How to Pay Off a Car Title Loan Early

Paying off a car title loan early can have many benefits. When a car title loan is paid off early, you can save money from not having to pay the pre-arranged monthly interest. Another benefit is that you will reduce the amount of debt that shows up on your credit report. This can also improve your credit score, which will increase your chance of getting a loan at a lower interest rate. When the car payment is paid off early, there is one less bill to pay each month.

Instructions

1

Check with the lender to ensure that there are no prepayment penalties for paying off your car title loan early. Some lenders have details of a prepayment penalty included in the loan contract.

2

Pay in excess of the monthly payments on your car title loan, to reduce the interest payments.

3

Write a check and mail it to your car title loan lender. Some lenders will give you a discount for paying off your car payment early. Check with your lender for details of when they may offer these types of promotions.

4

Log into your online account, if you normally pay your car title loan online. Instead of clicking on the amount that is due for the month, choose the option that allows you to pay off your complete balance.

5

Contact your lender by telephone to pay off your car title loan. You may pay the total balance using your checking account or your debit card. When your payment is completed you will be given a confirmation number and details of when you will receive your car title.