How are Title Loans Paid Back?

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Getting a Title Loan while Paying Off Your Car

What if the car that you want to put up for a loan is not yet fully paid off? The good news is that you still can use the car’s title even if you still have some payments left on it. This is the beauty of taking out a car title loan: not only can you be approved for a car that you are still paying for, but you also have the advantage of being able to drive it during the loan period. Interested in knowing more about this particular type of situation? Read on ahead to know how to go about it!

With title loans, you apply for a loan using your automobile’s title. The procedure is very straightforward, with a loan officer making an estimate of your car’s current value and coming up with a payment plan for a loan with the same amount, plus interest. If you are able to fulfill your payment obligations up to the last month or you pre-pay your loan, then your lien is released back to you without any problem.

These are 4 Title Loan Advantages!

  1. Competitive interest rates
  2. Funding available in as little as one business day 3
  3. High chances of approval1
  4. Applying for funds and making inquiries is free, no obligations whatsoever

Ensure that You Have the Right Documents On Hand

Applying for a car title loan while still paying for your car will require just a few simple documents. You will need your car title, the vehicle itself (so that it can be assessed for its value), photos of the vehicle, the application form, ID and other forms of identification, driver’s license, and proof of income and residence.

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Collect Your Title Loan Money in a Number of Ways

When your loan has been approved, the next step is to wait for the money to be available to you. You can claim it in a number of ways: by electronic deposit, a personal check, via MoneyGram, and more.

After the loan approval, you can expect the money to be available to you within 24 hours if it was processed during a business day. Typically, the day you sign the agreement is the day you get the funds. Furthermore, you get to decide how you will receive the funds, making it as efficient for you as possible.

How Title Loans Are Paid Back

  1. You can pay for your monthly payment by mailing a check. This practice is ideal for people who regularly make a habit of scheduling their errands around town and would like to fulfill as many of them within a day or two of being out and about. With proper scheduling, it is very easy to slot in a quick trip to the postal office to mail your check.
  2. You can pay for your monthly payment over the phone using a credit or a debit card. A quick call will allow you to transact for your monthly payments by giving the call center your credit or debit card details, account details, and the amount that you would like to pay at the time (a minimum of the monthly due, and as much advanced payment as you like – which will work in your favor because you end up shortening your payment period). Be ready with your credit or debit card details as well as personal information to confirm your identity and you can make payments without having to leave your desk. This method is very secure and safe as officers are duty-bound to keep your personal information private and secure.
  3. Meeting your monthly payment can be done by automating your checking account. If you are the type of person who does poorly at scheduling, the easiest way to go about your payments is to set up an automatic electronic payment linked to your checking account. This is easily done online or by asking for assistance with an employee of the bank where you have your account. Once everything is set up, there is nothing else for you to do, apart from ensuring that your account has the ready funds to make the scheduled automatic payment. With this, there is no need to set reminders on your phone on the day that your fee is due because your bank will attend to that for you.
  4. Sending payments for your monthly fees can be done online. On the website, you will find a MyAccount option containing your personal information as well as the status of your loan. Here you will also find an option to pay for your loan, which can be setup within mere minutes. The convenience of being able to pay for your loan just by opening a new tab in between browsing your favorite websites is indeed something worth looking into!
  5. You can use the App to pay for your monthly dues, right through your smart phone! The App was born out of the constant need to make things easier and more convenient for clients. With the app, you not only have access to your personal information but you also have a payment channel right in the palm of your hands wherever you go. For as long as your phone is able to connect to the internet, you can make the payment within seconds. This eliminates the need to look for a computer to log-in to your website account, which is indeed a whole new level of convenience!

Car title loans are indeed very useful, and the fact that you have several ways of paying back the loan makes things even better for those who choose to take advantage of this kind of loan!

Monitor Your Title Loan Billing Statements

You are sent a billing statement every month so you know how much you have already paid for, what balance remains, and other pertinent information related to your loan. Having this kind of information is very handy when it comes to preparing your finances so that you can meet your succeeding loan payments, especially if you are trying to prioritize that along with your mortgage. It is also good to keep your billing statements close by so you have a record as well as proof of your payments, should the need to show it arise.

