Differences between title loans and registration loans

Emergency expenses have a way of derailing your monthly expenses or you have a financial hardship that is stressing your life, you can get short term loans to ease financial pain. There are many options that you can choose. The two options you can choose are registration loans and title loans. The loans are similar but there are still some differences between them.

Title loans

Title loans were created to help people get the funds they need on short term basis. For this loan, you need to use your vehicle as collateral. Thus you get high approval rates. There are some requirements you have to meet before you can qualify for the loan. To qualify for this loan, you need to have a vehicle.

You will not be making payments for a vehicle in lien. The title should not have any pre-existing lien when applying for the loan. You will also be required to provide the details of the vehicle which include model, current mileage, and year. The vehicle must have a clear title. You must give consent that your vehicle will be reposed if you fail to pay your loan as agreed. Most people will have no trouble providing these requirements. If the borrower has been listed as the owner of the vehicle, you will likely qualify for the loan.

The amount of money you qualify will determine on the value of your vehicle. You are likely to qualify for a larger loan amount than you would for the pay day loans. Thus, it is a suitable loan or those who want a large amount. You can then sort out your emergency shortfalls.

However, one drawback of title loans is that they are no for people who financing a vehicle every month. Title loans do not accept vehicles with a lien on it.

Registration loans

These loans allow borrowers whose vehicle has a lien to get access to short term loans. If you are still among people who are making payments to get full ownership for your vehicle, then this is the loan for you. For you to qualify for the loan, just like in title loans, there are requirements you must have. However, the requirements are different. One of the requirements is that you must be financing a vehicle. The vehicle must be in your name to qualify for this short term loan. You are new to have a driver's license and a current vehicle registration.

During the application process, you should have details about your vehicle which include year, make, vehicle mileage and model. The vehicle must be the one indicated on your borrowers registration card. You should also acknowledge that your vehicle cannot be repossessed. There should not be an additional lien placed on your vehicle.

Unlike title loans where the amount you can borrow depends on your vehicles worth only, registration loans in Mesa depends on many factors. These factors include your current employment income and even personal preferences. However, you will only be approved for smaller loan amounts.