Car Title Loans in Peoria
With standard bank loans, the application process is a hassle. You have to fill out form after form, potentially sit through interviews to explain what you need the money for, and go out of your way to prove that you are capable of repaying the money. If you have a low credit score or low income, the process for getting a bank loan is even more difficult.
But with title loans, you can get money you need without the hassle.
How Do Title Loans Peoria Work?
As a kind of secured loan, a title loan allows you to use your vehicle as collateral for the loan money. With a standard bank loan, which are often unsecured loans, your loan provider is risking not having the money returned to them. Without a sense of security that their money will be paid back, loan providers like banks will look at how well you’ve done repaying your debts in the past. If you are approved for a loan, your credit score is also used to determine how much money you are able to borrow. This is why your credit score is crucial for the bank loan application process.
But a secured loan does not work in the same way as an unsecured loan. When applying to a secured loan, you are saying you are willing to forfeit an item to cover the loan if you are unable to come up with the money provided to you. With this kind of security, loan providers are able to lend money to anyone with possession of an item, regardless of credit score.
The collateral item in a title loan is the vehicle you choose to pawn. Vehicles that can qualify for title loans include cars, trucks, motorcycles, RVs, SUVs, and even boast. To receive a title loan, you exchange the title of the vehicle for the money of the loan. Your loan provider will hold on to the title while you are working to repay the money you were given. Once that debt has been paid off, your title will be given back.
What are the Benefits of Title Loans Peoria?
When you’re in need of extra cash, a title loan can help to get you out of debt, but it also comes with a number of other benefits. Here are just a few of the major bonuses of applying for a title loan:
- Simple Application Process: Anyone who has applied for a loan from a bank knows what a hassle it can be. With dozens of forms to fill out and interviews to sit through, it can take days just to complete an application. When applying for a title loan, you only need to dedicate a few minutes to filling out your application.
- Easy Qualification: The application process isn’t the only thing simple about a title loan. It is also easy to meet the loan’s qualifications. Unlike a standard bank loan, you won’t need to prove your ability to pay back the loan based on things like your credit score or income. Instead, you only need to own a vehicle.
- No Restrictions: With some types of bank loans, you will have restrictions about how the money can be used. Things like loans for education or purchasing a home will need to be spent on those items. If you use the money in unauthorized ways, you may face penalties. But with a title loan, the money you receive is yours to spend without restriction. As long as you can pay the money back by your end due date, you won’t need to worry about how the money is spent.
- Money Available Quickly: The money you receive from a title loan can be available to you extremely quickly. In some cases, you may be able to pick up your cash in just a couple of hours. If you have a payment due in a day or two, title loans can get you the cash that you need to make the payment on time without a hassle. That isn’t something you’ll typically find with a standard bank loan!
- Basic Repayment Schedule: The repayment process for standard bank loans can be confusing and difficult to understand. When you agree to these kinds of loans, you probably won’t know the end due date of your payments. But with a title loan, you’re agreeing to a short term schedule. The details of your repayment will be given to you before the loan is finalized, so you know just how much you will need to pay and when it is due.
These aren’t the only benefits of title loans. They can also help you reduce stress by giving you a financial cushion between paychecks.
Applying for Title Loans Peoria
If you are interested in applying fort title loans in Phoenix and Peoria, AZ, you can begin your title loan estimate application right here on the Approved Money website. Using the online estimate form, you will need to provide Approved Money with the make, model, year and mileage of your vehicle. You can complete your online application by including your contact information.
To finalize the application process, a loan representative will reach out to you as soon as possible. In the mean time, you will be provided with a loan estimate to give you an idea of how much your loan may be worth. Keep this number in mind to decide if you would like to continue forward with the loan process.
While talking with your title loan provider, you will want to be sure to cover every detail of the loan given to you. Ask questions about the interest rate and how it accumulates, what should happen if you miss a payment, and when your first payment will be due. For the most part, Arizona title loans are given on a short-term basis, so payments on the loan may begin as quickly as a few weeks after the money is received.
The Legal Regulations of Title Loans Peoria
As with any loan you apply for, there will be regulations in place to ensure one party is not taken advantage of. Although a title loans and registration loans differs from a standard bank loan in many ways, the need to meet the repayment schedule is still crucial.
Consequences of missing a payment due date will depend on the guidelines you discuss with your loan representative. While you should always do your best to ensure you are making your payments in full and on time, be sure to discuss the consequences of missing a loan payment before you agree to the terms of your title loan.
For most title loans, missing one payment should not cause major consequences but it may cause your interest rate to increase. In severe cases, defaulting on a title loan will result in your vehicle being repossessed. If you are still unable to make the back payments that you have missed, your loan provider may decide to have the pawned vehicle sold to cover the cost of your debt.