A title loan can be one of the quickest ways of getting a loan if time is of the essence and you need the money as soon as possible. Many people use car title loans to manage unexpected costs that arise. However, many more people are not familiar with what exactly a car title loan is, or how you can use one responsibly to cover your financial needs.
With this in mind, here is an overview of car title loans in Phoenix, AZ, including what they are and what you should keep in mind to make sure you’re not setting yourself up for financial trouble by using one.
What exactly is a car title loan?
A car title loan is a loan that uses your car’s title as its collateral, allowing you to take out a short-term loan relatively quickly. Approval for this type of loan differs from the traditional loan process in that it is based not on your credit score, but on your vehicle’s value. You are able to get a car title loan if you have a valid driver’s license, proof of income, proof of residency and a vehicle with its title in your name.
What you should consider when looking for a title loan provider
People who take out title loans tend to do so as a short-term solution for sudden, unforeseen financial issues, such as unexpected costs or financial emergencies that may arise. Just as important as the decision of whether or not a title loan is the right choice for your scenario is the decision of which title loan provider you will go with.
Here are just a few of the traits you should be looking for in any provider you choose:
- Professional experience: It should go without saying, but any time you’re going with a loan company you want to make sure they understand the title loan industry and how the processes work. Having an experienced professional who can assist you through the process is an invaluable help, especially for larger loan amounts.
- Flexibility: The very nature of title loans is that they’re ideal for people who have sudden, unforeseen expenses pop up, meaning you need a title loan provider that’s going to be understanding of your situation and flexible with your payments. Choose a provider that’s willing to work with you on a payment schedule and late fees. While you will never be able to set your own terms, per se, having a company that’s at least somewhat flexible is a big benefit.
- Interest rates: Obviously, the lower interest rates, the better for you. Interest is typically charged on a monthly basis and is equal to a percentage of your principal balance. That percentage can vary widely, depending on your circumstances, but pay close attention to the interest rates available and try to minimize the amount of money you’re paying in interest.
For more information about the process of getting car title loans in Phoenix, AZ, contact the team at Cash-N-Go Auto Title Loans of Phoenix today.
Categorised in: Title Loans