Auto Loan Refinancing

If your monthly payments are too high to keep up with, or your credit score has improved and you want to lower them, then it may be time to refinance your auto loan.

Circumstances change – maybe the first time round, you didn’t explore all of your options, or you settled for a loan with a high interest rate because you had a poor credit score. If this is the case, then don’t worry – it’s not the end of the world. Refinancing your auto loan may be the way forward.

If you’re looking to refinance your auto loan, or you just want more information on what’s out there, then keep reading to hear more.

Alternatively, for more info on auto refinancing loans you can check out this article on the best auto refinance rates at Crediful.

LendingTree

Pros

  • Convenient online tool will show you expected rates
  • Loan terms can be up to 84 months (7 whole years)
  • Can view offers without affecting your credit score
  • Online marketplace giving you a choice

Cons

  • Down payments are strongly encouraged

It’s super easy to get started with LendingTree. The application process is quick and easy, and you can view offers without your credit score being affected. It can be frustrating when you’re trying to apply for loans to improve your finances, but the rejections just make things worse.

There’s a convenient online tool that will help you view the rates and terms by your location, as it can vary from state to state. Just fill in your zip code, loan amount, and credit rating – then see what’s available to you.

It’s a great option for long term refinancing – as the longest loan term is 84 months – which is sure to make the monthly payments easier to manage.

Auto Credit Express

Pros

  • A+ rating by the Better Business Bureau
  • Quick response times
  • Over 1000 partners to connect with
  • Accepts customers with bad credit

Cons

  • Unlikely to be accepted if your car is 10 years or older

If your credit history is less-than-perfect, then it’s not the end of the world. Auto Credit Express is a great option if you have a poor credit score – but they also offer excellent rates for borrowers with good scores.

If you want to qualify, first of all you need to be on top of your current payments. Other than the standard loan requirements, some Auto Credit Express lenders will have other requirements, such as the fact your car must be below 10 years of age.

Another common factor on what you’ll be accepted for is the mileage limit – if it’s more than 100,000, then the chance of being accepted for your preferred loan is likely to decrease.

It’ll take you less than five minutes to fill out the application form, and the response times are really quick.

AutoPay

Pros

  • Low rates starting at 5.49%
  • Inclusive for customers with all types of credit
  • Credit score won’t get impacted by applying
  • Three refinancing options to choose from

Cons

  • Must earn a minimum of $2000 per month

AutoPay is an online marketplace that will make it easy for you to get connected with a lender, or several lenders, with a single application.

To get started, you’ll need to meet some requirements first. The requirements can vary from lender to lender, but the most common ones are:

  • Income of at least $2000 per month
  • Maximum mileage of 125,000
  • Maximum car age of 11 years

The lender will also need to know standard information such as your preferred loan term, details on the car, and your monthly rent/ mortgage costs.

The loan amounts range from $2500 and $100,000, making it a great choice to refinance your car no matter what the model.

You have three refinancing options to choose from. The first one is the most common – traditional refinancing – which is perfect for lowering your monthly payments.

Another choice is cashback refinancing, which is designed to put money back into your pocket. The third is lease payoff refinancing, which is ideal if you’re looking to pay your lease in full before the term expires. This is a great option if you want to avoid fees!

MyAutoLoan

Pros

  • Super low rates starting at 2.24%
  • Can receive the funds within 24 hours
  • Can get up to 4 offers at once
  • Easy online application

Cons

  • Minimum loan amount is $7500

If your credit score is above 500, then you can take advantage of what MyAutoLoan has to offer. They can connect you with multiple lenders to get up to four loan offers, giving you the chance to choose which one is best for you.

The loan amounts range between $7500 and $100,000 – but there are some restrictions. If your car is older than eight years, or has over 120,000 miles, then your car won’t qualify. 

If you’re after longer loan terms, then MyAutoLoan will be perfect for you, as their loan terms are generally between 24 and 84 months – which is great if you want lower monthly payments.

What Can You Start Doing Today That Will Benefit Your Wallet the Most This Year?

Many things in life can seem difficult at first. Saving money is one of them. If you are unfamiliar with the habit and never tried to before, it might seem completely insurmountable.

Luckily, there are some great ways that you can easily adjust your habits and save money without even realizing it. Here is some of the best advice we have this year.

Top Ways To Improve Your Money-Saving Skills This Year

The main thing that you need to understand about taking control of your financial habits is that it’s a self-discipline task at its heart.

Suppose you can comprehend and manage to internalize your financial aspirations as taking priority and precedence over anything else. In that case, you’ll make any necessary sacrifice to ensure that you hit your goals.

Go to Specialty Stores

When you shop for items, many of us are tempted to go to the most convenient locations. These stores that have the most variety of items so we can get everything we needed without having to drive around a lot.

While this can be more convenient, going to some great online specialty stores, such as a medical supply store, is often a great way to find the best deals on specific items.

If you’ve been unable to find any good deals at your normal shopping locations, why don’t you try checking out a few specialty stores in your area or online?

Look Into Refinancing Options

Refinancing is often a great way to reduce the monthly payments that you owe on your debt obligations as well as the total amount of interest that you’ll pay over the lifetime of the debts.

Suppose you have a stronger credit history now than when you did when you first took out whatever credit you still have that’s active. In that case, it might be possible for you to sign a financial partner who would be willing to give you a better deal than your current financial institution.

It can often save people thousands of dollars, and the most amazing thing is that these are bills that you would already pay.

Cancel All of Your Unused Subscriptions

Marketers and app developers understand human psychology very well and tempt us all the time with retrial offers where we must enter credit card information to sign up.

Once the free trial period is over, you are charged for the subscription, and it is up to you to remember to cancel before you are charged or call in and have the charges disputed otherwise, each month you’ll continue to be charged.

Many of us have all had the experience of paying for a subscription for several months without canceling it.

Even if it was unused, we continue to pay, principally because many companies make it such a hassle for people to cancel their subscriptions that we give up before even trying.

It is worth it. You would be surprised at how much money you can save each month if you can get rid of these unnecessary expenses.

Read From Some of the Industries Experts

Whether you pick up a book from Dave Ramsey or one from another financial guru, reading some high-quality financial literature is always a good idea if you what you aspire to become is more financially prudent individual.

The greatest people of all time have often been quoted referencing their achievements and how they would not have been possible without many others’ help. You would be foolish to disregard their advice if it’s freely available on a book for you to read. Learning how to invest could be one of the most valuable things that you take the time to do in your life.

Final Notes 

Remember that it is a marathon and not a sprint. Do not punish yourself through austerity, but it isn’t wise to let your belts go without tightening it from time to time.

If you are looking for a better financial future, it will not come unless you are seeking it out actively. Take life by the horns and become the master of your destiny. You will look back and you will be proud of your accomplishments.

Can I Refinance My Title Loan with TitleMax?

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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).

Advantages of Refinancing Your Title Loan

Cash-Out

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 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 Term30 days
Loan SecuritySecured
Turnaround Timeas little as 30 minutes
RequirementsMust have a lien-free vehicle title, government-issued ID, and be the age of majority in your state.

Conclusion

When considering a refinance of your title loan, be sure that you are aware of your financial status and that the refinance will make economic sense in the long run. Though it is tempting to take a cash-out to refinance, one should always consider the long-term benefits over the short term.

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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