If you are in need of fast money due to some emergency, a car title loan is one good option. Before you apply for this type of loan, it’s important that you know some of its significant aspects. The following are some of the most frequently asked questions about title loans in Phoenix.
What is a car loan title?
A car loan title is a loan for a small amount of money for a short time. To avail yourself of this loan, you need to give the lender the title of your vehicle as a collateral. You also have to pay the lender a fee so you can borrow the money. The loan is usually to be repaid in 30 days.
What is a lien-free car title?
Every lender likes you to have a lien-free car title. A lien-free title means that your car is completely owned by you and that there are no outstanding judgements or loans on it.
Does my name have to be in the car title?
If you are applying for an auto title loan, the title has to be in your name. You cannot apply for it, if the title has a different name. If your name is on the title alongside another name, you have to verify with the lending company if you are eligible to apply for a title loan. Title loans in Phoenix have the following requirements: your valid ID, proof of car insurance, a lien-free car title, and proof of income.
How long is the approval of the loan?
The best advantage of an auto title loan compared to other types of loan is its quick approval. You can apply for this loan today, and have it approved the day after. You don’t have to wait for several weeks like in traditional loans. If you are in dire need of cash in such a short time, the title loan’s approval is like manna from heaven.
Can I apply for this loan even if I have bad credit?
Individuals with bad credit can apply for car title loans. Most lenders simply make it a point for borrowers to meet their immediate cash needs since they have the car title as collateral. The default loan risk on the part of the lender is mitigated because of the collateral. The car title loan is a secured type of loan wherein the lender does not conduct a credit check.
Can retired people apply for this type of loan?
Even if you are retired, if you have income sources like social security benefits or retirement funds, it is possible for you to apply for a car title loan.
Can unemployed people apply for an auto title loan?
Even if you don’t have a job, if you are able to provide proof of other income sources like pension or Social Security benefits, annuity, severance pay, you can still apply for an auto title loan.
When can I get the car title back?
For you to get your title back, you have to pay the full loan amount to the lender. You face the risk of repossession if you miss out on a payment.