How To Get Out Of A Title Loan As Quickly as Possible

Ways to Get Out of a Car Title Loan

If you’ve ever taken out a car title loan, you know how easy they are to get. You may also know how hard they are to get out of. In the end, title loans can be quite expensive because they typically end up taking quite a bit longer to get out of than you originally suspect. Because they take longer, you risk accruing more and more interest fees and added fees and months go on. They can also be quite the bother because you can, as the name suggest, lose your car in the process.

So, how can you get out of a title loan? You’ve got a few options for relief.

The Easiest Option

This may not be much of a surprise to you, but we figure we should probably mention it anyways. The easier way to get out of your title loan is to pay it off. That is, however, easier said than done. If you had had the money in the first place, you probably wouldn’t have taken out the loan to begin with, and even if you are able to pay it off slowly, the interest loans can make it quite hard to make an impact overtime. If you do come into the money needed to pay it off, contact your lender immediately. Don’t be surprised if they’re not as enthusiastic about closing your loan as you are, though. Some lenders have been known to drag their feet to try and milk more money out of their customers who are already on the hook.

Swap the Car

If you simply do not have the money to pay off your loan, you can always sell the car you used as collateral to generate some cash. You will likely find that selling it is difficult because you do not have a clean title, but it can be done and it happens quite often. You can downgrade to a less expensive car, pay off your loan, and free up your cash flow. This can be a great option if you are able to find someone willing to take your car off your hands.

Refinance or Consolidate Your Loan

This is another way to get your title lender off your conscience and while it seems counter-intuitive, it actually makes a tone of sense. Refinancing a loan basically means replacing it with another loan, or taking out a different loan to pay off the original loan.

The way this works is when you are able to find a loan with a lower, fixed interest rate. You’ll still owe the same amount of money you owed on your title loan, possibly more, but it will not balloon and grow the way that your title loan was doing on account of its high interest rates.

Target a fixed-rate loan from a bank, credit union, or online lender first. You can also use a convenience check from your credit card if you are positive you’ll be able to pay it off in time before the promotional period ends.

If you find yourself running into roadblocks by seeking out title loans from those types of establishments, consider visiting small local banks and credit unions. You may have a better chance of getting approved at places like that.

As a final resort, consider seeking out a peer-to-peer loan, or even asking someone you know to co-sign on a loan with you to help you get approved. Just make sure that they know what they are financially and legally responsible for when they agree to be your co-signer.

Talk to Your Lender

Your existing lender may be willing to work with you if you know the right way to negotiate. Offer to pay what you can and see if the lender accepts that. This can be an especially solid option if your finances are quickly starting to spin out of control. If your lender sees that they have an opportunity to recoup anything from you, they might jump at the opportunity to do so. True Financial is available 24 hours a day for title loan to refinance a car title loan in California or apply for a new loan.

Even if your financial situation is quite that bleak, you may be able to talk you lender down to a lower interest rate or other adjustments to your payments in order the lighten the load. It could be a win-win for both parties, so it’s smart do advertise is at such.

If your lender does agree to take less than you owe, your credit will suffer, but a lower credit score is certainly a better option than financial ruin.

Default on Your Loan

Another option is to simply stop paying your loan. This is obviously not the best option because it will seriously damage your credit and your lender will eventually repossess your car. You may also still owe money on the loan if your car is not sold for more than the amount you owe. Still, you can take solace in knowing that you’ll be done with monthly payments, and that may be enough to help you get yourself set on a better financial path.

A small tip to keep in mind if you are considering defaulting on your loan is that voluntarily surrendering your vehicle can improve the situation and your credit score might not dip quite as much.

Avoiding Title Loans

Perhaps the best way to avoid getting into the potential sticky situations that come with title loans is to avoid them altogether. Instead, try to build yourself an emergency savings fund of three to six months’ worth of expenses and improve your credit so that you have more options the next time a financial hardship rears its ugly head.

