When life throws you financial curve balls, where or who do you turn to for financial relief? Credit cards are a popular solution, that is, if you have decent enough credit to be approved for one. What do you do if your credit score is below average or worse? No major cards or institutions will back you with a credit line to help you in your desperate time of need. Just when you think you are out of options, quick cash loans might just be your solution. You may have heard of auto title loans or registration loans in Arizona, California or your home state. These loans provide a financial solution for people who are in need of a short-term loan. Title and registration loans are very similar but have a few key differences. Below we discuss the differences, so you can choose which one is the right fit for you.
What are Title Loans?
Title loans are a way for consumers to gain access to needed funds on a short term basis by using their vehicle as collateral to secure a loan. This greatly reduces the risk to the lender, and opens up higher approval rates to consumers. Below are the requirements to obtain a title loan:
- To qualify, borrowers must be the outright owner of their vehicle. If you are still financing your vehicle, you would not qualify.
- At the time of application, your title can’t contain any pre-existing liens.
- Lenders will need basic vehicle information such as the make, model, year and current mileage.
- By using your vehicle as collateral, borrowers must consent that their title can have a lien placed against it by the lender or have their vehicle repossessed for nonpayment and or failing to meet the lender’s obligations.
As long as the borrower possesses a clean title and owns the vehicle outright, he or she will most assuredly qualify and be pre-approved after submitting an application. Your loan amount is based on the value of your vehicle. The higher the value of your vehicle, the higher the loan amount will be.
What are Registration Loans
So you need money now, but you don’t own the title to your vehicle, as you are still making financed payments. This is where the registration loan comes into play. The registration loan was put in place for borrowers who need a short-term loan without a fully owned vehicle. Below are the requirements to obtain a registration loan.
- Borrowers must be leasing or financing a vehicle that is in their own name.
- Borrowers must possess a driver’s license in their current state of residence as well as a current vehicle registration.
- Borrowers need to have basic vehicle information on hand such as make, model, year and mileage.
- Borrowers must agree that fair debt collection act practices will be enforced in the event of nonpayment of the loan balance.
With registration loans, the loan amount is not strictly based on your vehicle’s value like that of a title loan. Instead, borrowers must submit current employment and income information, along with several personal references. Typically, borrowers will receive a smaller maximum loan amount through registration loans than title loans.
Why Should You Choose an Auto Title Loan?
Both title and registration loans can be great options for when you need money quickly. Each type of loan can also be paid back over the short term, as opposed to bank loans which take several years to repay. Once approved for the loan, Tio Rico Te Ayuda transfers your auto title loan cash, immediately. So if you own your vehicle outright title loans will help you get back on your feet when facing a financial emergency. Apply by filling out the form to the right and get you cash today!