This doesn't solve the main problem (that you're short on cash), but it can stop the bleeding. If you are having trouble coming up with the money, and you really need your vehicle, try borrowing from a source that charges less interest/fees than what the title loan company is charging you. Making arrangements to return your car can save you anxiety because you wont have to wonder when and where a repo team will pop up to take your car. When evaluating offers, please review the financial institutions Terms and Conditions. What Happens if I Voluntarily Surrender My Car? - Auto Credit Express Second, you need to make sure that you are not liable for any remaining balance on the loan. -Be sure to compare interest rates from multiple lenders before you decide to refinance. Does a Voluntary Car Repossession Affect Your Credit? to lower the interest rate, which could reduce payments and make them more affordable. Copyright 2023, arsearchinc - All Rights Reserved. But if there's any way for you to (legally) gather the money to pay off a title loan, you should do it. This still negatively impacts your credit and leaves you without a car, but like negotiating, you'll close out the loan. Pay rent online? Because these loans are based on the vehicles value rather than your credit score, they are an appealing option if you have bad credit or no credit and need money quickly. Title loans have short terms, often only 15-30 days. Arrange the time and place, and keep records of when, where and. Depending on state regulations, the dollar amount of these loans usually ranges between $100 and $10,000. If the bank has to come take the vehicle, they will report the account as a repossession. If you currently have a title loan, the best thing to do is to get out of it quickly. Getting a title loan is a lot easier than borrowing money from other sources. Tiffany Lashai Curtis is a lead writer for the core personal finance team at NerdWallet. Even if the . Even if a personal loan has high interest, its APR and loan term will be easier to handle than a title loan.. By signing up you are agreeing to receive emails according to our privacy policy. Read more. Although a voluntary surrender is noted on your credit reports, a lender that looks closely will see that you took a proactive approach to resolving the account. This is because it is a black mark on your credit report. *For complete information, see the offer terms and conditions on the issuer or partner's website. There are many online lenders that offer either bank loans or peer-to-peer loans, and some online lending sites will tell you upfront if your credit score is high enough to qualify. "Car Title Loans.". Editorial Policy: The information contained in Ask Experian is for educational purposes only and is not legal advice. Other product and company names mentioned herein are the property of their respective owners. Lenders typically charge a monthly fee that can be quite high, which you will have to pay in addition to the original amount borrowed. Its usually capped at 25% to 50% of the vehicle's value. If the bank has to come take the vehicle, they will report the account as a repossession. All information, including rates and fees, are accurate as of the date of publication and are updated as provided by our partners.
surrendering your car to titlemax