If you own a car and need to get your hands on money fast, taking out a car title loan is one of the best ways to do it. A car title loan allows you to use your vehicle title as leverage when you’re trying to get access to cash quickly.
But once you receive a car title loan, you might struggle to pay it off for one reason or another. If you ever find yourself in this situation, you would say, “I want to refinance my title loan,” and set out to do it.
When you refinance a car title loan, you’ll take out a new loan through a new lender to pay your original loan. You’ll then start making payments on your refinanced loan right away. If you have a title loan that you want to refinance for whatever reason, you might be first interested in seeing if it’s the right time to do so.
Here are some of the times when it makes perfect sense to refinance a car title loan.
The Interest Rate on Your Current Car Title Loan Is Too High
Take a look at the interest rate on your current car title loan. Is it so high that you’re paying a small fortune in interest fees on your loan every month?
This is one of the times when you’ll feel the need to refinance your title loan right away. And that’s completely fine. You are likely to find a better loan out there with a much lower interest rate attached to it. Being able to lower the amount you pay each month is perhaps the most enticing reason to refinance.
If nothing else, shop around for other loans to see what kinds of interest rates might be available to you. By securing an interest rate that’s slightly lower than your current one, you could save yourself a lot of money over the life of your loan.
Your Current Car Title Loan Is Taking Too Long to Pay Off
When you first accepted your current car title loan, you may have been more than happy to agree to pay it off over the course of three years. But now that you’re actually doing it, three years might seem like an eternity.
Rather than spending the next three years of your life paying off your current car title loan, look for one with a much shorter repayment period. Refinancing your loan could help you pay it off quicker so that you can move on with your life.
You’re Not Happy With Your Current Car Title Loan Company’s Service
Some car title loan companies are very helpful when you first apply for a loan through them. But once you get your loan, they change their tune and aren’t always willing to deliver the same kind of great customer service.
If your car title loan company’s customer service is lacking, that could be reason enough for you to refinance your loan. In addition to getting a better interest rate, you can also get the help of a company that truly cares about you and your overall well-being.
Say “I’m Going to Refinance My Title Loan” Today and Do It
Have you been saying, “I want to refinance my title loan,” for a few months now? Take the leap of faith today and do it.
There are lots of lenders that would love to provide you with a better loan than the one you have now. Or maybe you have the best of all. You can simply inquire and see if you can gain anything out by refinancing. Who knows, it could put you back on the path towards financial freedom and get you out of debt in no time.