Registration loans are available to residents in the state of Arizona. They are a short term, high interest loan that requires a borrower to use their vehicle’s registration as collateral for a loan.
If the terms “short term” and “high interest” seem intimidating, it’s because they are usually a setback for most borrowers during the repayment process! A loan with longer loan terms and more competitive interest rates, such as a title loan, can help a borrower get back on their feet with less of a hassle. You can get a registration loan with bad credit, but there are other options to consider!
Registration loans may seem like an easy way to get fast cash, but there is a better loan available if you are looking to use your car as collateral. ChoiceCash Title Loans can offer more competitive interest rates and optimal loan terms that make it easier to get your finances back together!1
What is a Registration Loan, and Can I Get a Registration Loan with Bad Credit?
Vehicle registration loans are used as an alternative borrowing method for residents in Arizona. They can be an emergency way to obtain fast cash, and they allow you to use your car’s registration as collateral for the loan.
Depending on the lender you choose, you may not keep possession of your vehicle during the short repayment process. Since collateral is used to obtain the loan, your credit history is not the most important part of the approval process for most lenders. This makes registration loans a popular choice among borrowers looking to apply for a registration loan with bad credit.
While registration loans can be a fast way to get cash, you may not enjoy the terms of the loan while you are in the repayment process! There are other loan options to explore that can allow you to apply for a loan with bad credit.
What are the Differences Between a Title Loan and a Registration Loan?
While both loan options use collateral and can allow a borrower to apply for a loan with bad credit, there are some differences between them. Some of the most notable differences that can impact a borrower’s repayment experience are:
- The Location of the Vehicle During the Repayment Process: Some registration loan providers will not allow a borrower to keep access to their vehicle during the repayment process. In comparison, ChoiceCash Title Loans can allow borrowers that make their payments on time to keep their keys and normal driving routine while they repay their loan.
- Interest Rates: Since registration loans are so short term, the interest rates are incredibly high and often unaffordable. Interest is the cost of borrowing money, but if the rates are too high, it could trap you in a cycle of debt. Some title loan providers can offer more competitive interest rates that are easier on your wallet!
- Loan Terms: The average registration loan term is anywhere between 30-90 days. For most borrowers, this is not enough time to pay back a loan! ChoiceCash Title Loans can offer qualified borrowers 12-48 months on average to pay back their title loan.
Can I Get a Title Loan with Bad Credit?
If you are looking to apply for a registration loan with bad credit, you may not have considered your other loan options available. You can apply for a title loan with bad credit as well! Title loans are secured through collateral during the approval process.
When applying for an unsecured loan, your credit history is what a lender uses to determine whether you are a risk to lend to. Collateral helps minimize this risk, and can often allow borrowers from all different kinds of credit histories to apply for a title loan.1
What are the Benefits of Title Loans?
Title loans can offer more than just cash when you’re in a financial emergency! Some of the benefits that borrowers of a ChoiceCash Title Loan can take advantage of are:
- Keep Your Keys: Unlike some registration loans, you can keep driving your vehicle while you repay your title loan! If your payments are consistent and on-time, you can keep your normal driving routine with your vehicle.
- Get Fast Cash: A better loan option does not mean a slower one! Qualified borrowers can get their funds in as little as one business day through ChoiceCash Title Loans.1
- Payments Start Low and Can Get Even Lower2: ChoiceCash Title Loans gives borrowers the opportunity to earn rewards!2 By simply making your loan payment on time each month, you could qualify for a lower monthly payment and interest rate.2
How Much Cash Can I Get Through a Title Loan with Bad Credit?
While you may have been looking to apply for a registration loan with bad credit, what you may not have known is that they are not known for large loan amounts. The average registration loan is anywhere between $400-$4,000, which may not be what you are looking for!
A car title loan is a great alternative to a registration loan that can allow you to access 25%-75% of your vehicle’s value. With a title loan, you are using your vehicle’s title for the loan, so your credit history will not be the most important part of the approval process.
Instead, a loan agent will use these two factors to determine both your eligibility and your loan amount:
- The Value of Your Collateral
- Your Income and Ability to Repay the Loan
The more equity your vehicle has to borrow from and the higher your income, the larger your loan amount could be! If you aren’t sure what your vehicle’s equity currently is, don’t stress. ChoiceCash Title Loans has made an online tool that can be used to find out your vehicle’s equity. Simply input your vehicle’s information into the title loan calculator to get a free title loan quote online!
Where Can I Apply for a Title Loan with Bad Credit Online?
You may have been looking to get a registration loan with bad credit, but a title loan can often be a better option! Find out if you and your vehicle can qualify for the cash you need today by heading over to the ChoiceCash Title Loan website and filling out a short inquiry form. Or, give a loan agent a call today at 855-914-2945! Representatives are available for extended hours 7 days a week to help you with your title loan needs.