Most people who are looking to take out a Phoenix auto title loan have a lot of questions in mind and the most common one is the amount of money that you will receive when you take the vehicle title loan? Well, basically the amount of money that you receive directly depends upon the value of your car that has been kept as collateral. But the title loan amount is half of the total value of the car while some lenders only provide 25% to 45% of the value of the collateral. But if you are looking for an estimate on your own car before you approach the Phoenix car title lender, you can check it at the website of Kelley Blue Book.
The next question is will the credit score reflect on the amount of money the borrower will receive or the interest that will be charged? If this is bothering you, you’ll be pleasantly surprised to know that your credit history and current score will not be counted for approval of the vehicle title loan. However, many lenders do run the credit check for their own documentation. Your score does not count for the approval and other calculations. The main basis for the approval of the loan is the equity available on the car that is being used in collateral, whether the car has been paid for and your income is considered for repayment.
Another question that worries most borrowers is the time that is taken for processing the title loan. Usually, these loans are easy to get and mostly approved the same day or within 2 days. This helps you get financial assistance in an emergency situation quickly. And the last question that usually nags potential borrowers is what will happen to their cars after it is being used as collateral in a car title loan?
Well, to start with, you’ll need to submit the car’s pink slip to the lender and the subsequent transfer means that the lender will from now on have complete legal ownership for as long as you keep the money or the loans are not completely paid. However, in spite of the pink slip being used as collateral for the Phoenix car title loan, you are free to drive your car and as soon as the loan is completely paid, you can get the pink slip back again.
If you are wondering about the penalty on paying back the title loan earlier than the date it was to be completely paid, you can be assured that there aren’t any such clauses. You are free to pay up as soon as you can and take your car documentation. You are again eligible to take a Phoenix auto title loan after you clear all dues on the first one.