What Quick Cash Loan Is Better For Your Emergency: Title Loan Or Payday Loan?

Everyone needs some help from time to time, and a quick cash loan can offer that help in an emergency. Several types of quick cash loans exist with two of the most popular being a title loan and a payday loan. How do you know which to choose?

There are key differences between the two types of short-term financing loans, and understanding those differences can help you decide which is best for your emergency.

Differences Between Title Loans And Payday Loans

1. The Amount Of Money You Get

The amount of money you get with either of the two loans can be quite different. That's because of how the amount is determined. With a title loan, the amount you qualify for is primarily based on the value of your vehicle. Payday loans determine the value based on the amount you earn in your paycheck.

2. The Reason You Need The Money

Both types of loans can be used for emergencies, but some emergencies are more costly than others. An emergency that costs $2,000 or more may require the use of a title loan, that is, if you have a vehicle to use as collateral. Some lenders will offer up to $15,000 in a title loan.

Those who only need a few hundred dollars should consider a payday loan. One thing to remember is that payday loans are basically a cash advance on your paycheck rather than a monthly loan.

3. Collateral Vs. Unsecured Loans

Another key difference between title and payday loans is how the loan is secured. Title loans are secured with the lender holding the vehicle title until the debt is repaid. Your title is the collateral used to secure the money you borrow.

Payday loans don't require any collateral but are guaranteed by your paycheck. Payday loan lenders often automatically deduct your repayment from your bank the next payday to secure payment. You will need to talk to individual lenders about their specific repayment process because they can operate on a different system.

4. Time For Repayment

This is another major distinction between title loans and payday loans. Title loans require a monthly interest payment at minimum, with additional money going on the principle. Payday loans are repaid in full with your next paycheck.

Similarities Of Title And Payday Loans

Similarities exist between the two types of loans. Both are accessible to those with bad or no credit, can get you cash either the same day or the following business day, and can be easy to find out about online.

To make applying even easier, Title & Payday Loans can connect you with approved, licensed, private lenders in your area who can guide you through the process of getting one of these loans. All of the title loan lenders in our network allow you to keep your car during repayment and offer title loans up to $15,000.

Our payday lenders offer cash up to $1,200 and do not base approval on credit.

All you have to do is fill out a quick inquiry form at titleandpayloans.com and you will be securely connected with the lenders in your area.

What You Will Need

If you are seeking a car title loan, you will need just a few things to qualify, including a driver's license or state-issued identification, a clean title to a vehicle in their name alone, a vehicle that matches the title, and sometimes proof of income.

If you want a payday loan you will need a driver's license or state-issued ID, a recent pay stub, and a blank check from a checking account listing you as an account holder.

Both methods offer a fast process taking as little as 30 minutes to complete. If approved, get your cash the same day or the following business day.

Advantages Of Going Through A Website

Title and Payday Loans can resolve concerns about these types of loans and the lenders providing them. That's because the lenders we work with are licensed where you live. Short-term lenders are licensed by the state, so you must find one where you reside.

It also assures lenders offer the same general products with the same eligibility requirements so you don't have to lender shop.

Find A Lender With Title And Payday Loans

You can easily find a lender for a quick cash loan by filling out the inquiry form on our website. Once you do, a lender’s representative in your area will contact you to explain the loan and process. You aren't obligated to take out a loan by filling out the inquiry form.

Getting a title loan or a payday loan has changed with online access. Now, a site like titleandpaydayloans.com can make finding a licensed, reputable lender easier. To find out more, submit your basic information today. 

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.