How to get a Car Title Loan in Arizona
Sometimes we need to find ways to get a little extra cash fast, to help cover a medical emergency or something that’s come up unexpectedly. Car title loans are small, short term loans taken out against the value of your car. They allow you to quickly have some cash on hand when you need it most. It is a good option if you do not qualify for any more traditional forms of loans, such as through the bank. It can be helpful for people with a bad credit rating as it allows them to make a short loan when they may otherwise be rejected.
How to get a Car Title Loan in Arizona
Getting a car title loans is relatively straightforward, you need to have some kind of vehicle with a motor and most companies will accept car title loans on cars, trucks, motorbikes and even RVs. You’ll essentially be using the value of your vehicle as collateral for the loan. The best part about a car title loan is that you’re still able to use the vehicle while you have the loan, meaning that you’re able to have the cash without giving up your car that you probably need for day to day living. You’ll want to find a company that you like the sound of and then apply. The title loan industry in Arizona is very straightforward and you’ll be surprised by how easy and fast the entire process is.
Things to Consider
Some car title loan companies do charge a penalty for fast payment. If you think there’s a chance you’ll be able to pay yours off quickly, then you may want to ensure that you work with a company that does not charge a fee or penalty if you pay it back sooner. Choosing a loan without a fast payment penalty can help save you money. It may come with higher rates than traditional bank lending. Because it is ‘riskier’ you’ll often find that the interest rate is considerably higher for a car title loan. This is something you need to personally weigh up against your situation, to decide what makes the most sense for you and your family.
Car Title Loans are Fast
They’re a great way to get a little extra money fast, as most often the entire approval process will take not much more time than 30 minutes from applying to having the cash in your hands. This is really helpful when you’re in a pinch. There are limits in the State of Arizona as to how much interest can be charged, and under $500 the maximum rate is 17% per month. As you can see, compared to traditional loans, the rate is very high so best suited for short term emergencies.
Securing a car title loan is a fast process that should ideally be reserved for real emergencies due to the higher interest rate. It can be good for someone with a bad credit score who finds themselves in a short term situation of needing a little extra help.
