How Does a Auto Title Loan Work?

Residents of Phoenix in need of fast and easy cash can get the money they need using their vehicle’s title instead of their credit score. Car title loans can be obtained by vehicle owners who have poor credit because these loans are granted based on the value of the borrower’s vehicles.

auto title loans

In other words, a car title loan is a secured loan wherein the vehicle is used as collateral. If you’re in need of money fast but you have poor or bad credit, this type of loan may be the answer for you if you are sure you can pay back the amount you borrow in a short period of time. Here is a brief overview of how this type of loan works.

The first order of business is to locate a lender that offers vehicle title loans. This can be done conveniently online. Once you find a lender you like, use its website to choose the nearest office location. Then fill out the online application that asks you some general questions about the vehicle you own and other personal info like name, address and phone number as well as the amount of money you’d like to borrow. Then, you will be asked to bring your vehicle (and title) to the location you selected wherein it will be looked at by the lender to determine its value.

If the lender agrees to provide you with the loan, you will be asked to surrender the hard copy of your title. Then you will either be given a check or cash in the agreed-upon amount. You also will be given a copy of the loan agreement which clearly spells out your responsibilities as the borrower. It is very important that you meet the terms of the loan as you must repay the full amount in the time specified which is typically within 30 days.

You do not have to worry about having bad credit when applying for a car title loan. Most lenders do not even run credit checks when approving these loans. This means that regardless of your credit history, you’ll likely be approve for the loan if your vehicle is worth at least as much as the amount you’re borrowing. One of the biggest advantages of this type of loan is the fact that you can still keep and drive your vehicle as long as you fulfill your end of the agreement which consists of you repaying the total loan amount in the specified time.