Title loans and payday loans have both a taken the spotlight in recent years when it comes to getting short-term financial relief. Both are easy to obtain and have few requirements to get approved for same-day cash. But when it comes to deciding which type of loan to get, many are left scratching their heads at the difference between these two popular financial products. There aren't many differences to compare between the two, but there are a few that are worth exploring.
Title Loans are loans that are secured by your car's lien-free title, allowing qualified borrowers to be approved for much more cash than with a payday loan. The maximum amount of cash that you could take home with a payday loan, for example, is roughly about $400 to $500, while title loans could provide quite a bit more.
Depending on the value of an individual's car, a title loan could put an extra $15,000 in their hands in as little as 30 minutes. That's a huge jump from the $500 limit of a payday loan. This is probably the main difference you want to consider when deciding between a title loan or a payday loan. If you only need a few hundred bucks extra, a payday loan would be a much better option to go with.
Title loans will require you to bring your vehicle for inspection as well as it's lien-free title and your photo ID. If you're not a car owner or you're still in the process of paying off your vehicle, a payday loan would be a better option for you. Payday loans only require a recent pay stub, a blank check from a checking account in your name and a photo ID to qualify.
Other than the loan amounts themselves and the required items needed to be approved, title loans and payday loans follow a very similar formula and each come with their own set of terms and conditions, which will be discussed with you before you finalize your loan agreement. If you're interested in a title loan or a payday loan today, then weigh your options and get started now.
The first step is usually to fill out an online request form and speak with a store representative from a provider near you. This allows you the time to ask any questions you have and learn more about the requirements before you visit a store location to complete the process. In many cases, qualified individuals could complete the process and leave with their cash in as little as 30 minutes.
Now that know the differences between title loans and payday loans, you probably have a better idea of which one is better suited to your financial needs. Remember, these products are meant for short-term financial challenges. Always be sure to have a plan for repayment, and always be sure to use nothing but reliable, local and licensed providers for your emergency cash needs.