As is the case with any financial decision you make, it’s important to have all the facts and make smart considerations before signing any dotted lines or making any agreements. Unfortunately, not everyone knows what to do in every situation. Consider title loans in Phoenix, AZ, for example. If you’ve never applied for this type of loan, you might not have any idea of what you need to do to get one!
Don’t worry! Even if applying for an auto title loan is a new experience for you, it doesn’t need to be a scary one. You just need a few tips to help you get the process started on the right foot. Having a handle on the situation will help you approach it confidently, which will ultimately lead to a better experience and smarter decision making.
Take a look at some tips and important information to keep in mind before you decide to apply for an auto title loan:
- Make sure you’re at least 18 and have a valid form of identification, whether it’s a driver’s license, state-issued ID card or passport. Like with any loan, you’ll need this identifying information just to get the process started.
- Before applying, get a sense of what your vehicle’s value is. Kelley Blue Book is a great resource for this, and you can even call around and ask a few dealerships what your trade-in value might be. This is important to know because your auto title loan will be about 60 percent of that value, on average. This can help you decide whether or not the title loan will cover your needs.
- You’ll actually need the title for your vehicle when you go to apply for the loan, so it’s in your best interest to have it handy. Make sure the title has only your name on it! If there are multiple names on the title, you’ll need to have all parties present to sign the title loan application.
- Every loan you apply for needs to be backed by proof of income. If you’re applying for an auto title loan in Arizona, be prepared to present a recent pay stub. Also, realize that the maximum amount of your loan is based on your ability to repay it. Most loans cap out at 35 percent of your maximum monthly income.
- Be advised that you can’t be an active duty member of the military and apply for an auto title loan. The federal government has restrictions and specifications as to how short-term loans are administered to military members—auto title loans in Arizona are included in this.
- You’ll also need to have full coverage insurance if your loan demands it. Often, this pertains to loans over $2,500, but some title loan servicers will dictate full coverage insurance at the point when they feel the loan amount demands it.
Keep all of these tips in mind as you start to get an idea of the auto title loans process. With this knowledge, you’ll be able to walk in and apply for a loan with more confidence! Your loan provider will walk you through the rest once you’ve gotten started.
Categorised in: Title Loans