If you are still making payments on your vehicle, you may think a title loan is not an option.
That is where registration loans can be worth learning about.
A registration loan is a loan option that uses your Arizona motor vehicle registration as part of the review instead of requiring a lien-free car title. That can make it different from a title loan, where the title generally needs to be lien-free and in your name.
With Southwest Title Loans, registration loans are available for qualified borrowers in Arizona. The process can start online, by phone, or in person, but you will still need to bring the required items to an Arizona store location to complete the review.
Here is what to know before you start.
What Is a Registration Loan?
A registration loan is a loan option that uses your vehicle registration as part of the review.
This may be helpful if:
- You are still making payments on your vehicle
- You do not have a lien-free title
- Your vehicle is registered in Arizona
- The registration is in your name
- You have the required items ready
A registration loan is not the same as a title loan.
The biggest difference is that a title loan generally uses a lien-free vehicle title, while a registration loan uses your Arizona motor vehicle registration.
Submitting an inquiry does not guarantee approval, a specific loan amount, specific terms, or funding.
Defining Registration Loans?
Those who buy vehicles must pay the tax, tag, and title on the vehicle at the local tax office. Once the payments are processed a registration is created showing you to be the owner of the car even though you are making payments. With a registration loan, you are using the registration as collateral instead of the title. The amount that can be borrowed on registration loans vs title loans is lower but it is still a valid option for some people.
How Registration Loans Differ From Title Loans
The car title loan process is virtually the same but the two loan products are different. A title loan shows you to be the owner of the car. It has to be a clean title, meaning no one else can claim ownership of the car. You've made all the payments and there are no judgments or liens on the vehicle. That frees up the amount you can borrow so you can feasibly borrow more, depending on the value of your vehicle.
A registration loan shows there is another who can lay claim to the vehicle so that loan has to be based on the amount you've paid off rather than the complete value of the vehicle. You are, in essence, borrowing against the value of what you've paid for the vehicle.
However, another difference when looking at registration loans vs title loans is that credit checks aren’t typically done for title loans but are conducted for registration loans.
One unique feature of a registration loan is that state law allows for a vehicle owner to borrow on up to a maximum of five registration loans while you can only have one title loan at a time.
Choosing The Right Lender For Your Registration Loan
Southwest Title Loans is a reputable lender offering registration loans Arizona between $200 and $1,500. It only takes four required items to apply but the lender will first check your credit before moving forward with the application.
The amount you can borrow from this private lender depends on the results of a credit check. Beyond that, you will need a valid Arizona driver's license or state-issued ID, vehicle registration, an active checking account that's in your name, and a valid social security number.
You may have your registration from when you paid for your tag or you may need to go down to the local tax or tag office and ask for a copy. You will need to provide this to qualify for a registration loan. It's important to note that the registration must be in your name and you must be at least 18 years old to apply for emergency registration loans.
It's also important to understand the driver's license or ID and registration must be Arizona documents as this is only for Arizona residents.
The Application Process For Registration Loans
Getting a registration loan starts with filling out the online inquiry form. The form is then sent to your local Southwest Title Loan store so that a loan representative can contact you. The representative will explain the loan process and set up an appointment to follow.
When you meet with the loan representative, they will do a credit check, look at your documents, and decide if you can be approved. Those who are approved can get cash either the same day or the next business day.
The representative can answer any questions you may have about registration loans before you apply. They will also take the time to walk you through the process which can take as little as 30 minutes to complete once you arrive at the store.
Advantages And Considerations Of Registration Loans
Registration loans are meant to fill the gap of those who wouldn't qualify for a title loan. Statistics show that up to 43 percent of Americans are paying on a vehicle loan so they wouldn't qualify for a title loan. This allows borrowers the option to acquire the fast cash they need to address an emergency without the worry of credit and ownership of a vehicle.
Is A Registration Loan Right For You? Ask For More Information
Still unsure about how to get registration loans? Use the online inquiry form to get more information. It doesn't commit you to a registration loan. It's a way for you to find out if this is a viable fast cash loan option for your situation.
Registration loans are short-term loans to finance a crucial expense that can't wait until you save money. So, if you need help with an emergency expense, simply fill out the form and see if an Arizona registration loan from Southwest Title Loans is the right fit for you.
Frequently Asked Questions
What is a registration loan?
A registration loan is a loan option that uses your Arizona motor vehicle registration as part of the review instead of requiring a lien-free vehicle title.
Where can I get a registration loan?
Southwest Title Loans offers registration loans in Arizona. You can start the inquiry online, by phone, or in person.
Is a registration loan the same as a title loan?
No. A title loan generally uses a lien-free vehicle title. A registration loan uses your Arizona motor vehicle registration as part of the review.
Do I need to own my vehicle outright?
Not necessarily. A registration loan may be an option to ask about if you are still making payments on your vehicle.
What do I need for a registration loan?
You generally need a driver’s license or state-issued photo ID, Arizona motor vehicle registration in your name, and an active checking account in your name.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.
