22 May 2018   /   0 comments

How to Pay Off a Title Loan

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Title Loans, pink slip loans, auto pawn loans or car equity loans are the general terms that define the type of loans that anybody can take when there is an emergency need for money. And as you already know, title loans are easy to access, fast to get and need only a few stipulations to qualify.

If you have successfully received a title loan, then the next agenda will be to use to money for whatever purpose you took it for in the first place and commence paying up the loan (plus interest) until you eventually pay off the title loan.

From the way a car title loan works, you have to completely repay the loan amount you borrowed before you can collect back the title of your car. Therefore, not only is it nice to get a title loan whenever you need an emergency cash advance, but it is also very important to pay off the auto title loan to prevent losing your car through repossession.

Now, the big question is; having received a title loan, how can I clear off the loan? Well, there are several options you can choose from to pay off a title loan, and we will also share with you some useful tips you can apply so that you can pay off your title loan quicker and even complete the payments earlier than stipulated.But before we proceed, we’ll first take you through car title loans and how they work.

What qualifies you for a Title Loan

A car title loan is a financing option for people who are in need of urgent cash loans, people whose credit is bad, or people who cannot go through the annoying stress that banks and some other financing institutes give. So you see that there is one common trait of people who are qualified to get a title loan; people who need cash, and need it fast.

If your answer to the questions below is ‘Yes,’ then you are qualified for a title loan.

  • Are you a US citizen living in California, Texas, New Mexico, Florida or any other state in America?
  • Do you need quick cash for an emergency situation?
  • Do you have a car in your possession, or do you have enough equity in the car that you’re using right now?
  • Is the title of the car with you clear or salvaged and in your name?

Is your answer to the above questions Yes? Then you are qualified for an auto title loan. Think about it. you might just be driving the solution to that critical financial trouble plaguing your life.

If you are yet to complete the payments for purchase of your car, you can still qualify for an auto equity loan, provided your car still has some value in it and you have enough equity in the car. This implies that anybody can qualify for a title loan. Even those with a low credit score can also qualify for an auto pawn loan. If you have been branded unqualified by traditional lenders, then a title loan is your lifeline.

With your car, car title or pink slip and a few other necessary documents, you are 100% ready to get a quick cash loan on the value of your car through a car title loan. Your car is not the collateral; your car title is.

From the way an auto title loan works, you have to be a resident of the sate you are getting the title loan. There are too many car title loan companies in the US, but there is always a TFC Title Loans office in every location near you. With us, you can qualify for a title loan with just your;

  • Car or vehicle,
  • Car title or pink slip, and
  • A viable means of income to support the loan payment

How to Get a Title Loan?

It is very easy to get a title loan. In fact, there are only three stages for you to get a title loan. They are;

  1. Apply and get an approval
  2. Provide the documents required
  3. Collect your cash

With TFC Title Loans, getting a title loan is completely stress-free. And with your car, car title and a source of regular earning, you can get a title loan from us. We will get you approved in a couple of minutes, and based on how fast you can provide the simple papers we need, we can get you funded even on that same day.

Since a car title loan is more like an exchange exercise with a guarantee of your commitment to repay what you borrow, you just have to give up the deed of ownership of your car to get the loan, while we hold on to your car title as the lienholder till when you pay off the loan completely.

We will evaluate your car using Kelly Blue Book to come up with the present day value of your car. We will then offer you up to 85% of this value as cash advance in exchange for your pink slip. On like some title loan lenders near you, we will give you a longer loan duration of about 24 to 36 months to completely repay the loan.

You can simply give us a call today to find out more about the title loan services we offer and how you can qualify for and get one, as well as what you will need to get one.

Requirements

Aside the earlier mentioned stipulations for getting a title loan, there are still some simple documents that are necessary to facilitate getting the title loan. Below are these documents;

  1. Proof of residence (a lease agreement or utility bill receipt) to verify your current location
  2. Proof of income (bank statement, income cheque, paystub or cash flow record) to verify your financial strength in terms of making the regular payments.
  3. Your car insurance document if your car is insured.
  4. A valid government identification that is recognized in your state of residence.
  5. Pictures of your car, especially pictures of the mileage

When you have provided us with these requirements, we will get you the funds you need, fast, and keep your car title with us. The only way you can get back your car title is to repay the loan.

