Are you looking to get a loan today, within a few hours? Do you have an emergency cash need that cannot be postponed for a week? Are you unable to get a loan due to bad credit scores? If you have a car with a clear title, your problems have an easy solution. Get an auto title loan.
The Phoenix car title loan is one of the most popular short term loans wherein your car is put up as collateral for cash requirements. This is a secure loan as the lender is assured of no loss even if you default on the payments as the car can be sold and the money recovered. It is due to the low risk that auto lenders are willing to provide these loans to those with poor credits cores.
So if you are unable to pay on time, the lender is authorized to take away the car and sell it to get the money back. However with most short term secure loans, the rate of interest is very high and that is why most people that opt for it are those in need of instant cash. Others who prefer taking Phoenix car title loan are usually those people that have a poor credit score, as most traditional banks do not provide loan facilities to those with low credit.
As these loans are Phoenix short-term loans, the interest charged on them is high and that is why most people who use them have limited options. The interest rates range from 35% to nearly 650% depending upon the state while some lenders ensure that the contract states that a few interest payments are paid in the beginning before paying the principal amount. Thus, if you are in need of Phoenix car title loan, ensure that you read the fine print of the contract before signing it. Generally, the lenders need that you are employed and can pay off the loan on time. You will be required to start paying as soon as 30 days are over but if you are unable to pay it within the stipulated time, the interest is applicable.
The loan amount is calculated on the basis of the car’s value and if your car is evaluated at $5000, you’ll be eligible for 25% ($1250) to 50% ($2500) of the total value. But the plus point is that your credit score is not a consideration. It is good to consider repayment options before you take the loan as your car is at stake if you fail to pay.