There are a few things to consider when asking the question, does a voluntary surrender hurt your credit? Can I surrender my car without hurting my credit? from the University of Maryland Francis King Carey School of Law. Your email address will not be published. Before taking out a car title loan, research your particular state's requirements and restrictions for these types of companies. References. Many title loan companies will manage the process of reporting the discharge of the loan to the appropriate agency, as well as arranging for you to receive an updated title. -Be sure to compare interest rates from multiple lenders before you decide to refinance. They could take it while youre out and about, turning a regular outing into a huge hassle. These loans are based on your cars value, not your credit, so you dont need to go through traditional loan approval processes to get one. Therefore, getting the loan at an affordable interest rate is vital. Youre typically required to pay those storage fees, and many storage companies charge daily. If You Cant Adjust Your Terms or Refinance What Are the Pros and Cons of Filing Chapter 7 Bankruptcy? Some states require a lender to notify you about defaults within several weeks, but others allow . One year from the surrender date, subprime lenders are more likely to consider you for an auto loan approval as well. In states where they are allowed, these loans typically have a term of 30 days. These loans can easily make it impossible to pay back what you owe, which increases your risk of losing your car to repossession. Made this difficult process much smoother, Upsolve's nonprofit tool helps you file bankruptcy for free. Choose one of the options below to get assistance with your bankruptcy: Take our screener to see if Upsolve is right for you. If the bank has to come take the vehicle, they will report the account as a repossession. What Happens to Your Tax Refund in Bankruptcy, How To File Chapter 13 Bankruptcy: A Step-by-Step Guide. Tiffany Lashai Curtis is a lead writer for the core personal finance team at NerdWallet. The standard answer is opposite of what you said. Cash advances are usually pretty high in interest, and youll probably need to pay a cash advance fee of 5% on top of the interest. She was previously the health writer for Livestrong.com and a freelance writer for publications like Refinery29, Business Insider and MTV News, where she focused on issues that affect marginalized communities. Even if a personal loan has high interest, its APR and loan term will be easier to handle than a title loan.. If you doubt your ability to do so, it is probably best to avoid this type of loan as interest and fees can accrue quickly. {"smallUrl":"https:\/\/www.wikihow.com\/images\/thumb\/a\/ac\/Get-a-Title-Back-From-a-Title-Loan-Company-Step-1-Version-2.jpg\/v4-460px-Get-a-Title-Back-From-a-Title-Loan-Company-Step-1-Version-2.jpg","bigUrl":"\/images\/thumb\/a\/ac\/Get-a-Title-Back-From-a-Title-Loan-Company-Step-1-Version-2.jpg\/aid1410081-v4-728px-Get-a-Title-Back-From-a-Title-Loan-Company-Step-1-Version-2.jpg","smallWidth":460,"smallHeight":345,"bigWidth":728,"bigHeight":546,"licensing":"