Having known how title loans work and what is required to get a title loan, let’s now take a look at how you can pay off the loan.

What Makes Paying Off Title Loans Difficult

Paying off a title loan is easier said than done. As much as it makes sense to get an emergency loan when the need for cash is urgent, it is also important to weigh your options in terms of paying off the loan.

However, life is full of uncertainties(which is why you took a title loan at first)and apart from unforeseen occurrences that may make the loan repayment plan quite challenging, there are some other factors that contributes to the difficulty of paying off your title loan.

Interest rate

When you take out a vehicle title loan, you do so to pay back at an interest rate. usually, title loan interest rates are quite high, and as such, most profit-driven title loan lenders attach high rates to their title loans.

With most title loan companies, you’ll find out that the interest rates are to the roof, at a ridiculously high APR. while this benefits the lender, you – the borrower will face some difficulties trying to pay off the loan at such rate.

Rollovers

Some title loan companies allow roll overs. That is, in a situation where you couldn’t pay upthe monthly sum in one month, you will be allowed to carry over the payment to the next month. While this may sound enticing, it is predatory. This is because, you pay the rolled over amount at another interest rate, higher than the initial rate you stated with, making paying off the loan even more difficult.

TFC Title Loans Policies

We didn’t just happen to be the best title loan lender in America, we have the best and most efficient title loan deals.

  • Our interest rates are affordable and quite competitive too
  • We do not allow rollovers
  • We allow you to make more payments each month to ease and hasten the repayment process
  • You can also pay half the payment amount at the middle of the month, and then complete the rest of the payment by month end.

How You Can Pay Off a Title Loan

In plain terms, if you want to pay off a car title loan, just comply with the monthly payment plan. But this would either be easy or difficult depending on the policy of the title loan lender and the flexibility of their payment plan. As the best car title loan company close to you, with the most efficient title loan policy, we will offer you some tips on how you will pay off your title loan quickly and easily.

We have already mentioned in the beginning that there are several options to clear off your auto pawn payments. These options include;

  • Trading your car to generate more cash

It is difficult to sell your car especially when you don’t have a clear title. However, it can be done, and it is possible to trade your car for some cash to clear off your debts. And then with the funds generated, you can also get a cheaper car that will still serve the purpose of the former car. Helping you escape the trap of unbearably high interest rates debts to live a more modest lifestyle.

  • Title Loan Refinancing

This is one solution for getting out of an unfavorable title loan. Here, you have to find a title loan lender that buys off title loans to help you pay off your existing title loan, and get you refinanced at a more comfortable term. This may not be a 100% solution to the problem, but it sure is very helpful, as it will get you another title loan that you can easily and conveniently meet up with the payments.

  • Renegotiating with your lender

When it comes to paying off your loan, this could be your chance of getting help from your lender to ease the repayment. Rather than defaulting in the loan payments and losing your car completely, approaching your lender will give you an opportunity for your lender to work with you so that paying off the title loan will not be difficult.

Tips for Paying Off Your Title Loans Early

TFC Title Loans gives you an opportunity to pay off your loan earlier than the set date in your contract agreement. Here are some useful tips to guide you in line with our title loan pay off plan.

  1. Make adjustments and plan ahead: this will help you work with your budget and cut off any unnecessary expenses. Also plan your budget with your loan payments inclusive.
  2. Avoid rolling over payments: when you roll over your monthly payments, it is always to your own disadvantage, because you will end up paying more (at a higher rate) when you eventually want to pay in the next month.
  3. Round up your payment and pay more each month: let’s say you are to pay $315 monthly, you can decide to pay $350 every month. This way you will end up paying off your title loan earlier without having to wait for the whole loan duration to pay off the loan.

With our no prepayment penalty, TFC Title Loans will never penalize you for completing your payments earlier than agreed. We want to help you to be back on your feet financially, and in the long run, you’ll discover that you’ve saved a lot of money, and even built your credit a little more.

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