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Why Car Title Loans Have Become a Popular Choice

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Over recent years, people have been able to turn to all sorts of solutions for their financial needs. Those looking to borrow money will find plenty of options, but not all options are necessarily available to individuals. This is because there are various factors that are taken into consideration when it comes to loans, such as your credit score, income, age, and other key factors. You may find that you are eligible for some type of finance, such as car title loans, but not for others.

If you have damaged credit or a low income, you may find that your options are far more limited. People in this type of situation often struggle to get any form of finance from mainstream lenders, and as such, they have to look at other financial solutions.

The good news is that there are lots of options available to cater to a variety of circumstances and situations. One of these is a car title loan, and these have gained huge popularity over recent years for a variety of reasons.

How Car Title Loans Work

Car Title Loans

So, what is a car title loan and how does it work? Well, these loans are basically secured loans, and the collateral you use is your vehicle title. The vehicle you use as collateral should be registered to you and it should not still be under finance.

The amount you can borrow by way of a car title loan will depend on the value of the vehicle and the lender you go with. If you go onto Google, you can simply type in “car title loans near me” to find a number of lenders that offer this type of loan. You can then compare the lending levels to find one that suits your needs.

In terms of lending levels, most title loan providers will lend you up to a percentage of the value of your vehicle. So, the more your vehicle is worth, the more you will be able to borrow. These percentages can vary. It is important to compare different providers and what they can offer.

Another thing to remember is that you do not have to surrender your vehicle while you have a title loan outstanding on it. As long you are stick to the terms of the loan, you can continue using and driving your vehicle as you normally would. This is ideal for those who need a vehicle for work or other reasons.

What are the Benefits of Car Title Loans?

So, what are the benefits of car title loans? There are many benefits that you can look forward to. This goes some way toward explaining the growing popularity of these loans. If you struggle to gain access to mainstream lending this could be a perfect choice for you.

Of course, you need to meet the requirements in relation to owning a vehicle, as outlined above, and the amount you can borrow will depend on the value of your vehicle.

Some of the key benefits you can look forward to with this type of loan are the following.

Ideal for People with Bad Credit

If you have a bad credit history and a low credit score, you may struggle to get any sort of finance from mainstream lenders. This is because banks and other mainstream lenders put a huge amount of focus on your credit score when they consider your application. If your credit score is not up to scratch, you will be turned down. This can then further negatively impact your credit.

With a title loan, the focus is on the value of the vehicle rather than your credit score. Because you have a form of collateral by way of your vehicle, your credit score is not a big issue. If you have a bad credit history and low credit score, it will not stand in the way of you being able to get a title loan. This is a great choice for people who have damaged credit but who own a vehicle and need to borrow money.

Simple Application Process

Car Title Loans

The application process with some forms of secured finance can be very time-consuming, stressful, and frustrating. It can involve sending numerous documents off, waiting for responses, waiting for ages for the application to be processed, and then waiting once again for the decision. This makes the application process a real chore that many people do not have time for.

With a title loan, you can look forward to a very simple and straightforward process that will not take up too much of your time. In fact, you can complete the whole process from start to finish from the comfort of your home or office. You don’t have to go to a physical branch to sort out any part of your loan. This means you can save time and inconvenience.

Fast Payout

Another of the major benefits you can look forward to with a car title loan is a swift and convenient payout of funds. With some types of borrowing, you seem to be waiting forever simply to get a decision. Once you are approved, you may find yourself waiting yet again for the money to be paid out to you, which is no good if you need the cash in a hurry.

With car title loans from reputable lenders, you won’t have to worry about all of this waiting around and frustration. The money is generally paid out within a short space of time. In some cases, you may even be able to access the money on the same day. This makes it an ideal solution for those who need to borrow money quickly to deal with a financial emergency.

A Simple Solution

As you can see, car title loans can provide a simple borrowing solution for many people, even those who have struggled to get finance in the past. So, if you want easy access to a loan and you own a vehicle, this could be the right choice for you.

