Some Important Terms to Know when Refinancing Title Loan
Every now and again, a borrower may decide that the current terms they are working with are not exactly panning out in their favor. When this happens, refinancing a title loan may be the best option.
When refinancing a title loan, there are some key terms to know. Max Cash® has listed common terms in this article, as well as when it is most favorable for borrowers to refinance.
Terms You Should Know When Refinancing Your Title Loan
- Balloon Payments – In some instances, title loan lenders may charge you what is known as a balloon payment. A balloon payment is a large payment that you make at the end of a loan that tends to be larger than a normal payment – sometimes double. Many title loan lenders do not do this, but some still might.
- Refinance – Refinancing is the act of paying off one loan with another one – usually to get a better rate or more flexible terms.
- Pre-Payment Penalty – Lenders make money by charging interest, which accrues over the life of a loan. The longer you are repaying the loan, the more money they can make. If you are somehow able to come up with all of the money you need in order to pay off the rest of your loan in one go, they lose that opportunity to make money. As a result, some lenders will charge a penalty fee so that they still make money.
- Credit Score – Your credit score plays a considerable role when applying for a title loan or refinancing one. Though many title loan lenders do not use your credit score as the main criteria for eligibility, having a decent score could help you obtain lower rates and better terms.
- Interest – Interest is how lenders make their money from providing funds to borrowers. Interest is a percentage of the payments you make every month, along with each year in some cases.
- Transaction Costs – When refinancing, there are often some costs that will come along with doing so. Costs such as processing fees and origination fees can end up making it pricey to refinance. Make sure it will be worth the cost in the long run to refinance.
- Loan Term – The term of a loan is the amount of time you have to repay your loan in full.
When Refinancing is a Good Idea
There are many reasons why borrowers choose to refinance their loans. Take a look at the top reasons why refinancing may be advantageous for you.
- The current loan terms you have are not working for you
- A better deal presents itself
- Your credit score has noticeably improved
Refinance Your Title Loan with Max Cash!
If you would like to refinance your title loan, then look no further than the quick, easy, and convenient services of Max Cash!
At Max Cash, we work with reputable lenders in the nation. If you qualify, you could get more reasonable terms and rates on your title loan in very little time!
With Max Cash, there are no pre-payment penalties. We do not want to see you punished for being diligent with repaying your loan. Besides, your lender will want their money back just as much as you want to be finished repaying your loan.
Furthermore, our services to you are free. You do not pay us a single dime for our financial services. We make our money from referring you to the new lender.
What You Will Need to Refinance a Title Loan
In order to get a refinanced title loan through Max Cash, you will need to have the following documents:
- Government-issued photo ID (driver’s license, state ID, passport, etc.)
- Proof of residence (recent utility bills, or government documents that have both your name and address)
- Several clear photographs of the car
- Vehicle title that is legally in your name
- Proof of income (recent pay stubs or bank statements)
Talk to Max Cash Now!
We have worked tirelessly to make it quicker and easier than ever for you to be able to get in contact with Max Cash. To get started toward your newly refinanced title loan, and a well-deserved peace of mind, reach out to Max Cash by:
- Calling us on our toll-free number at (855)561-5626
- Emailing us at info@maxcash.com
- Coming down to our physical office at 1270 E. Broadway Rd., Suite 101a, Tempe, AZ 85282
