Preferred Title Loans Disclosure

Preferred Title Loans Disclosure

For complete details about the Preferred Title Loan at 35.9% APR**, refer to the following information:

Estimated monthly payments for a 36-month loan at 35.9% APR = $4.575 per $100.00 borrowed (or $45.75 per $1,000.00 borrowed).


Borrowers can qualify for a Preferred Title Loan, amortized at 35.9% APR, if they meet the following criteria:

  • Free and Clear Title: Borrower owns the vehicle free-and-clear of any encumbrances or liens.
  • Loan-To-Value: The Loan-To-Value ratio for Borrower’s vehicle must be 50% of the principal amount borrowed from Southwest. Put another way, the principal amount loaned cannot exceed 50% of the value of the vehicle. Example: If the vehicle is worth $4,000, Southwest will cap the loan at $2,000.
  • Proof of Residency: Borrower provides evidence of current and continuous residency in the State of Arizona for the previous two years.
  • Active Bank Account: Borrower provides evidence of a current bank account and Borrower enrolls in our autopay program.
  • Current Employment: Borrower provides evidence of current and continuous employment for the previous two years.
  • Insurance: Borrower maintains full-coverage on Borrower’s vehicle.
  • References: Borrower provides five (5) references.
  • Debt-To-Income Ration: Borrower’s debt-to-income ratio is less than 43%.
  • Ability To Repay: Borrower’s monthly payment cannot exceed 10% of Borrower’s net monthly earnings.
  • Approved Credit: Borrower must possess a credit score of 680 or higher.

Actual loan amount subject to vehicle evaluation at inspection and complete and approved application. Certain limitations apply. All loans subject to customer’s ability to repay. Some title loans subject to liberal credit policies and limitations, if any.


Collection practices

If you are unable to repay your loan, collections efforts may begin immediately. Debt collection efforts may include the following: telephone calls to your home or place of employment between the hours of 8:00 a.m. and 9:00 p.m., voicemail messages, notices by mail, email (in accordance with CAN-SPAM Act) and text messaging (in accordance with FCC Regulations for SMS opt-in). Debt collectors may not harass you, make false statements, threaten arrest, or engage in any other unfair practices.

Prepayment

You can choose to pay off your loan at any point during the term of the loan. Should you choose to pay off your loan early you would be responsible for the principal and the interest that was accrued for the number of days that you held the loan. There are no fees or penalties associated with paying a loan off early.

We may take steps to verify the accuracy of the information you have provided including, but not limited to, clear vehicle title, your social security number, driver’s license number, national ID, or any other state or federal identifications. We may review your information against other national databases to determine your credit worthiness or credit capacity.

Financial implications

If you are unable to repay your loan in a timely manner, we may pursue payment through collections which could result in you being responsible for additional legal fees and court costs. If we decide to take action in the form of repossession of the collateral, any such action would be in compliance with all provisions of A.R.S., Title 47, Chapter 9.

Credit score implications

For our Preferred Title Loan, we run your credit to determine loan qualification. Doing so can result in a reduction of your credit score by a small number of points each time that it is run. We do not report your payment history to the credit bureaus therefore your credit score will not be affected either positively or negatively by your payment history. We may take steps to verify the accuracy of the information you have provided including, but not limited to, clear vehicle title, your social security number, driver’s license number, national ID, or any other state or federal identifications. We may review your information against other national databases to determine your credit worthiness or credit capacity.

Top