Registration loans are a funding source unique to the State of Arizona. They present a convenient way to get quick cash for varying types of emergencies ranging from medical to auto repair. The convenience relates to the accessibility of funding and the number of loans available to the borrower. How many registration loans can you have in Arizona would depend on your needs—the state allows borrowers up to five registration loans in your name at any one time.
Registration loans are a type of financing where the borrower uses his or her car’s registration or any registered motor vehicle in the borrower’s name, to secure the loan. When you get this type of loan, you are using the vehicle’s registration as collateral in exchange for quick funding. To receive a registration loan, you present the vehicle registration, not the title, to the lender, which means you can receive a loan on the registration of a car that you do not own yourself. How cool is that!
Because you can take out multiple registration loans at once, if circumstances merit it, you can receive multiple lines of funding, too. While registration loans offer convenience to borrowers because they are easily obtained, as with any loan, you should only apply for them when and if it’s necessary. With registration loans, interest rates are generally higher and the repayment terms are much shorter than a title loan, another related auto-loan which is often confused with registration loans.
Arizona offers two similar kinds of auto-related loans, the title loan and the registration loan. Though they are similar, they do have fundamental differences, and it is important to know which one would work for you when needed. Each loan requires official documents that show a car is in your name. Title loans are for borrowers who have a clear title on their vehicle. If the title has no liens listed on it, then the borrower can use the title as collateral to secure a loan. Using collateral to receive a loan is defined as a secured loan.
On the other hand, for registration loans, the registration of the vehicle must be in the borrower’s name. By law, as long as the vehicle is registered to you, even if you are still financing it, you are eligible to take out a registration loan. Because having a car registration does not necessarily mean you own the vehicle outright, you are receiving a loan without collateral. Loans received without collateral are known as unsecured loans. Because they are unsecured, registration loans offer borrowers with more short-term loan options. Registration loans require a current driver’s license and vehicle registration in borrower’s current state of residence, with the current vehicle information, i.e., make, model, mileage, year and so on, for the application process. The vehicle must be leased or financed in the borrower’s name and the current vehicle cannot be repossessed or have been subject to liens during the life of the registration loan.
Registration loans are a quick and easy way to borrow cash in an emergency. Key benefits include a speedy application process—apply for financing no matter what type of credit you have because there are no credit check requirements—and you can shop for low, competitive rates. Finally, there are no hidden costs such as an application fee or a credit report fee. If you are looking for a hassle-free loan to provide financial relief, then look no further than a registration loan from My Tio Rico.