Refinance An Existing Title Loan
Do you have an existing title loan, and would you like to lower the interest or the monthly payment? Or maybe you've been paying down the balance on your current loan but still have a few years left until you get your car title back? If so, refinancing could be a real option to get out of debt quicker and save a good amount of money by lowering your monthly payments.
The best part about working with Florida Title Loans on your refi is that you can get approved quickly for a new payoff term. There's typically no need to check your credit, and you can sometimes borrow more money than you received with your original title loan. Since you already have a loan with another lender in Florida, a licensed title loan company will need to confirm those details and determine whether you qualify for new payments and terms.
One thing to keep in mind when refinancing is that Florida law sets strict limits on what licensed title loan companies can charge. Interest is capped at 30% per year on the first $2,000 of your loan balance, 24% per year on amounts between $2,000 and $3,000, and 18% per year on amounts over $3,000. If your current lender is charging more than these limits, that's a strong sign that they may not be properly licensed in Florida.
Title Loan Refinancing Requirements
- Your car's title or proof of ownership for the vehicle being used as collateral
- A valid state or federal ID, like a driver's license, passport, or CDL
- Proof of income to show your ability to make payments
- Proof of current registration and insurance coverage
- Your current loan information, including balance, payment history, and lienholder details
After you gather those documents and decide you want an initial estimate, we recommend getting quotes from a few companies to compare the final lending terms. That way, you can ensure you get the best possible deal on your refinance. You can also leverage these quotes with your preferred finance companies. Tell them you got a refinancing quote with a lower payment or a more beneficial APR. That will put them on the spot, and in the best-case scenario, you'll get a great rate with your new loan. If you're ready to get started with an online refinancing quote in Florida, we can help. Our agents can tell you in 5 minutes or less if refinancing is worth your time.
Refinancing is generally a viable option when you can save money on your overall interest payments, otherwise extending your loan term may cost you more in the long run.
What Are The Benefits Of Refinancing An Auto Title Loan
We all know that title loans come with high interest rates, much like bad credit loans. It can take months or years to pay off these loans unless you pay more than double what's required each month. In all likelihood, your initial lender probably gave you the title loan at a rate that could have been better. Still, refinancing can ultimately improve your financial situation by reducing your monthly payments and overall interest costs.
A refinance is an excellent option for those seeking lower payments or improved lending terms on their secured loan. Gather your necessary documents, shop around for quotes, and see if a new quote is correct for you. It may turn out that you already have a competitive rate, and refinancing may not save you money. Either way, it doesn't take long to see if you can improve the current finance terms from a title loan lender in Jacksonville, or elsewhere in Florida.
Another significant benefit of refinancing a title loan is avoiding vehicle repossession. We often hear from customers who recently defaulted on their payments, and sometimes, we can still help them by refinancing their title loan with another lender in Florida. They can get entirely new repayment terms with a lower interest rate, but the most significant benefit is that they no longer have to worry about losing their car or truck. Florida residents may have a limited window of time between the date their vehicle is repossessed and the date it's sold at auction.
Refinance A Title Loan With Poor Credit - Is It Possible
Has your credit improved since you first applied for a bad credit title loan? Even though your credit history is not the ultimate factor when underwriting a loan, improving your credit score can only lead to a lower rate with a refi. Ultimately, your credit will be as important as when you first applied for the original loan. Florida Title Loans works with borrowers facing all types of credit issues, and can help you find a licensed lender offering more favorable rates and payments with a refinance.
A Title Loan Refinance Is Different From A Loan Buyout
There are many different types of financing companies offering online car title loans in Florida, and most will offer a quick refinance on a secured loan. But what about those that provide loan buyouts, and how does that work? A title loan buyout is when a finance company pays off your current title loan in full. They will issue you a new title loan with better terms and rates. Many borrowers will seek a buyout if they've fallen behind on payments or need to restructure the terms of a 2nd-lien title loan. Often in those situations, it's challenging to get approved because of the considerable risk the new lender would take on.
The main difference between the two options is that with a title loan buyout, a new lender directly pays off your existing loan. With refinancing, you take out a new loan yourself to pay off the old one. Try to fully understand the terms and conditions of any title loan before signing a contract, whether a refi or buyout. Always shop around for the best rates and payment options available.
Apply Now To Refinance Your Title Loan
Ultimately, both types of loans can be options for someone in Florida struggling to stay current on their payments or to pay down the balance. Florida Title Loans can help you determine whether a buyout or a refinance is the right option for your current loan situation. Apply online or call us at 888-986-8505 to see how much you can save with a lower payment or improved interest rate.