There are a variety of Phoenix title loan companies and many of them increase the interest rates leaving you in debt. But you don’t have to be taken up by title loan companies and here are some tips to help you be aware and vigilant as you take a title loan on your car.
Written quotes: Many of the predatory lenders work around the words ‘approve’ and that is why it is it is important that you get written and detailed quotes from the auto title loan lenders. Most of the lenders create fear in the minds of people with bad credit and they are just happy with being approved for the title loan. But you can be aware and stay off such companies and lenders.
Research well: Use the resources that you have. Visit in person and search online for the lowest APR and see which works for you. The more Phoenix title loan websites that you try and the better skills you have to find out more about their title loan details, you can seal a good auto title loan. With price comparisons, you get to save more.
Attention to interest rates: The interest rate plays a pivotal role in title loan and though you have to pay the total principal back within 30 days, interest is charged if you send in late payments or extend the loan. Most of the title loans have a 15% to 30% interest rate, which is much higher than average. It is best that you repay the lain as soon as you can to save money.
Possibilities of asset collateral: When you take a Phoenix car title loan, you are already putting your car as collateral but there are many unscrupulous lenders that still ask for a security by saying that the car title loan that you have taken is still ‘unsecured.’ Don’t fall for it as they might put in clauses of high interest so keep your eyes open.
Never select low monthly payments: Though most of the lenders might try to sell you the ‘low monthly payments scheme’ stay off. Usually they will not reveal the fine printed details and the Phoenix car title loan lenders will add in interest rates that are over 80%-100% which means you will be actually paying the same loan a few times over by the time they agree that the title loan has been repaid. Never fall for this trick before going through all of the documentation and contracts.