A title loan buyout entails a new lender to paying off your debt on your current car title loan, giving you new, lower interest rates and a longer, more flexible loan term. A title loan buyout is like refinancing a car title loan and can be referred to similarly. Note that you must fully own your car to qualify.
Get Help with a Title Loan Buyout!
This isn’t usually a surprise or an uncommon thing for people who apply for a title loan in the first place due to a pressing need. In desperation, people find it hard to repay their loans. Either the interest rates are too high and the loan duration does not suit their financial situation.
If you’re in a situation like this, a title loan buyout is just what you need! This gives you a better interest rate and better loan terms suited to your needs. However, it is not advisable to stop paying your title loan just because you are planning to get a title loan buyout. Doing so will only have a negative impact on your credit score and you still run the risk of car repossession. Unfortunately, you still owe your last lender. You must continue paying off your loan until you have signed a contract with a new lender.
Buyout Vs. Refinance
Refinancing is an option for borrowers who are in good standing but want to save more money by getting a new loan from a new lender. Meanwhile, title loan buyouts are for people struggling to keep up with their payments and are falling behind. Learn more at https://spacecoastdaily.com/2020/01/everything-you-need-to-know-about-car-title-loans-in-california/
3 Benefits of Buyouts
- Lower interest rates
- Longer loan terms
- You lower the risk of repossession