Here Are Some Tips for Paying Off Your Title Loan

Here are some handy tips that will help:

  • Put yourself on a budget. While the monthly loan payments are computed such that you won’t find yourself leading a hand to mouth existence or saying that you can’t pay your loan back, it certainly doesn’t hurt to tighten your belt when it comes to your daily spending. This is a way to “uncover” extra money that’s being used on things that you can temporarily live without. Some examples include:
    • Making your own home-cooked meals to eat in the office/home, instead of eating out
    • Mastering the art of couponing for great rebates at the supermarket, as well as planning next week’s meals out of this week’s grocery sale specials
    • Being conscious about air and electric bills
    • Temporarily suspending your memberships to in-person and online services
    • Living on a “less is more” policy and avoid shopping on a whim
  • Set payment reminders on your phone or calendar so you remember to pay your monthly dues. Set recurring alarms a day or two before the deadline so you can prepare for it accordingly and not find yourself rushing to meet the payment on the day itself. If you are a pen and paper type of person, fill in the payment due reminders on each month up until the last month of your loan so you do not need to rewrite it, lest you forget to do so.
  • Automate your bank account so it sets aside a small, nearly negligible amount every month and transfers it to another account from which you will withdraw from to get money for additional loan payments. It can be as little as $50 each month, and by the end of three months you will have $150 dollars you’ve forced yourself to set aside for a full month’s worth of dues! Or it can even be an effort that is seemingly small like automatically emptying your pockets or bag for loose change and small bills and depositing these in a big jar at home. Once filled out, it can be added to a future payment instead of mindlessly being spent on clothes or drinks at the bar.
  • Prepare your monthly payments so it is ready for fulfillment. To avoid being short on funds when your monthly payment is due, prepare it at the beginning of the month so you do not have to think about it later on. As soon as you get your salary, take out the exact amount and set it aside so you do not find yourself spending it unnecessarily.
  • Challenge yourself to make extra payments. Once you have the routine of paying for your monthly dues on time, you may want to level up by making extra payments that will help shorten your payment period and avoid any more interest rates due you in the final months. For many people, this is a goal worth taking on even if you only end up making an extra payment for just a single month. One is still better than none!
  • Look for ways to make extra income. Saving and tightening your budget is the first thing you need to do, and once those systems are in place your next focus should be on how you can make extra income. Look for a demand that you can fill in with a skill that you have. Advertise your services via a social media, ads in papers or online, or on job networks. You will never know what kind of income you can make unless you try. You may even find a new job out of the experience!
  • Use gifts to pay off your loan. Throughout the entire loan period, you might find yourself coming across money that can definitely be put to good use when directed towards your loan payments. There are many sources of this unexpected cash, such as: monetary gifts on your birthday, financial bonuses at work, many more. The simple rule of thumb is if it is extra money that comes from outside your carefully planned money-saving daily budget, then it should automatically go to yet another loan monthly payment.
  • Rent out your extra room. You could get a roommate and cut your monthly cost down for rent in half. People who are best for this is roommates that travel a great deal, like people who are pilots or stewards. There is also AirBnB which that extra room becomes a great source for extra income…but of course be prepared to meet a lot of different people!

Challenge yourself to cut back on spending for the duration of your loan period. Even with your regular monthly budget, you can still find ways to have extra bucks left over by the end of the month if you are able to identify areas where you can cut back or put on hold altogether. This can include your monthly gym membership, takeout dinners, and drinks with your friends during Friday after work – basically anything that can be paused until you finish repaying your loan.

What Happens if I Don’t Pay My Loan On Time?

We don’t want to add to your misery but rather, help alleviate it. We work with you to ensure that the loan is completed in a stress-free manner. We understand life can present difficulties that might disrupt your payment schedule. You can reach out to our customer service team to discuss refinancing options that are available to you.

Get Your Title Back After Title Loans Are Paid Back

After paying off the entire loan, collect the lien on your vehicle.

When you have finally fulfilled the payments of your loan, you can then move on to getting your car title back! In most states, this can take up to 15 days. You just need to call the office to tell them that you have already made the last payment so they can update their records with this information, and begin the process of releasing your title back to you. Getting it back is also as easy as applying for it.

As you can see, the entire process – from approval, to the monthly payments, to the releasing of your title at the end of the payment period – is pretty straightforward. For as long as you keep up your end of the agreement, there’s no reason for you to fall back on your payments even if you are still paying off your car.

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