Title Loans Vs Registration Loans in Phoenix
Today, there are even more options. You can now use the equity found in your vehicle to get the loan that you need. You’ve also probably heard of a registration loan and a title loan. While they both have to do with vehicles, certain differences set them apart from one another.
Both loans will require different means in order to secure them. They will both have different interest rates, as well. While there are pros and cons to these two loan types, most people usually choose online registration loans when it comes down to it. One of the main reasons why this is true is because you will provide the vehicle’s registration in exchange for the loan.
With a title loan, the pink slip or title is what decides the loan amount. The lender will hold onto the car title while you use the loan. Title loan companies also insist that you own your vehicle before they will give you a loan.
Both types of loans are considered short term loans that should only be utilized in the event of an emergency. Many people lean toward registration loans because they can take out more than one loan at a time. This isn’t possible with a title loan. You should always stay up-to-date on the rules and regulations in Arizona by checking the Arizona Vehicle Code and Revised Statutes. This will help you keep all of your loan documents valid in the event you need to use them for a loan. These types of loans are becoming more popular throughout the United States every single day. They help out thousands of people on a daily basis who need fast cash.
You’ll be asked for the same types of requirements when you apply for either loan. Title loan lenders base how much they are going to write out a loan for on the value of your vehicle. However, registration loans are different.
You’ll be asked to provide your current income, personal information, and job details. They will not consider the title of the vehicle. When you do get a loan from either company you will be able to keep driving your vehicle while the loan is out.
Another great perk of both loans is the fact that lenders don’t base your approval off of your credit score. As long as there is enough equity in your vehicle you will likely be approved on the spot.
Online title loan companies in the Phoenix area usually run between 25 and 50 percent of whatever your vehicles is worth. Sometimes, you need more than this, and that is where registration loans can help. Registration loans also usually offer much better financing terms than title loans.
Vehicle registration loans are often compared to payday loans. You are required to repay a registration loan all at once, just like a payday loan or online cash advance. This differs from a title loan company who usually allow their borrowers to pay in increments.
For people who have trouble coming up with a lot of money at once, this could be a problem. However, if you know for a fact you will have the right amount of cash when the loan is due, then registration loans can be the best choice. If you find a Phoenix company that allows you to prepay the loan in full, this will help you save in finance charges.
Car registration loans are often preferred over title loans because borrowers see that the process is more lenient. You can be funded the very next day if you apply for a registration loan, even when you don’t own the vehicle outright. For borrowers who still have years left on their automobile loan, this can be a blessing in disguise.