3 Facts About Registration Loans You Should Know
As of 2021, the average American has approximately $90,000 worth of debt. While sometimes taking on debt is unavoidable, it’s important to know how to do so without being overwhelmed by it.
In this article, we answer the question, “What are registration loans?”, and offer some registration loan facts and tips. Continue reading to find out what to expect from registration loans and how to make the most of them.
What are Registration Loans?
You may be wondering, “What are registration loans?” Registration loans, also called pink slip loans, are loans that use the registration of your vehicle as collateral.
The amount you receive on your loan depends on your income and the current value of your vehicle.
People seeking loans often confuse registration loans with car title loans. Since they’re not exactly the same, it’s important to understand some registration loan facts.
1. You Don’t Need Good Credit
Potential lenders assume to receive registration loans you need to have good credit. While good credit is helpful, it’s not absolutely necessary. Companies such as TitleLoanser can help those with poor credit get approved for these loans.
2. You Don’t Have to Own Your Vehicle
Unlike car title loans, you don’t need to own your vehicle to receive car registration loans. However, the vehicle does need to be in the name of the person receiving the loan. You can’t take out a loan against someone else’s car.
You need to have a current driver’s license and registration. Your car also can’t be repossessed during the loan repayment process, or have any liens against it.
3. You Won’t Automatically Lose Your Vehicle If You Default
Unlike car title loans, you won’t lose your vehicle if you default on car registration loans. Although that doesn’t mean there isn’t a penalty for defaulting on these loans. The lender can still sue you for the amount owed and garnish your wages.
Tips on Registration Loans
While you don’t need perfect credit to get approved for registration loans, having some of our best tips on registration loans can help make the process smoother. Our main tips on registration loans are applying online and paying off loans early.
Consider Applying Online
Most lenders require you to come to their office in person to apply for a registration loan. However, some lenders allow you to apply online. This is a faster and easier way to obtain a loan.
Try to Pay Off Registration Loans Early
While you can’t lose ownership of your vehicle if you default on registration loans, paying it off quickly is ideal. One of our top registration loan tips is to pay off your loans early.
Some lenders charge a penalty for paying off loans early, because it affects the amount of interest collected. Luckily, registration loans aren’t like that.
Know What To Expect From Registration Loans
Use this guide the next time you’re considering registration loans. Our tips on registration loans can help ensure you get quick and easy access to the money you need without defaulting.
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