Vehicle Registration Loans Online
How do Vehicle Registration Loans Work?
Financial emergencies can happen to the best of us. No matter how well you plan, something can pop up unexpectedly. When an emergency does happen, not everyone has the cash on hand to pay for it.
Often, a solution to this problem is to take out a title loan on your vehicle. It can help you get the cash you need to cover the emergency. Unfortunately, title loans are not always practical for everyone. For example, if you are still paying for the vehicle, its title likely will not be in your name. But there is still something you can do. It is called a vehicle registration loan.
What Is a Vehicle Registration Loan?
For those who do not qualify for a title loan on their vehicles, a registration loan just may be an alternative. This is especially true if you only need funds for a short period of time.
You do not need to possess the title of the vehicle in order to get a registration loan, but there are certain requirements that you need to meet. These include the following:
- You must have a valid driver’s license and valid vehicle registration, and they must have been issued in the state of your current residence.
- You must be either financing or leasing the vehicle in your own name.
- When you apply for the loan, you must have all pertinent information about the vehicle handy, such as its make, model, year and mileage.
- You must keep the vehicle free from repossession and liens during the life of the loan.
What Is the Difference Between a Title Loan and a Registration Loan?
While some people think that title loans and registration loans are the same, they are actually quite different. These differences include the following:
- Title loans require that you possess the title of the vehicle, while registration loans only require that the vehicle is registered in your name.
- Amounts given for title loans are based on the vehicle’s value, while amounts given for registration loans are based on your income and employment status.
- Title loan amounts are generally larger than registration loan amounts especially in bank buyouts.
- Registration loans generally have higher interest rates than title loans, because there is no collateral required.
While car registration loans do have distinct disadvantages over title loans, one really good thing about them is that they do not require a credit check. So, as long as you have a decent job, you should be able to qualify for one regardless of what your financial situation may be at the moment.