Also known as title loans, Phoenix car title loans can be referred to as loans wherein the borrower has to provide his car title as indemnity for the title loan he wishes to take. Generally short term; these loans have an extremely high rate of interest. The good part about auto title loans is that for these, the lenders are not much interested for checking the credit history of the borrower. The main thing which is considered is the condition and value of the car which is serving as the collateral. These title loans are easily acquired in very little time for smaller amounts like $100. However, there are a lot of financial institutions do not even lend amounts less than $1000. So, you really need to check out on your title loan requirements properly before finalizing things.
The basic requirements for getting a car loan include the following:
- The value and condition of the vehicle is extremely important and it is exactly the thing which decides whether you would get a loan or not. The lenders do provide loans for old and heavily used cars as well but they need to be in running condition.
- Identification and coverage is the next important thing to get a Phoenix car title loan. The borrowers need to possess a valid driver’s license or a state identification card to apply for car title loan. Your car insurance information may also be needed. So make sure that you have all your paperwork ready when you think of applying for a car title loan.
- Another thing which factors in ensuring a Phoenix car title loan for the borrowers is their income. The lenders also ask for the employment proof and the verification of the monthly income of the borrowers. Before you apply for a car title loan, you should make sure that you are able to produce these documents when they apply for the loan. A few lenders also have a lower limit of income below which they do not lend. Generally, the lower limit of monthly income considered for these loans is about $1000. A large number of lenders also consider your monthly expenses before lending you a Phoenix auto title loan.
- A large number of lenders of this category of loans also ask for references before they shell out the money. They may also ask for the contact details of your relatives and friends to be on a safer side after lending money. Usually, these relatives and friends are only contacted when the borrowers do not pay an installment or two.
However, things are generally not as simple as they seem to be. The supposed convenience of these title loans may look lucrative initially. However, you must look around and exhaust all other sources of cash before you pick this one as an option. It is also advised that you must not go for a Phoenix car title loan in case that car is the only way of commuting to work, medical care or school for you.