Finances & Money

Arizona Registration Loans: An Alternative to Title Loans (Are They Really?)

In Arizona, registration loans are an alternative to title loans. Car title loans are short-term secured loans using the title of the vehicle you own as the collateral, security or guarantor. Registration loans are similar but they use the registration of the vehicle instead of using the title. There are different implications influencing the various particulars of the two types of loan based on the type of security being used.

What are Registration Loans?

According to, Arizona registration loans are available to all adult residents of the state who own a vehicle. The vehicle must be registered to qualify for the loan. You may use a car, truck, recreational vehicle or motorbike as the security. All applicants should be able to prove their income, identity and registration of the vehicle. Arizona registration loans do not require you to give up the car or vehicle. You would continue to drive your vehicle throughout the term of repayment. It is not customary for lenders in Arizona to require a credit check. Some lenders may consider your credit history if your income is insufficient. As stated in this article, you can apply for registration loans as long as you are an adult resident in the state, have valid registration for your vehicle and have some provable income. The exact criteria will of course vary from lender to lender.

How do Registration Loans Work?

You need to find lenders that offer registration loans in Arizona. You can also apply for these loans online. If you choose to visit a local lender, you would need to fill out an application form that usually requires your personal information, driver’s license, vehicle registration details and social security number along with a proof of income. The application usually takes a few minutes if you have all the documents ready. A few lenders can ask for other information, such as type of employment or the name of the employer. Lenders can ask for more details about your business if you are self-employed or own an enterprise.

The application processing time varies from lender to lender. There are lenders like Tio Rico that expedite the process and may offer you a loan by the end of the day. Some lenders may get back to you in a few hours. You have the right to accept an offer or reject it. Negotiation is not common but it is not rare either. You can apply to multiple lenders simultaneously and compare their propositions to make an informed decision, just as you would with any other type of loan. You must write to your lender accepting their offer and subsequently the loan amount would be disbursed and credited into your bank account. Not all lenders ask for the bank account details at the time of applying for registration loans in Arizona.

You are expected to repay the registration loan in a timely manner. Usually there would be a few months for you to repay the entire loan with a potential renewal of the term if you fail to do so. There are late payment fines and other penalties if you fail to repay on time. If you fail to repay the loan along with the accrued interest, then your vehicle may be seized and repossessed by the lender after the renewed term is over. For more legal implications, you can read this post from Avvo.

How do Registration Loans Compare to Title Loans?

Registration loans are not very different from title loans. They are both readily available to anyone who owns a vehicle and is an adult resident of the state with an income. Title loans require the title as the security. The title should be free of lien. Hence, financed vehicles that have not been paid for would not qualify for car title loans in Arizona. Registration loans do not depend on the lien free title. The registration of the vehicle is sufficient. This has an impact on the loan amount you can seek. You can borrow more with title loans than registration loans in Arizona. For instance, you can borrow as much as three-fourth of the value of your car with a title loan provided the auto loan have been completely repaid. You cannot borrow nearly as much with registration loans, since the car loan is still being repaid. Those who are still paying back a car or auto loan will find registration loans more suitable and would readily qualify.

Registration Loan Laws

Registration loans in Arizona are largely unregulated. Lenders can charge a rate of interest as per their discretion. The loan amount you qualify for or can obtain from a lender will also be subject to their discretion. Are Arizona Registration Loans an Alternative to Title Loans? They surely are for anyone who still has a lien on the title and hence cannot qualify for title loans.


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Susan Paige

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