When a borrower signs a title loan contract, it is often not in the cards to pay it back the next day. Instead, a payment plan can be instated to make the repayment process easier and more affordable.
Typically, title loans are meant to be short-term loans. While that is the norm for most title loans, there are title loan options that can offer longer, more optimal loan terms if that is what you need.
By finding the right title loan option, it can be easier to set up a title loan payment plan that fits your budget and needs. With loan options like ChoiceCash Title Loans, the repayment process can be just as flexible and easy as the approval process.1
How Does a Title Loan Work?
Title loans are a secured installment loan that can be an alternative option for borrowers that do not have a strong credit history. A borrower is allowed to use their vehicle’s title instead of their credit history to obtain cash!1
Most traditional loan options will base loan approval off of a borrower’s credit, as it can allow them to see if they are a risk to lend to. A title loan can be different during the approval process. Title loans are alternative loans that are secured through collateral, which is the title to the borrower’s vehicle. This makes the loan secure, and the collateral assumes the risk of lending to a borrower that may not have a strong credit background.
With collateral securing the loan, the approval process for a title loan can be flexible and can offer high approval rates to qualified borrowers.1 If you have a paid-off vehicle in your name, you may be able to use your title to get the cash you need.1 It can be that easy!
To apply for a car title loan, you will simply use your vehicle’s title as collateral for the loan. This allows you to turn your vehicle’s equity into cash you can access and pay back over a period of time.
How Can I Set Up a Title Loan Payment Plan?
After receiving approval for a title loan with your paid-off vehicle, the next step is to think about how to set up a title loan payment plan. Some loan options like payday loans may only offer 30 days or less to repay the loan in full, which can often be inconvenient when you are using cash to get back on your feet.
Loan options like ChoiceCash Title Loans can offer longer and often more optimal repayment plans. These loans are amortized, meaning that a borrower will pay back both the principal and the interest at the same time. Each month, a borrower will pay their monthly payment, and it will cover both of those factors. This can be an advantageous payment schedule for a borrower, as it opens up a few opportunities!
If you are approved for a ChoiceCash Title Loan, a loan agent can help walk you through the repayment process and your new loan schedule. After your loan contract is signed, you do not have to put in the work to set up a title loan payment plan. Instead, let the experts with ChoiceCash Title Loans help you find a schedule that works for you and your current budget.
ChoiceCash Title Loans can offer qualified borrowers more time to pay if they need it, and the freedom to pay at any time with no hidden fees or prepayment penalties.3 4 If you have the means to pay early, you are encouraged to do so!
After I Set Up a Title Loan Payment Plan, What’s Next?
While your main focus may be how to set up a title loan payment plan, your loan doesn’t end after you schedule your monthly payment! Once your payment plan has been successfully scheduled and your loan contract is signed, the next step is to use your cash and pay it back when it is time.
With loan options like ChoiceCash Title Loans, your payments start low, and can get even lower!2 There is an opportunity to earn this reward simply by being a responsible borrower. If you make your monthly payments on time, you may qualify to receive lower payments and interest each month.2
There is also an online portal that can be used to pay back your loan each month or even schedule monthly payments automatically. Through your online account with ChoiceCash Title Loans, you will be able to access important information about your loan, such as:
- Payment History
- Payment Methods
- Billing Information
- Payment Schedule
- And Other Basic Account Information
ChoiceCash Title Loans can also offer a few different ways to repay the loan, including:
- Through a Check to the Mailing Center
- Online Through the Portal
- Through Any Local MoneyGram Location
- Over the Phone with a Representative through Debit or Credit Cards
- Or, Automatic Withdrawals from Your Bank Account!
How Can I Budget for a Payment Plan?
While the loan agents with ChoiceCash Title Loans will work with you to create a payment plan that works for your finances, it may be difficult to meet if you do not already have a budget in place.
The hardest part about a budget is creating it and sticking to it. If you need to create a budget, the first place to start is through your expenses. Take a bank statement from the last month and sort it into two expenses:
- Fixed Expenses
- Variable Expenses
Your fixed expenses are the most essential to your budget, and they will not change throughout the month. Typically, this is your loan payments, car payments, or other set bills. Variable expenses will change each month, and this is typically where you can adjust your budget if needed. Variable expenses often include items like gas, groceries, or even entertainment and eating out.
With these expenses plotted out, you can allocate your funds throughout the month accordingly on a spreadsheet. Many free budgeting apps can do this step for you, and even help you categorize your spending to break it down further. Once your expenses have been laid out, you may use this spreadsheet to help identify your budget and set limits on your spending habits. The categories may show that you are overspending in some areas such as subscriptions, or even that you are paying too much for your utilities and need to cut back. A budget in place can help you plan for your new loan payment!
What Happens if I Can’t Pay My Loan Back?
While the loan agents with ChoiceCash Title Loans will help you set up a payment schedule that works for your budget, life can happen. An unexpected expense may throw your budget back, and you may find yourself struggling to make payments each month. If this happens, there are a few options available if you communicate your distress to your loan agents. The first option is available to borrowers that are still making on-time payments. This option is to ask for more money on your title loan, which is an opportunity that ChoiceCash Title Loans allows responsible borrowers.1 If you need it, you can choose to borrow more money at a lower rate.1
Or, refinancing is also a potential option. ChoiceCash Title Loans can allow qualified borrowers to refinance their title loan to obtain a longer loan term and more affordable loan payments if needed.
Where Can I Apply to Set Up a Title Loan Payment Plan?
If you need to set up a title loan payment plan to get fast cash, your first step is to qualify for a title loan! Fortunately, ChoiceCash Title Loans can be applied for online in just a few quick steps:
- Fill Out a Short Loan Inquiry Online, or Over the Phone
- Send in a Couple Documents to Verify Your Information
- Get Approved and Set Up Your Payment Plan!1