Vehicle registration loans are short-term loans that use your car registration rather than your actual title as collateral, which the lender owns until you repay the loan. After they banned payday loans in Arizona, online registration loans turned into a more decent and go-to alternative for people who need some emergency cash but are still paying off their car loans. It allows you to get the cash you need before the day is out. This guide will walk you through the six easy steps that make it happen.
1. Know What You Can Actually Repay
What do you really need? Not the maximum loan amount you can qualify for, but the amount that’ll get you out of the crisis without mortgaging next month’s rent, groceries or gas bill.
In Arizona, you can get vehicle registration loans in places like Phoenix, Chandler, Mesa, Tempe or Glendale. You can borrow anywhere from $50 to $4,000. The point is to pick a number that works for your budget.
Registration loans are short-term and come with monthly payments that get sorted out in advance. A longer repayment period might spread the load a bit more, but it can also end up costing you more in the long run. It’s a bit of a balancing act between getting some breathing room now and the overall expense in the end.
You don’t even have to own your car free and clear to qualify. For the most part, lenders are interested in:
- Equity in your car – How much your car is worth according to its present condition, minus what you still owe on it
- Steady income to repay the loan
2. Compare Lenders
Interest, fees and repayment terms can vary pretty widely, even more so when you’re applying for auto registration loans online.
So, make sure to check the following:
- How lenders explain their interest rates and any fees you’ll be charged
- How transparent their repayment schedules are
- How quickly can they get the money to you?
- If they do soft credit checks (that don’t affect your score) instead of hard checks (which can leave a mark on your report for up to 2 years)
3. Get Your Documents Ready
The kinds of documents you’ll need for an auto registration loan:
- Vehicle registration
- Your vehicle’s VIN and some basic details – make, model, mileage, condition, a few photos
- Proof of income (your pay stubs, pension statement, bank deposit records)
- ID (driver’s license, passport, state ID)
- Proof of where you live (your utility bill, lease agreement)
- Your bank account details for the deposit
4. Shop Around
Some online platforms let you review all the details before you formally accept anything. It’s tempting to just go with the first approval you see. But taking a few extra minutes to compare rates and check lender reviews can save you a lot of money in the long run.
5. Apply, Review and Agree
Once you’ve chosen a lender, fill out the online application. You’ll be asked to provide personal details, employment info, income data and possibly your social security number for verification.
Most lenders process your application and make their decision the same day. If you’re approved, you’ll get a loan agreement. The most important things to focus on are:
- The total amount you’ll have to pay back
- The interest rate and any fees
- Your exact repayment schedule (monthly, biweekly, etc.)
- What happens if you’re late or miss a payment
- What happens if you pay off the loan early
6. Getting Your Funds and Repaying
After you’ve signed on the dotted line, the money usually shows up in your bank account within one business day. Once you’ve paid off the loan in full, your lender lifts the lien on your vehicle registration.
Conclusion
Getting an auto registration loan online can be a lifesaver when you’ve got an unexpected bill to pay and not much cash on hand. To make things easy, only borrow what you can pay back and don’t let the allure of speed blind you to hidden fees, payment schedules that don’t match your paychecks and whether the lender is even running a hard credit check on you.
About the Author
Heather Willis is a seasoned personal finance writer dedicated to helping individuals take control of their finances in order to achieve their financial goals.
She has contributed topics on loans, money management, debt, investing, and retirement planning for CASH 1.
Her experience of more than eight years within financial industry has helped readers gain the most recent financial information and advice.
When she’s not writing, Heather likes discovering new places and listening to punk music.
