Tips for Securing Lower Car Title Loan Payment Rates
A car title loan delivers quick cash without compromising your mobility. The approval is fast and doesn’t need a good credit score to check out. With a solid repayment schedule, this can be a good way to get out of a crisis. On the flip side, a car title loan can be a risky undertaking.
To begin with, the repayment period is relatively short and bears high-interest rates. If you don’t manage to make the payments in time, the loan will roll over to the next month and so on. In the end, you’ll pay quite a lot of interest. In the event that you default on the payments, your lender will take your car as collateral. In so doing, you will lose your vehicle, have a bad credit score, and still owe your lender some money.
How can you stop that from happening? One way is to apply for lower-paying car title loans. This way, you can organize your finances better to handle the repayments of the loan. Here are a few tips for securing lower-paying car title loans.
Regardless of where you live, car loan companies abound. Before signing any contract, put your research skills to test. Choose five of the best companies and make a visit to each one of them to see which one offers the best deal for you. Bring your automobile, title, spare keys, and monthly statements with you. Go over the requirements for the title loan application and find out if you qualify. Inquire about the loan amount, interest rate, and how much of the payments is used to reduce the principal amount.
This is the most known yet overlooked tactic in the business world, applying for a loan included. Lenders may look intimidating and rigid from face value but if you know how to negotiate, they can alter the payment plan in your favor. Sure, most title loans are repaid within the specified period. However, you can talk to your loan provider and request for an extension. Some can bring down their interest rates to give you a better loan experience. If you want to make larger payments prior to the loan repayment period, your lender may grant that as well. The bottom line: negotiate as much as you can.
3. Make prompt payments
Sometimes the best tip to pay less on car title loans is to simply pay up. The faster you make your payments, the lesser the amount you’ll pay in the end. Rather than wait to make a mammoth payment by the end of the repayment period, consider making small repayments over the course of the month. Strive to never get behind the interest if you want to keep your car.
4. Ask for lower interest rates
Some lenders offer different interest rates based on the situation of the borrower. For instance, if you are going through a rough patch in your life such as a divorce, the lender might be willing to bring the interest down for you. In the same breath, clients with extremely bad credit scores can be advised on the appropriate car title loans best suited for them.
5. Refinance your existing loan
In the event that you already have a high-interest car title loan, refinancing it can be highly beneficial. It can help bring down your monthly repayments, get you additional cash, lower interest rates, and protect your car from being repossessed. Lowering a huge interest rate helps you gain control of your finances. You can use the opportunity to pay the exiting loan, save some money, and ultimately pay down the loan principal.
When you apply for a loan refinancing, the lender will need to check your credit score, retain your car title, estimate your vehicle’s value, and check your ability to pay off the new loan. If you tick all the boxes, the lender may be willing to pay off the existing loan. If you are lucky, you might end up with some extra cash.
Car title loans have high-interest rates and feature short-repayment periods. However, there are a few best-kept secrets that can help you access lower-paying ones. If you want a lenient loan in exchange for your car title, the tips shared will help a great deal.