An Arizona Title Loan can be tricky when you deal with the wrong lender.
Arizona Car title loan businesses have been termed “predatory lenders” by many consumers and, as a result, the good Arizona title loan companies, like The Loan Store has been lumped into this category. One of the prevalent issues with these particular “bad” loans is interest rates. Because Arizona car title lenders are in a different category than credit card companies and banks, most Arizona title loan lenders are able to charge outrageous annual percentage rates (APRs). It’s not an exaggeration to see 250% APR and higher on these car title loans.
Good, ethical title loan companies do exist! You have the power to avoid major penalties, unmerited automobile repossession, and overly-excessive interest rates by steering clear of loan sharks. To avoid being devoured by these slimy predators, you must know how to maneuver so you can locate a lender who actually has your best interest in mind.
Know How The “Loan Sharks” Operate:
Shark Tactic 1:
Most title loan companies say their rates are only 15% or 20% but they do not tell you that it is MONTHLY! This is normally something consumers discover once they realize they have been bamboozled into an extremely unmanageable loan.
Shark Tactic 2: Some title loan companies force borrowers to pay the loan back in FULL within 30 days. If the borrower cannot settle the loan within this time, it is the lender’s choice to renew the loan or not. If the lender decides to renew, additional fees are typically attached. If they choose not to renew and the borrower does not have the money to repay the loan in full, the customer will most likely lose his or her vehicle.
- Tip: ALWAYS ask lending companies how long the loan is for and what their monthly and annual interest rate is. Be leery of any title loan company charging over 170% annually or 17% monthly.
- Tip: ALWAYS ask lending companies if they have a banking license and never sign a contract until you acquire that number.
- Tip: ALWAYS check with The Loan Store, 480.807.5599, before committing to a title loan.They are known for not only providing people with good loans, they are notorious for getting consumers out of their bad loans and into something reasonable.
Did you know?
Arizona state law mandates all title loan companies charge no more than the following monthly interest rates:
- $500 or Less, 17%
- $500-$2500, 15%
- $2500-$5000, 13%
- More Than $5000, 10%
FACT: The Loan Store’s rates NEVER exceed 10% on any loan.
FACT: The Loan Store’s average loan rate is 7.3%
FACT: The Loan Store writes 1-year loans.
FACT: The Loan Store has a banking license.
FACT: The Loan Store provides loans for more than just cars.
CALL THE LOAN STORE: 602.714.8200 The Loan Store is a reputable and ethical company that is in the
business of balancing people’s financial lives.