What does refinance a title loan mean?
It means that you are trading in your previous car title loan for a new one with a new balance. When you refinance your title loan, your bank or lender pays off your old loan with a new one.
Can I refinance my car loan and transfer to another person?
Sometimes there are situations when we don’t want or can’t have our vehicle any more. Therefore, we start thinking of transferring our loans to another person. Nevertheless, since a bank or lender are involved in the ownership, the refinance auto loan title transfer is possible when you first get their approval for that.
When I refinance what happens to the title?
If your lender is not against your title loan transfer, the person who is going to get the auto title loan without income verification transferred needs to meet your lender’s requirements to qualify for the loan. As soon as he is approved, you also have to transfer the title to this person.
How long should I wait to refinance my car loan?
You can try to refinance anytime you want or need it, but please note some rules:
- Wait about 60-90 days from getting your original loan before you refinance. Usually a proper title transfer takes this long before your bank lender will consider your application.
- Start refinancing procedure after six months if you have great credit.
- Wait at least ONE year in case this is your first title loan. As a first-time borrower, you need to build up a good car loan payment history before refinancing.
How can I get rid of my car loan legally?
Since you could think of transferring your title loan, it may happen that you might want to get out of your current car loan. There are some ways to do this:
- Pay off the loan. If you can do this within two years – do this and keep your vehicle. If it’s not your case and the total value of your car exceeds a half your income, it's time to get serious about the next way out.
- Sell your car.
Find out a current worth of your car, spread the word that you’re selling. But first of all as you don’t own the car outright, you need to get permission from your bank lender. Contact him, let him know you’re interested in selling the car and ask about the transfer process and paperwork, including the credit application a potential new owner would need to fill out.
- Refinance Your Current Car Loan.
Here are two ways out. If you can’t afford a title loan burden, lower interest rate can decrease your monthly payment and overall interest paid.
If you need to complete the loan payment story sooner, refinancing with a shorter repayment term could be your variant but it will increase your monthly payments.
Be aware of fees that come along with refinancing your loan, for instance an early repayment penalty.
- Surrender your car back to the lender (it is called voluntary repossession) and you’ll be free of the loan obligation. Here you save your lender the cost and hassle of repossession, it may free you of some final costs, like late or prepayment fees, or fees to the resale of the vehicle. However, this will ruin your credit score and could cause more difficulty in auto financing in future.
- Default on Your Car Loan.
This variant is not worth of even mentioning. If you just stop paying your car loan monthly and ignore this, you will go into default and at the end you would not just lose the vehicle but also ruin your credit for a decade by yourself.
If you are pondering on dealing with your title loan, the best thing to do is call up your bank lender to discuss your financial situation. They may create a new payment plan or find another solution that allows you to keep your car.
Does Maggie Loans do refinancing?
To solve your problems on a car title loan, you can contact us. We will be willing to work helping you.
FAQ
Does title change when you refinance a car?
When you refinance, a new title needs is issued. This means that the previous lender will no longer be on the title. The new title will show the new lender. This is conducted through your state department of motor vehicles.
Does refinancing a car hurt my credit?
Refinancing a car helps saving you money on interest or give you a lower monthly loan payment. When you refinance a car loan, it could temporarily lower your credit score, but it unlikely can hurt your credit in the long term.
Can I refinance my car without my consigner?
If your credit score has improved since you took the original loan and you don’t need a cosigner anymore, you can refinance your loan without a consigner.
Can I refinance my husband’s car in my name?
While refinancing a car loan can remove a cosigner, you can’t refinance the car in someone else’s name and remove your name from the title. This can only be done by selling the vehicle.
Another way out is when your husband refinances the loan under his name. Refinancing is the only way to change the terms of your car loan and the people it includes. You should keep in mind that the interest rate and length of the loan will change.
