You’ve worked hard to build up an emergency savings and earn yourself a good credit score. Then you won’t have to worry about any of this! There are much safer ways to get cash if you are in a bind, such as the methods found in this article. We can’t stress enough how vital it is to stay away from car title loans in the first place, or if you already have one make this car title loan your last one. Even if you play by the rules and make your payments on-time, some shady title loan businesses will hit you with hidden fees, penalties, or high interest rates.
Speak with your financial expert to receive guidance.īottom Line: Avoid Title Loans at All CostsĪs you can see, most of the ways to get out of a car title loan without paying it off have serious consequences. If you are in the military or a dependent, you might have some additional protection through the Military Lending Act. Sometimes, bankruptcy doesn’t get you out of the loan and you could still face the repossession of your car.Ĭonsult an attorney to determine whether your situation calls for bankruptcy. Once you file bankruptcy, your credit score and your ability to obtain new loans will be damaged significantly. It’s only worth considering if you have a large amount of debt – generally more than what you’d get from a car title loan by itself. To be clear, bankruptcy is rarely a good option. File Bankruptcyįiling bankruptcy can offer relief from auto loans and past-due debts. Not to mention, you lost your car, but at least it wasn’t a repossession. You can also choose to voluntarily surrender the car to the lender to end the loan, and that might also lower your credit score. You’ll be left with no vehicle and damaged credit. Defaulting on a car title loan will damage your credit score and lead to repossession. Of course, you could always stop paying on the title loan, but that’s not a good idea. After all, your relationship is more important than any amount of money. If they agree to let you borrow money, be sure that you set up strict guidelines regarding the repayment and offer them interest as a courtesy. They may not be in the financial position to come to your rescue, but it doesn’t hurt to ask. Borrow Money from a Friendĭo you have friends or family that can help? It might be embarrassing to ask, but most people that care about you will probably want to help once they understand the situation. While credit cards typically carry a high interest rate on all cash advances, this method may be a suitable option if you don’t have an excellent credit rating and couldn’t get another loan.ĭon’t want to get a loan or borrow money on credit? There may be some other ways you can gather the money to pay off a car title loan. Use Your Credit Card Cash Advanceīecause most car title loans only cover a few thousand dollars, you might be able to take out a cash advance with your credit card to pay it off.
LOANSTAR TITLE LOANS REPOSSESSION FREE
That means you’re free to pay off your title loan and sell the car at any time to use the money for something else. The magic of a personal loan is that it isn’t attached to any particular vehicle. Typically, a personal loan lasts for at least five years, so this gives you plenty of time to pay off your debts. Contrary to popular belief, you often won’t need a high credit rating for a personal loan if you have some form of collateral. You also have the option to apply for a personal loan. If you’re on the fence, it doesn’t hurt to stop by your bank and ask them what they can do for you. Some car loans aren’t funded immediately and others will have similar interest rates to what you’re already paying, but anything you can do to get away from a title loan is worth looking into. The downside is that you’ll need good credit and most require you to have a late-model vehicle. Traditional vehicle loans are much easier to pay off than a title loan. They offer competitive rates and have term lengths all the way up to several years.
Unlike the title loan, a traditional car loan is done through reputable sources like your neighborhood bank. If resolving the debt isn’t an option, you might want to consider getting a traditional car loan and using it to pay off your title loan. We will then discuss alternatives to paying off the loan. Let’s discuss some potential ways to pay off a car title loan. But there are other ways to pay off your loan without actually having cash to do it with. They may not make it easy for you but be persistent and you’ll get the facts you need.
If you come up with the cash to pay, simply contact your lender and ask for the payoff amount. Let’s face it if you had the money, you wouldn’t have taken out the car loan in the first place. Of course, that isn’t always as easy as it sounds. It sounds obvious, but the best way to get out of a title loan is to pay off the debt.
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