That ChoiceCash title loan came in handy when you needed it, and now you want to pay it back as quickly as possible. That’s a smart move. Paying off your title loan early offers several benefits. One of the most significant advantages is the reduction in overall interest paid, which can ultimately save you money. Early repayment may also have a positive impact on your credit score, helping to improve your financial standing. Paying off your title loan fast can also provide enhanced financial freedom and peace of mind, allowing you to focus on other financial goals without the burden of ongoing loan payments. Best of all, ChoiceCash doesn’t penalize borrowers for early loan repayment. The following tips could help you pay off your title loan fast.
Understanding Title Loans
What is a Title Loan and How Does it Work?
A title loan functions as an installment loan the lender secures with the borrower’s fully or mostly paid off vehicle. Because the lender uses the borrower’s car or truck as collateral, a lien will be placed on the vehicle’s clear title. Once the borrower repays the loan, the lender will remove the lien.
If a customer misses payments, the lender has the legal right to repossess the vehicle to recover the unpaid balance. So, borrowers should be confident in their ability to make payments before taking out a title loan.
Like most title loan providers, ChoiceCash doesn’t focus on credit scores. Instead, the vehicle’s value and the borrower’s income are the key factors during the application process.1 In addition, borrowers don’t need bank accounts to receive their cash or make payments. They can decide how ChoiceCash delivers their loan funds and make payments in multiple ways.1
ChoiceCash customers can continue driving their vehicles during repayment, as long as their accounts remain in good standing.
Typical Terms and Conditions for Title Loans
While title loan terms and conditions vary by lender and applicant, they generally follow a similar structure. Borrowers should familiarize themselves with typical loan terms and conditions before committing to title loan contracts. ChoiceCash provides a dedicated support team borrowers can contact with questions about the loans.
Loan Amounts
With ChoiceCash, borrowers can usually get up to half their vehicle’s value, depending on their income.1 Customers can borrow any amount – small or large – within their approved loan limit.
Loan Terms
The loan term for title loans varies by lender and state. While some lenders only offer short term loans that must be paid off within 30 days, all ChoiceCash loans are installment loans with a loan term of several months.
Collateral and Title Requirements
Borrowers must typically own their vehicles outright, with clear, lien-free titles. The lender will place liens on the titles and remove them when borrowers repay the loans.
Interest Rates Associated with Title Loans
The interest rate – a percentage of the borrower’s principal loan total – is the amount lenders charge customers for borrowing money. ChoiceCash interest rates are competitive and usually less than the rates payday loans carry.
Customers who keep their loan in good standing could see their interest rate decrease over time, dropping their monthly payment accordingly.2
Benefits of Paying Off Your ChoiceCash Title Loan Early
There are advantages to paying a ChoiceCash title loan off before it’s due – with no penalty, by the way. First, there’s the reduction in overall interest. Borrowers who pay their loan off early reduce the total time the loan balance accrues interest, which saves them money. And because we report customer payments to a credit bureau, borrowers who pay their loan off before their due date can potentially increase their credit standing with a fully-paid tradeline.
Also, borrowers who eliminate their loan payments early gain financial freedom. With the loan gone, they have more control over their budget, allowing them to save for emergencies, invest, or pursue other financial goals. Further, customers who get rid of their payment reduce their financial stress, may boost their self-confidence, and gain relief from worry.
They also regain freedom in regards to their vehicle. Whether they want to sell the vehicle, make modifications to it, or lower their insurance coverage, once a borrower pays off their loan, they again become their vehicle’s full legal owner, with no lender restrictions.
Strategies for Paying Off Your Title Loan Quickly
Now that we’ve outlined the benefits of paying a title loan off early, here are some strategies for doing so:
An important first step is creating a budget to cut back on non-essential expenses, so you can make extra payments. To reduce balances faster, customers may also want to consider making biweekly payments rather than monthly.
Those tax refunds or work bonuses? Rather than using windfalls on shopping sprees, consider paying off loan debt. Borrowers may also want to get a side gig or monetize a hobby to bring in more money to make additional payments.
Another strategy calls for borrowers to round up their monthly payments to gradually reduce their balance. For example, if the monthly payment is $365, pay $400 instead.
Alternatives to Title Loans
Consumers facing urgent cash needs do have options, even if their credit is damaged. It’s important to consider all of the choices to be certain they’re doing what’s best for their situation as well as their long-term financial health.
Exploring Personal Loans and Credit Cards
Even with bad credit, it can be possible for borrowers to get personal loans, though usually at much higher interest rates. There are lenders that offer subprime loans online and through marketplaces.
Consumers who need cash may also want to consider using credit cards, if they have them, as short-term borrowing options. Note that cash advances from a credit card tend to have high interest rates and usually accrue interest immediately. They may also come with a cash advance fee.
Understanding the Benefits of Refinancing
With ChoiceCash refinancing, borrowers who are struggling with their title loan payments with another lender can replace their existing title loans with a new loan. The goal is to secure better terms, such as a lower interest rate, smaller monthly payments, or longer repayment periods to avoid immediate default or vehicle repossessions.1
ChoiceCash borrowers can expect a quick and flexible application process, in addition to excellent customer service and support.
Considering Community Resources and Assistance Programs
Community resources and aid programs can help consumers facing financial challenges. Some assistance programs run by nonprofit and community organizations can help cover essential expenses such as rent, utilities, and groceries.
There are also local charities, churches, and religious organizations that offer emergency financial aid and other assistance. Consumers may also want to consider nonprofit credit counseling agencies, which can help with budgeting, debt management, and credit building.
What Happens if You Don’t Pay Your Title Loan
Consequences of Defaulting on a Title Loan
Borrowers who default on their ChoiceCash title loans can face vehicle repossession, which can result in the lender selling the vehicle to satisfy the debt. If the vehicle sale doesn’t cover the unpaid loan amount, the borrower could still be liable for the remaining balance.
Note that in most states, lenders must notify borrowers before repossessing their vehicle. The notice will typically inform the borrower exactly how much time they have to resolve the default by paying the overdue amount. Once a repossession has occurred, the borrower may have a certain amount of time to catch up on missed payments, or pay the entire balance, before the lender sells the vehicle.
Impact on Your Credit Score
Because ChoiceCash reports loans to a credit bureau, customers who default on their ChoiceCash title loan will also likely experience damage to their credit score.
Options Available if You’re Unable to Pay
It’s crucial for borrowers to be open and honest with their title lender or loan servicer before they miss a payment. Their options may include a due date change, loan extension and other options. Communication is key, however.
If you pay off your ChoiceCash loan early, you can save money, potentially improve your credit sooner, free up cash for financial goals, and have peace of mind. And there strategies to help you do it. Take control of your financial situation!
Consumers who are currently facing financial emergencies may want to consider title loans with ChoiceCash. Apply today for fast cash!