From roadside billboards to television advertisements, you must have seen instant approval cash loans on your cars. And that does not even need checking credit scores. But before you think that this is a God-sent opportunity, you need to know the details on the vehicle title loans. With the use of a Phoenix auto title loan calculator you will discover why it does not really seem as financially viable as it claims.
Though most of the advertisement talks about immediate cash approval and it seems like there are no strings attached, you will be sadly mistaken. Because each of the vehicle title loan comes with a high interest rate if you extend the loan or start defaulting on the scheduled payments.
Most of the clients for the Phoenix car title loans at Auto Title Loans USA are from low income areas where the financial information is not utilized but they need fast access to money and loans. Many lenders use predatory techniques and methods to take high interest and in return fulfill their need for fast access to cash.
Though there are numerous reputed online and local Phoenix vehicle title loan companies that work as per guidelines and are BBB accredited, many of the unscrupulous lenders load up loans with extremely high interest and penalties when the borrower does not pay on schedule. Usually people cannot pay it all on time due to exorbitantly high fees and then the lender rolls out a new option of changing the debt into a new loan while adding new fees and surcharges. Finally, you are unable to pay all of the added charges and they get a chance to repossess your car and sell it. And that is what you need to be aware of. These are the type of practices that have put customers on alert while vehicle title loan companies get a bad name.
One of the reasons that you need to have a Phoenix auto title loan calculator is to check out the interest rates for new cars and used car title loans. You need to them use the figures to compare against the 250% APR as that is the interest rates that some companies charge when they give you a car title loan. It is best that you compare the different interest rates from at least 2-5 companies before signing the contract. Additionally, individually check each of the vehicle title loan calculators and see which has the lowest interest rates. Work only with BBB accredited financial agencies and lending services.