Registration Loans in San Luis
There are a wealth of loan alternatives that don’t require that the borrower have a perfect credit score, and one of the most sought-after of those loans in Arizona are registration loans. They allow the borrower to utilize the financial potential of their vehicle without having to sell the car.
Why are Yuma registration loans one of the most common alternative loans on the Arizona market?
How Registration Loans Are Ideal If You Have Poor Credit
The majority of Arizonans have below average credit. So it’s not surprising that a loan that doesn’t require the borrower to have good credit is becoming a local favorite in the San Luis area.
When borrowers apply for most standard loans, the lender performs a credit check in addition to a financial history check and possibly a background check. This gives them a kind of glimpse into the “loan-worthiness” of the potential borrower. They use your credit score as a kind of measuring stick to see if you’d be a responsible borrower.
But because many borrowers in the San Luis area don’t have a good credit score, they turn to the more reputable loans that don’t have that restriction: registration loans. How do registration loans work without the credit check?
The Structure of San Luis Registration Loans
Registration loans don’t have tight limitations on credit scores for their applicants. That’s because this type of loan relies more on the value of the property you use for the loan rather than the financial history of the borrower in question.
These loans use the equity (or value) of your car as a means to secure the loan. Rather than using that equity as collateral, like a title loan would, Arizona registration loans just use the equity as a more standard loan guarantee.
Possession is not required by the lender for the car with a vehicle registration loans, so the car remains the exclusive property of the borrower throughout the life of the loan and afterwards. The borrower doesn’t have to hand over their keys or be without their car. It’s simply another way to make a promise… but instead of using a credit score, the borrower is using their auto equity to achieve the same goal.
San Luis Requirements
One of the reasons why registration loans are such a popular loan option in the state of Arizona is due to their more lax qualification restrictions. Besides allowing borrowers with poor or below average credit to qualify for a registration loan, the only real restrictions are:
- The borrower must own their vehicle lien-free and under their own legal name.
- The borrower must have an address in the state of Arizona.
- The borrower must be at least 18 years old (and can back it up with some government-issued I.D.)
If borrower meet those three basic requirements, then they’re usually pre-approved for a registration loan right then and there. This is another reason why more loan-seekers in San Luis are beginning to prefer registration loans over standard bank loans or title loans.
To find out why more people in San Luis are switching to Arizona registration loans, head to our application page and learn more.