How to Pay Off Your Title Loan Faster

Man handing the car keys

Man handing the car keysIt is hard to get a loan, especially if you have a bad credit score. Most lenders will not even entertain your application the moment that they see your credit history. Still, there are ways to get a loan fast without having to worry about your bad credit score.

A title loan in Utah functions the same as a regular installment loan. The only difference is that you need to use your car to apply for the loan itself. You need to submit the title of your vehicle to your lender to secure himself if ever you default on your credit. Although it is an excellent option for people who have a low credit score, it is still essential to find ways to pay it off as fast as possible. But how do you do that? Here are the ways to pay off your loan:

Pay twice a month

Making payments twice a month instead of one regular monthly payment can help you pay off the loan much faster. HuffPost says that making payments twice a month can reduce your several months on your credit. You may want to discuss it with your lender to let them know about it.

Make extra payments

If ever you have extra money, you can consider paying down your credit cards and other loans. You can put any extra money to make additional payments to help you get your principal balance down a bit. My Money Coach explains that regular payments go toward your interest rates. Hence, making extra payments gets applied directly to your principal balance.

Make some extra money

Coins, calculator and piggy bankYou can think of other ways to make extra money to pay off your loan. You can consider doing a part-time job that can help you earn a little extra each month. Doing so can help you pay off your credit even faster. Finding a part-time job that pays as low as $100 every month can give you an extra payment worth $1,200 throughout the entire year.

Make one extra payment a year

If you don’t have enough funds to make bi-weekly payments, you can consider making one extra payment each year instead. Another option is to divide your monthly payment by 12 and then add the dividend to all your future monthly fees. For example, if your monthly title loan is $260 for twelve months, you can divide your monthly payment amount by 12. Then, add $21.67 to each of your payment for an entire year. The extra pay that you do every month is equal to one additional payment for a year.

Ask for any discounts for paperless billing

There are a few companies that offer discounts whenever you sign for paperless billing. Lenders save money from printing bills whenever customers avail their paperless billing service. In return, they offer discounts for their customers as a reward.

Getting a title loan is an excellent alternative for those who do not have a good credit standing. However, properly managing your finances is still the best way to go. Paying your loan earlier than expected will help you save money on interest as well as decrease the overall term of your loan.