Car Title Loans in Arizona
While not as popular as they were during the credit crunch; title loans in Arizona are still the ‘go to’ option for many people who are dealing with severe credit issues but still need to borrow money. Thankfully, if you know what you are doing, it is safe to borrow money like this.
Learn More About Title Loans in Arizona
You can think of title loans as something akin to a mortgage, albeit involving no deposit and lower amounts of cash being borrowed.
With a title loan, you will be handing the title to your vehicle over to a lender. This means that you are borrowing money against the value of your vehicle. It is as simple as that. Most vehicles with titles should qualify for a title loan too. While the most common will be a car, some people have handed over the title to their boat or similar. Basically; if you have a title and your vehicle holds value, then it is likely the title loan company in Arizona will want to deal with you.
Will I have access to my vehicle?
Contrary to popular belief; when you hand over the title to your vehicle, you won’t be handing over the whole vehicle. You will just be handing over the Arizona title documents to them. When you pay off the loan, you will get the title documents back. You can use your vehicle for the full duration of your loan, so don’t worry too much about that.
How much can I borrow in Arizona?
This is going to be fully dependent on the value of your vehicle. It is something which is going to be tough to predict.
Despite what some people think; when you take out a title loan, it is unlikely that you will be able to get the full value of your vehicle. Don’t bother looking on second-hand vehicle websites because that is not the amount of money that you will be given against your vehicle.
Remember; if you fail to pay your loan back (more on that in a short while), the lender will own the title to your vehicle. This means that they will need to sell the vehicle on the second-hand market. They are not going to give you more money than the vehicle is worth, otherwise, they would never make a profit.
Many people find themselves ‘insulted’ by the value that is placed on their vehicle. However; we can assure you that when it comes to title loans in Arizona, the value that you are given will be the value that the lender is comfortable giving you. As long as you pay your loan back quickly, then this is something that you will probably not need to worry about too much.
Who are these loans for?
These loans are best for those who are suffering from a low credit score and are unable to borrow using other methods. We do want to point out that it is unlikely that taking out auto title loans in Arizona will impact your credit score. It is rare that the company will carry out a credit check because they have their collateral, and they know that they are going to get the money you owe them back sooner or later.
These loans are also going to be ideal for those who may need money quickly, even if they do not have a low credit score. Much like payday loans, with the right car title loan center, you should be able to borrow money ‘same day’. If you go via the traditional route (i.e. through your bank), then it is more likely that it will take weeks to receive your money.
These types of loans are for covering short term expenses. The idea is that you pay them off as quickly as possible. Most auto title loans are going to be for a month at the most, although some may push to a couple of months. If you are not able to pay off the money that you are borrowing in this amount of time, then this type of loan is not going to be right for you.
You will need to remember that due to the ‘risk’ of these loans on the part of the lender, you are going to need to pay a decent amount of interest on your loan. However; since you are giving up collateral when you hand your vehicle over, it is more likely that the interest rate will be a little bit lower than if you were taking out an installment loan such as a payday loan.
What happens if I default?
You will lose your vehicle in Arizona. It really is as simple as that.
You are not going to be handing the title to your vehicle over for ‘fun’. It is there to ensure that the lender gets their money back. If you do not pay your loan back on the agreed date, then the rights to the vehicle will transfer over to the lender and you will lose ownership of your vehicle. The lender will have the right to sell it. Of course, you can buy it back yourself, but you will be paying market value for it!
While it is rare; you may find that many lenders will give you a couple of days ‘grace period’ if you are unable to pay your loan back on time. It won’t be too long, and the only way in which you will be able to find out whether you qualify or not is if you call them.
If you fail to pay your loan back, then you will need to hand your vehicle over to the lender. If you do not do it yourself, then they will send somebody around to collect the vehicle from you. Remember; they have the legal right to do this, so it is absolutely vital that you do make sure you pay your loan center back on time!
Search for Title Loans in AZ
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