Car title loans in Arizona are aimed at solving your need for urgent cash, particularly when you have a poor credit score.
Traditional loans can have strict and cumbersome approval processes. More often than not, they would result in a loan decline notice if your credit is bad.
However, car title loans are quick, easy, and available to everyone who has a clear title to their vehicle. There are many car title loan lenders available in all major cities of Arizona to choose from.
But sometimes it can get difficult to find the right lender with best terms and conditions. You should take the time to evaluate your options and choose the right auto title loan lender in Arizona.
What is a Title Loan?
A car title loan is a secured loan which uses the value of your car as collateral. These loans are for short periods such as two weeks to a month. You should always aim to pay off your car title loan in Cleveland as soon as you regain your financial stability.
Contrary to traditional loans, approvals of car title loans are not based on your credit score. In fact, many people use car title loans to repair their bad credit score.
A car title loan in Akron is based on the present condition and value of your car. These loans can go as high as $50,000 even if you have a bad credit score. However, you need to have the right value in your car and all the necessary documents.
A lender will require the car title and registration in original. The title should be lien and loan free. You will also have to show a valid government issued ID that proves you are 18 years or above. Some other lenders might request for evidence of insurance, residence proof, and proof of income.
It is best to apply for a car title loan once you have all these documents ready. The application process is always quick with immediate responses from title loan companies in Toledo. You can ensure a quick approval process by providing the required documents on time.
How to Find the Right Lender?
The wrong lenders can put you through tremendous troubles where title loans in Cincinnati are concerned. They can harass you for payments, be rigid in repayment options and even charge hefty late fees and penalties.
However, the right car title loan lender will always work with you to the best of his capacity to make sure that you find it easy to repay your loan on time. In fact, many lenders draw up a repayment schedule at the time of loan disbursal. This makes it easy for you to repay the loan on time.
Here are some factors you should consider while searching for a car title lender in Ohio.
- Lowest Interest Rates
Like with every other loan, the major chunk of your borrowing costs will be in the form of interests. It goes without saying that the cheapest loan will be the one with the lowest interest rates.
Make sure to shop around among the various car title loan lenders in Columbus to find the lowest rate on offer. Lenders are allowed to fix their own interest rates. You can get better rates with a high valued car and good repayment abilities.
Interest rates are quoted as a monthly charge in car title loans. It is equal to a percentage of the total loan amount and can vary widely depending upon the Ohio area where you live. Car title loans are not available on out of state registrations. Hence, make sure that your car is registered in Ohio.
- Repayment Schedule
You can learn more from the repayment schedule than by speaking to the lender. Scrutinize the schedule carefully to ascertain how much of each repayment goes towards the principal and interest.
A good lender will try his best to lower your principal amount as quickly as possible. However, like with every other loan, the bulk of the interest is at the beginning. Hence, you will have to pick the best option that is on the table.
Do not blindly choose the lowest monthly payment option. Car title loans in Dayton are like any other traditional loan. By increasing the loan duration, your monthly payments will be lowered.
However, you will end up paying more in terms of interest and finance charges. Hence, choose a lender which gives you the best repayment schedule after considering loan duration and monthly payments.
- Hidden Fees and Charges
It is important to read the fine print because there are many lenders who will inflate the repayment amount by including hidden fees and other charges.
While most lenders are upfront about their initial fees, application fees and late fees, there are some lenders who try to slide in unnecessary costs like roadside assistance fees, finance fees, or lien fees.
The amount might be a negligible percentage of the total loan balance and you will be very tempted to sign off on it. However, remember that these small percentages can quickly add up over the months.
Hidden charges and unnecessary costs should not be taken lightly while picking a car title lender in Arizona.
- Read the Reviews
This might seem time consuming. However, it is very important to read all the testimonials you can find on the lender’s website. You can get a fair idea of how the lender conducts their business and whether they are flexible from what other borrowers write about them. You can also Google the lender to read what people are writing about them online such as looking at online reviews.
It is important that you choose a lender who has a history of working with borrowers. There can be times when you are unable to make the loan payment because of unexpected costs. In these types of situations, you want a lender who is willing to understand your situation.
Someone Who Stands Out
There are a large number of car title loan lenders in Ohio. It is important that you choose your loan provider very carefully. An ideal car title lender will have years of experience in the industry, competitive interest rates, and an unmatched reputation for customer service.