There is much talk about title registration loans these days, as short-term cash payment loans are really in high-demand all across the US. Registration loan is a type of loan which is particular for Arizona. The good thing about it is that the applicant doesn’t really need much for the application, they only need to prove that they have a vehicle registered on their name. However, this time around we would like to discuss another short term loan which is often mixed up with registration loan and this is the title loan.
Here we are to let you know some of the most important facts on title loans and will also let you know how this loan differs from registration loan.
What is a title loan?
This is a short-term loan, mostly geared towards getting cash which is often used to cover unexpected payments, especially medical costs, or costs of construction or travel. The sum of the title loan can be as low as USD 150 and can go up until a couple of thousands of USD, however the exact amount one can borrow really depends on the value of the applicant’s car.
Indeed, similarly to Registration Loan, you need your car for the title loan too, but in order to get this loan, the applicant need to be the titleholder of the car. This means, the car is no longer financed, is not registered as a lien already and it’s fully owned by the applicant. Unlike registration loan, you cannot request a title loan for a car that’s still financed.
Title loan companies will use the applicant’s car as a legal lien. This means, if the applicant fails to pay the loan back, the credit company has the legal right to obtain the applicant’s car in return, irrespectively of the sum the borrower owes to the company. This is what makes title loan a particularly risky loan to opt for, and all applicants are advised only to get this credit, if they are absolutely sure, that they can pay the loan back.
As title loan can be used to borrow larger sums of money as well, there is a chance for the applicant to opt for a payback plan, consisting of monthly payments. Just like with registration loan, most companies will let the applicant keep on driving their cars but under specific conditions (especially because of the risk of accident).
Title registration loans unlike registration loans can and do have extra fees as well, therefore it’s good to ask about all these before opting for such a loan.
A title loan is very similar to car usury and this also means that there are many shady usury companies in this business, who only pay a very low sum credit for your vehicle, yet they will still use it as a lien. Remember, that usury and other independent credit companies are not forced by the law to ask for super high interests and most of them do so. So only get a title loan from a company that’s trusted, informed and if you know anyone who’s successfully dealt with them in the past.
Read and learn more about title registration loans in Mesa and contact a respectable company for more information on the terms and conditions.