Registration loans are loans against a car’s registration rather than the vehicle’s title and are only available in Arizona. Unlike title loans, you don’t have to own the car without any liens.

A clear title isn’t required for a registration loan. You must prove vehicle ownership with the vehicle registration, but you can still have a current loan.

Key Takeaways: Registration Loans in Arizona

  • Quick Access to Funds: Borrow money quickly using your car’s registration as collateral in Arizona.
  • No Clear Title Required: Secure a loan even if you’re still making payments on your car; you won’t have to give up driving it.
  • Flexible Credit Acceptance: Your credit score isn’t a major factor; these loans prioritize your current income.
  • Basic Eligibility Criteria: You’ll need an Arizona vehicle registration or VIN, a financial account, valid ID, to be at least 18, proof of income, and Arizona residency.
  • Variable Loan Amounts: Depending on your needs and application, you can borrow from $200 to $4,000.
  • Interest Rate Warning: The high interest rates are similar to those of payday loans, which can lead to a cycle of debt, so proceed with caution.

Understanding Arizona Registration Loans

Like title loans, you must prove you can afford repayment and are the owner of the vehicle registration. The interest rates are usually much higher on these loans because title loan lenders they don’t have the vehicle’s title as collateral.

The Arizona registration loan began when Arizona laws made payday loans illegal and intensified the title loan laws. The registration loan was a way around these requirements, allowing vehicle owners to get fast cash in emergencies.

What Is a Registration Loan?

A registration loan is a short-term loan available to people who own or lease a car. Lenders don’t use the car as collateral, but hold onto the car’s registration during the loan term.

You don’t need to own the car lien-free. This means even if you have an auto loan on your car, you may still apply for and get a registration loan.

Registration Loans Are Quick and Easy

Securing a registration loan online is quick and hassle-free. They are designed for borrowers with bad credit. However, be aware that these loans can carry higher interest rates. This is primarily because, unlike title loans, lenders don’t take possession of your title.

How Do Online Registration Loans Work?

Car registration loans have much lower loan amounts because they don’t use the vehicle as collateral. The primary requirements are that your car is registered under your name. You must also provide proof of income sources, not necessarily employment income.

During the loan term, lenders keep your car’s registration, but you can keep driving your car. Once the loan is paid in full, the lender returns your registration.

Can I Get a Registration Loan if I Don’t Own a Vehicle?

You must own a vehicle to get a registration loan. The difference is you don’t have to own it free and clear. If you have financing on it, such as an auto loan or car title loan, you may still qualify for registration loans.

How Much Can I Borrow With a Registration Loan?

Loan amounts on registration loans are much lower than other loans, such as car title loans, because it’s not based on the vehicle’s value.

Your registration loan amount is based on your income, employment status, and any other income sources you have. Generally, borrowers can secure loan amounts from $200 to $4,000.

Requirements for Registration Loans

To qualify for a registration loan, you must provide the following:

  • Government-issued ID
  • Vehicle registration
  • Proof of residency
  • Proof of income
  • Proof of a checking account (some lenders)

However, the requirements may vary by lender, so be sure to check with each lender to determine what they require.

How To Get a Registration Loan Online: Easy Steps

Most registration loan lenders offer registration loan applications online using the following steps:

  • Complete the online application: Provide all the necessary information, including your identification, income, and information about your car
  • Provide documentation: You must provide proof of income, registration, and identification with a valid driver’s license. Many online lenders allow you to upload the documents. If not, you can bring them to the physical store
  • Wait for approval: Most lenders that offer registration loans provide approval within a few minutes when you apply online. If there are issues with your application information, an underwriter may contact you for clarification
  • Receive the funds: Most registration loan lenders offer the option to receive your funds via direct deposit in your bank account, or you can pick up a check at your local store

Other registration loan requirements may be necessary, as each lender has different requirements which they determine on a case-by-case basis.

Are Online Registration Loans Safe and Legitimate?

Online registration loans may help you in a time of need, but avoid getting taken by a scam. Always do your research to ensure you’re working with a legitimate company. Check their ratings with the Better Business Bureau, read reviews, and check with your state’s attorney general.

Registration Loans vs. Car Title Loans

When you need money fast and don’t qualify for traditional bank loans, you may wonder if a car title loan is a better option. While they are similar to registration loans, they have many differences, too.

