What Is The Difference Between Car Title Loans And Payday Loans?

When it comes to the land of personal loans, car title loans and payday loans are two top contenders. These loans only require a few things to apply, can provide hundreds or even thousands of dollars of financial relief, and are located through Title and Payday Loans locations across the country.

While both of these loan options have their benefits, they are different when it comes to the loan amount, requirements, loan duration, and application process. Let’s break down each facet to see which is best.

Car Title Loan And Payday Loan Amounts

Car title loans are generally larger than payday loans, ranging from $300 to $15,000. These loans are great for larger expenses, like car or home repairs, or medical procedures.

The total amount you can receive from a car title loan is determined during the in-person process. Our knowledgeable representative will consider your financial needs, loan request, and – most importantly – your vehicle. The vehicle used to secure the loan will be inspected quickly to note its overall condition, mileage, brand, and year. The newer the car and/or the lower the mileage, the higher the potential title loan amount.

Payday loans, on the other hand, are ideal for smaller emergency expenses. Many customers use them to cover overdue monthly bills, such as utilities. They are given for amounts up to $1,200 depending on your needs, loan request, and employment status.

Collateral Vs. No Collateral

Car title loans are secured loans, meaning they require collateral. Luckily, the collateral is simply the lien-free title for your vehicle, not the car itself. This means that, if approved, you get to keep your car and use it normally so long as the loan is repaid on schedule.

To qualify, the title must be lien-free, meaning it is not being used as collateral for any other loan and that the car is paid off and legally under the loan applicant’s name. No other entity can have a claim to the vehicle.

Alternatively, payday loans are unsecured loans. This means they don’t require any collateral to apply. This is precisely why your income and financial situation is taken so importantly.

Loan Duration

Car title loans are usually given over a few months; however, this will depend on the agreement you sign with your trusted loan rep. If you own a vehicle, need a little extra cash, and would prefer to repay it over time, car title loans may be best for you.

For those who prefer to get a smaller, short-term loan and repay it as soon as possible, payday loans are more up their alley. Typically, they are repaid on your next payday the following month or even a couple of weeks later. Again, this is negotiated during your loan process and when you confirm the loan.

How To Qualify

Qualifying for both of these loans is easy through Title and Payday Loans, but the processes do differ.

To apply for car title loans, you’ll need:

• Your state-issued photo I.D. (driver’s license, non-driver’s license, or passport I.D.)
• The lien-free title to your car
• Your car for an inspection

To apply for payday loans, you’ll need:

• Your state-issued photo I.D. (driver’s license, non-driver’s license, or passport I.D.)
• Your latest paystub
• Your latest bank statement and a blank check from that same account

If you are unsure if you meet the requirements for one of these loans, connect with one of our staff to confirm. We may be able to find an alternative for certain documents, depending on your situation.

The Loan Request Process

Applying for both types of loans through Title and Payday Loans is simple and pain-free. We know that our customers need cash fast. Unlike big banks that require applicants to jump through hoops, we want to make the process as quick and easy as possible.

Both title loan and payday loan applicants should begin the loan process by filling out the request form on our homepage. We will then reach out to the number provided to discuss your financial situation and documentation.

Both types of loans will require an in-person meeting to dot your i’s and cross your t’s. Depending on where you live, some car title loan offices will meet you at the location of your choosing while others will request to meet at their office. All payday loan applicants will need to meet at a local office.

During the meeting, our rep will look over your documents, inspect your vehicle for title loans, and determine the potential loan amount. If approved, you’ll get your cash that day or the next business day.

Access Your Loan Today

Both car title loans and payday loans have been used across the U.S. to help thousands facing financial emergencies. Whether you need cash to pay a bill, cover housing costs, fix your car or home, or for another expense, we’ve got your back.

At Title and Payday Loans, we make accessing fast cash a breeze. If you still aren’t sure which loan is right for you or if you qualify, just reach out to us online and we’ll take care of the rest. We’re waiting to hear from you!

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