There are many benefits to getting an Arizona title loan over opting for a cash advance loan or a pawn loan. Generally, you can borrow more money at a lower interest rate than a cash advance or pawn loan. You keep your car, whereas with a pawn loan you have to leave your item in the possession of the pawnshop.
Get approved the same day and leave with the cash you need in less than 30 minutes most of the time. Check out this guide to know about Arizona Title Loan.
Also, the title loan is not based on your credit history, so if you have bad credit or no credit, it would not be an impediment when you apply for this type of loan.
It also won’t affect your credit score if you can’t make your payment on time, or worse, if you can’t pay the loan at all. Your credit situation with the financial institution will be affected, but your credit score in the credit bureaus will not be affected.
Why Choose A Title Loan And Not A Pawn Shop?
Usually, they give you more time to pay off an Arizona title loan than a pawned item. Title loan contracts are set up on a 12-month payment plan, while pawn shops give you 30 days to pay before repossessing your property. Sometimes they offer another 30 days as a courtesy period, but with increased interest and additional fees.
You can continue to use your car as you usually do, even after you receive your title loan.
A pawn shop holds the item you brought until you pay off the debt.
The amount of the title loan can be significant compared to the money you would receive at a pawn shop.
The interest rate on a title loan is slightly lower (as low as 1.5%) compared to the rate on a home loan (25%).
The Loan Accounting Process
With the diversity of international regulations and accounting and tax applications in each country, it is difficult to write about how to account for a loan. We must differentiate small companies from large ones. In the former, certain licenses are usually allowed, in the latter not so much. All this to preserve the true image of the company.
The small or medium company usually has adopted accounting standards. We cannot overcomplicate its management because resources are much more limited. For this reason, it is usually allowed that in them that expense included in the Arizona title loan is taken directly to the income statement. In this way, they can use their nominal interest, since it is equivalent to cash. The large ones are usually governed by the amortized cost and within the small ones, that’s optional, although sometimes recommended.
