Is there a difference between a title loan and a registration loan? They are definitely very similar, but do you know which one is better?
When is the last time you weren’t worried about your finances? Can you even remember? It seems like every time we almost have it together, some unexpected expense pops out of nowhere and throws our budget off track … again. What gives?
There is strength in knowledge, so being informed is the first step towards taking control of your budget. Do you know the difference between a title loan and a registration loan? It’s okay if you don’t, they are very similar. But it is important to know the difference, especially if you live in Arizona.
What is a Title Loan vs. a Registration Loan?
A title loan and a registration loan share one big similarity: they both involve your car.
Currently only available in Arizona, a registration loan is a combination of a payday loan and a title loan. LoanMart does not do registration loans.
Hold up! What is a payday loan? According to the Consumer Financial Protection Bureau, a payday loan is a “short-term, high cost loan, generally for $500 or less, that is typically due on your next payday.” Now that you know what a payday loan is, you will better understand what a registration loan is.
A registration loan requires that the borrower have a vehicle registered in their name in order to get approved. A qualified free-and-clear vehicle title also in the borrower’s name is not required to receive this type of loan.
The catch of a registration loan is that payment is due in full on the day of the borrowers next pay date. This can be stressful because the borrower needs to use a large sum of money from their paycheck in order to pay off the loan, and this brings them right back to square one: they are low on cash again.
While a title loan does require that you provide a free-and-clear title with your name on it, they do not demand you pay back your entire loan just a few weeks after you take out the loan.
A title loan is a way to use your qualified free-and-clear vehicle title as collateral to borrow funds.
How Do You Get a Title Loan?
Take the practical route and go with an auto title loan from LoanMart. There are multiple ways to start, and you don’t even have to leave your house! Begin by going online, calling over the phone, or by using the convenient live-chat feature. It only takes 5 minutes to apply.
After you have applied online or in person, the next step is:
- Receive a pre-approval estimate
- Gather your documents for funding
- Take pictures of your car
- Sign your loan and receive your money
LoanMart knows that an emergency need for money can happen at any time, even on a holiday or the weekend. To better serve you, we have knowledgeable LoanMart title loan agents available 7 days a week with extended hours, so if for any reason you need help please do not hesitate to contact us.
Is it Hard to Pay Back a Title Loan?
Paying back your title loan is easy when you work with people who want you to succeed. That’s why when you are approved for your LoanMart title loan we will provide you with a thorough payment schedule. You have enough on your plate, you don’t need to worry yourself with creating a payment schedule, let LoanMart do it for you.
We want you to remember this experience fondly, so we aren’t going to force you to pay back your loan all at once like a registration loan does.
Because we want you to do well, we will never charge you a penalty fee for paying early. That’s just crazy, why would we charge you for being responsible and on top of your payment plan? LoanMart will also never require any balloon payments, leave that madness for the registration loans.
What are the Advantages of Getting a LoanMart Title Loan?
For over a decade, LoanMart has been providing people all over the United States with auto title loans, now it’s your turn. Check out just a few reasons why 150,0002 satisfied customers are happy they went with LoanMart:
- All types of credit encouraged to apply
- No balloon payments or penalties for paying early
- Qualified representatives available 7 days a week
- High approval rating and very competitive rates