Title Loans Vs. Registration Loans In Arizona: Which Could Work Best In An Emergency?

In Arizona, you have a few financial options when facing emergencies like medical bills, veterinary fees, home repairs, or unexpected bills. Two of these options are title loans and registration loans in Arizona. The question is — which one is actually best? Ultimately, there is no overall "best" option. However, one over the other may be more preferable to you, depending on your situation.

In this guide from Southwest Title Loans, we will explain the differences between these two loan options and which is best for certain emergencies. We will also go over the approval process for both, so you can see how to get emergency financing approval today.

Title Loans Vs Registration Loans In Arizona: A Comparison

While both title loans and registration loans require using your vehicle to obtain an emergency loan, they differ significantly, making them useful for some but not others. The major differences lie in the basic definition, borrowing limit, and requirements.

Learn about some of these differences below:

1. Title Loans

A title loan is a secured loan that lets you borrow money based on the value of your vehicle. You must own the car outright, meaning you must pay off any debts, liens, or judgments. Once you have fully paid off your vehicle, you can use its lien-free vehicle title as collateral to borrow up to $15,000.

The amount you qualify for will depend on your vehicle’s value, as determined by its age, make, model, condition, mileage, modifications, and maintenance history. We will determine these factors during an in-person meeting. If approved, we will place a lien on your title and keep it until you repay the loan in full.

You need the following required items to get approved:

• Identification — You will need to prove you are at least 18 years old to borrow money in Arizona. We accept driver's licenses, passports, student ID cards, military service members' ID cards, etc. 
• Lien-free title — As you must own your vehicle outright to obtain a title loan, we require a lien-free title to prove this fact. Plus, the name on your identification must match the name on the title. If it doesn't, please head to the Department of Motor Vehicles to request a title transfer. Once the transfer is complete, you can then start the title loan process.
• Vehicle — We accept cars, trucks, or vans. We do not accept other modes of transport such as boats, tractors, RVs, ATVs, or motorcycles. We use your vehicle's value to establish how much you can qualify for.

This loan option is best for those facing major emergencies who own their car fully. If you haven’t fully paid off your vehicle yet or only need to finance a small emergency, a registration loan may be the better option.

2. Registration Loans

A registration loan allows you to use your car registration to get emergency cash in Arizona. You can borrow between $200 and $1,500. How much you qualify for depends on your ability to afford repayment. Although the loan amount is much smaller, the benefit of registration loans is that you don’t need to have fully paid off your vehicle to get approved.

Here are the registration loan requirements:

• Identification — You will still need to prove your identity and age, just like Arizona title loans. We accept any Arizona state-issued photo ID that displays your full name and date of birth.
• Arizona motor vehicle registration — The registration must match the name on your identification document. You will use your car registration as collateral.
• Checking account — The checking account must be open and active in your name. This shows the lender what your financial situation is and can help determine how much you can borrow.
• Social Security Number — Naturally, this must be a valid number. We will use this SSN to check your credit score, but it will be a soft credit inquiry. That means your credit score won’t go down from the check. You can still get approved for Arizona registration loans with bad credit, but the amount you qualify for may decrease.

Now that you understand how these loans work, you are more informed about the decision between them. Keep reading on to learn which loan option is best for common emergencies.

Which Loan Should I Choose For My Financial Emergency?

The most important factor when choosing between these loans is whether you have fully paid off your vehicle. If you haven’t, you won’t be able to get an Arizona title loan, so you'll need to opt for a registration loan.

However, those who have can choose between the two. Each of these loans fits different emergencies. Title loans are better for larger emergencies, while registration loans can help with small emergencies.

Here are some common financial emergencies, and which loan fits them best:

• Overdue bills — Taking time off work due to injury or illness can make it difficult to pay your monthly bills like rent, utilities, car insurance, or student loans. Both types of loans can help, but the best option depends on how much you owe. If it’s just one bill, a registration loan is the best choice, while title loans can assist when you need to cover multiple overdue bills.
• Medical bills — Medical insurance only covers a portion of your bills, learning you to handle a large portion of the costs for surgery, hospitalization, and medication. Most medical bills are expensive, making title loans the best option.
• Home and auto repairs — Whether you have to pay to replace a broken windshield or remove mold from your house, the cost can exceed your budget. For minor repairs, you should opt for a registration loan, but title loans can help with repairs that go way beyond $1,000.
• Unexpected travel costs — You may need to travel unexpectedly to handle a family emergency. You will have to pay for plane or train tickets, a rental car, and room and board. A registration loan should be enough to afford these costs, especially if you have help from friends and family.

One advantage of title loans and registration loans is that they share a similar approval process. Most of the steps are the same, meaning the process shouldn’t influence your decision. Once you have decided which loan is best for you, you can proceed with the simple, same-day approval process to get emergency cash in Arizona.

The Approval Process For Title Loans And Registration Loans

No matter what loan you choose, you should be able to get approved the same day you apply. The process takes just a few easy steps. You can begin the process at home with your phone or computer before visiting one of our title and registration loans near me to get verified in 30 minutes.

The following is a step-by-step guide for loan approval in Arizona:

• Fill out our online inquiry form
• Answer a phone call from us to discuss loan terms
• Bring your required items to our nearest Arizona branch for verification
• If going for a title loan, have your vehicle inspected for its value (not necessary for a registration loan)
• Sign the loan agreement to finish the process
• Receive your emergency cash later that day or by the next business day

Get Arizona Title Loans Or Registration Loans From Southwest Title Loans Today!

Whether you want to acquire Arizona title loans or registration loans in Arizona to fund your emergency, you can get them from us at Southwest Title Loans. Our process is quick and easy, and we'll never bog you down in lengthy appraisal proceedings. Simply complete our online loan form and visit us in person to get approved in less than 30 minutes!

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.