Defaulting on a loan means that you can no longer keep up with the terms in your title loan contract, including the agreed payment schedule. ChoiceCash Title Loans is here to educate you on the possible consequences, and how to prevent defaulting as well as what your options are if your financial situation changes.
When defaulting on a loan, one of the consequences is your vehicle could be repossessed, which can be avoided with the right resources!
What is Defaulting on a Car Title Loan?
During the title loan process, you sign an agreement for a payment schedule between you and your lender. This begins immediately after signing your loan, and you as a borrower are expected to repay the loan in a timely manner.
But, if your financial situation changes, and you start to miss your monthly payments and continue to miss them, you may go into default.
Car title loan default is when a borrower fails to follow the terms in the agreement, including repaying the loan according to the agreed upon terms in the contract.
With ChoiceCash Title Loans, loan representatives may be able to work with you to find a better solution for your financial situation. By communicating your financial struggles, you may be able to set up alternative payment arrangements.
How Many Payments Have to Be Missed to Default?
The laws and rules about defaulted loans can vary based upon the state you live in. Your contract can often be more specific, as lenders will say what constitutes missed payments and defaulting on your loan. Additionally, they will say how long the borrower will have to contact the lender before a repossession takes place.
Choosing the right lender can make or break this experience. The right lender will have their representatives go over all portions of your contract, so you aren’t left in the dark about how to understand factors like default and repossession.
With ChoiceCash Title Loans, representatives will stay in contact with borrowers to help prevent defaulting. The stress of missed payments is bad enough without the worry that you might lose your vehicle. If you have missed a payment, a representative can open communication to help understand your situation and potentially find a solution.
What Happens If I Default on a Car Title Loan?
The outcome of defaulting can depend on a few different factors, such as:
- The State You Reside In
- Your Chosen Lender
- Your Loan Contract
But generally, since you are using your vehicle’s title as collateral for the loan, a lender can legally seize your vehicle in the case of a default without much notice. Some lenders may repossess the vehicle even if it is on your property and take it to a tow site.
Some lenders will allow you time to get the money together to repay the payment without repossessing your vehicle and will send you a notice of repossession. With ChoiceCash Title Loans, however, repossession is the last resort to a defaulted loan. Customer representatives are available 7 days a week to get you the answers or help you need when facing a difficult financial time. While some people may feel intimidated to speak with their lender about financial issues, it can help change the outcome on your loan and it is highly recommended if you are facing financial trouble.
What Happens if Your Car Has Been Repossessed?
If your vehicle has been repossessed, the lender will often choose to sell the car at an auction. Any money that was made off of selling your vehicle will go towards the remaining balance of the loan. Often, the money is not enough to cover the loan, and you might still be required to settle those payments.
If your vehicle was worth more than the remaining balance and sold, the lender is legally required to give you the different. Any property in the vehicle must be returned to the borrower before the sale.
If you are currently in defaulte or are worried about defaulting on your loan, there may be options available to you to take advantage of!
Refinance Your Loan with ChoiceCash Title Loans
If your financial situation has changed and you are worried about defaulting on your loan, one of your options may be to refinance through ChoiceCash Loans.1 Refinancing can mean getting a better car title loan with more optimal loan terms, and a lower monthly payment.Refinancing through ChoiceCash Tittle Loans could mean more affordable monthly payments to help you avoid defaulting on your title loan.
See if You Qualify Today
Applying to refinance your car title loan is almost identical to applying for a regular car title loan! The three-step process is made simple by ChoiceCash Title Loans:
- Submit a Form Online: Placing a loan inquiry through the website is the first step. Borrowers can also choose to call a representative toll-free at 1(855)277-4847.
- Submit the Right Documents: After getting a preapproval decision, borrowers will be prompted to submit a few documents to help speed the refinancing process along.
- Get Approved: Once those steps are completed, the last is to receive an approval decision! If you qualify, borrowers can get refinanced in as little as one business day.1 You’ll set up a new and improved payment plan that works better with your financial situation.
So why wait to get started? Go online or call today to refinance your loan through ChoiceCash Title Loans!