The best aspect of getting a car title loan is that your credit score is never a prerequisite for getting the loan as it is a secure loan. And the amount that you receive by keeping your car as collateral is only 25% to 50% of the total car’s value. The credit score is not considered as the lender has your vehicle as collateral while giving you a lesser value as loan. The loss is all yours if you fail to pay on time so think about all of the repercussions before signing on the dotted line.
But if there is no option and as Phoenix auto title loan is a better option than a payday loan, ensure that you think about and plan the repayments as per schedule. And with a bad credit score you don’t have too many options in place to help you tide over the financial mess or any unforeseen emergency that crop up sometimes.
With no credit checks and simple process for title loan approval, you have the benefit of having lower interest rates than unsecured loans. Additionally, you can get a higher borrowing amount than payday loans with quick cash approvals than home mortgages. Vehicle title loans are more popular with lenders as they have considerably not much to lose as your car is used as collateral so the loan is low risk. Most people take out Phoenix car title loans when they are in immediate need of cash or to cover the gap in the financial planning as they are a better option than unsecured loans.
To qualify online for a Phoenix car title loan from Auto Title Loans USA, you need to have a clear title on your car as it will be signed over to the lender and kept as collateral. This basically means that you cannot have liens. Though there are a few lenders that allow you to keep paying the installment, but most of them do not want to have any liabilities attached to the car. In addition, you will have to provide proof of your income, residence and age while the details of the car and insurance provider has to be given. Other information that is needed is the amount of money that you need to borrow and the purpose of taking the loan.
The value of your car is decided as per the Kelley Blue Book or the NADA to assess the current value and usually the car title loans are in the range of $601 to $3000 as a higher interest rate can be charged over the amount more than $601.