There are several reasons why you may be inclined to take out a Phoenix title loan. Some of the reasons include settling medical bills, legal fees, mortgage repayment or to address any other emergency that involves expenses. Offered by varied lenders, title loans are usually short-term loans that you are obligated to repay within a specified period. This type of loan has several benefits including ease of qualifying for the same (you only need to have a car in your name). Most lenders actually approve applications and disburse loans within minutes.
Although some local auto dealers offer this type of loan, the Internet has become the main source of this type of loan. A number of dealers, individuals, companies and some financial institutions have ventured into the business through the Internet where consumers can access their service easily. But, there are certain requirements that you must fulfill before qualifying for a Phoenix auto title loan. In addition to being over 18 years, you must not be in bankruptcy or plan to file for the same. You must have a checking bank account in addition to having regular income. More importantly, the title of the car you pledge as security must be in your own name.
Although the requirements may seem simple, finding the right Phoenix title loan can be a big challenge as you need to select loans that you can comfortably repay without damaging your financial status. You need to note that these Phoenix title loans have high interest rate, far above those quoted by banks and other traditional lenders. Title loan interest rates in most cases range between 60% and 100% of loan granted. Secondly, you may not be aware of other hidden charges can easily increase the cost of your loan. The biggest challenge lies in the fact that you may not be able to identify between reliable lenders and predatory lenders.
Therefore, you need to ease your search for a right Phoenix title loan by undertaking various measures at a personal level. First, go online with details of your car (year of make, make and model) to ascertain the current value of your car. Note that although some car title loan lenders offer large loan amounts, most have an upper capping of half a car’s value. Thus, it is essential that you determine amount of loan that you need. Never apply for a loan above what you need due to the high interest rates that are applicable.
To check the available credit on your car and for an idea of its assessed value, check online for Mesa title loan lenders to search for a lender that quotes reasonably on interest rate. It is always a good idea to compare numerous lenders websites before choosing the one you can deal with. Note that you can place loan application with several lenders and only accept one of those that provide you with all the necessary information you need.
Another aspect you need to keep in mind when applying for a Phoenix title loan is that it is a short term-loan. You will need to avoid a lender who encourages you to take out a long-term loan as doing so will make you a perpetual debtor, paying high interest rate in the process. You should ideally choose to repay your loan in as little as three months at the most.