Where do you turn to when an unexpected, costly life emergency pops up? The average person is not going to have $3,000 just sitting around waiting for an emergency to happen. Life can be expensive. Most people will seek out an auto title loan to help bridge the gap. But what do you do when you are still making payments towards your vehicle and the title is not in your name? Say hello to registration loans.
If a title loan is not in the cards, you can always try a registration loan. Registration loans are in place as a way to provide borrowers with more short-term loan options. Unlike the title loan, you do not need to own your vehicle outright in order to qualify. The following are requirements to qualify for a registration loan:
- Must have a current driver’s license and vehicle registration in borrower’s current state of residence
- Borrowers must be financing or leasing a vehicle in their own name
- Must have current vehicle information (make, model, mileage, year etc.) during the application process
- During the life of the loan, the current vehicle can’t be repossessed or have any attached liens
What is the Difference Between Registration Loans and Vehicle Title Loans?
Most people will lump auto title loans and registration loans into the same basket, thinking they are the exact same type of loan, just different lingo. This is not the case. Vehicle title loans and registration loans are indeed two different types of loans altogether. Below we list the major differences:
- Title loans require a clear title under your name. Registration loans only require the vehicle’s registration to be under the borrower’s name
- Title loan amounts are determined by your vehicle’s worth. Registration loan amounts are determined by your employment and income status
- Registration loans are typically smaller in nature than auto title loans
- Registration loans typically come with higher interest rates than title loans, as there is no collateral involved
Auto title loans come with several advantages over registration loans. Since you are using your vehicle as collateral, you are going to get a much lower interest rate with an auto title loan. Registration loans come with much higher interest rates, as there is no collateral involved. These loans also do not require a credit check. Tio Rico is Arizona’s leading lender of registration and auto title loans. Visit one of our many locations to find out how you can qualify for a registration loan today.