Before you get started with our application for a registration loan you’ll want to first be sure you know how a registration loan works. Most borrowers know they can prequalify for a registration loan but do they know what’s required and how to get about getting approved?
What Is A Registration Loan And How Does It Work?
A registration loan is a type of loan that lets you borrow money by using the vehicle registration as collateral. With this type of loan you’re actually obtaining money against your car’s registration. So, in essence, instead of providing collateral for the loan, the borrower provides proof of their ownership over the financed vehicle which is reflected through their registration paperwork or title . The lender will use this information to substantiate their claim on the car if something goes wrong with repayment.
The amount you can borrow with a registration loan is often less than the amount offered with online title loans. This is because the collateral being used(your vehicle registration) is often less than the actual vehicle. The goal is to receive a smaller amount and then return in time with your registration to pay off the loan .
How Is A Registration Loan Different From A Title Loan
Unlike a title loan, you still own and drive your vehicle while repaying a registration loan. This means that you can continue using it normally so long as you make your monthly payments on time. If at any point during the term of repayment you are unable to repay the amount owed then you will have failed to do so and ownership of the car will be turned over to the lender(s) who funded the original registration loan.
Registration loans come with a more competitive rate of interest than traditional title loans because there is less risk involved for lenders due to their security being tied only to the borrower’s claim on their own vehicle or actual vehicle registration.
What Are The Main Requirements For A Registration Loan
Registration Loans are available for any borrower with a suitable car or vehicle registered in their name. If you own your car outright, then it is eligible to act as security for the registration loan much as if it would for a title pawn from Southeast Title Loans..
If your car has a lien (loan) attached to it, then it can still be used to secure the registration loan however the vehicle will need to be owned by both partners if there are two or more borrowers involved. This applies even where one partner owns 90% of the vehicle and the other owns only 10%.
Registration loans come with repayment terms which can range from 12 months up to 5 years (in some cases beyond). Minimum monthly repayments do apply but they tend not to exceed $200 per month even when borrowing large amounts.
Should I Get A Registration Loan Near Me Or Apply Online?
Many people ask themselves the question whether to get a registration loan near me or to apply online. Both options are convenient so deciding which way to go really comes down to individual preference. Applying over the phone will have the benefit of being able to speak with someone in person while filling out an application online can be easier and take less time. Either way, you will need all your mandatory documentation on hand regardless of how you choose to make your application.
When you apply for a registration loan near me the chances of getting funded can greatly improve. By meeting with a title loan lender face to face you can show them you’re able to repay your loan and that you are a good fit for getting the funding. Meeting in person can also provide an opportunity for someone who has not applied before to get their questions answered or any concerns they have addressed.
The application process when applying for a registration loan near me or online is similar to what you would expect with any other type of secured loan. You will be asked about your income, expenses, assets, previous addresses over the last two years among other things. Your job situation will also play a role in determining whether you’re approved for your registration loan near me . If you are self employed there may be additional requirements or the amount available to borrow can be less than expected.