Car title loans can be expensive. Often, they are used for urgent expenses and are entered into quickly. In many cases, this leaves the borrow with a very expensive loan with terms that may not be favorable.
A possibility to lower costs of a car title loan is refinancing. Not all states allow refinancing of title loans, although many do. Accomplish this with a lower rate lender can save a significant amount of interest.
As we detailed in a previous post, high interest loans get very expensive. This effect is amplified significantly with the length of the loan. The total costs for loans longer than 12 months were more than double and even triple the original principal value of the loan.
So, what should you do if you are stuck in a very high interest car title loan? Consider refinancing the title loan at a lower rate. To refinance a title loan simply contact the lender to find out the process. Typically, it is similar to the title loan process. Most of this can be done online.
The car title loan refinancing process usually involves the lender paying your current loan in full and issuing a new loan. The new loan will be with the interest rate and repayments terms of the lender you choose, so choose your lender wisely. Fast Title Lenders has a reputation as one of the best online title loans in the business.