How Do Registration Loans Work?
In Arizona, many people wonder how registration loans work, and whether are they different from title loans, here at TFC Title Loans, we will explain the differences, and what you can expect from them. Also, what are the differences between registration loans and title loans?
With a registration loan, you are able to use the title of your vehicle to get the money that you need to pay for your emergency expense, or whatever you want to use the money for.
If you are wondering how registration loans work, we are here to help you through the process, we will also help you to get the most money, and the low monthly payment that you need, so you will be able to make your monthly payments.
Every state has its own laws regarding how consumer finance works in their state, here is some additional information for you to get familiar with the finance lending laws in Arizona.
Registration Loans vs Title Loans
Registration loans and title loans are both available in Arizona. They might sound like the same thing as you are getting money on your car title, but actually, they are quite different.
Registration Loans
Registration loans and title loans, both require that the title of your vehicle is in your name, but the difference between them is that in a registration loan, your name only needs to be on the registration. So if you are still financing the vehicle, you will still be able to get a loan on it.
Registration loans do not require you to own the vehicle outright. So if you are still making payments on it, you will be able to get a registration loan.
When you get a registration loan it is not secured with any collateral as the lender can’t go on the title as the lienholder, they are unsecured loans.
Registration loans replaced payday loans in Arizona since payday loans were banned. Registration loans are an unsecured loan option for people in Arizona.
Title Loans
A title loan is when you use the equity that you have in your vehicle, to get a loan on your clear title. The title must have no other lien holders.
The title is used as collateral to secure the title loan. Here at TFC Title Loans, we have the largest referral network, so we can help you where ever you live, we will be able to get you a local title loan today.
All of our referral partners are in compliance with the CFPB, so you know you will be getting a title loan company that you can trust.
As long as you have enough equity in your vehicle, we will be able to get you a title loan that will fit into your monthly budget. Contact us to see how we can help you.
Registration Loans And Title Loans
A registration loan, is an unsecured loan, as you do not have full ownership of your vehicle. Registration loans are not secured with the title of your vehicle.
For the lender, it is riskier, as there is no collateral securing the loan. They cannot repossess the vehicle if the borrower defaults. So they have to use collection services to collect if the client does not pay.
Registration loans will rely on credit checks with their underwriting. So the approval time can take longer as the underwriting process has no collateral to secure the loan.
With title loans, the underwriting process is fast, as the loan is secure with the title of the vehicle. With the title loans that we can provide, you will be able to get more money up to $50,000.
Our repayment terms can go up to 48 months, but on average it is 24 months. So you will have longer to repay the loan, so the payments will fit into your budget.
Title loans that we can help you with, have no prepayment penalties. So you can pay them off at any time, and they can give you flexibility.
Getting A Title Loan
If you are in need of some fast money, getting a title loan will give you more money than a registration loan. Also, the interest rate will be lower, and you will have longer to repay it.
If you are interested in getting a title loan you can contact us with our online title loans application, or you can call us, one of our experienced loan officers will help you.
The items that you will need;
A vehicle that has enough equity in it, with a clear title, and in your name.
Your driver’s license
Proof of income.
Your proof of residence.
5 personal references.
Photos of the Vehicle
Here at TFC Title Loans, we have been helping people get the money that they need by using the equity that they have in their vehicles since 1994.
Contact us today we are here to help you if you are considering getting a registration loan. Your vehicle is paid off, you will get better terms with a car title loan. If your vehicle is not paid off and you do not have the required equity in it, a registration loan might be the better fit for you.
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