You might use your car for work and typical day to day driving, but what if you have an emergency and need money fast? Or your house needs some major repairs, but you just don’t have the cash on hand. How you handle the money crisis in your life can make the difference between you being in good financial shape and having to make some tough decisions. Today with the advent of the internet it has never been easier for people to get quick cash in cities like Phoenix and Tucson. And you don’t have to have a co-signer either if there’s enough available vehicle equity. If you need money fast to keep you going, then a vehicle title loan may just be the answer you’ve been looking for and luckily there are dozens of certified title loan companies in Arizona. But if you are interested in buying a home, paying off debt, making investment plans, or pay for education, college tuition, or you simply need money for emergencies then it may not be best to consider applying for a title loan with a licensed lender in Tucson.
How Do Auto Title Loans Work In Tucson?
Even though the title of a car is in the name of the person borrowing, the title is not the money of the person lending it. The vehicle is used as the collateral that ensures the loan repayment. How you repay the loan is when you return the vehicle and pay off the debt.
The amount of the loan depends on the value of the loan. Refinancing auto loans have a shorter repayment period making them more expensive. Between filling out the application and having to pay fees there generally won’t be much time from the day you pay off your car to the repayment of the loan. An auto title loan will almost always have more expensive fees. If you have bad credit, the easiest time to apply for this kind of loan is after a major purchase, such as a vehicle purchase. Because the car title is used to secure the loan, the lender rarely asks for a down payment.
Collateral Requirements For Secured Lenders in Arizona
A secured loan requires collateral in the form of some type of security, in this case, it will often always be a paid-off car. But no matter what, an auto title loan puts property up as collateral for the loan, the lender holds titles to your car, therefore the loan will need to be secured with something of material value. Usually, a car title loan will require a 50 percent Combined Loan to Value (CLTV). To put it simply, a Tucson resident needs to own the vehicle outright and there can’t be any liens or other loans already on the car. It’s also important to factor in the City Of Tucson’s financial regulations as well as the State Laws for title lending. The interest rate on a title loan is determined by the lender and unfortunately, the rate will be much higher than a typical bank loan. The shorter the loan period then the lower the interest rate will be.
How Many Much Can I Get From A Tucson Title Loan Company
Refinancing an auto title loan requires a set payment amount on a monthly basis until repaid in full. Because the lender is only asking for a slightly smaller amount than a traditional loan, it is more difficult to make payments. Many lenders require an automatic withdrawal each month to extract payments from checking or savings. If this is a problem for you then you could set up an auto-payment fund with your bank. Your payments are placed to be deducted from your checking account the same day every month. When the payment is withdrawn from the account the check is made payable to your local Tucson based car title lender and the check can be cut and mailed in as scheduled or operate on a monthly basis. You can expect a cash payment that ranges from $500 to $20,000 in Arizona dependant on the vehicle value.
Car title loans are what some like to refer to as one of the last opportunities for financing. If you are careful and have a good payment history then getting a loan on your automobile will be a simple matter of establishing a credit history, or re-establishing one.
After you take the time to evaluate the risks involved from an Arizona title loan, as well as the long term benefits, you will be better equipped to decide if it in fact is the right choice for you. If you make the decision to move forward, you can rest easy knowing the process can be done quickly. Often we see funding approvals within 24 hours when you meet with a direct lender in Tucson and submit to a vehicle inspection. There are more car title loan companies in Central Tucson and near the University of Arizona. There are fewer lenders in the Catalana Foothills and Westside parts of town.