With a weak economy and unemployment rates running around nine percent, Arizona residents may find themselves strapped for cash at times. If those residents own a vehicle, auto title loans in Arizona offer a quick cash source.
The biggest advantage to drivers is that the loans can be obtained quickly. If you hold the title on your vehicle and it is titled in Arizona, you can get approved for a title loan in under an hour in some cases. You do not need a credit check, either. Whether or not you can obtain the auto title loan in Arizona is based on how much your vehicle is worth not how high your credit rating is. This means that depending on the value of your automobile, you can borrow up to fifty thousand dollars.
The reason this can be done is that auto title loans in Arizona are secured loans and your vehicle is the collateral securing the loan. Because the loan is secured, you will find that the interest rates offered are very competitive. Should you default on the loan, the title loan company holds the title to vehicle, which can then be sold to recoup any unpaid amount. To keep your loan current, you simply need to make sure that you pay at least the interest portion on the monthly payment each month. If you want to pay off the loan faster, then you just pay more. Any amount over the interest due will go towards paying off your principal balance.
Drivers can also use auto title loans as a way to refinance an existing auto loan at a lower rate and still get money out of the deal. With this situation, the loan company pays off your loan amount and gives you any difference. You are then repaying the Arizona auto title loan company at a lower interest rate rather than the bank.
Once you have the money, you can use it for whatever financial needs you may have whether it is to pay off personal bills, make ends meet or using it to expand a small business.