Car Title Loans In Scottsdale, Arizona
There may come a time you’re urgently in need of money with no idea where to come by a considerable amount quickly— luckily, that problem can be easily solved when you have a car title in your name!
If you live in Scottsdale, are in need of cash, and are in possession of a car, you can simply apply for an auto title loan.
Auto title loans are a relatively fast and fuss-free way to get the emergency cash you need even with a low credit score.
How Do Car Title Loans Work?
Put simply, car title loans are loans offered to borrowers willing to put up their vehicle title as security.
Usually, auto title loans are short-term with a high-interest rate and few requirements. Most of the time, even credit scores and histories are overlooked.
Because of how they work, these title loans are easy to qualify for and for that reason, are a popular way to obtain cash.
Another pro to this kind of title loan is the application process is generally approved quickly because it’s seen as a low risk loan for the lender.
This is because if in any case, you are unable to pay back the loan plus interest rate on time, the lender will take your vehicle as the loan collateral instead.
Consequently, this also means that how much you’re able to borrow depends on factors, such as what kind of car/vehicle you have and what condition it’s in.
You can put up any sort of vehicle you own as collateral for a loan, such as motorcycles and RVs, depending on the loan company.
Take Note, Though
The most important thing is to have a lien-free title. This means you’ve completely paid for your vehicle and are in possession of the vehicle title without any outstanding balance.
However, it may still be possible to acquire a title loan even without a lien-free title.
There are some lenders/loan companies in Scottsdale, AZ that will accept these titles as collateral, albeit for lending a much smaller loan amount.
Another important consideration is your lenders may perform a credit check. This is to ensure your ability to repay the loan back. Although poor credit ratings can still warrant an approved loan, the interest rates may also be higher.
Getting a Car Title Loan In Scottsdale: The Process
When applying for a title loan in Scottsdale, AZ (or anywhere else for that matter), make sure to do your research first and check for the most reliable lenders with the best rates.
A title loan business is subject to both federal and state laws that protect borrowers from exorbitant finance/interest rates, so be sure the lenders you go to comply with both.
Step 1: Research and Look for a Licensed Loan Company
To avoid getting entangled with any illegal business and unfair treatment, it’s always recommended to seek a licensed lender/loan company.
Step 2: Prepare and Submit Documents
Other than varying finance rate regulations per state, the loan process will be pretty standard:
- Once there, you’ll need to bring the required documents and your vehicle for inspection.
- While bad credit may not affect the chances of your loan application getting approved too much, a credit inquiry will help the lender determine the loan amount they can offer you.
Step 3: Discuss the Terms and Get Your Cash!
After you’ve come to an agreement and the contract’s been signed, you’ll pay the lenders’ finance charge, hand over your vehicle title, and the lender will give you the cash loan upfront.
While the lender has a hold of your automobile registration/certificate, your automobile will still be in your possession and can still be used.
What Are the Requirements In Scottsdale for a Car Title Loan?
The requirements for auto title loans in Scottsdale, AZ are pretty straightforward, which makes them as we mentioned earlier, easy to qualify for compared to other cash loans.
These are the usual documents you’ll need to apply for title loans in Scottsdale:
- Driver’s license or any other valid government-issued ID
- Proof of income
- Vehicle registration
- Proof of insurance
- Proof of residence
- Other documents may be asked if you are not a US citizen, and would differ depending on your status***
FAQs
How Much Can I Borrow With Car Title Loans In Scottsdale?
Loan amounts are dependent on several factors including the value of your automobile and whether or not you’re a first time borrower, but in Arizona you can borrow anywhere from $100-$50,000.
You are usually allowed to borrow 25-50% of your vehicle’s value but loan amounts for first time borrowers will hardly exceed $1,000.
Of course, this also depends on the company. Some lenders may be willing to loan you up to even $10,000, however most companies won’t offer services like student loans.
Because these are short-term loans with high finance rates, legitimate lenders won’t and don’t expect borrowers to be able to pay back extremely large amounts, therefore lending adequate amounts only.
Should I Get An Auto Title Loan Over a Payday Loan?
Compared to auto loans, payday loans will usually be for amounts less than $500 that have to be paid back anywhere between 2-4 weeks.
They’ll affect your credit score similarly, so which loan to get would depend on how much you need but of course, you won’t need to own any sort of vehicle for a payday loan.
Payday loans can be helpful if you don’t have a car or any collateral to give up to loan cash. Furthermore, a payday loan has a slightly shorter repayment period so you have to make sure you can repay what you owe on time too.
Why Was My Title Loan Denied?
As mentioned earlier, lenders may perform a credit check during the application process.
While a credit check can play a part in the approval at times, you can still be denied an auto loan for one or more of the following reasons:
- You did not present all of the required documents.
- Your car title is not lien-free.
- Your proof income or ability to repay was not able to match the lender’s standards.
- Your automobile is of too little a value to use as collateral.
Conclusion
If you’re in need of cash but have bad credit, title loans are one easy option to get a hold of a large amount of cash. However, title loans can also lead to a cycle of debt and ever-lowering credit scores.
We hope this article helped you understand how to apply for an auto title loan in Scottsdale, as well as inform you of your rights and the consequences during the process of such loans!