If you’ve been looking into title loans in Phoenix, you’ve probably discovered that there are many lenders out there that provide these loans in exchange for the borrowers’ vehicle titles. It can be a confusing process to learn all the important information about title loans because there are so many websites full of conflicting info. However, it’s very important that you do some basic research before rushing out to contact a lender about a title loan, because if you do not meet the terms of the loan you get, you will lose possession of your vehicle, and nobody wants that to happen!
How Much You Can Borrow
When you need money fast to deal with an unexpected expense, a title loan is an option to look into. The typical lender can help you get a maximum of $15,000 cash, if you qualify for a title loan and meet certain qualifications and terms. To qualify for this type of short-term loan, you must prove you are at least 18 years of age and have a clear car title. A clear car title is also called a lien-free car title. This means that you must have 100% ownership of your car or truck with no outstanding loans associated with it. You will not qualify for this type of a loan if you’re currently paying off your car loan so don’t even bother trying to apply because you will be turned down.
How Much You Get Depends on Your Car’s Value
While it is possible to get $15,000 via a vehicle title loan, that amount is not guaranteed to everyone who applies for a title loan. The amount of money you will be given will all depend upon how much your vehicle is valued at. While this may seen unfair, there is good reason for it. If a borrower who got $15,000 were to default on his/her title loan, the lender would sell the borrower’s vehicle at the highest price possible so it could get its $15,000 back.
Auto title loans are not for everyone. This type of loan should only be taken out if you are 100% confident you can pay off the loan before the due date. If you don’t pay the loan balance off on time, the lender will simply keep the title and sell your vehicle to reclaim the money it loaned you.