For many Ohio, an Ohio car title loan can provide much-needed financial relief during a time of uncertainty and financial difficulty. But when your title loan becomes a reason for your financial hardship, you may be wondering what your options are. One option that many decide to take is to refinance a title loan.
One of the main reasons why car title loans can offer relief to so many is because typically car title loans can be taken out within 24 hours of applications regardless of a customer’s credit score and history. While it often takes several days or more to take out a more traditional personal loan from a bank, a title loan can be approved and borrowers can have their loan funded with 24 hours, and hour, even 30 minutes!
While title loans are quite easy to take out, they are sometimes harder to pay off. Title loans often come with high interest rates, and because they are short-term loans (typically with a payment term of 30 days or less), but that can also get some customers in trouble. This is especially true if you find out that you are not going to be able to pay off your title loan by the end of your payment term.
The scariest outcome of a car title loan is that your lender is forced to repossess your car in order to recoup their losses. No one wants that, however. Not your lender, and especially not you.
So, what are your main options when it comes to getting title loan relief?
If you have taken out a title loan and are saying to yourself, “I can’t pay my title loan,” and are asking yourself, “Can you refinance a title loan,” have no fear. The answer is yes!
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.
Can I refinance a title loan?
To refinance a title loan basically means replacing it with another loan, or taking out a different loan to pay off the original loan.
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 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.
Another option you have when it comes to title loan relief in Ohio is asking your lender to roll over your loan.
One simple way to get momentary relief from your title loan is to roll over your loan and its payment term. That means that you will simply elect to get another payment term from your lender. Often, there are stipulations to when you are able to do this. Often, in order to roll over your loan, you will have had to pay a certain percentage of your loan’s principle amount. If you haven’t done that, this may not be an option to you.
It is important to know what else comes with rolling over your title loan. Taking another payment term to pay your loan means accruing another month’s worth of debt. If you truly believe you will be able to pay off your loan thanks to an added payment term, then rolling over your term could be a great option. If you are, however, just delaying what feels like an inevitable default on your loan, it is best not to roll over your loan. That’s because you will simply be accruing more interest and added fees while you tread water.
Car title loans in Dayton, Ohio are great if your treat them responsibly.
If you are unable to pay back your loan by the end of your payment term, it is good to know what options are available to you.
Refinancing a title loan can be a great way to both buy yourself some extra time, and try to find better terms, better rates, and even a better loan. What’s important is that you stay ahead of your repayment term. If you should default on your existing title loan, refinancing your title loan will become much harder.