Table of Contents

  1. What Is a Title Loan Grace Period?
  2. How Long Is a Title Loan Payment Grace Period?
  3. Benefits of Knowing Your Loan Payment Grace Period
  4. Canceling a Recent Title Loan During a Grace Period
  5. How to Cancel a Title Loan
  6. The Benefits of Title Loans With a Right To Cancel During a Grace Period

What Is a Title Loan Grace Period?

In lending, a grace period typically refers to a number of days that you can be late on a payment, without incurring any extra fees or having to fear other severe repercussions. For some lenders, in the context of a new loan, a grace period can also refer to a set number of days after signing your loan agreement, during which you can decide to cancel your loan without any penalties.

How Long Is a Title Loan Payment Grace Period?

For car title loans serviced by LoanMart, the best way to find out if your loan has a payment grace period is the title loan agreement. Look for the section that explains the “Late Charges” or “Fees”, and carefully read it – if your title loan agreement grants a few extra days before late payments incur a late fee, the loan agreement will say so! In general, title loan grace periods can range from 0 days to 10, or even 15 days, depending on the lender you work with and the state you live in.

It’s important to be aware that even if your title loan agreement includes a grace period, that doesn’t mean your due date is any different! If you don’t make your payment by the due date, you can still receive collection communication like collection calls, emails or payment reminder text messages since your payment is still considered past-due during the grace period.

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Benefits of Knowing Your Loan Payment Grace Period

It’s a good idea to be well-educated about any loan that you take out. Knowing the exact terms of the loan that you’ve signed up for is key when it comes to being smart about managing your loan.

The main advantages of knowing your grace period include:

  • Avoiding late fees: Knowing whether your loan has a grace period, and if so, how long it is, can allow you to minimize or avoid late fees. Be sure to make your payment before your grace period has ended to avoid late fees being added to your loan!
  • Better planning: Knowing the grace period of all your outstanding loan obligations can help you optimize payments when your financing are tight. If you are having to juggle multiple payments, it may be wise to prioritize those with no grace period or a short grace period.
  • Peace of mind: Being aware of your grace period can relieve you of some stress when an unexpected event makes you miss a loan payment. Knowing whether or not you have a small buffer to make your payment can lower the worries about the consequences.

Canceling a Recent Title Loan During a Grace Period

If you’re looking to cancel a title loan that you’ve just obtained, you may be in luck if your lender offers a grace period to cancel or rescind a loan. Similar to the payment grace period, the best place to find out if your loan has a grace period to cancel your loan is your loan agreement. Look out for a section that includes words like “cancel” or “rescind” to find out if your title loan contract includes a right to get out of your title loan early without penalties.

How to Cancel a Title Loan

If you’ve changed your mind about your title loan, after recently having singed your agreement, confirm if your loan has a right to cancel and follow the required steps to do so.

If you want to cancel your title loan serviced by LoanMart, there are no hard feelings. It’s easy to cancel the title loan. All you need to do is follow the required notification steps and return the money in full if you change your mind.4

If you have a title loan with another company and need to cancel your title loan because your monthly payments are too high, a title loan serviced by LoanMart may be able to help you by refinancing your loan to give you a better monthly payment.1

Refinancing a title loan is like applying for a new one. After you’ve submitted your application and a representative contacts you, just let them know you are trying to refinance an existing loan and they’ll take you through the process from there!1 Title Loans have comparatively high approval rates and can come with competitive interest rates.

The Benefits of Title Loans With a Right To Cancel During a Grace Period

If the title lender you work with offers a grace period that allows you to cancel your loan in the early days without penalty, this can be beneficial in a few ways:

  • Peace of mind from flexibility: Since a title loan can feel like a large commitment as your car is required as loan collateral, having the flexibility to change your mind and cancel the loan can give you peace of mind. Knowing that you have a few days to back out of the loan can be liberating.
  • Ability to continue to shop around: If you decided to take out a title loan primarily for the speed of funding, choosing a title loan with a right to rescind for a few days will allow you to continue shopping around for other loan alternatives that may be cheaper or better aligned with your budget.
  • Confidence in the loan and your decision: Having a few extra days to think over your decision, and taking the time to fully study all the fine print of your loan agreement can increase your confidence in the loan and your decision to take it and keep it.

Still unsure about a title loan? LoanMart wants to make sure you are ready and informed before you commit to a title loan. Even if you are hesitant, there’s no harm in applying and seeing what you may qualify for – there’s no obligation tied to the initial title loan quote1, and title loans serviced by LoanMart come with a right to rescind period.4