, sign the loan agreement to finalize the refinancing process.

Step 6: Pay Off Your Existing Loan

The funds from your new loan will be used to pay off your existing title loan. Ensure that the payment is processed promptly to avoid any late fees or penalties from your current lender.

Step 7: Start Making Payments on Your New Loan

Begin making payments on your refinanced loan according to the new schedule. Set up automatic payments or reminders to ensure timely payments and avoid any late fees or negative impacts on your credit.

Tips for Successful Title Loan Refinancing

Improve Your Credit Score

While title loans do not typically require a credit check, having a better credit score can open up more refinancing options with potentially better terms. Consider taking steps to improve your credit score, such as paying off outstanding debts and ensuring timely payments on all accounts.

Shop Around

Don’t settle for the first offer you receive. Shop around and compare multiple lenders to ensure you get the best possible terms for your refinanced loan.

Negotiate Terms

Don’t be afraid to negotiate with lenders. Discuss your needs and see if they can offer better terms or lower fees. A reputable lender will be willing to work with you to find a solution that meets your needs.

Budget Carefully

Ensure that the new loan terms fit within your budget. Calculate your monthly expenses and income to ensure you can comfortably make the new loan payments without financial strain.

Seek Professional Advice

If you are unsure about the refinancing process or need help evaluating your options, consider seeking advice from a financial advisor. They can provide valuable insights and help you make informed decisions.

Why Choose Eagle Title Loans for Refinancing?

Competitive Rates 

Eagle Title Loans have reasonable interest rates to ensure that you cut on the total cost of the loan. 

Flexible Terms 

We allow you to choose a payment plan that best suits your budget in order to help you in making the repayments. 

Transparent Process 

Refinancing with us is easy and transparent and does not take long at all. This way you are fully aware of all the terms and conditions before you are trapped into it. 

Dedicated Support 

We have a professional and courteous customer service staff who will be glad to address any issues you may have concerning the refinancing. 

Frequently Asked Questions (FAQs) 

Is It Possible to Refinance Title Loan with a Poor Credit Score? 

Indeed, there are more things that Eagle Title Loans looks at other than credit scores. The value of the vehicle and the borrowers’ capacity to make regular payments are the main factors that affect this kind of credit. 

How Much Would I Save If I Refinance My Title Loan? 

The saving is in terms of the new interest rate and loan terms that are offered to you. Reducing your interest rate and your term also helps in bringing down your monthly installments and the total cost of the loan. 

Is There a Fine for Prepaying My Refinanced Loan? 

Eagle Title Loans does not charge prepayment penalties for any of its services. There are no penalties for early payment of your loan. 

What is the Time Frame for Refinancing? 

The refinancing procedure in Eagle Title Loans is brief and convenient. More often, it is possible to get an approval and finalize the procedure in several days. 

Contact Us 

In case of any query or help regarding the refinancing of your title loan, you can reach out to us. 

Conclusion 

It thus pays to refinance your title loan because it helps you to pay less interest for a longer period than the initial agreed term. Reading this guide and selecting a reliable lender such as Eagle Title Loans will help you refinance your title loan and enhance your credit status. Don’t wait any longer! We can help you get a better loan to suit your needs, apply today.