Auto title loans offer access to fast cash and typically involve very short loan terms. They could ideally serve as a helping line when you are in a dire financial situation. There are many online title loan lenders in Arizona that can help you apply for and obtain a loan. There are also in store title loan lenders in many cities in Arizona including Phoenix.
For instance, when you need quick money to pay rent when you are broke and your paycheck is delayed, or you have a medical emergency, you can rely on a title loan to help you out of the situation.
Title loans are easily available to most loan seekers, including people with bad credit scores. However, you need to steer clear of predatory lenders and find a loan which is easy to repay with affordable terms.
Here is everything you need to know about getting a fantastic title loan.
What Do You Require To Get a Title Loan in Arizona?
Title loans are short-term loans secured by your auto title and because your car is used as collateral, if you fail to pay off your loan in time, the lender can seize your automobile.
Typically, the loan amount is 25% to 50% of the value of your car, though it depends on the lender. Title loans usually come with 30 days loan terms, but in some cases, you can pay back the balance over time.
One of the foremost reasons why car title loans are so popular is because the requirements are not very strict. You don’t need to have a superlative credit score, six-figure job, or own a luxury vehicle to take out this loan.
Most lenders just need proof that you hold the title to a vehicle that you own and make a steady weekly paycheck (verified by pay stubs or a call to your employer).
Most lenders will offer title loans even if your income is through Social Security checks, disability checks, alimony, or child support.
It’s important to note that many lenders do not offer title loans on a car that you are still making payments on because these vehicles are still technically owned by the dealership or financial institution.
On top of this, there are a few online car title lenders that allow using a car with a standard loan on it as collateral.
Another thing to take into account is that title loans in most states are not offered to individuals who don’t have their names on the car title. In fact, in some states if the title is jointly held, then signatures of both owners are required on the loan application.
While you don’t have to be the primary driver of a vehicle, you need to prove that you own the vehicle, which means that you can take out a loan even if your license has been suspended.
Other requirements include being above 18 years of age and in possession of a valid proof of residence and identity.
However, it is important to note that different lenders have different processes for giving out loans. Some lenders may require contact information of references as well.
What is the Process in Arizona of Getting a Title Loan?
Title loan process is fast and most times you can get your money within a day, which is especially helpful if you are facing a medical emergency.
Your credit score or rating does not affect the amount of your loan, like other loans. The only calculating factor here is the value of your vehicle.
The lender will appraise your vehicle by, generally inspecting the car in person, taking into account the year of purchase, how many miles it has, the overall condition, and the type of insurance on it.
This is done so that the lender is aware how much your car is worth on the market in the event of a default. Once the amount is finalized, a lender may offer anywhere from 25% to 50% of the vehicle as the loan amount.
You may get a better loan amount by convincing the lender that you are a good risk through your income and credit score.
The process of acquiring a title loan involves bringing in your vehicle, a lien-free car title, other documents mentioned by your lender and signing a contract after agreeing to the terms and conditions.
Some online lenders don’t require physical inspections of vehicles and are satisfied with photos.
Make sure you always check the contract for the amount borrowed, value of the car, interest rate charged, repayment date, and other financial charges. It is very important to shop around while getting a title loan because different lenders have different valuation techniques.
There is tremendous difference in terms of financial charges as well, where some lenders charge a significant amount, while others don’t charge at all.
What to Consider in a Title Loan Lender?
Getting a car title loan can be a lot of work, especially when you take into account the thousands of providers available – both online and physical storefronts.
However, the numbers work in your favor when you know exactly what you need to look out for. Here are some tips to get a fantastic car title lender.
Is Your Arizona Lender Reputable?
Car title loan lending is one of the most popular forms of non-traditional lending and you will find all sorts of options to consider, which can make deciding overwhelming.
Hence, it is important that you consider how reputable a company is before you opt for them.
You should conduct thorough research into potential lender options before you sign the dotted line. This can be done online by reading consumer reviews, looking at ratings, and even by asking around among your friends and family.
Is the Arizona Lender Licensed?
Title loans are heavily state-regulated because of their short-term and high interest rate nature. Hence, you need to find a lender who is licensed and authorized to offer car title loans in your state.
Avoid going through middlemen or websites that don’t directly offer the title loan. These platforms will simply inflate the borrowing costs for you.
Online car title loan lenders need to be registered as per individual state requirements and if a lender is not registered in your state they are probably offering you something other than a vehicle equity (title) loan.
