Economic hardships have caused many people to need emergency funding, but job losses and late payments have hurt their credit to the point that they can no longer qualify for a traditional bank loan. Some have turned to payday loans as a means of closing a short term gap in their finances. However, these loans are typically only for $100-$1,000 and must be repaid by your next payday.
Car title loans offer the option of borrowing more money and having a longer period of time to repay. With a car title loan, the borrower must show that they have a clean title to the vehicle and the means to repay the loan. Once they are approved, a simple inspection of the car completes the process. In most instances, the borrower is allowed to keep and drive the vehicle while they repay the loan.
For people in Arizona who are still paying off the loan on their vehicle, there is also the option of a registration loan. With this type of loan, you do not have to have a clear title to the car but can borrow against your equity in it. The requirements are similar to those for a title loan, but there are some differences. You must have a valid driver’s license and vehicle registration, proof of residency and proof of income. You must also provide the past 30 days of history for your bank account.
Many lenders who handle registration loans in Arizona offer the option of applying in person at their office or online at the borrower’s convenience. A few may also take applications over the phone. Pre-approval usually takes only a few minutes. Once the borrower has presented the necessary paperwork and the vehicle has been inspected, the loan can usually be completed within just a few hours.
As with any kind of loan, borrowers should consider the risks when taking out a registration loan in Arizona. These loans typically carry a higher interest rate than regular car loans and the repayment period is usually shorter. If the borrower is unable to repay the loan when it is due, there may be options for extending or refinancing, but there is also the risk that the vehicle could be repossessed for non-payment. However, if you are in need of cash for a short term and have bad credit or no credit, an Arizona registration loan may be the answer to your financial needs.