The state of Arizona allows title loans and limits the amount of interest a company can charge on it. Loan companies cannot charge a monthly finance rate of more than 17% for loans of not more than $500. Beyond the amount of $500, an Arizona Auto Title Loan Company may charge not more 15% monthly. A lot of AZ Title Loan Companies’ interest rates are determined by the Arizona Revised Statutes. And if you look closer, some of these companies will actually charge less than the state rate.
Here are a few tips to help you get a better car title loan.
- Read the fine print. Most people just jump in, not getting enough information or never reading the terms and conditions of the auto title loan. Don’t make the same mistake. Leave no stone unturned or line unread. Be aware auto title loan companies can charge high interest rates. Make sure you’re getting fair terms for your side of the deal including when your vehicle can be repossessed and what happens if you owe more on the loan than your car is worth.
- Be interested in Interest Rates. Ask your lender about their interest rates. Make certain they’re following the law as per AZ revised Statutes. If they don’t, feel free to walk over to another collateral lender.
- Understand some companies will get your car; while others will allow you to continue using your car as you normally do. Look for these loan companies that will let you live your life!
- Last but not the least; make sure you’re given enough time to pay for your loan! If you feel you cannot pay for it in the time given to you by the loan company, then consider other options to get cash.
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