A registration loan is a unique type of loan that is only offered in Arizona. Though most lender registration loan requirements may vary slightly, what will be required is the registration of a vehicle in the borrower’s name. In other words, in order to be eligible for a registration loan, one must have a vehicle registered in his or her name. Vehicles can include autos, trucks, an RV, motorcycles—anything with an Arizona vehicle registration.
Along with a state registered vehicle, borrowers will also have to provide a photo ID, typically a valid Arizona driver’s license and proof of income. Other registration loan requirements and documents that a borrower may have to produce include a social security card and/or a checking account. In most cases, the borrowing process is a simple one with loans as low as $100, with many up to $1000 or more, depending on what the financial needs may be.
One of the main advantages of a registration loan is that they are generally easy to get approved. Nevertheless, a loan is still a commitment that you, the borrower, will receive a certain amount of money from a lending institution, and in return, you will pay back the total amount of money borrowed with added interest, over a defined period of time. This is defined as the “terms of the loan,” which are spelled out in the contract provided by the lender or lending institution.
Types of Registration Loans
There are essentially two kinds of loans available from lenders, secured and unsecured. Secured loans require some type of asset from the borrower as collateral. For example, a house, a car, a trailer, etc., is often used as collateral for receiving a secured loan. Unsecured loans do not require any collateral. They are not connected to any type of property that a lender can seize if the borrower fails to make a payment on the loan. The lender assumes the risk. However, unsecured loans are usually approved with a higher interest rate. A good example of an unsecured loan is a credit card, and so is a registration loan.
In Arizona, there are two types of auto-related loans available to borrowers, car title loans, which require a vehicle’s title as collateral, and registration loans, which requires only that the vehicle is registered in the borrower’s name. You do not have to present the vehicle title, meaning that you do not have to own the car, for the lender to approve a registration loan.
A registration loan shows that the registration of the car is in your name. You could still be paying off a car loan and still qualify for a registration loan. You do not have to own the vehicle outright to be approved for a registration loan because they are not secured by any type of collateral. If you are considering applying for some type of unsecured loan to meet short term financial needs, then a registration loan may be an option.
Tio Rico Te Ayuda has an array of lending services and related products, including registration loans, which have helped thousands of families get the cash they need when they need it the most.
Registration loans offer several advantages over other types of loans. Mainly that they are quick and easy to obtain, they are a short term loan option, and that they do not require a credit check. On the other hand, borrowers should be aware that because there is no collateral involved, registration loans come with higher interest rates. At Tio Rico, we have an all-credit welcome policy and generally quick application approval on loans designed to help people take care of their finances.