Suppose you currently have a title loan and want to lower your monthly payments or overall interest. In that case, refinancing could be a great option for you. Most secured loans can qualify for refinancing, including those on cars, trucks, motorcycles, and even RVs. The best part about a refi in Florida is that it doesn’t take long to qualify for a new rate and payment term. Since you already have a loan with another lender, we must confirm those lending details and make sure you can be approved for the new payments and terms.
What Do I Need To Refinance An Existing Title Loan
You don’t need much to get new payment amounts and interest rates when you first apply for a refi. Here are the main documents you’ll need:
– Your auto’s title or proof of ownership for the vehicle being used as collateral
– A valid state or federal ID, like a driver’s license
– Proof of income to show your ability to make payments
– Your current title loan information, including balance and payment history
After you gather those documents and decide you want an initial estimate, we recommend getting quotes from a few different companies to compare the final lending terms. That way, you can ensure you’re getting the best deal possible for your refinance. You can also leverage these quotes with your preferred finance companies. Let them know you got a refinancing quote with a lower payment or more beneficial APR. That will put them on the spot and best case scenario; you’ll get a great rate with your new loan!
What Are The Benefits Of Refinancing An Auto Title Loan
We all know that title loans come with high interest rates, much like other bad credit loans. In all likelihood, your initial lender probably gave you the title loan at a rate that could have been better. Refinancing allows you to find better rates and payment terms, potentially saving you money each month. Additionally, a new payment plan can even give you more time to pay off your outstanding balance if needed. Of course, it’s always important to fully understand the terms of a new title loan before signing any contracts, but refinancing can ultimately improve your financial situation by reducing monthly payments and overall interest.
Overall, title loan refinance is a great option for those looking for lower payments or improved lending terms on their secured loan. Gather up your necessary documents, shop around for quotes, and see if a new quote is right for you! It may turn out that you already have a great rate or perhaps you don’t qualify for a 2nd lien title loan refi because the rates are already low. Either way, it doesn’t take long at all to see if you can improve on the current finance terms from a title loan lender in Jacksonville.
Refinance A Title Loan With Poor Credit – Is It Possible
Refinancing a title loan with poor credit is definitely possible as long as you have proof of income and are able to make the payments on the new terms. However, it’s important to note that since title loans are secured by your vehicle, your credit score may not be the determining factor in qualifying for refinancing. Your ability to stay current on the payments will also be an issue. Ultimately, your credit will be just as important as when you first applied for the original loan. Here at Florida Title Loans, we work with customers who are facing all types of credit issues and we look forward to getting you more favorable payments and rates for a car title loan refinance!
How Is A Title Loan Refinance Different From A Loan Buyout
There are many different types of financing companies in Florida and most will offer a quick refinance on a secured loan. But what about those that offer 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 then issue you a new title loan with potentially better terms and rates. These loans are generally harder to qualify for than a traditional refinance. Many borrowers will look for a buyout if they’ve fallen behind on payments or need to restructure the terms on a 2nd lien title loan. Often in those situations, it’s difficult to get approved because of the considerable risk the new lender would take on
The main difference between the two options is that with refinancing, your original loan still exists until it is fully paid off. However, with a title loan buyout, that previous title loan is no longer active and you will have a new loan with different terms. It’s important to fully understand the terms and conditions of any title loan before signing a contract, whether it be a refi or buyout. Always shop around for the best rates and payment options available! Also, For those of you looking to refinance a loan in Orlando, you may be in luck as there are dozens of companies in that area that will work with you!
Ultimately, both types of loans can be an option for someone in Florida that’s struggling to stay current on their payments or pay down the balance. But it’s important to consider the qualification factors and potential consequences before committing to either choice. Consider speaking with a financial advisor or lender about which title loan option is best for your unique situation. Here at Florida Title Loans, we can help you if there’s a scenario where a buyout or refinance is right for you. Feel free to apply online or call us at 888-986-8505 to see how much our new payment term can save you!