There are multiple reasons why you would want to learn how to refinance a title loan that you are currently in the process of paying off. If you currently cannot afford the monthly payment that you are being asked to make, you can potentially access better loan terms by getting another car title loan with your current lender or attempting to refinance your loan with another title loan provider. On that same note, you may be able to negotiate a lower interest rate if you try to refinance a title loan with your existing lender, which can help you get a more affordable monthly payment. 4 If this is your first time trying to replace an auto title loan with a new one, though, you may wonder how you can refinance a title loan and what happens once you begin the process of paying a new loan.
Refinancing your title loan isn’t all that different from applying for your previous loan, so you can expect a simple process to hopefully get more optimal loan terms with your current or new lender. 4 However, it’s important that you learn some of the differences you’ll face during the application process after you find a title lender that offers title loan refinancing! 5 Continue reading for more information about refinancing your car title loan, and how you can find suitable loan payments with the help of Max CashⓇ 2 5
What Happens When You Refinance a Title Loan?
As mentioned above, when you choose to refinance an auto title loan, you’re basically applying for a new one that potentially provides better terms, like lower interest rates and more manageable monthly payments. The new loan may offer the option for additional cash based on your vehicle’s equity and your income, or a longer repayment period if you need more time to pay off your entire loan. 1 4 You can either refinance a title loan online with your current lender or find another title loan provider that meets your unique preferences. Regardless of the option you decide to apply for, your refinancing lender will help you take care of your previous loan and then provide a new car title loan that is convenient for you.
If you refinance a car title loan with another lender, they will generally handle all the work involved in settling matters with your old title loan lender. Typically, the new title loan lender will pay back what you owe and take care of any leftover loose ends that still need tying up. After this part of the process, you will begin paying your new title loan lender under your new terms. With Max CashⓇ, it’s free to search for a title loan lender to refinance your loan! 2 5
Check out the steps you can take to apply for title loan refinancing from the comfort of your home:
- Complete a brief form online to find a new car title loan lender
- We’ll get in touch with you and discuss the loan requirements. If you meet the initial criteria for the loan, the search for a lender begins, and you’ll need to provide documents to get a title loan refinance. Generally, you will submit the same documents for application verification that include the following:5
- Government-Issued Photo ID
- Proof of Residence (Utility Bills or Other Mail that Has Your Name and Address)
- Several Clear Photographs of Your Vehicle
- The Title of Your Car, Truck, or SUV
- Proof of Income (Bank Statements, Pay Stubs, etc.)
- A Completed Authorization for Payoff
- Fill Out Your New Loan Contract if You Qualify and Receive Your Funding
Don’t hesitate to speak with a Max Cash representative at 833-207-9052 if you have questions about refinancing an online title loan. Before you decide to apply for another title loan, ensure that you go over the terms of your new loan agreement to stick with a provider that fits your needs and preferences.2 5
How Can I Refinance an Online Title Loan Easily
Refinancing an online title loan is pretty straightforward once you find the right lender and complete the necessary steps to submit an application. However, you can make the refinancing process much easier if you take some things into account before you apply for another car title loan. 5
Take a look at some effective tips you can follow to help you refinance an auto title loan easily:
- Gather and Prepare the Necessary Documents in Advance to Speed Up the Application Process
- Research and Compare Available Lenders to Find the Most Reliable Option
- Find an Online Lender to Save Time and Money Driving to a Physical Location (if Possible)
- Lower Your Debt-to-Income Ratio and Boost Your Credit Score to Increase Your Chances of Getting Full Title Loan Refinance Approval 5
By following these aforementioned strategies, you can expect a smooth and simple refinancing process from beginning to end! If you search for a title loan lender with Max Cash, you can anticipate convenience as soon as you call a representative or submit the online form.2
How Can I Get Out of an Auto Title Loan?
If you’re currently making payments on an auto title loan, you may be looking for ways to get out of your debt obligations if your budget is tight. While the most straightforward option is to simply pay off your entire loan, you may be able to find other avenues that can help you get out of a title loan without losing your vehicle to a repossession or getting into any legal trouble. If you’re not fond of the idea of refinancing your car title loan, you can try renegotiating your loan terms with your lender to make the repayment process much easier. You can request a loan extension to lower your payment amount, ask for a lower interest rate, or request a payment modification to make your payment schedule more manageable.4
Additionally, you can ask for a loan modification, or loan rewrite, that grants you the opportunity to re-amortize your loan and potentially access more affordable payments that fit your current financial situation. A loan modification will basically alter your loan terms, such as reducing your monthly payments through a lower interest rate, giving you a longer repayment period, or changing your previous due date. In a worst-case scenario, some title loan borrowers consider declaring Chapter 13 bankruptcy to extend the repayment process at a possibly reduced rate. However, it is important to consult with a financial advisor before making any decisions.
In the event that you can’t make your loan payments, consider finding a safe solution that won’t affect your finances. Speak with your title lender to discuss your situation and arrange an alternative solution to a title loan default that can keep you on track with your loan payments.
How Many Times Can I Refinance My Title Loan Online?
Worried about getting into financial trouble even after you refinance your first title loan? If you’re wondering if it’s possible to refinance an auto title loan more than one time, know that there is no legal limit to how many times you can refinance a car title loan online. Just ensure that your lender’s policies permit you to refinance multiple times, and if allowed, meet their requirements to qualify for a new title loan. 5 However, it’s important to understand that frequent refinancing can lead to higher interest costs over time, so you should only do it if it provides a clear financial benefit, like getting more favorable loan terms or lower monthly payments. 4
Keep in mind that refinancing a car title loan multiple times can also harm your credit history if title lenders run credit checks in every application. Although these inquiries typically reduce your score by a few points, repeatedly applying for new auto title loans can lower your credit score if every lender decides to review your credit. Additionally, opening a new loan account can reduce the average age of your accounts, which slightly lowers your score. You can minimize the impact on your credit score if you refinance your loan over a short period of time, but you won’t be sure when you need to apply for another title loan until you feel it is absolutely necessary.
If you face issues with your refinanced title loan, it is recommended that you communicate with your title loan lender first for their advice on the matter. You may be able to save yourself from a lot of financial hardship if you speak with your lender before attempting to apply with another provider again.
Where Can I Find Companies that Pay Off Title Loans?
Some companies offer services to pay off or help you get out of a title loan you can no longer afford. Instead of simply giving you money to repay the debt, though, the organization will take your current title loan and extend it into a new loan term, which you will have to pay on your own. Essentially, you will still refinance an online title loan, regardless of whether you choose to get a company that covers your loan payments or work with a lender directly. You may not be able to find charities that help with title loans, but you can work to avoid a loan default by getting another lender that can give you a second chance to finish your payment obligations. 5
When struggling with your installment payments, you can consider refinancing your auto title loan as a means to stay on track with your payment schedule. You can work with a reliable source like Max CashⓇ to find a trustworthy lender that offers more optimal loan terms and affordable interest rates! 2 4 If you choose this option, it is essential that you review your loan agreement carefully to ensure you apply with a title lender that works best for you. Don’t forget to speak with a Max CashⓇ representative at 833-207-9052 if you have any questions about refinancing a car title loan online without leaving your home!
