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Can I Refinance My Title Loan with TitleMax?


Since you took out a title loan on your much-loved car, many things may have happened. You may have got a better job and paid off all your bad debt. Perhaps the economy has seen a drop in interest rates? If you bought a vehicle and agreed to high-interest terms and your credit score has subsequently improved, you may look to refinance your vehicle title loan with TitleMax.

Refinancing your title loan could end up saving you a lot of money in the long run because you may pay the loan off with a lower interest rate. Even if you do not pay a lower interest rate, there are still some benefits to refinancing your title loan with TitleMax.

If you are struggling to repay your title loan, don’t use credit and go deeper into debt when you may take the lower-cost advantages of refinancing your title loan.

What is a Title Loan Refinance?

Title loan refinancing involves taking out a new loan to pay off the balance of your existing title loan. This refinance option is usually chosen to save money by reducing your interest rate on your monthly repayments.

Generally, people who take out a title loan to pay for their car do so under a fixed interest rate and fixed repayments over an agreed-upon time. These repayment terms are usually between 60 months and five years. When a refinance occurs, the interest rate, payment schedule, and terms of the original contract will be revised.

When a debtor applies for a refinance on an existing loan, it usually involves a reassessment of the debtor’s credit terms and credit score. Refinance loans generally include mortgage loans, car loans, and student loans. Typically, the aim is to pay off less interest over the life of the loan or change from fixed-rate terms to an adjustable-rate mortgage (or the reverse).

A fill out form for getting loan

Advantages of Refinancing Your Title Loan


if you have been paying back your car and keeping up with timely payments, you may have already achieved some equity in your car. So, if you refinance, you may find yourself getting a cash payout.

The new loan offered will be offered to the current value of your vehicle, so if the value of these assets is more than you owe on your existing loan, you find yourself with some cash in hand.

Shorten the Terms of Your Loan

If you find yourself in a better financial situation than when you initially took out your online title loan, you may benefit from shortening the repayment terms under which you took the loan. Paying off your title loan faster means paying a lower interest rate over the life of the loan and you might stand to save yourself thousands of dollars.

Lower Your Monthly Repayments

Life may throw you a curveball, as it does, and you may find yourself in a situation where you need to bring down your monthly expenses. Refinancing allows you to extend the repayment terms of your existing title loan and reduce your monthly repayments.

The refinance does mean you will usually have to pay off more interest on the life of your loan, but it may help free up some monthly cash to get you through the rough patch.

Disadvantages of Refinancing Your Title Loan

Although you may benefit from the reduction in the monthly repayment expenses, you will end up paying more in the long term. Especially when it comes to vehicles, which depreciate over time rather than gain in value.

Experts say that a car may depreciate as much as 45 percent in the first three years, so refinancing could mean that you end up paying more than your car is worth.

So when you refinance a car loan, you may be adding negative equity into your new loan and will end up widening the gap between what you own and what your car is worth.

Types of Refinance Loans

  • Rate and term refinance is the most ubiquitous kind of refinance, and this type of loan occurs when the consumer repays the original loan and takes a new loan to replace it, with lower interest payments.
  • Cash-out financing is an option when the asset under title increases in value. The borrower then withdraws the equity or value of the asset and, in return, repays a higher interest rate on the loan amount.
  • Cash-in refinancing allows the lender to pay in a portion of the loan and reduce their monthly loan repayments and interest over the life of the loan.
  • Refinancing for consolidation is the process where a consumer takes on a new loan to cover their existing debt and pay it back under a lower interest rate.

How Do I Qualify for a Refinance Loan?

The interest rate that a lender offers you is based on two factors:

Your Credit Score

Generally, a credit score follows the FICO (Fair Isaac Corporation) model that rates a potential borrower’s creditworthiness on a three-digit rating from 300 to 850.

According to FICO, the ratings are as follows:

  • Fair credit rating: 580 to 669
  • Poor Credit rating: 300 to 579
  • Good Credit rating: 670 to 739

Your Debt-to-Income Ratio

They calculate this figure by dividing your monthly income by your monthly debt payments.

What are the Costs of Refinancing My Title Loan?

One must always be sure of the terms of the loan before deciding to refinance your title loan. Some lenders charge a prepayment penalty for paying off their loans early and other hidden fees.

Always ask your lender to provide you with an APR (Annual Percentage Rate) and calculate in all the penalties and hidden fees.

Reregistration fees must also be considered when taking out a refinance loan, and potential savings must be measured against all the extraneous costs that are included in the repayment terms.

Can I Refinance My Title Loan with TitleMax?

TitleMax provides title loan refinancing with competitive interest rates. TitleMax will consider your existing loan and the value of the asset. In most cases, TitleMax is willing to refinance any title loan. However, they do require:

  • The applicant has paid roughly 20 percent of its initial value
  • The asset must be lien-free
  • Can produce a driver’s license or government-issued identification
  • Can produce a pay stub from the last month
  • Owns an active checking account with direct deposit
  • Proof of steady income
  TitleMax Auto Title Loans
Min. Amount $2,600
Max. Amount $10,000
Loan Term 30 days
Loan Security Secured
Turnaround Time as little as 30 minutes
Requirements Must have a lien-free vehicle title, government-issued ID, and be the age of majority in your state.


Before refinancing your title loan, evaluate your financial situation and consider the long-term benefits over short-term gains. Be cautious of cash-out refinancing and ensure it makes economic sense in the long run.”

Shop around for lenders with the most competitive rates and be vigilant about hidden costs. If refinancing your title loan is an option for you, find a reputable lender like TitleMax to guide you through the process.


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