What Are Registration Loans And How Can I Get One?

One benefit of living in Arizona is the option for emergency cash with registration loans. Arizona is the only state that offers these types of loans that go beyond the scope of a traditional title loan. 

Registration loans are for those who don't own their vehicle but need a loan on a portion of the equity to pay for an unexpected expense like a medical bill or a home repair. Applying for a registration loan can be submitted through a lender like Southwest Title Loans. 

Defining A Registration Loan

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 is lower than title loans but it is still a valid option for some people. 

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.

How Are Registration Loans Different From Title Loans?

The 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 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. 

Picking A Lender

Southwest Title Loans is a reputable lender offering registration loans 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 a loan.

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. 

Getting A Registration Loan

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.

Ask For Information

The online form is an inquiry form for you to get more information and doesn't commit you to registration loans. It's a way for you to find out if this is a viable 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 a registration loan from Southwest Title Loans is the right fit for you. 

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