If you live in the Phoenix, Arizona area and find yourself strapped for cash this month and have no other means of borrowing money, you may have considered applying for a car title loan. These are short term loans that, if approved, will loan you the cash you need to pay bills, fix a vehicle, or pay for an emergency situation.
While getting approved for a title loan is fast and easy, not everyone will qualify for a Phoenix title loan. Not being approved for a title loan can happen for many reasons, one of these reasons is recently passed legislation that prevents active duty members of the military and their dependents from taking out title loans.
The Federal Military Lending Act of 2006 is one such piece of legislation. This act requires that the annual interest rate for military borrowers cannot be higher than 36% APR. It also prohibits lenders from securing a loan via personal check, wage allotment, debit authorization, or even the title of a Phoenix vehicle. Because of these stipulations, most title loan lenders are unable to accept an application from anyone currently serving in the military.
It’s not always feasible to have enough money saved up for emergency circumstances and sometimes family and friends cannot loan money out either so these types of loans are a great way to get the cash you need until your next payday. One of the first questions that you will be asked is, “Are you actively in the military or are you a dependent of someone in the military?” If you are, you will most likely be declined for a title loan. This question is usually asked very early on in the application process.
If you have more questions about whether or not you qualify for one of our Phoenix title loans, think you may not qualify, or have questions about our loan application process in general, go to our How It Works Page, call us at 1 (888) 426-0600, or visit us at one of our 8 conveniently located valley locations.