Understanding Title Loans Vs. Registration Loans

If you’re looking for a quick cash option that will bring you the funds you need in the short term, you have a few good options available. Perhaps the most popular is the title loan, which allows you to put your ownership of a vehicle up as collateral for a temporary loan while you wait for additional funds.

At Utah Money Center, we’re here to help with all title loan needs you may have, whether for cars and trucks, ATVs, motorcycles, snowmobiles and more. One very similar and related alternative, but one that’s different in a few ways, is called the registration loan. Let’s go over all the basics you might need to know about this loan, even if it might not be important for you until down the line (it’s not yet common or legal in every state).

title loans registration loans

Comparing Registration and Title Loans

When it comes to title loans, ownership of the vehicle in question is a primary requirement. Those who borrow using these loans cannot be in the process of financing a vehicle or making payments, and the title cannot contain pre-existing liens or similar issues at the time of application. Once this is accomplished, borrowers can submit key vehicle details for a clear title.

With registration loans, however, the requirements for ownership are relaxed. First introduced in Arizona, registration loans allow borrowers to be leasing or financing a vehicle in their name to qualify, rather than requiring full ownership. The basic requirements for registration loans include:

  • At least leasing or financing a vehicle, which is in your name.
  • Current vehicle registration and driver’s license from that state. The vehicle in question must be the one shown on this registration.
  • Important vehicle details must be provided, including things like make, model, year, mileage and others.
  • You must acknowledge that your vehicle cannot be repossessed, nor can an additional lien be placed against it. However, traditional collection practices will be applied if the loan is not paid.

In addition, there are some differences to the maximum loan amounts. Borrowers submit information about employment and income, and this information is used to discern this maximum rather than solely the value of the car.


Both of these loan types can be approved in very little time, and offer good estimates for repayment schedules and fees. They are paid quickly and can be repaid just as quickly in most cases. In addition, title and registration loans are both strictly regulated to ensure consumers get a good deal.

Legality of Registration Loans

Arizona is the most notable state for registration loans, which have replaced payday loans in some ways. Within other states, the line between these two areas might not be large – you can contact loan professionals to understand if a registration loan or something similar is possible.

To learn more about any of our title or signature loan options, speak to the staff at Utah Money Center today.