5 Things to Look For in a Title Loan Company
A title loan can be an efficient way to get a loan when you’re in a time crunch. If taken on responsibly, this type of loan is an ideal way to manage unexpected costs. However, similar to when you consider taking out a loan from the bank, there are some things you should keep in mind when deciding which title loan company to borrow from in Arizona.
First, it’s important to have a thorough understanding of what a title loan is, when you should use one, and how a title loan works. Here, we’ll quickly touch on the basics of title loans before going into five key points you should look for when comparing title loan companies.
What is a title loan?
A car title loan uses the title of a car as collateral for a short-term loan.
Contrary to the traditional loan process, approval for title loans are not based solely on your credit score, but rather on the value of your car.
Generally, applicants are approved for a title loan if they have:
- A valid driver’s license
- Proof of residency
- Proof of income
- A vehicle title in their name
Top 5 considerations when choosing a title loan company
Choosing the wrong title loan provider can make or break your experience—and your wallet. Unlike Southwest Title Loans, many Arizona-based companies hide behind fine print and costly fees. For us, our goal is to help borrowers repay their expenses; not add to them. When looking for a title loan company, we recommend considering the following:
- Professional experience
- Interest rates
- Hidden fees
1. Professional experience
When selecting a title loan company, it’s important to pick professionals that understand the industry and how the process works in AZ. Loans, interest rates, and payments can sometimes be difficult to manage, so you’ll want an experienced company to assist you throughout the process.
In the past, we’ve dealt with customers in need of loans ranging from $300 to $15,000. We work hard to make it easy for you to pay back your balance—even if that means negotiating payment deadlines or extending your payment schedule. In the end, we’re prepared to work with you to overcome anything that might hold you back from missing a payment.
At Southwest Title Loans, we’ve been dealing with happy customers since 2000. We’re the only title loan company in the Valley equipped with an entire team dedicated to answering your questions and helping you get your loan.
Unavoidable expenses and unexpected costs are inevitable—they’re part of life. The implications of these costs can be extremely stressful and make it difficult, or nearly impossible, for you to make your payment on time. An understanding and flexible company will recognize this reality and will work with you in regards to late fees.
At Southwest Title loans, we have flexible payment options and a sincere understanding for those times when life throws you a curveball and making a payment seems impossible.
3. Interest rates
Interest rates are one of the most important things to look for when comparing title loan companies. Interest is generally charged on a monthly basis and is equal to a percentage of your principle loan balance. The percentage can vary widely depending on where you live, but is usually slightly higher than typical loans due to the short-term nature of the payment schedule.
It’s imperative that you pay close attention to your payment schedule in order for you to understand when your payment is due and how much goes towards the principle and interest amount. This information allows you to pay off your loan as soon as possible, not to mention without any confusion.
At Southwest Title Loans, you’ll find competetive rates in Arizona which makes us a top competitor in the title loan industry.
4. Hidden fees
When it comes to title loans, it’s important to read the fine print before signing your agreement with a company. Though most title loan companies charge a number of fees upfront, many companies charge additional hidden fees for each loan, which can add up quickly. In addition to initial fees, some companies charge extra late fees, application fees, lien fees, and finance fees.
When comparing companies, make sure to get a quote from each company before deciding who to get your loan from.
At Southwest Title Loans, you won’t find hidden fees. In fact, we make certain that you thoroughly understand all aspects of your title loan before you sign.
Testimonials are one of the most important factors to consider when researching a potential company. There’s no better way to gauge what it’s like to work with a company than by reading about past experiences others had while working with them.
If you do a little digging, it’s a breeze to find reviews and testimonials for just about any company. Some of the best companies are proud to have customer testimonials listed on their website.
When should you get a title loan?
Title loans in AZ are short-term solutions that require little to no notice for the company. They also have a simple and short repayment schedule for the borrower, meaning they can really come in handy for individuals with:
- Short-term financial needs
- Unexpected costs
- Financial emergencies
Southwest Title Loans will help you get a car title loan fast and work with you to pay it off. We have years of professional experience, flexible payment options, low interest rates, no hidden fees, and real testimonials from our customers.
Apply for a car title loan now with Southwest Title Loans by filling out our online form
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.