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Bad Credit Credit Cards – Bad Credit Credit Cards – ‘My refund has been sent to a credit card that I cancelled’ – your rights to lost money | Fintech Zoom | Fintech Zoom

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Bad Credit Credit Cards – Bad Credit Credit Cards – ‘My refund has been sent to a credit card that I cancelled’ – your rights to lost money | Fintech Zoom

Bad Credit Credit Cards – ‘My refund has been sent to a credit card that I cancelled’ – your rights to lost money

Thanks to Covid, traders have been processing significant numbers of refunds due to events, such as holidays and weddings, being cancelled.

In many cases, these refunds have been sent back to the credit cards used to pay for the purchase – but this has caused a new problem to emerge in relation to card purchases.

When a trader provides a refund, it usually goes back via the same method as the original payment. So if you pay by credit card, the refund is sent back to that card.

However, many people have cancelled credit cards during the pandemic and have therefore found they cannot access the cash.

So what happens to your refund?

Will I get my money back?



If you’ve cancelled the card, the money will be sent to a holding account

The good news is that your refund is safe, as the money will simply be put into a holding ­account by the card provider.

The bad news is that it can take a long time to retrieve the money.

My advice, if you’re waiting for a refund for goods or services you paid for with a card you have now cancelled, tell the trader immediately and ask for the refund to be paid via an alternative method.

Get the latest money advice, news and help straight to your inbox – sign up at mirror.co.uk/email

Positive balance credit card accounts

When a refund is processed back to a card, it can create a positive balance on your account – usually when you have already paid the most recent card bill.

This potentially presents issues as credit cards are not designed to ‘hold’ money in the same way as a current or savings account.

For this reason, consumers are not encouraged to hold positive balances on a credit card.

If your card has a positive balance and you are likely to use it again soon, your next purchases will rectify the situation.

But if you are not planning to use your credit card again in the short-term, ask the card company to transfer the surplus to your ­current account. Do not withdraw the money via an ATM as this may attract fees.

Credit card cash withdrawals

Financial experts warn that you should not get money out from a credit card as it can have a major impact on your credit rating.

This is because there is a very high interest rate attached to withdrawals and companies will flag any withdrawals up, impacting a customer’s credit file.

Bad Credit Credit Cards – ‘My refund has been sent to a credit card that I cancelled’ – your rights to lost money

Bad Credit Credit Cards – Bad Credit Credit Cards – ‘My refund has been sent to a credit card that I cancelled’ – your rights to lost money | Fintech Zoom

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Workout My Credit Solutions Rises as an Authority in Credit Repair and Financial Education

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Quality of life is impacted by numerous factors, and one of its most significant determinants is a person’s financial health. For the most part, financial stability involves the ability to provide for themselves or their family members without putting a significant dent in their wallets. As a concept, financial stability as well as financial freedom is easy to understand but achieving and maintaining it is a whole new story. Today, millions of individuals around the world are struggling with money issues, some of which are caused by the outbreak of COVID-19. However, there are those contending with bad credit, in particular, as a result of ill-informed decisions, mismanagement, and more. Widely acclaimed for the extent to which it helps clients get their credit into shape, Workout My Credit Solutions, LLC has emerged as a go-to venture that is currently making waves in the industry.

Also Read | Top 9 Upcoming Credit Repair Companies

This emerging powerhouse was launched by Nicole Fisher, a 25-year-old serial entrepreneur who has earned recognition for her all-out attitude toward lending people a hand through her initiatives. Highly cognizant of the impact of bad credit on one’s financial health, she started Workout My Credit Solutions in May 2020 and, since then, has been making it possible for clients to get approved for credit cards, mortgage loans, and auto loans, to name a few.

In just a year, the credit repair company has seen impressive growth, reaching remarkable heights due to its consistent delivery of top-notch services. Apart from restoring one’s credit into its former glory, Workout My Credit Solutions also delivers financial education because it believes in the importance of equipping clients with the knowledge they need to handle their money better. It acknowledges the existing gaps in the current educational system where ample attention is not given to arming people with the skills they need to secure a financially stable future. “Our goal is to help clients understand how credit works while they are in the process of getting it fixed,” shares Nicole Fisher.

