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Title loans Phoenix can provide you with the financial assistance you need to get back on your feet. When you take out a title loan, you provide a lender with the title to your car for a period of time in exchange for a loan. If you are considering taking out title loans Phoenix, there are some things you need to consider beforehand. There are many title loans Phoenix lenders available. Some lenders only loan a few hundred dollars while others may lend considerably more. The amount you are loaned depends on various factors including the year, make, and model of your vehicle. You will need to take your vehicle to the title loan company so they can assess your vehicle for its value. Contact lenders you are interested in to discuss how much you could potentially borrow. Once you have selected a lender, it is time to apply for the title loan. The lender may ask you to provide several documents to prove your residence, employment, and ownership of the vehicle. Requested documentation can include a utility bill, Social Security card, driver's license, and car title. You will also need to provide a list of at least five or six references. The reference will be contacted in case the company is unable to reach you when the title loan is due. Check with each person you want to list as a reference before adding them. The applications for title loans Phoenix are usually processed in a short period of time. The lender will verify the validity of your title and maybe contact one or two of your references. After your application has been approved, the lender will review the terms of your loan with you. During this time, ask any questions that you have. If you are unclear about the terms of the loan, ask for a clarification. Most title loans Phoenix charge a monthly fee for carrying the loan. The amount can vary by lender. There may be other fees included in the title loan such as administrative fees for filing your paperwork. Ask the lender for an explanation of any fees that you do not understand. The lender will advise you of how many days you have to pay the loan. Most loans are short-term and only for 30 days. At the end of the loan period, you will have to pay the amount you borrowed plus any applicable fees back to the lender. Some lenders will allow you to refinance the loan for another month by paying the interest on it. The amount you pay does not go towards the principle on the loan. For instance, if your loan is for $2,000 and the interest is $250, you will pay the interest of $250 to refinance your loan. When the loan is due again in 30 days, you will have to pay the $2,000 loan plus the interest fee of $250. Some lenders place restrictions on how many times you can refinance your loan. Check with the lender for a restriction before signing the original loan. If you are unable to pay back the title loans Phoenix and cannot afford to refinance the loan, the lender may take your car and sell it at auction to recoup his losses. Some lenders offer a short grace period to allow you time to raise the money to pay for your vehicle. The grace period should be included in your contract. Many people consider a title loan a good way to raise cash on a short-term basis as long as the loan is paid back within a reasonable time.
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