If you’ve ever turned on the news or listened to the radio and heard a story about someone who experienced extreme financial hardship after taking out a title loan, you might be justifiably wary of pursuing this option yourself. Although there are certainly predatory lenders out there who are out to weigh you down with excessive interest rates and surprise fees, they don’t make up the majority of lenders. You can still successfully get car title loans in Phoenix, AZ, so long as you are careful about the lender you choose to work with. Make sure you know about all of the red flags to watch out for when you’re looking for a lender:
- A laundry list of extra costs: If your lender tacks on a number of extra charges and fees, it might be best to go elsewhere for your loan. Some lenders charge borrowers for things like “service charges” and “credit insurance” that only serves to increase the amount you are paying and usually does little to benefit you in any way. If you see a charge you don’t understand, make sure to ask about it to ensure that the fee is reasonable and makes sense.
- Unreasonably high interest rates: Typically, car title loans in Phoenix, AZ do have high interest rates relative to traditional loans because of the additional risk that a title lender assumes, but you should still be wary of interest rates that seem to be excessive. Generally, interest rates on title loans should be below about 36 percent. If you see, for example, a three-figure interest rate, look for a different lender with more reasonable rates.
- Additional fees for low credit: There are lots of people with poor credit who borrow through title loans—in fact, this is one of the primary benefits of title loans for lots of people. Some lenders take advantage of people with low credit scores by withdrawing approval at the last minute and then offering a more expensive loan option.
- Evasive communication: A reputable lender should have no problem being open and honest with you about the detailed terms of their loan agreements. If you feel rushed into a particular loan and the lender seems to be avoiding questions about different charges and fees, move on to a more reliable lender. It’s a good idea to look for a lender who is a member of a loan association or other reputable industry organization.
At Cash-N-Go Auto Title Loans of Phoenix, we understand how devastating predatory lending can be, which is why we adhere to strict standards of honesty and integrity in everything we do. We are an experienced provider of car title loans in Phoenix, AZ and a founding member of the Arizona Title Loan Association and a proud member of the Better Business Bureau. We are a family owned and operated lender, and we’ve been serving the community since 2000. Come and see us today and get your loan in as little as 30 minutes!
Categorised in: Title Loans