Thinking about a car registration loan? If your financial situation is tough, you may be looking for a fast loan that can get you back on your feet. Car registration loans are only available in the state of Arizona. They are a short-term loan that offers a borrower the chance to use their vehicle’s registration as collateral for a loan.
The price of this short-term loan, however, are usually high interest rates that can be tough to repay. Registration loans are often in the same boat as payday loans, which also offer borrowers the chance to get fast cash at the price of high interest rates.
If you need emergency cash to get back on your feet, there are more viable options available to you besides car registration loans. If you are a vehicle owner, consider applying for a car title loan instead!
How Do Car Registration Loans Work?
If you are a resident of the sunny state of Arizona, a car registration loan is an alternative loan option that may be available to you. Car registration loans are a short-term loan option that can give a borrower anywhere between 30 days to 1 year to repay.
While car registration loans can provide some temporary financial relief, they can be financially devastating in the long run. Payday loans are not available in the state of Arizona, but car registration loans are. This loophole allows car registration loan lenders to use those same tactics that payday loan lenders use to trap customers in a cycle of debt. This is done by these lenders issuing high interest rate loans to customers that may not have other lending options.
Car registration loans may provide you with fast cash that can cover an unexpected bill or expense this month, but it may not be worth the debt and headache they cause. While they can allow customers with poor credit to apply for cash, there are much more advantageous loan options available even to borrowers without a strong credit history!
What Documents Do I Need to Apply for a Car Registration Loan or a Car Title Loan?
Both car registration loans and car title loans can be easy to apply for, but there are a few documents you will need to have handy for registration loans and auto title loans during the approval process:
- Proof of Vehicle Registration
- Paystubs, Bank Statements, or Another Way to Prove Your Income
- Recent Mail to Prove Your Address
- A Vehicle’s Title in Your Name
- Proof of Vehicle Insurance
- Recent Photos of the Car
- A Driver’s License or Another Government-Issued ID
With loan options like ChoiceCash Title Loans, your documents can be submitted online for your convenience during the approval process!
What is the Difference Between Vehicle Registration Loans and Car Title Loans?
Car registration loans and car title loans share some similarities. The first similarity is that they are both secured lending options that allow people without a strong credit history to apply for the cash they need. The use of collateral can make the approval process much more flexible and faster to borrowers that need emergency cash.
There are some notable differences between the two loan options, however:
- The Length of the Loan Term: Car registration loans are typically short-term loans. In comparison, a ChoiceCash Title Loan can offer a borrower anywhere between 12-48 months to repay their loan if that is what the borrower needs!
- The Amount Offered: If you are facing a tough financial situation, you may need a specific amount of cash to get back on your feet. Typically, car registration loans may not offer a high amount of cash. Car title loans on the other hand, can offer a borrower a loan amount that is reflective of their vehicle’s equity and income.1
- Interest Rates: Another between registration loans and car title loans can be the interest rates offered. Car registration loans are notorious for high interest rates, while ChoiceCash Title Loans can come with industry-wide competitive interest rates!1
Do I Need Good Credit to Apply for an Auto Title Loan or Car Registration Loan?
Both car registration loans and car title loans are secured loans that can cater to borrowers without a strong credit history. With a car title loan, you can use your vehicle’s equity instead of your credit history to secure the cash you need! While your credit may be looked at during the approval process for a car title loan, it will not be the focus.
Your vehicle’s equity and its value along with your income will be the focus of the approval process! In addition to this, it will also help a loan agent determine what your loan amount will be. The more equity your vehicle has and the higher your income, the more potential there is for you to receive a higher loan amount.1
While you may not be confident with your credit history, you may still qualify for the cash you need through a car title loan.1
Can I Keep My Car When I Apply for Auto Title Loans or Car Registration Loans?
Most vehicle owners rely on their car as their main source of transportation.
If you are one of these car owners, you may be concerned about using your car as collateral for a title loan. If you make your payments on-time and consistently, you can keep your normal driving habits with your car as a title loan borrower!1
You may be able to keep driving your car with a car registration loan as well if you make your payments on time, but it can be difficult to keep up with the high interest rates that car registration loans almost always offer.
How to Apply for Car Title Loans Online Instead of Vehicle Registration Loans
Ready to see if your vehicle will qualify for a car title loan online? ChoiceCash Title Loans can make the process fast and easy for your convenience!1
It can take no time at all to see if your income and vehicle will qualify for the cash you need. Get started on your title loan today by placing a short inquiry on the ChoiceCash Title Loan website.
You can give a loan agent a call today at 855-277-4847 if you have any questions about title loans or how to get started on your loan. Qualified ChoiceCash Title Loan borrowers can get their cash in as little as one business day!1