If your car title is clear, it does not matter whether you have a low income and bad credit but you are eligible for a auto title loan. As your valuable asset, it can be kept as collateral for title loans allowing you to get the much needed finance for your emergency required needs. But if you are in dire need of cash and have a low credit score that does not make you eligible for traditional loans, you can fall in the hands of unscrupulous lenders.
However, it is not beneficial to the borrower to fall into the hands of predatory lenders as they utilize a variety of abusive lending practices that subject borrowers to coerce them into title loans that are not beneficial to them. You need to ensure that the terms and conditions of the loan are read carefully as it will be the guideline the amount of cash that will be paid out on the total vehicle title loan. Some car title loan lenders in Phoenix, and Arizona in general, advertise their interest rate on a monthly basis but don’t forget to calculate the total interest rate on an annual basis when you borrow.
There are numerous lenders that have balloon payments which hide the real face of predatory lending and financing. Usually this forces the borrowers to change the Phoenix auto title loan into another agreement and they have to pay high interest on the original amount that was borrowed. You need to be aware of these practices at all costs to ensure your financial safety. With such unforgiving terms, unscrupulous lenders charge extremely high rates of interest and you get entangled in a web of debt until you face repossession or you relinquish your car title to them.
And that is why it is ever so important to find a reputable Scottsdale lender that does not scam you or entangle you in debt that you find it impossible to get out of. When you start looking fore a reputable lender, you can start with looking online and check out your local listings for auto title lenders. But as a consumer you need to be aware of your rights and learn about preventive predatory lending laws. You need to be careful because the predatory lenders usually target the most vulnerable people including minorities. Ensure that the lender that you select is BBB accredited, flexible options for payments, reasonable interest rates and customer friendly terms and conditions.