Also Read | Top 9 Upcoming Credit Repair Companies

Additionally, Workout My Credit Solutions, under the leadership of Nicole Fisher, enables clients to get pre-approved mortgage loans after having their credit repaired by this five-star company. The additional service is strategically designed and incorporated into its inventory of offerings to translate into reality the dreams of those wishing to own a home.

On track to taking center stage, Workout My Credit Solutions has been on the receiving end of excellent reviews from everyone who has come under its wing. It takes pride in the long list of accomplishments it managed to snag under its belt shortly after its establishment and is set to reach the forefront of the industry in the coming years.

With its dedication to pushing people toward financial freedom, Workout My Credit Solutions is bound to remain an impressive force. As it carves a path toward the summit, it plans to continue serving as a leading authority in credit repair and financial education.

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Loans Bad Credit Online – Loans Online – Yes, You Can Refinance a Car loan. Should You? | News | Fintech Zoom | Fintech Zoom

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Loans Bad Credit Online – Loans Online – Yes, You Can Refinance a Car loan. Should You? | News | Fintech Zoom


Cars.com illustration by Paul Dolan

Record low interest rates have given many homeowners refinancing fever, with mortgage refi up 51% in mid-February from a year ago, according to the Mortgage Bankers Association. That fever might be contagious, causing you to wonder about refinancing your car loan for similar reasons: getting a lower rate that offers a quicker payback or a lower monthly payment. 

Related: How to Calculate a Car Payment

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Could you refinance? Quite likely. Unlike with some mortgages, it’s rare that your current loan will have a prepayment penalty or a fee for paying it off early. Also, unlike mortgages, it’s rare for an auto refinance to have significant upfront costs for the new loan. 

Refinancing is “pretty quick and pretty easy to do,” said Phil Reed, an automotive columnist at financial advice site Fintech Zoom. He added that typically, not a lot of documentation is required: There’s “no reason not to if you think you can get a better rate.”

But that’s the question. 

“For a successful refi of an auto loan, you have to meaningfully lower the rate and not extend your loan term,” said Greg McBride, senior vice president and chief financial analyst for personal finance site Fintech Zoom.

It might be tough to find a significantly lower refi rate for a couple of reasons. First, auto loan rates have been low for a while, so most people already have a pretty good rate for their situation. Second, when you refinance a new-car loan, you’re now borrowing on a used car. While the gap on interest rates has narrowed in recent years, used-car loans still have higher rates than new-car loans. 

“You have to move the rate a lot more to generate meaningful savings,” McBride said. On an initial loan of $25,000, he added, “8% to 7% saves less than 10 bucks a month, [while] 8% to 4%, now you’re saving $28 a month.”

And it’s tempting to save more per month by extending the loan term, to add a year or two to your payback. Bad idea, say the experts: Even at a lower rate, paying interest for more months could mean you’ll actually spend more to pay off your car in the long run. The smart financial choice is to keep your payment level and pay the car off faster. 

“If you’re getting a better rate, you should shorten the loan, but that’s a hard thing to tell people,” Reed said.

These Are the Best Refi Candidates

All that said, some people definitely should be looking at a refinance. The prime candidates are people who have significantly improved their credit score — their creditworthiness as rated by the major credit reporting companies (Equifax, Experian and TransUnion) — since taking on a relatively high rate for their current auto loan.

“If you’ve improved your credit, if you were in a corner before and you ended up paying an above-market rate, that’s the classic example” of a good refi candidate, McBride said.

