An Overview Of Title Loan Terms And Definitions For New Borrowers
If you’re looking at short-term loan options, it’s important to be familiar with things like title loan terms before choosing which loan is best for you. The definition of a title loan is when a borrower offers an asset – in this case, their car – as collateral for financing a short-term loan.
This article will clear up many misconceptions out there about title loans, as well as cover the title loan terms and details you should know before applying for one.
Title Loan Terms And Definitions
Collateral is any asset a borrower pledges as security for taking out a loan. This could be a car, home, or other possession. The borrower offers this collateral as a “deposit”, so to speak, for the loan. If the borrower stops paying back the loan, the lender has the right to possess the collateral.
Some lenders hold on to the collateral during the life of the loan but at Fast Auto Loans, Inc., we let borrowers keep and use their car as usual so long as they stick to the title loan repayment schedule.
“Lien-free” is one of the most used title loan terms. The definition of title loan requires you to offer your car’s title as collateral, but to do so you’ll need to own your car outright. This means you can’t have any outstanding loans on the car or judgments against the title.
Outstanding loans are any debt you owe to one or more creditors for your car. This means you still owe payments on your vehicle, so the title is not yours free and clear.
Once you pay off your car in Arizona, the previous lienholder should clear the lien electronically. You can receive more information about this process through the Arizona Department of Transportation (ADOT) Motor Vehicle Department (DMV).
Judgments Against The Title
Judgments against property are also called judgment liens. They are court rulings that give a lender or creditor the right to possess the borrower’s asset when the borrower stops adhering to their contract – usually when they stop making payments.
To get a title loan in Arizona, the title of your car should be both lien-free and in your name. If you need to change the name on the title, you’ll have to complete a Transfer of Title. This is a legal process of altering the ownership of the vehicle that is done through the ADOT DMV.
When you’re ready to apply for your title loan in AZ, you’ll head to our homepage and complete a general online form to get started. If you hear this phrase, it’s just referring to your basic contact information which will connect you to a representative in your area.
“Credit” is a term that’s thrown around to mean your credit history, credit score, or overall ability to borrow and repay money. Generally speaking, a credit score of 600 or below is considered “bad” and can be a roadblock to many loan applications.
At Fast Auto Loans, Inc., however, we accept applications from those with all credit backgrounds, even if you are unemployed or do not have a checking account.
Like most, our title loans require a quick inspection of your vehicle to determine its worth and the value of your title loan. With Fast Auto Loans, Inc., you could get anywhere between $300 and $15,000 depending on the state of your car, its mileage, brand, and other factors. This inspection and the in-person meeting could take as little as half an hour.
Title Loan Requirements In AZ
Now that you’re familiar with the most important title loan terms, let’s sift through the few requirements you’ll need to meet to apply for your Arizona title loan.
The requirements list at Fast Auto Loans, Inc. is short and sweet. To begin, you should be 18 years or older with a valid, state I.D. You’ll also need to present the lien-free title for your car and have the vehicle ready for a quick look-over. That’s it!
The Application Process
Once you have your documents ready, complete the online loan inquiry form on our homepage to get started. A loan representative will give you a call soon after. During this call, you’ll be able to ask any questions and talk through the application process to make sure it meets your needs.
You’ll then arrange to meet with the loan rep at the location of your choice. We have plenty of local offices available or the rep can come straight to you.
At the meeting, they will assess your documents and vehicle and determine the loan amount you qualify for. If all is approved, you could have your money as soon as that same day.
Get Started Today!
It’s important to know more than just the definition of a title loan – or any loan for that matter – before applying for one. By knowing the key title loan terms, you can make the best decision on whether this type of loan is what you’re looking for.
For those who have a paid-off car in their name, a title loan may be a great way to face a financial emergency and get hundreds or even thousands of dollars within a day. Whether you have some questions or are ready to get your money now, fill out the online form today to speak with a trusted rep and start the process. We’re looking forward to working with you!
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.