When you have a financial problem, you may be confused about potential solutions. Title loans in Tucson should be among the options you consider because sometimes they really are the best solution. Understanding how they work, the pros and cons of using these loans versus traditional loans, and what a title loan requires can help you make the decision about whether this is the option you want.
Title Loans in Tucson
Title loans in Tucson work by using your vehicle as collateral. There are all different kinds of loans, and some work on your credit—that is essentially what a credit card is. Some work on collateral—which is how mortgages and home equity loans work. Collateral means that you are putting the value of your home or vehicle against your promise to repay the loan. Pawn shops use whatever you have pawned as collateral. Collateral loans function less on your credit and more on the value of what you are using. Title loans don’t even require a credit check; they function entirely on your vehicle’s value.
The advantages of using title loans in Tucson are that you don’t have to have a credit check, and you don’t even have to have completely paid off your vehicle. You can get a loan against however much of the vehicle you have paid off. The disadvantage of a title loan is a slightly higher interest rate than traditional loans.
What a title loan requires is a vehicle in your name, not too old or in bad shape, and some paperwork. You need a bank account, proof of consistent employment, and some other odds and ends you’ll find on our application on our website. Once you get those, you can find out how much of a loan you can get and you will soon be on your way.