You can check your current score with the big credit companies through one site. Federal law entitles you to one free report each year. However, during the COVID-19 pandemic and through April 2021, the companies are offering free weekly reports at the same site. If you need to improve your credit score, plenty of advice exists on how to do that, including this piece at Fintech Zoom

A second group due for a refi would be consumers who arranged financing through a dealer and ended up paying more for the loan than they should have. This can happen when the dealer arranging the loan gets a rate quote for the buyer from a lender and then marks up the loan to a higher rate for the service. Many lenders allow this hidden markup, an extra profit for the dealer at the expense of the buyer.

“Perhaps they were taken advantage of in a dealership,” said Reed, who noted that shoppers with mid-tier credit are most vulnerable to this. Federal settlements also indicate the possibility of higher risk for minority buyers. Reed says it’s easy to happen to car buyers. 

“Your head is spinning when you’re in the [dealership’s] finance office,” he said. “And a lot [of] people are very, very vulnerable talking about credit.”

The danger is one reason the experts and the Consumer Finance Protection Bureau all recommend shopping around for loans ahead of time and getting preapproved for financing before you go to a dealership.

Not-So-Good Candidates for a Refi

If you took a long new-car loan and you’re currently underwater — meaning you owe more than the current value of the vehicle — a refi is not likely the answer. Even if you find a willing lender, your collateral for the loan (i.e., your vehicle) is worth less than the amount you want to borrow. 

If you find someone, you’re not gonna get a great rate,” McBride said.

A refi is also a risky option if you are struggling to make your payments. 

“Getting a lower payment is a possible strategy if your only option is missing loan payments,” Reed said, but it’s a risk. “You can lose your car and damage your credit and end up with no options. That’s a downward spiral.” 

Before trying to refinance, McBride advises contacting your current lender for help. “Payment forbearance is extremely common,” he said. “Go to your existing lender for payment relief if you’re experiencing financial distress. Working with your lender won’t work against your credit.”

More From Cars.com:

How to Decide — and What to Watch Out For

  • Shop around: Contact at least three lenders for rate quotes, starting with your current lender. Most lenders will do what’s called a “soft credit check” to evaluate you as a potential borrower and estimate your loan rate. Your rate will not be final, however, until you formally apply, have a full credit check (known as a “hard” check) and get a new loan offer to sign. 

“Be prepared for the end result to be higher than [the] original quote after a credit check,” Reed said. But the lender “should explain” the reasoning, which could include a credit issue or even a change in the value of the vehicle.

  • Guard your social security number: Getting an initial estimate should not require a lot of your information.

“Be wary of any company that is taking a social security number, both for security and also because it lets them [check] your credit out of your control,” Reed said. “Be clear on whether or not they are doing a ‘hard’ credit check, which requires an SSN” and can affect your credit rating.

  • Calculate the benefit: Cars.com offers a loan calculator you can use to compare your current interest rate and months remaining on the loan with any new rate quote. You can see what you might save per month. You should also calculate and compare the total interest you’d pay over the life of the loan, which might convince you to keep the same payment and shorten the loan. Along with banks, credit unions and other lender sites, the finance sites also list potential refi lenders.
  • Shop around, but move quickly: Multiple loan applications over an extended period can be a red flag for credit agencies. Each actual application will trigger a full credit check. 

“Don’t drag your feet doing several lenders over a few months,” McBride said. He added that you will not be penalized for shopping around, however, if the multiple applications are all within a “compact time frame” of 30 to 45 days. “All those are counted as one application.”

  • Read the loan offer and check it twice: Don’t sign until you know the details. 

“You need to make sure that what you get in the mail matches what you arranged online,” Reed said. “You run the possibility of them inserting something in the loan document you are not aware of. You could be signing something that is not right. They could put a service contract or a warranty in it, or put fees in that they rename as something else, saying ‘everybody charges that.’”

Related Video:

Cars.com’s Editorial department is your source for automotive news and reviews. In line with Cars.com’s long-standing ethics policy, editors and reviewers don’t accept gifts or free trips from automakers. The Editorial department is independent of Cars.com’s advertising, sales and sponsored content departments.


Loans Bad Credit Online – Loans Online – Yes, You Can Refinance a Car loan. Should You? | News | Fintech Zoom

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