Is It Fine To Pay Off A Car Title Loan Early? 

Daniel Joelson

Daniel Joelson

Total Posts: 579

Published Date: February 7, 2023

Daniel Joelson has been in the consumer finance space since 1994, he has helped to develop underwriting manuals for the financial sector. With a vast amount of Knowledge in consumer finance, he has been writing articles for all types of loans. With his knowledge, he is able to help many people to answer different financial problems.

Paying Off Your Title Loan Early

Title loans have always been a great option when comes to getting immediate cash. They have been beneficial for people who have zero credit scores or poor credit scores.  It is also fine to pay off a car title loan early. Getting car title loans is an easy process if you have a reliable lender by your side. 

However, if you are someone who doesn’t like to be in debt for a very long time then it is possible to get out of it as soon as you want to. Paying off your car title loan quickly can help you get rid of the debt and you can simply focus on your goals. The process of paying off a title loan early is known as prepayment. 

How to pay off a title loan early? 

There are mainly two options that you need to consider if you are willing to pay off the title loan early. It is about the working of the title loan and what your lender offers. 

  • Try to get in touch with your lender to change the terms of the repayment 
  • Make large payments than expected 

You should go for the first option. When you are applying for car title loans online, the repayment terms might be offered 12, 24, and 36 months as repayment loans. In case you applied for 36 months then you will come to a realization that this is a very long time. 

After this case, you can contact the lender and get it checked that it is possible to move the contract to 12 or 24 months as a repayment plan. This will allow you to save a lot of time. 

However, another option is to make bigger payments when you are able to. This option will allow you to repay your loan earlier than expected. 

pay off a car title loan early
Pay off your car title loan early

Benefits of prepayment of title loans

There are many benefits of repayment of title loans or secured loans: 

  • Avoid debt accumulation because of high-interest rates – Quick cash loans can sometimes have high-interest rates in comparison to other loans. Paying them swiftly will allow you to avoid the principal amount growing at a great scale. Also, you can save yourself from penalties because of prepayment. 
  • Regain your car title quickly – In case you have any future plans for your car then paying off your car title loan early can help you get your car title early. You can again have complete control over your car. Thus, you can sell it or buy a new one. 
  • You are eligible for a new title loan – Paying your car title at the earliest keeps you loan-free for the next emergency situation. In other words, you become eligible for new title loans. 


Prepayment of Auto Equity Loans only works in your favor. However, it is the lender and contract that matters the most. TFC Title Loans don’t apply any early repayment penalty when it comes to car title loans. But other lenders or companies might not be flexible.

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DISCLAIMER: As our policy to make sure you know what we do and what are our limitations, we offer you these disclaimers. We are NOT A LENDER and we do not make short term cash loans or credit decisions. We are a referral service and work only with licensed lenders/brokers.

We may act as the broker for the loan and may not be the direct lender. Loan proceeds are intended primarily for personal, family and household purposes. We do not offer or service student loans.

*Loan amounts by the lenders vary based on your vehicle and your ability to repay the loan.

*Since we do not lend money directly we cannot offer you a solicitation for a loan, except in the state of California. In all other serviced states we WILL match you with a lender based on the information you provide on this website. We will not charge you for this service and our service is not available in all states. States that are serviced by this Web Site may change from time to time and without notice. Personal Unsecured Loans and Auto Title Loans are not available in all states and all areas.

*Auto Title Loan companies typically do not have pre-payment penalties, but we cannot guarantee that every lender meets this standard. Small Business Loans typically do have pre-payment penalties and occasionally will use your car as collateral to secure the loan.

*All lenders are responsible for their own interest rates and payment terms. TFC Title Loans has no control over these rates or payments. Use of the work competitive or reasonable does not mean affordable and borrowers should use their own discretion when working directly with the lender.

*The amount of people who applied for a loan and we helped and those who received a loan is not the same. We cannot guarantee we will find a lender who will fund you.Just because you give us information on this web site, in no way do we guarantee you will be approved for a car title loan or any other type of loan. Not all lenders can provide loan amounts you may see on this web site because loan amounts are limited by state law and/or the lender. Some lenders may require you to use a GPS locator device on your car, active all the time. They may or may not pay for this or charge you for this. This is up to the lender and we have no control over this policy of the lender. Typically larger loans or higher risk loans use a GPS.

*In some circumstances faxing may be required. Use of your cell phone to receive updates is optional.

*Car Title Loans are expensive and you may have other ways to get funding that is less expensive. These types of loans are meant to provide you with short term financing to solve immediate cash needs and should not be considered a long term solution. Residents of some states may not be eligible for a loan. Rejections for loans are not disclosed to our firm and you may want to contact the lender directly.

*Car Title Loan lenders are usually licensed by the State in which you reside. You should consult directly with these regulatory agencies to make sure your lender is licensed and in compliance. These agencies are there to protect you and we advise making sure any lender you receive money from is fully licensed.

*Trading Financial Credit, LLC dba TFC Title Loans, Car Title Loans California, Dineromax. If you are using a screen reader and are having problems using this website, please give us a call at 1-844-242-3543 for immediate assistance.

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