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About title loan and application process
from CHECKMATE's blog
Title loan is often confused with the registration loan but despite most companies which offer one type of loan, generally also offer the other type, these are two different sort of loans working with a different system. This time around we are here to talk about the title loan and will let you know what documentation you will generally need for the application process.
Title loan is a mix of a regular loan and an usury loan. This can be a cash based loan but it’s generally for larger sums of money. That’s why the main condition for opting for this loan is to have a wholly owned car. This means the car is not financed and is not used as a lien by any other credit company. In case the borrower fails to pay the money back, the company will have the right to keep the car as their own. This is why this a sort of a risky credit and we suggest you to opt for it only when you have absolutely no other options. Title loans are often opted by those with a bad credit score, who cannot reach out to banks to get a traditional credit.
Title loans are often criticized for working like usuries counting irrationally high interest rates and apply hidden fees, therefore check the company real well, before opting for a title loan.
But, let’s get to see what you will need to be able to apply for a title loan: • The vehicle which you are to use as collateral: we generally say car, because in most cases the vehicle to be used is a car, but apart from that, this can be any sort of a vehicle which is in use and has clear and current documentation. This can also mean truck, van, boat or even a motorcycle. Our tip: always check the exact conditions, as many title loan lenders will not accept certain types of cars including Oldsmobile and any other vehicles which are renovated.
• The car’s (or vehicle’s) title: a proof that your car is clear from any financial liabilities. The car has to be registered in Arizona.
• Government issued ID, such as driver’s license
• Proof that you live in the state of Arizona. As these loans are particular for the state of Arizona the applicant needs to prove he or she resides there too. • Proof of income: despite the fact you use the car as a collateral, any proper credit company who wants well for you will want to make sure you have a proper salary to pay the debt off. This is a good thing, despite the fact many companies will not to a credit score check on you. There are companies which offer title loan without proof of income but they work with way higher interest rates, so beware of them.
• Proof of car insurance: this is a must-have in case the applicant wants to keep the vehicle for the duration of the payback period.
If you want to learn more about title registration loans in Phoenix, AZ please check out our website or call us. < Previous Post Next Post >
Title loan is a mix of a regular loan and an usury loan. This can be a cash based loan but it’s generally for larger sums of money. That’s why the main condition for opting for this loan is to have a wholly owned car. This means the car is not financed and is not used as a lien by any other credit company. In case the borrower fails to pay the money back, the company will have the right to keep the car as their own. This is why this a sort of a risky credit and we suggest you to opt for it only when you have absolutely no other options. Title loans are often opted by those with a bad credit score, who cannot reach out to banks to get a traditional credit.
Title loans are often criticized for working like usuries counting irrationally high interest rates and apply hidden fees, therefore check the company real well, before opting for a title loan.
But, let’s get to see what you will need to be able to apply for a title loan: • The vehicle which you are to use as collateral: we generally say car, because in most cases the vehicle to be used is a car, but apart from that, this can be any sort of a vehicle which is in use and has clear and current documentation. This can also mean truck, van, boat or even a motorcycle. Our tip: always check the exact conditions, as many title loan lenders will not accept certain types of cars including Oldsmobile and any other vehicles which are renovated.
• The car’s (or vehicle’s) title: a proof that your car is clear from any financial liabilities. The car has to be registered in Arizona.
• Government issued ID, such as driver’s license
• Proof that you live in the state of Arizona. As these loans are particular for the state of Arizona the applicant needs to prove he or she resides there too. • Proof of income: despite the fact you use the car as a collateral, any proper credit company who wants well for you will want to make sure you have a proper salary to pay the debt off. This is a good thing, despite the fact many companies will not to a credit score check on you. There are companies which offer title loan without proof of income but they work with way higher interest rates, so beware of them.
• Proof of car insurance: this is a must-have in case the applicant wants to keep the vehicle for the duration of the payback period.
If you want to learn more about title registration loans in Phoenix, AZ please check out our website or call us. < Previous Post Next Post >
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