Can You Increase the Amount of Your Title Loan Over Time?

Title loans offer a quick and convenient way to access cash using your vehicle as collateral. But what if your financial needs grow after securing your initial loan? The good news is that changing your title loan amount is possible, provided certain conditions are met.

How Title Loan Adjustments Work

A title loan allows you to borrow money against your vehicle’s value. The loan amount is determined by the car’s current market value and your ability to repay.

Some borrowers take less than the maximum loan amount they qualify for—maybe to keep monthly payments lower or because they don’t need the full sum. But if they decide they could really use that extra cash, refinancing for a higher loan amount may be a smart option.

This process involves replacing the existing loan with a new one at a higher amount. There’s no limit to the number of times you can refinance as long as you meet the lender’s criteria.

Factors That Influence Loan Adjustments

Several factors affect your title loan increase options:

• Vehicle value: Most lenders cap the loan amount at 25 to 50 percent of the car’s value.
• Payment history: Consistently making on-time payments demonstrates reliability and makes lenders more willing to offer extra money.
• Income stability: Lenders want to see that your income is steady enough to handle a larger loan.
• Loan terms: The terms of your existing loan may impact the feasibility of a loan adjustment.

Steps to Request a Loan Increase

If you believe you’re eligible for a title loan increase, follow these steps:

• Review the terms and conditions of your existing loan, including any clauses related to refinancing.
• Assess your loan-to-value ratio. If your original loan was less than 50% of your car’s value, you might still have room to borrow more.
• Gather financial documents that reflect your current income, employment status, and other relevant financial information.
• Contact your lender to discuss the possibility of increasing your loan amount. Provide the necessary documentation and be prepared to explain your reasons for the request.

Alternatives to Increasing Your Title Loan

While borrowing more money meets your immediate financial needs, consider other options first:

• Look into a personal loan, which you may qualify for if you have good credit.
• Consider a cash advance from a credit card. Just be prepared to pay the associated fees and interest rates.
• Adjust your monthly spending to free up cash and cover expenses without needing another loan.

Before making a big financial decision, consult a finance expert to explore all your options.

Maximizing Title Loan Value with VIP Title Loans

Finances can be unpredictable. That’s why VIP Title Loans offers flexible terms that adapt to your changing circumstances. Whether you’re seeking a loan increase or exploring other financial options, our team is here to assist you every step of the way. To get in touch, please call us, fill out our online application form, or visit one of our five convenient locations in the DFW Metroplex.