The Top Types Of Car Title Loans That You Can Apply For

This Is An Easy Loan Taken Against The Equity Of Your Vehicle

If you live in Arizona and are in need of urgent money, then one of the easiest options is to take a car title loan. These loans are regulated by state and federal laws and hence are legit and perfectly legal. When you get auto title loans, you can still continue to use your vehicle as you normally do and at the same time pay off the installments on time 

In this type of loan, a person who wants to take one goes to the prospective lender with the car/RV or any other vehicle along with its title deed. The value of the vehicle is assessed by the lender and a loan is processed on the basis of the value. A percentage of the total value is given as a loan with an agreed-upon interest rate. These lenders are now available online, so you have the option of applying for such a loan from the comfort of your house. 

This loan is processed very quickly and the owner of the car can take their vehicle and continue to use it. The deed of the vehicle however remains with the lender as collateral until the entire amount is paid off. 

How Do Car Title Loans Work

There are generally two types of car title loans. The first one is a single repayment loan. In this type of loan, the borrower agrees to repay the lump sum amount taken as a loan in a short period like 30 days or so. The second type of such loan includes repaying the loan in installments and can be taken for 6 months or more. There are other customized options available as per the requirements so make sure to check them all before you choose one that suits your needs. 

This loan is more often a preferred way of borrowing money for many people as it is quicker to process and doesn’t include a lengthy verification process. The loan agreement is made with information of the borrower and lender along with all the information of the vehicle. The annual or monthly financing rate is clearly stated so you are aware of it in advance and know what is the expected amount you need to pay. The agreement will include the due dates. 

When you start repaying the loan make sure to collect a written receipt for the same so there is no chance of discrepancies in the future. In case you default on your payments, you have to make sure to get in touch with the lender and request permission to extend the loan. If this is not followed then the lender reserves the right to seize the vehicle which has been put up as collateral against the loan. In order to avoid confusion, make sure to thoroughly read the contract before signing it. If you don’t understand any clause then you can ask the borrower. A professional and legit borrower will have no problems in explaining everything in detail until everything in the contract is clear.