Title loan buyouts are available from lenders that specialize in title loan refinancing, such as private lenders that offer personal installment loans.
Here's how it works when a lender buys out your title loan:
- The new lender pays off your existing loan ā relieving you from any further obligation to your old lender. š®āšØ
- The new lender rolls over your old loan amount into a new loan with new terms. Your new loan could be for the same amount that you owed on the old title loan, or you might be able to take out additional money as well.
A title loan buyout or refinancing is a good option if you are having trouble with the terms of your old title loan. Refinancing with a new lender can help you get a lower interest rate or longer repayment period so that your monthly loan payments are more manageable.[1]
Factors like high payments or a tough payment schedule can make it hard to pay off your loan ā and defaulting on your loan means you could lose your car! š±
So, if you're having trouble keeping up with your payments, a title loan buyout may help you keep your ride safe and breathe a little easier.
Learn: Can I get a second title loan?
However, be advised, while a title loan buyout can lower your monthly payments, it might still cost you more in the long run. Higher finance charges or a longer repayment plan could mean you'll end up paying more in interest, which translates to more money over the total life of the loan.[2]
So, make sure you compare both monthly and total costs when considering a title loan buyout.
