Loan applications frequently start out sounding straightforward, but then get complex and stressful as time goes on. Many people give up because it’s just too overwhelming.
One straightforward option for getting the funds you need is a car title loan. This basically means that you, the borrower, temporarily give ownership of your car to the lender while you pay back the amount you were loaned. Follow these tips to learn more about legally obtaining auto title loans in Arizona and beyond.
Make sure your state allows auto title loans
Each state is allowed to set its own rules and regulations surrounding car title loans. Some states prohibit auto title loans in any form, while many others allow it. For states that allow this kind of loan, there are specific rules and guidelines in place to keep the process above board and useful for all parties involved. In your case, auto title loans in Arizona are allowed, but do make sure you are going to a reputable company for your business.
Learn the application process
Just as you would for any other kind of loan, you will need to do some paperwork and get approved before you can get the money you want to borrow. Many auto title loan companies allow you to apply online, and they may want to follow up with a phone call. You might also find that your chosen company wants to take a look at your vehicle before finalizing the agreement.
See if your car is a match
Companies that specialize in auto title loans in Arizona will most likely have some kind of guidelines in place for what type of vehicles they will accept. This could mean cars that were manufactured after a certain year (2000 or 2005, for example), or cars that are below a certain mileage. Do yourself a favor and get all the background information before you start the application, so you don’t waste your time applying if your car isn’t eligible.
Ask about early repayment penalties
Loan companies count on earning income off of the interest payments you make on your loan. If you suddenly get a windfall of cash and pay off the loan well ahead of schedule, they will be losing out on potentially thousands of dollars. Some companies will have an early repayment penalty built into their loan agreement to help them recoup some of this loss. Check ahead of time to see how much this penalty costs, if there is one.
Make sure you can drive your car
It’s less common nowadays, but some people seeking auto title loans in Arizona may find that the company wants to impound their vehicle for the duration of the loan repayment period. Make sure you get to keep driving your trusty vehicle while you pay back the loan!
Most importantly, make sure you work with a trustworthy, reputable auto title loan company like Cash-N-Go Auto Title Loans of Phoenix, so you can be sure you get a great loan from a fair lender. Get in touch with us today to learn more!
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