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auto registration loan explained

Auto Registration Loans Explained: What You Must Know

There’s never an easy option in an emergency, but if you’re in dire straits, then an auto registration loan might be just what you need to get back up on your feet again. Here’s everything you must know about an auto registration loan and how they can help you.

Auto registration loans are exclusive to the state of Arizona and allow you to use the registration of your vehicle as collateral to secure a loan. That means you can often obtain loans with poor credit or take out a loan even if you don’t own your vehicle outright yet.

This option might not be for all emergencies, but it can definitely be useful in a pinch, especially if you’re still making payments on your car and have no other way to assure you’ll repay the loan. The rest of this article will introduce you to auto registration loans, how you can use them, and when you might consider getting one.

What Is An Auto Registration Loan?

Auto registration loans fall under the category of secured loans, meaning that you have to put up collateral to protect the interests of the lender.

Auto Registration Loans Explained

Lenders choose to do this because in many cases, a borrower’s say-so is not enough to assure them that the loan will be repaid in full. When borrowers are willing to put up an asset to secure a loan, it means they’re serious about paying it off.

Traditionally, secured loans are done through title loans, which use your car’s title as collateral. Auto registration loans, on the other hand, rely on your car’s registration for collateral—perfect if you don’t own your car outright yet. This can help you obtain a loan more readily.

When To Consider These Loans

Of course, as with everything, there’s a time and a place for auto registration loans. In general, we don’t recommend them for frivolous purchases or situations where other financial resources are readily available.

If you’re able to cut down your budget to make ends meet or make additional money through a side hustle to cover expenses, it’s usually better to do so.

Loans are a band-aid on a bullet hole when it comes to fixing longstanding poor money habits and may wind up making things worse.

Of course, with that being said, auto registration loans can be useful when life emergencies arise that you have no way to pay for.

Home repairs, for example, can cost hundreds of dollars upfront that you just don’t have. Yet it’s vital to maintain the integrity of your home to preserve its equity. Not doing so simply isn’t an option if you want to protect your investment.

In this and similar situations, you may choose a loan to get the quick cash you need for those emergencies.

Of course, you always want to consider your ability to repay in any loan situation. If you’re paying off your car, then you’ve likely already got a handful of payments to tackle. As such, loans should definitely be a last resort and only used when your other options are very limited.

man signing auto registration loan contract

What Do I Need To Apply?

Now that you understand everything about auto registration loans and when to rely on them, let’s take a look at what you need to apply. For a registration loan through Southwest Title Loans, you will need to have the following:

  • A valid Arizona driver’s license or government-issued ID
  • An Arizona motor vehicle registration in your name
  • An active checking account in your name
  • A valid SSN

How Does The Process Work?

The in-person process may be as brief as 30 minutes and get you as much as $1,500 on your loan. Keep in mind that your credit will be checked before you’re approved. To get started, just head to the easy online form provided on the website.

We will call you afterward to review the loan process and what you’ll need. Once done, you can head down to the closest Southwest Title Loans store, and a loan associate will go over your required items (Arizona ID, Arizona registration, active checking account, SSN) before approving you. If you get approved, then you will get your money as soon as that same day.

Apply Today!

Now that we’ve thoroughly reviewed auto registration loans and all they entail, you’re well equipped to consider this resource during a financial emergency, whether it be an important repair, bills, or other financial concerns.

Just keep in mind that loans are not your only option and that you should consider carefully before choosing. If you find that auto registration loans are good for you, then Southwest Title Loans can help you out! Consider applying today if you’re ready to get started taking your financial situation into your own hands.

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

June Mckaig

June Mckaig writes articles on finance and budgeting, hoping to provide insight amidst the overwhelming crowds of information on the internet. She feels that with all this accessibility comes a lot of false data, and she would like to contribute astute, helpful input that she knows can help others. If you would like to learn more about June's research, read more here.

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