How do title loans work in Arizona? | Yendo Credit Card



August 17, 2023

Are Title Loans Legal in Arizona?

Yes, vehicle title loans are legal in the state of Arizona. Laws governing these types of loans are codified in the“Arizona Revised Statutes”, Title 44, Chapter 2.1, Article 1 (1).

Understanding Title Loans

Title loans are ways of borrowing money using your vehicle's value as collateral. The lender assesses the value of the car and your ability to repay the loan to determine the amount you can borrow. In contract, Yendo is a vehicle secured credit card that uses the value of your car to help determine your credit limit. Because it is a credit card, you have ongoing access to funds.

Regulatory Guidelines for Title Loans in Arizona

Here are some statutory guidelines Arizona follows for vehicle title loans:

  • Loan Maximum and Minimum: In Arizona, there are not minimums or maximums for title loan amounts. (1)
  • Interest Rates: Arizona law permits title loan lenders to charge the following monthly interest rate (2):
  • $500 or less – 17 percent
  • More than $500, but not more than $2,500 – 15 percent
  • More than $2,500, but not more than $5,000 – 15 percent
  • More than $5,000 – 10 percent
  • Loan Term: Arizona does not impose any specific term period for title loans, which consequently allows lenders to determine the loan term (3).
  • Licensing: All title loan providers inArizona must be licensed under the Department of Financial Institutions (4). 
  • Repossession Regulations: If a borrower defaults on the loan, Arizona law allows the lender to take possession of the vehicle but it necessitates a 10-day notice to the borrower before repossessing the vehicle (5).

While title loans can assist in tiding over immediate financial crunches, they also carry potential risks including high interest rates and the chance of vehicle repossession. One must fully understand all terms before proceeding.

The Yendo Card - The Title Loan Alternative

Yendo is the first credit card that's backed by the value of your car, so you can use your car title to get a credit line of up to $10k.

The card can provide access to credit for those who might not be able to qualify for other credit cards. It's a real credit card, powered by Mastercard, that provides credit limits from $450 - $10,000, depending on the value of your car. So, rather than re-applying for loans, for example, you can access funds an ongoing basis and, with responsible usage like on-time payments, build your credit too.

Features & benefits

  • Credit limit - access up to $10k in credit
  • Only pay for what you spend - it's a credit card, so you only pay for what you spend, plus interest and fees. Or, if you pay off your balance each month, you only pay for what you spend.
  • App - the Yendo app lets you manage your account, wherever you are
  • Virtual card - access a portion of your credit limit prior to getting your physical card in the mail with the Yendo virtual card. Use your virtual card in addition to your physical card
  • Cash advances - ability to do cash advances on your card if you need to access money quickly
  • Access to revolving credit – you’ll have a revolving line of credit that opens up as you make payments
  • Credit reporting – all your account activity will be reported to the credit bureaus, giving you the perfect opportunity to build your credit


Disclaimer: Yendo is not a provider of financial advice. The material presented on this page constitutes general consumer information and should not be regarded as legal, financial, or regulatory guidance. While this content may contain references to third-party resources or materials, Yendo does not guarantee the accuracy or endorse these external sources.