What You Need to Know About Arizona Online Title Loan Laws

An online title loan is a secured loan where the lender requires an asset as collateral. If you’re in a financial need, Arizona title loans can be a quick way to solve the problem. These loans are popular because they don’t consider the credit rating. Secondly, they don’t require income verification. The amount you qualify for solely depends on the equity of your vehicle. Here is everything you should know about title loan laws and how to find reputable online title loan companies in Arizona. Read on and learn more!

Are online title loans in Arizona legal?

Yes. The state agency licenses title loan companies. You can have up to five registration names under your name. Ideally, the borrower uses the registration card of the vehicle as collateral. Arizona laws do not limit you on how much you want to borrow. The amount you qualify for is usually between $1,000 and $10,000. And depending on the lender, you can arrange for a flexible repayment plan. If you can’t pay the title loan, most lenders will charge a late fee of 5%-10% of any unpaid balance.


Arizona title loan regulations

The first condition to qualify for an online loan is that you must be 18 years and above. This means that you have to present your I.D to the lender. Secondly, you must have a lien title under your name. The lender should inspect the vehicle to verify the condition. Other things to consider include the model and year of make. Arizona law doesn’t allow the lender to remain in possession of the title or the car. You simply get the money and continue to enjoy your car. But there’s a caveat to this – the lender can choose to remain with the title.

Before you sign an agreement on the loan, you should ensure you’re comfortable with the terms. Pay close attention to the interest rate and repayment schedule. Also, all questions must be answered before signing the contract. The agreement should show the name and address of the lenders’ office.

Arizona title loan on car repossession

Sometimes, car title loans can be risky for borrowers. If you don’t honor the agreement, the lender can seize the vehicle. The law protects the borrower to some extent, so the lender cannot take illegal action. What’s more, the state has set an interest rate cap. Here is a rundown of the interest rates set by Arizona laws:

  • For a loan amount under $500, the interest rate is 15-17% depending on the lender
  • For loans above $500 but below $2,500, you should pay an interest of 15% per month
  • For loans above $2,500 but less than $5,000, the interest is 13% per month
  • Any loan amount above $5,000 should be charged 10% per month

If you realize the lender charges more than the above rates, you have the right to cancel the contract. In terms of the repayment period, the law does not give the term limit. While most lenders give the loan for 30 days, it can last as long as both parties agree. But no matter the duration of the loan, the repayment date should be clear.

The lender has the right to repossess the car if you don’t honor your loan obligation as per the contract. You’ll also have defaulted if you don’t carry valid insurance. The law does not require the lender to notify you of the intention to repossess the car as long as you have breached the contract. Nevertheless, he or she should not enter the home by force, make threats, or take the vehicle without a court order.

How should the lender sell your car after repossession? The car should be put under public auction or private sale. Furthermore, the sale should be conducted in a reasonable manner and good faith. The goal of the lender should not be to fetch the best price but to recover the amount borrowed. If the proceeds from the sale are higher than the amount you owe, he must return any surplus to you. But in case the proceeds are lower than what you borrowed, you’re liable for the deficiency. Arizona title loans allow the lender to take legal action against you in case you fail to pay the balance. If you want to redeem your car, you must pay the full balance and any other expense incurred by the lender.

Does the law allow for online title loan extension?

Yes. If you believe you’ll be late for payments, you should let the lender know. The amount of time for the extension will vary from one lender to another. If you’ve paid the interest of the outstanding loan, the lender can choose to be lenient. You can both agree to take another loan and incorporate the interest in the new principal amount. For example, if you took a loan amount of $2,000 for one month at 15%, you should pay $300 as interest. You can request the lender to extend the balance for another 30 days at the same interest rate.

If you’re looking for a quick title loan online in Arizona, you should do more research. The lenders charge different rates and fees. Here is a quick guide on reputable online title loan companies in Arizona.

Check Into Cash Title Loans 

This is arguably the best lender when it comes to title loans. Unlike other Arizona lenders, they offer flexible repayment period and a higher amount. To qualify for a loan, you should show proof of residence, government-issued I.D, and have a clear car title.

Finova Financial

They offer the best interest rates in the market. Finova requires that you show proof of residence, car’s title, and a valid driver’s license. In addition to that, you must have comprehensive insurance for your car. You’ll not qualify for the loan if you’ve filed for bankruptcy.


The lender will offer a loan even if you’re facing serious financial challenges. Simply submit your driver’s license, proof of residency, and a copy of title registration. The interest rates are competitive and you qualify even without a credit check.

Speedy Cash

Speedy Cash offers big loans (second-lien title loans). Unlike other lenders, you can qualify for a higher amount even if you’ve not paid your car loan fully. To qualify for the loan, you need a proof of residence and income. Besides that, the vehicle should be in a drivable condition.

Ace Cash Express

If you don’t fancy any of the above lenders, you should try Ace Cash Express. For your loan to get approved, you must provide a proof of residence, income, and a have a clear title for your car.

So, which title loan companies in Arizona should you choose?

Well, the best company will depend on your needs. The easiest way to approach the matter is to shop around and compare the different lenders. Make sure the terms are favorable.

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending Articles

Find a Lawyer   /   Ask a Question   /   Articles   /   About    Contact  

© Copyright 2022 | Attorney at Law Magazine | Privacy Policy