How to Get a Loan With a Car Title in Arizona
Getting a loan with a car title in Arizona is a simple process that often takes less than 20 minutes. Depending on the year, make, model and condition of a car, an Arizona title loan company will provide a high-interest, no-credit-check, six-month loan with little more than a clean car title required. Considering the risk, a title loan can be a good thing. For those with no credit, little credit or poor credit, a car title loan is often the only way to get cash fast.
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Things You'll Need
- Drivable car
- Driver's license or Arizona state ID
- Clean car title
- Proof of residence
- Proof of income
- Names, addresses and phone numbers of five friends
- Spare key
Instructions
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Call local Arizona title loan companies to compare requirements, payment terms, interest charges and applicable loan value of your car. Title loan companies in Arizona offer weekly, bi-weekly and monthly payment terms on six-month loans. Loan amounts range from $300 to $5,000, and interest rates can go as high as 250 percent. Consider the risks carefully and choose the title loan company that you feel the most comfortable with.
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Organize the required documentation. Your car title must be free of liens, with your name shown as the current owner. Decide on a loan amount or an affordable monthly payment to present to the loan company and commit to these figures. Make your car as presentable as possible and bring a spare key. In most cases, a title loan company will request that you provide a key to your car for easier repossession.
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Bring your car, title and documentation to the title loan company. A title loan clerk will inspect your car while you fill out an application. Title loan clerks are trained to offer clients the maximum applicable loan amount, but you can request less. Present the monthly payment that you can afford on a six-month loan and the clerk can base your loan amount on this figure. Keep in mind that the catch to a non-bank title loan is that, while appearing small, the monthly payment for the six months covers interest only. The principle loan amount is due in a lump sum at the end of the six months and is often included in your last payment. Read everything carefully before signing. After the paperwork is complete, the loan clerk will write you a check.
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Pay your loan payments on the designated due dates. Late fees and additional interest charges add up fast on a title loan. Always call if your payment will be late and never avoid collection calls. Although Arizona auto title loans are easy to obtain, the companies that provide these loans have strict policies regarding missed payments and will not hesitate to repossess your car without warning. If possible, double-up on payments to reduce the lump principle payment due in the end.
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Tips & Warnings
Although still an independent contractor, a title loan company listed with the Arizona Title Loan Association is considered a preferable choice simply because it has committed to abiding by certain consumer regulations.
With a car title loan, as few as two missed payments are cause for repossession in Arizona. Once a car is repossessed, the owner has 10 days to pay the full balance of the loan, plus repossession and towing fees, before the car is sent to auction.
