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04 Feb 2020   /   0 comments

Pay Off a Title Loan

Carlos

And as you already know, title loans are easy to access, fast to get and need only a few stipulations to qualify, you need to know how to pay off a title loan. 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 off the loan (plus interest) until you eventually pay off a title loan.

How to pay off the 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.

We Have Many Payment Plan Options

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 a 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 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, some other factors contribute 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 a rate. Read more at https://www.investopedia.com/terms/t/titleloan.asp

Rollovers

Some title loan companies allow rollovers. That is, in a situation where you couldn’t pay up the 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 started with, making paying off the loan even more difficult.

Paying off a loan

TFC Title Loans Policies

  • 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 in the middle of the month, and then complete the rest of the payment by month-end.

How Can You 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.

pay off a title loan

Tips for Paying Off Your Title Loans Early

TFC Title Loans allows you 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: 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 overpayments: when you roll over your monthly payments, it is always to your 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.

Conclusion

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. In the long run, you’ll discover that you’ve saved a lot of money! You can even build your credit a little more. We make it easy to pay off a title loan! Learn more at https://en.wikipedia.org/wiki/Title_loan

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