This is more common than you would think with many of the largest companies that fund online car title loans only allowed to fund loans in a handful of states.
What is the Approval Process?
It is important to understand the complete application and approval process before you sign the contract. Some lenders may complete the process completely online, while others may require a physical verification of the car.
There are some unsavory lenders who may even delay the loan disbursal, which means you may not get the money immediately.
It is best to make thorough inquiries beforehand to avoid unpleasant surprises later. For instance, there are few title loan lenders who may demand a physical inspection of the vehicle when you walk into pick up the check.
You may also want to make sure the kind of car a lender accepts before applying for a car title loan. Some lenders won’t accept cars older than 2000, while others will accept cars manufactured as far back as 1991.
Your car mileage also comes into play here, so make sure you ask whether the lender has any mileage restriction. Typically, title loan lenders do not offer exciting loan amounts when the mileage is over 100,000.
What are the interest rates on the loan?
Car title loans are different from car pawn loans. One of the biggest advantages of title loans is that you get to keep driving your vehicle as normal till you pay off the loan.
However, there are certain lenders who may ask you to keep your vehicle in their warehouse or try to restrict your usage.
Look for lenders that do not require your car to be impounded with them for the life of your loan. It is best to avoid lenders who insist upon putting a tracking device or starter interrupt device in your car as well.
Financial Tips to Get a Fantastic Title Loan
While title loans can be very expensive, sometimes they are the only options left. Particularly when you have a bad credit score or are in need of immediate cash. Here are some tips which can help you bring down your borrowing cost.
What Are the Payment Options Available to You?
Make inquiries to be sure how the lender plans for you to repay the loan before you go ahead and take out a title loan.
Most lenders take payments either by direct payment or from the paycheck. Both these options are financially sound and you need to choose which option is more convenient to you.
Is There Any Repayment Penalty?
There are times when paying off your loan early is a bad thing, especially where car title loans are concerned.
It is very likely for title loans with a repayment period of more than 30 days to come attached with a repayment penalty.
This means you will be penalized if you come into some money and decide to use it to pay off your loan early.
Lenders design their loan packages in such a way as to make high profits from your dealings with them. They do everything they can to make as much interest as they can on the repayment. When you pay off early, you cut down their profits in terms of interest payments.
Are There Any Hidden Fees?
Look for a title lender who is flexible in their operations. You don’t want to be hit with hidden fees and charges when you are least expecting them. To this effect, inquire thoroughly about the procedure, penalties, and any other charges.
For instance, ask about their late payment process. When do they charge late fee? What happens if you can’t come up with the payment? What is their roll-over fee? What happens when you default on the loan?
Before You Apply
Getting a car title loan is all about doing a lot of research and being observant about your lender and borrowing costs. However, there is more to consider if you really want to get a good deal on your title loan. Here are some other things you should look for to get the best title loan.
Do the Loan Terms Fit Your Needs?
Make sure you keep looking around till you find a title loan company that offer terms to suit your needs.
Always remember that there are many lenders in the market who will be more than happy to offer you a title loan as long as you own the title to your car.
Look for a company that fits your needs in terms of lease length, amount and interest rates. Beware of those companies that suggest borrowing more than you need. These lenders will entice you by saying you can always pay it off later, but they are not looking out for your best interest.
Is Your Information Secure?
It is a good practice to investigate your future online title loan company and see how they can protect your information and identity in the current standing with technology and security.
When a loan company asks for more information and has detailed paperwork, they increase the likelihood of making your information vulnerable.
This is more important when applying for title loans online because you shall be filling in all information on online forms. Look for a bare minimum SSL encryption technology which can keep your information from random malware and identity theft attacks.
How Quickly Can You Get the Title Back?
An important factor overlooked by most borrowers when it comes to title loans is how quickly the process of title transfer is completed.
In addition, you may also want to inquire whether they require keeping your car along with the title to strike out the lien.
If yes, then how quickly will they return the car back to you?
These questions are especially pertinent when you depend upon your vehicle as your primary mode of transport. You could lose your job if you are unable to make it to work.
The Bottom Line
Title loans on most occasions pay more than payday loans and other short-term loans. However, you need to understand that by keeping your car as collateral you increase the risk of losing it. Hence, make sure you use these tips to acquire a fantastic title loan on your terms at a title loan location near you.