Registration Loan in Phoenix Arizona
In the last 6 years a new lending alternative has come to Arizona. Registration loans are a quick solution for any car owner that doesn’t have a lien-free vehicle. Requiring only the car’s registration as proof of ownership, borrowers with limited choices can get the money they need in a short amount of time.
As people continue to struggle through a slow-recovering economy, the more lending opportunities they have the better, as it allows them to make the choice that is right for their situation. Our customers often search out fast lending options and ways to get loans with poor credit scores. This might be another profitable option for those looking to earn a quick dollar.
Are Phoenix Registration Loans a Good Lending Option?
Like auto title loans that provide fast assistance to cash-strapped borrowers, registration loans offer that same relief. In this case the borrower receives their loan money for a vehicle they are still making payments on. For a car owner seeking financial assistance, this is an alternative to a conventional bank loan.
Traditionally the average new-car buyer would sign up for a loan term of 48 to 60 months. However, there is a recent rise in new-car buyers stretching out their payments to an 84-month loan. That trend makes any prospect of using their paid-in-full vehicle as collateral for a title loan out of reach.
How to Apply
A borrower can apply for their registration loan online. This streamlined process, low documentation requirements, and accessibility appeals to many borrowers.
Once the borrower applies online, they immediately get a free quote. Then with the assistance of a loan professional they’ll set up the payment plan. Finally, there is information the borrower verifies, including:
- Valid ID
- Proof of residence
- Vehicle registration
- Proof of income
There are also convenient options for a borrower to receive their loan funds – pick up the check from a nearby loan store location, have the check mailed to them, or have the money wired to their bank account.
Regulations Changes
When Arizona ended payday lending in 2008, the market for alternative lending expanded and the registration loan industry developed. Since that time more than 600 new title-lending locations opened throughout the state.
Critics accuse some alternative lending options as predatory, citing high interest rates as the trap. However the high need of registration loans keeps rates and terms competitive. And unfortunately there are fewer roads to standard bank or credit union loans for borrowers who are still reeling from downsizing, layoffs, or salary freezes. For families with little to no savings, their prospects for assistance are minimal.
It’s reported that lenders in Arizona have significant leeway in their business practices due to few consumer complaints. However as registration loans are still a fast-growing industry, the potential borrower is always advised to fully review the loan terms and practices of a particular lender.
