Warning Signs When Getting Auto Title Loans in Phoenix, AZ
If you are working with a title lender, it’s important to know they are a service you can trust. Many things can go wrong that will lead to costly expenses and aggravating headaches. To keep your auto title loans in Phoenix, AZ smooth and hassle-free, look for the following red flags.
If you notice any of these warning signs when working with a title lender, look elsewhere for your auto title loan service.
What interest rate is the title lender charging for your loan? If it’s 200 percent, walk away now. The standard rate for auto title loans in Phoenix, AZ is between 30 and 50 percent. If your lender is charging more than that, something is off with their business practices. You can find a better deal elsewhere that will require you to pay a lot less interest on your loan.
How long is your lender willing to give you to repay auto title loans in Phoenix, AZ? Do they expect you to repay it next week? If so, this is a huge red flag. This is a predatory practice intended to make you default on your loan. The typical repayment date is set for 30 to 90 days from the date of the loan. This payment period is more realistic and should be the standard for above-board title lenders.
Good business practices involve good communication with customers. If you notice a lack of communication from the company, this is not a good sign. A reputable lender answers questions about your loan and will respond to your concerns. A predatory lender evades questions, doesn’t answer the phone and fails to return phone calls. If this non-responsiveness is what you are experiencing, look elsewhere for auto title loans in Phoenix, AZ.
Read your auto title loan paperwork carefully. Shady lenders may include confusing language that adds costs or penalties of which you are unaware. The paperwork should state that you only pay back the principal and interest on the loan. Additionally, you should not have to offer any collateral other than the title. If they ask for more information, such as credit card numbers, you should look elsewhere for your loan.
Ask the title lender to go through the terms in detail. They should be willing to explain all the terms of the contract and any fees you will be paying. Go through the contract line by line with them. If they refuse to do this, it’s a red flag. Ensure you are aware of all terms and fees involved. Only work with someone who is willing to properly disclose this information and answer all your questions.
Look for Good Signs
If you notice any of these warning signs, look for better signs elsewhere. At Cash-N-Go Arizona Title Loans, we offer sound business practices and dependable auto title loans in Phoenix, AZ. Contact us today with any questions or to get started on our quick and easy title loan process.