Four Frequently Asked Questions About Car Title Loans
Recent economic downturns have caused many consumers to experience credit difficulties. Although Phoenix has weathered the recent economic difficulties relatively well, residents of this robust and vibrant city have not been immune to the credit crunch. A number of companies have been established to provide financial services to individuals who are under served or ignored by the traditional banking institutions. Car title loans are one way for individuals with damaged credit to access emergency cash when they need it.
Here are four common questions and answers in regards to vehicle title loans
1. What are some of the requirements to apply for a collateral loan?
Approval for Phoenix title loans is usually based on the value of the vehicle rather than on the credit rating of the individual applying for the loan. In most cases, the regulations governing AZ title loans require that the vehicle be paid off in its entirety and that the title be free of any liens. Typically the individual applying for the loan must have some form of income and be 18 years of age or older.
2. How can I apply, and how long will it take to get an answer?
Some title loan providers offer online applications for consumers that provide responses within minutes, not days or weeks like traditional banking institutions. These online services provide added convenience during the initial application process.
3. What items are needed in order to apply?
Whether the application is made online or in person at a car title loan store, consumers will need to bring, fax or send certain pieces of information in order to receive their funds once they have been approved. These items include the following :
• The original title or pink slip
• Proof of residence and income
• Proof of full insurance coverage
• Valid driver’s license
• Personal references
In some cases, the title loan company will need to see the vehicle and may require that the borrower provide an extra key for safekeeping at the physical location of the lender. This is necessary because the vehicle is being used as collateral for the title loan; as a result, if the borrower defaults, the lender may be forced to repossess the vehicle.
4. Do I have to have good credit to be eligible?
Title loans are intended to allow individuals with no credit or bad credit to get the emergency funds they need. By using these credit sources responsibly, consumers can often rebuild their credit ratings and improve their overall financial standing.
