If you’ve found yourself in a sudden and unexpected financial bind, an auto title loan can be one of the best tools available to you to get some fast cash without a long and complicated application process. You don’t have to go through a credit check to get the loan, and even though you’re using the vehicle as collateral, you’re still able to continue using the vehicle. It’s sort of like pawning your vehicle, except that you maintain control and use of the vehicle during the course of the loan.
Here’s some information about what you need to know about Phoenix title loans before you apply for one.
Getting the loan
One of the most frequently asked questions we receive about title loans is what people actually need to do to get one. Getting the loan is actually a rather simple process. You must be at least 18 years old to apply (and be able to prove this), and you must have a car that has a lien-free title listed in your name. You must also have a regular, verifiable source of income, whether it’s from a job, unemployment benefits, disability benefits or a pension. If you meet all of these requirements, you are eligible to apply for a title loan.
To apply, head to a location offering those loans near you, or use an online service. If you apply in person, the person assisting you with the application will also be able to inspect your car immediately to determine your value, which affects the amount of money you’re able to get in your loan. You can get an offer right then and there for the value of the loan and the repayment terms.
Making your payments
If you qualify for a loan, are willing to go forward with the application process and receive favorable terms, you then need to make sure you adhere to the payment plan you’re assigned. Know exactly when all of your loan payments are due, and how you can pay them. Typically, you’ll be able to make payments in cash (in person only) or use a debit card or automatic transfers from your bank. You can even pay off the loan in its entirety all at once if you wish with a lump sum payment—there is no prepayment penalty for auto title loans.
Keep in mind, though, that if you’re not the only person listed on the title to the vehicle, the lender may need to get in contact with the other person on the title before it can approve the loan. This person must be aware a loan is being made on the title of the vehicle, and agree to it—otherwise, there is the potential they could be responsible for payments or risk losing the vehicle if you default on the loan.
In addition, if you’ve already secured a car title loan, there is the possibility of refinancing if it makes sense for you to do so. This can help you get a more favorable interest rate and repayment terms.
For more information about how Phoenix title loans work and whether they make sense for you in your situation, we encourage you to contact Cash-N-Go Auto Title Loans of Phoenix today.
Categorised in: Title Loans