Title Loans Stockton California

How to Obtain a Car Title Loan in Stockton, California

If you are a resident of Stockton, California and are starting to struggle to keep up with your monthly expenses, you may want to considering taking out a car title loan. At Stockton Title Loans, we can help you apply for anywhere between $2,600 and $50,000 depending on the value of your vehicle and the equity you have in it.

So, what are car title loans and how can you apply for one?

The answers are quite simple.

The main thing that you should keep in mind about car title loans in Stockton is how they work! To put it simply, a car title loan works when the lender evaluates the value of your car and then offers you a loan based on that value. Car title lenders will typically require you to also share proof of income, a government issued identification, and a permanent address. Some even ask for personal references.

Once your car’s value has been determined, the lender will offer you a loan in exchange for holding onto your cars title and the title is only released when you repay the loan or refinance your title loan.

In California, title loan lenders will hold onto your car’s title until the loan is repaid. One of the primary selling points of car title loans is that you can still operate your car while the lender has your title. But don’t let that lure you into a false sense of security. Some lenders even require you to leave a second pair of keys in order to finalize a loan. Others will ask you to install a GPS device on your car so that they can easily locate and repossess your car if you end up defaulting on your loan.

Once all that it taken care of and you’ve got your cash in hand, go ahead and make the payments that you needed the money for. Don’t enjoy your loan for too long though. You’re going to have to start paying back your loan as soon as possible as to avoid missing a payment, defaulting on your loan, or accruing added interest or hidden fees. Car title loans are short-term loans (repayment periods can last as short as a few weeks) with incredibly high interest rates. In fact, the average annual percentage rate of car title loans is 300 percent. If you find yourself not being able to repay the loan within the specific repayment period, the lender will have the option to repossess your car in order to recoup their losses.

Now that you’ve got a better idea of how car title loans actually work, you might be getting a better answer as to whether or not they are right for you. If you are in a momentary financial pinch – that you can confidently say will come to an end soon – this kind of loan could be helpful. You can get the money you need now, and safely pay it back within the repayment period.

If you seem to be constantly struggling to make ends meet and are in and out of work, a car title loan not only an easy way to get into even more debt, it is also a quick way to lose your car, one of your greatest assets when it comes to actually securing steady work and achieving financial freedom.

About Stockton

One of the crown jewels of Stockton is its blossoming musical and performing arts scene. Though many think of cities like Los Angeles and San Francisco as the cultural epicenters of California, Stockton boasts some of the best performers and venues in the state.

The Stockton Symphony is the third oldest professional orchestra in California, founded back in 1926. Beyond that, the University of the Pacific, located in Stockton, is known for its music conservatory and for being home of the Brubeck Institute, named after legendary Jazz pianist and Pacific alumnus Dave Brubeck.

On top of that, The Bob Hope Theater (formerly known as the Fox California Theater) is one of seven movie palaces in Central California. Built in 1930, Bob Hop himself used to visit Stockton regularly to spend time with close friend and fellow tycoon Alex Spanos. Spanos donated much of the money to revitalize the theater following Hope’s death and used it to honor his close friend’s name.

Who Qualifies for Car Title Loans

You may feel confident in your ability to pay back your car title loan, but first let’s find out whether or not you could qualify.

Because this is a secured loan based on the equity of your car, almost all car title lenders require that you own your car outright. If you do not own your car outright it will impact the equity you have in your car and will either make it impossible for you to secure or a title loan, or will make the value of your loan far lower than what it would be if you did own your car. If you are wondering whether or not your car can qualify for a car title loan, simply reach out to us at Stockton Title Loans and we will go over your vehicle’s value, the equity you have in it, and everything else you will need in order to qualify for a car title loan.

Car title loans in Stockton can be a great help if you find yourself in financial trouble. It is important to approach them responsibly and with all the knowledge you need to succeed in taking out your loan and succeed in paying it back.

Luckily for you, there is a large number of title lenders in Stockton, California who are willing and able to help you get the money you need when you need it.