Title loans could be a quick way to get cash if you are in a hurry. But if your monthly title loan payment has become unmanageable, one of the options you may be considering is title loan refinance. Your financial situation may have changed, and your current budget does not fit with your loan terms.
Borrowers refinance their loan for many different reasons:
- To Receive More Optimal Interest Rates
- Get Lower Monthly Payments that are Affordable
- Get More Time to Pay the Loan
- Choose a New Lender with Better Customer Service Agents
Whatever the reason is to refinance, there are options available! If your credit has taken a hit due to your changed financial situation, you may be wondering, “do I even qualify for title loan refinancing”? Title loans can accept borrowers from all different types of credit histories and financial backgrounds. See if you can qualify for title loan refinancing by answering a few questions about your car!
How Does Title Loan Refinancing Work?
To refinance a loan simply means to replace your current loan debt with another to obtain different loan terms. These loan terms can include factors like:
- Interest Rates
- Length of the Loan
- Amortization of the Loan
With title loan refinance, your first loan is paid off through your new loan. Your new loan is created through refinancing to help you obtain better loan terms than your original loan. As a borrower, you can choose to refinance your loan with your existing lender, or with a new one. A new lender may have better loan terms that you are looking for through title loan refinance. Some of the potential advantages of title loan refinancing are:
- Improved Interest Rates: One of the most common reasons that borrowers refinance their loans is to get better interest rates. Interest rates that are too high can make the repayment process difficult. With a reduced interest rate after refinancing your loan, you may save money in the long run!
- Longer Loan Terms: The length of your loan matters! If you are facing a tough financial situation and you need more time to pay the loan, refinancing could help you achieve that. Your payment plan through a refinanced title loan could be personalized to fit your new budget and lifestyle.1
- Get More Cash: Depending on your vehicle’s value and income, you may be able to get more cash when you refinance your auto title loan!1
Who Qualifies for Title Loan Refinance?
To qualify for title loan refinancing, there are a few requirements:
- Your Vehicle Must Have a Certain Amount of Value
- Your Current Loan Must Not Be in Default
- You Must Have a Way to Repay the Loan
To qualify for title loan refinancing, you must have a steady source of income and you cannot be in default with another lender.
One of the biggest factors that is considered by title loan lenders is the value of the vehicle. Your car must have a certain amount of value to qualify for a title loan. When applying for your original car title loan, your vehicle’s title was used as collateral for the loan. This gave the lender the security that your loan will be repaid, and you are less of a risk to them as a borrower. It also meant that your approval and loan amount was based upon the value of your car!
Qualifying for title loan refinancing is similar to qualifying for a title loan in that your vehicle must be worth something! Your car’s current market value is based upon factors like:
- Your Car’s Current Mileage
- The Make, Model, and Year of The Car
- The Style of the Car
- Any Surface or Cosmetic Damage
Not sure what your vehicle is currently worth? See if your car qualifies for a title loan refinance by checking out the title loan calculator online. Simply answer a few questions about your car and income to receive a free estimate from a loan agent!1
What Documents Will I Need to Refinance my Car Title Loan?
When you apply to refinance your title loan, it is similar to applying for a title loan! Applicants will need to have a few documents handy for a loan agent to verify that they qualify for a title loan refinance.
Here’s what you can expect to need when you apply for title loan refinancing:
- Proof of Income: You do not need to have a traditional 9-5 job to apply for title loan refinancing. However, you will need to show that you can afford to pay back your loan. Bank statements, pay stubs, and even Social Security benefits qualify as proof of income!
- Recent Photos of the Car: You can skip an in-person vehicle inspection by simply submitting photos of your car! The front, back, and sides will need to be visible in the photos.
- Proof of Residence: To prove your address, you can submit items like your recent utility bills, credit card statements, or even rental agreements.
- References: These can be personal, professional, or both.
- Government Issued Photo ID: Many borrowers use their passport, driver’s license, or Real ID as proof of ID.
With all of these documents in hand, you could easily inquire about title loan refinancing! For your convenience, these documents can also be submitted online.
When Should I Refinance my Auto Equity Loan?
Borrowers refinance their loans for a multitude of reasons. Not everyone has the same financial situation or circumstances, so your reason may be different than others. However, here’s when to consider refinancing your auto equity loan:
- If your current loan has high-interest rates that you can’t afford, it’s time to refinance!
- If your financial situation has changed and you are struggling to make the monthly payment, consider how refinancing your loan terms could help change your monthly budget.
- Customer service can make or break your loan experience. If you are unhappy with your current lender’s agents, refinancing your title loan with another lender could lead to better agents assisting you.
- If you need more time to repay your loan and your current lender does not offer optimal loan terms, it may be time to refinance. With most lenders, your loan terms are set in stone and they are hard to change. When you refinance your title loan with another lender, you could receive more time to pay your loan and receive extra benefits.
What are the Benefits of Refinancing my Car Title Loan?
When you refinance your car title loan, you could not only get new loan terms but benefits as well! Here are some of the possible benefits to title loan refinancing:
- More Time to Pay: If you need extra time to pay off your loan, refinancing is the easiest way to get longer loan terms. With ChoiceCash Title Loans, some borrowers could have up to 48 months to get their loan paid off!
- Payments Could Get Lower: When you refinance your auto title loan with ChoiceCash Title Loans, your payments could start low and get lower!2 By making continuous on- time payments to your loan, you will get rewarded with rates that get lower each month.2
- Get a Payment You Can Afford: If you are struggling to make your loan payments each month, refinancing your loan is the solution. When you refinance your title loan with a reputable lender, your loan payments can become affordable to suit your financial situation.1 2
How Can I Get Started on Refinancing my Auto Equity Loan?
Applying for title loan refinancing is similar to applying for a title loan! When you refinance with the help of a ChoiceCash Title Loan, you can expect to apply in just three simple steps:
- Apply for Refinancing Online
- Submit Your Documents and Paperwork
- Sign Your New Title Loan Contract!
Ready to refinance? Get started today with ChoiceCash Title Loans by heading online to the website, or over the phone at 855-914-2945. If you have any questions about title loan refinance or your eligibility, a loan agent is standing by to help!