Refinance An Existing Title Loan
If you have an existing title loan and want to lower the interest or the monthly payment, refinancing can help you pay off the balance faster while saving you money.
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 loan. Since you already have a loan with another lender in Florida, a licensed 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, you may want to verify their license with the Florida Office of Financial Regulation.
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. Comparing quotes from different lenders can help you identify which offers the best rates. That will put them on the spot, and in the best-case scenario, you'll get a manageable payment term 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
Title loans typically carry high interest rates, similar to other secured lending options. It can take months or years to pay off these loans unless you pay more than double what's required each month. 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 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 between when their vehicle is repossessed and when it's sold at auction.
Is It Possible To Refinance A Title Loan With Poor Credit?
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. We work 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 buyout is when a finance company pays off your current loan in full. They will issue you a new 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 buyout, a new lender pays off your existing loan directly. 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. We 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.