Arizona Registration Loans
If you are trying to bridge a financial gap and do not have the credit or checking account to take out a traditional bank loan, a registration loan in Arizona could be a quick solution to your problem. People take out registration loans for wide variety of reasons, including needing a quick cash injection for a car payment, medical bills, rent, moving expenses, a down payment, utility bills, or any other unexpected financial emergency. Lenders of registration loans in Arizona do not require a credit check, because they use your vehicle title as collateral. What does that mean? Lenders hold your vehicle title only until the loan is paid off, at which time you get it back. That said, once the lender has your title, you are agreeing that if you default on your registration loan in Arizona that he or she can take your vehicle and sell it to recoup the outstanding amount of the loan. Lenders don’t want to do this anymore than borrowers want them to, because it takes time and money to repossess and sell a vehicle. Borrowers certainly don’t want to lose their vehicles, because that can turn an unfortunate situation into a disastrous one. If you want to have a successful experience with an Arizona registration loan and fix a short-term problem, it’s easy to do if you know the ropes.
Lenders are willing to work with borrowers on terms for registration loans in Arizona to customize payments that satisfy both parties and that the borrower can realistically afford. That said, when you decide to get this type of loan, use your best negotiation skills to work out a payment plan you can handle. Lenders will typically offer approximately half of a vehicle’s value as a loan amount, but if you can’t afford payments on that amount, don’t take that much! You’ll be better off taking less money and paying it back in a timely manner because there will be no chance of losing your vehicle.
The Evolution of Registration Loans in Arizona
Registration loans in Arizona are relatively new; these types of loans first appeared in the early 1990s as a solution for those with poor credit ratings, and their popularity has increased significantly. Do not confuse a registration loan with an auto pawn. Although they are similar in nature, an auto pawn requires the borrower to use both the car title and the physical vehicle as collateral, which means handing over the vehicle for the lender to store while you pay off the loan. Car registration loans in Arizona enable the borrower to keep his or her vehicle while paying off the loan, which significantly reduces stress on the part of the borrower.
Registration Loan Process in Arizona
The first thing you need to do if you’re interested in a registration loan in Arizona if find a lender. Take the time to do your research and you’ll be plenty glad you did. There are hundred of lenders in Arizona, so make sure you come up with a list of them and then start investigating their websites. Glean all of the information you can—and even fill out an online application if you wish to get an approximate loan amount—and search for borrower reviews of the lender to help you make a choice. Also look for a lender who is offering a comparatively low interest rate, as these types of loans can often carry triple-digit rates. Simply put, faster quick cash doesn’t come cheap. Vehicle registration lenders charge very high interest rates on their loans simply because they are often considered risky. Clearly, this is a major point you want to explore when you are searching for a lender for an Arizona car registration loan. If you choose to fill out an online application, the information you provide, the faster you will likely be approved. Online applications typically ask for your contact number, your income, and your vehicle’s make, model, and year.
Once you’ve found a lender you trust for a registration loan in Arizona, you can either fill out a short application online or go into the lender’s office. Either way you’ll need to see the lender in person, because he or she will have to visually assess your vehicle and assign a value to it, which he or she typically does by consulting Kelley Blue Book. Once the lender sees your car and makes you an offer, you must present a photo ID, the hard copy of your free-and-clear vehicle title, and proof of some income. Since federal law prohibits lenders from discriminating against sources of income, if you’re not working it does not mean you can’t get a registration loan in Arizona. Lenders must also consider unemployment, disability, and pension payments as income. If you have a friend or family member who is willing to co-sign on the loan, lenders will consider their income; lenders may also take into consideration a start date if you just got a new job!
Before you sign on the dotted line for a registration loan in Arizona, make sure you ask the lender any questions you might have and make sure you can handle the payments. All of this should take only about half an hour and you can typically walk out of the lender’s office with that much-needed cash. Making payments has never been easier: lenders usually accept cash, debit card, money orders, Western Union wires, and cashier’s checks. And as the demand for these types of loans increases, some companies are even adopting software designed for mobile devices enables potential borrowers to see how much they can get on a loan for their vehicles as well as estimated monthly payments they’d need to make.
When You Should Apply for Registration Loans in Arizona
If you think a registration loan could be the answer to your short-term emergency, definitely explore the option. Armed with information and the right documents, you can make a registration loan in Arizona work for you! Just remember to satisfy the key requirements, which include finding a good lender, gathering the correct documents, negotiating the best loan terms you can, and of course making timely payments on the loan!