Life is unpredictable, which is why we are nearly always caught unawares and unprepared when financial problems rear their ugly heads. A health challenge may arise out of the blue that requires payment of medical bills; your roof may have been blown off in a storm, and you need to fix it as soon as possible.
Whatever problem you may face, having access to loans can get you out of the rut. One of the best and safest options for getting a loan is to go the route of car title loans.
A car title loan is a loan that is generated against the equity you own on your automobile. “Equity” stands for the value amount of your car versus what you owe on the auto. The primary difference between these two values is your car’s equity. Since you possess the valid title of the vehicle, you can obtain a loan and still keep your car at the same time.
At one point or the other in our lives, we have been strapped for cash. You must have experienced the need to have some money that will tide you over until you get the next paycheck. For some individuals, they turn to a family member or friend who has the cash to spare for a short-term loan.
But what if you don’t have a rich uncle or friend? The next best option is to go for a car title loan. All that is usually required is a clean title loan. However, for larger loans, you may be required to present or show proof of full coverage car insurance.
What makes a car title loan more viable is that you do not need to have an excellent credit rating. The lender will not rely on your credit history or take it as proof that you will repay the loan. All they are interested in is the value of your car. This is why car title loans in Phoenix are one of the remarkably few options available for people with bad credit record or no credit history whatsoever to get money quickly.
Before you apply for a car title loan in Phoenix, there are some criteria you must meet:
But how fast can you get the loan, you ask? The process of applying for a title loan and getting approved takes less than thirty minutes or even less in some cases. You can follow the step-by-step guide as outlined below to get your car title loan in Phoenix:
You can start the process of getting a car title loan by putting a call through to Arizona car title loan companies. The reason for this is that you need to compare the payment terms, requirements, loan value, and interest rates that will be attached to your vehicle. Doing this will give you an insight into the best options that meet your needs.
You will discover that payment terms for loans not longer than six months are different. They vary from weekly, bi-weekly, and monthly. You can also obtain a loan that is as low as $100 and as high as $50,000.
Additionally, interest rates are also different. But they must be in accordance with Arizona law.
If you are applying for a small loan, then all that is needed in most cases is your car title loan. In some cases, title loan companies may ask for proof of car insurance.
The car title must also be in your name as the current owner. If this is not the case, then the owner must be present in person to obtain the loan. The vehicle must also be lien-free.
Some lending companies may ask for the spare key of your vehicle. But it will interest you to know that this is an illegal practice, especially in Phoenix, Arizona. You should, therefore, be wary of title lending companies that practice such unlawful acts and stay away from them.
You can increase the worth of your vehicle by making it more presentable before the title lending company you are working with begin their evaluation process.
When you bring your vehicle and necessary documents to the title lending firm, you will be required to complete an application. Then an officer or representative of the title lending company will examine or review your vehicle. This is why you must ensure that your car is in tiptop shape before presenting it to the title lending company. This could increase the overall worth of the vehicle and grant you access to more money.
As a rule, the title lending company will offer the maximum amount that your vehicle qualifies for. But you are at liberty to request for a smaller loan if you do not need the full amount. Some individuals find that it is beneficial for them to work out the payment amount that they can afford for the title loan and then request that the agent or officer base this amount of the loan on the number.
The monthly amount covers only the interest that is owed on the loan amount. After six months, you will be required to pay the principal at the same time. In most cases, it is included in your last payment.
You have the right to ask for the preparation of a payment schedule so that you don’t get confused about what you owe and when. The payment schedule usually includes the amount you owe on each date.
This is perhaps, the most critical step in the title loan application process. It is highly crucial for you to understand everything that is spelled out regarding the loan. You must also agree to these terms and also make sure that you can meet the requirements.
By law, the terms spelled out in the loan must be well-defined and in layman’s language. But if you are still unclear about specific areas, you should speak up at once. The representative of the car title lending company must be willing to answer any questions you have and to clear your doubts as much as possible.
However, if the representative is unwilling to provide answers to your questions or is not able to answer you satisfactorily, then the best thing you should do is to take your business to a more reputable title loan company.
As soon as all the necessary paperwork has been filled out, checked and cross-checked by you and the representative, the latter will provide a check for the loan amount that you requested for.
You should always refer to the payment schedule generated for you so that you can start making your loan payments on or before the expected dates. If you do not consult your payment schedule, you may inadvertently acquire the burden of paying additional fees for late payment. It could also lead to the additional payment of interest charges or risk the loss of your car. This can be a harrowing experience for you.
If you discover that it is highly likely that you will miss or be late with any payment on a particular date, you should endeavor to get in touch with the car title lending firm as soon as possible. A more favorable arrangement can be worked out conjointly, and you will be safe from any unpleasant occurrences.
What makes car title loans different from traditional loans is that despite borrowing against the equity of your vehicle, the latter remains in your possession. That means you can keep on driving your car even while you repay the loan. Remember that it is illegal for any title lending company to ask for the spare keys of your vehicle.
Many reputable car title companies in Phoenix, Arizona are more than willing to work with you provided that you communicate on time. You should also avoid making this practice a habit.
But having a poor credit history doesn’t necessarily make you a bad person or make you incapable of repaying a loan. This is the primary reason why most reputable car title lending companies in Phoenix, Arizonaare not interested in the health of your credit history.
Having bad credit is good as it is the first step towards obtaining favorable credit scores again. Getting a bad credit loan does not lower your current credit score. If you can get a loan and remain compliant with the loan agreement, you are on your way to improving your credit score.
This gives you the opportunity to show creditors that you are capable of paying back a loan.
Applying for a car title loan online will speed up the entire process. This is because you don’t have to complete the seemingly endless paperwork or wait in line at the offices of a title lending company.
You can fill out the online application which offers you the opportunity of completing the paperwork in advance. This will truncate the amount of time you will be required to spend in line at the loan center.
Additionally, vital details such as the loan amount as well as interest rate will have been concluded even before you visit the offices of your preferred title loan company. Online applications for title loans will save you lots of stress and time.
Sending in your request for a title loan online will get it reviewed within a short time and in advance. You may even receive a quick response of approval via email. Following the traditional route will take some time, and your approval may be slightly delayed.
The online application process also makes it easy for the title lending company to take care of your applications, thereby eliminating the stress and hassle of internal or in-house applications. It is quick, customer-friendly, and secure.
No one is immune to emergency situations and access to quick cash can get you out of any financial rut. Car title loans are the fastest way of getting your hands on the money you need to take care of whatever issues you are facing. Conventional loans like payday loans or bank loans not only take a long time to approve but may not issue a loan unless you have a good credit history.
A car title loan in Phoenix, Arizona is the best option for anyone regardless of your credit rating. Most reputable title lending companies offer flexible payment options for their clients. This makes it easy for anyone to pay back the loan within the stipulated period. You will also get to keep and drive your automobile without any fear of harassment by the lending company.