Car Title LoansRegistration Loans
Allows bad creditYesYes
Vehicle ownership requirementMust own vehicle without liensMay apply with an outstanding car loan balance
Collateral requirementMust use vehicle as collateralDoesn’t require collateral
Risk of vehicle repossession?YesNo
Funding speedSame or next daySame or next day
How credit is affected by defaultCan go to collections and damage creditCan go to collections and damage credit
Geographical availabilityWidely availableOnly available in Arizona
Credit checkRequiredRequired
Loan amount determinationBased on car valueBased on income

Who Is Eligible for a Registration Loan Online?

You must live in Arizona to be eligible for a registration loan. In addition, you must own a car, with or without financing, and prove you can afford the loan payments.

You don’t need a perfect credit history, but you should prepare yourself for the high interest rates registration loans charge, making the payments high, too.

What Serves as Collateral for Online Registration Loans?

Registration loans do not have collateral. While you must prove you own a car, they don’t use it as collateral, meaning they don’t take possession of your title.

What Happens if You Don’t Pay Back a Registration Loan?

If you don’t make your payments the lender could send your account to a collections agency. They could also sue you for the amount left on your loan, interest, and other charges. This could greatly increase the amount you owe, especially if you must cover lawyer and court fees.

How To Find Registration Loans Near Me

Searching online, you can find registration loans in Arizona, but do your research before choosing a lender.

Many lenders have storefronts allowing you to discuss your options with a representative. This may offer you greater peace of mind when getting a registration loan to quickly get the cash you need.


Are There Credit Checks?

Like most loans, registration loans require a credit check. However, you don’t need perfect credit to secure a registration loan.

Can I Apply for a Registration Loan With Bad Credit?

You may get a registration loan with bad or even no credit. When deciding if you qualify, lenders focus on your ability to repay the loan and your credit score. The lower your credit score is, the higher the interest rate.

Is It Possible To Have Multiple Registration Loans at the Same Time?

You can have multiple registration loans at one time if a lender approves it. Lenders look at your income and ability to repay the loan. Keep in mind that the more debts you carry, the more challenging it becomes to secure additional loans. 

This is because increased debt represents a higher risk for lenders. The more debts you have, the less income you have available and the harder it is to get approved for multiple loans.

What Are the Potential Risks of Having Multiple Registration Loans?

Because the interest rates are so high on registration loans, they can be hard to afford. Having multiple loans can make it harder to keep your head afloat, and you may put yourself in a vicious cycle of unending debt, which is why we recommend not having multiple registration loans.

Are There Alternatives To Obtaining Multiple Registration Loans?

Other bad credit loan options for multiple registration loans include asking for a loan from friends or family, applying for a personal loan, using a credit card, or applying for a title loan that uses your car as collateral.

Is There a Risk of Losing My Vehicle With Multiple Registration Loans?

You don’t risk your vehicle if you have multiple registration loans because they cannot repossess your vehicle. However, they can sue you, which may lead you to more financial problems and potentially filing for bankruptcy, which could cause you to lose your car.

Is a Vehicle Inspection Required When Applying for Registration Loans Online?

Most registration loan lenders don’t require you to bring your car in for a physical inspection to get a registration loan. However, some lenders may request it on a case-by-case basis.

How Long To Get Approved?

Lenders can approve registration loan applications in as little as a few hours to the next business day, especially when you apply online. Many provide answers instantly, but some may require you to speak to a representative or underwriter in person, which can lengthen the process. The faster you provide your documentation, the faster they can fund the loan.

The Bottom Line

Registration loans are only available in Arizona as an alternative for title loans. While they may provide access to fast cash, they are typically for much lower loan amounts with higher interest rates.

You don’t have to put your car up as collateral, which is a nice feature, but you pay for the convenience with much higher payments.

If you are in a state where title loans are legal, Montana Capital Car Title Loans offers a fast online process that may provide you with the funds you need in as little as 24 hours.

Written by Samantha Hawrylack

Written by

Samantha Hawrylack

Samantha Hawrylack writes for our company and is an expert in personal finance. Sam received her Bachelors of Science in Finance and her Masters in Business Administration from West Chester University of Pennsylvania. She began her career in the financial services industry and shifted to an entrepreneurial role where she could directly impact clients. Sam has an impressive background in personal finance and business management.