A car title loan in Phoenix may be something you’ve never considered, but as a vehicle (pun intended) for short-term cash loans, they are rising in popularity. Why? Because title loans allow you to take a loan out against the value already in your vehicle, so if your credit isn’t good enough to get a bank loan, you can use your vehicle’s equity as collateral instead, with no need to rely on a shaky credit score.
Car Title Loan in Phoenix
How can a car title loan in Phoenix help you out of a debt hole? By using your car as the collateral on a title loan, you can get enough cash to consolidate credit card debt, putting all your payments into one lump. From that point, of course, you have to be careful to not run up your credit card or other debts all over again so you don’t have twice as many loans to repay. Instead, if you follow the sound advice of most financial gurus and put all the payments you would have been paying to several creditors together and repay the car title loan quickly. This takes advantage of what is called simple interest, where unlike a credit card you only pay interest on the amount you borrowed not on the interest that’s accumulating on a daily basis.
If you can discipline yourself to control your accumulation of new debt, you can use a car title loan in Phoenix to get out of debt. With this strategy in mind, many people are finding that car title loans can be a useful tool in their financial toolbox.
Because a car title loan works with collateral rather than a credit score, they can carry a higher interest rate than a bank loan, which is why that self-discipline is crucial to keeping your car and repaying your loan without incurring extra fees or interest. Take the time to read the loan terms carefully so you don’t get surprised by any fees or by the interest rates. We want you to be successful, so we encourage you to be responsible in your financial decision making.