Title loans backed up by car titles or payday loans from Tennessee Title Loans, Inc. can become a way to access fast cash in case of financial emergencies. But how do you figure out what lending option would be a more suitable choice in your specific situation?

Let’s take a closer look at these loan types so that you can make an informed decision later.

Should You Choose Title Loans Or Payday Loans For Your Financial Emergency?

Identifying your loan options is essential to finding fast cash for your financial emergency. It would be best to understand the differences between your loan options before deciding which loan is best for you.

What Are the Differences Between A Title And A Payday Loan?

Both are considered short-term loans, meaning they can be repaid in about a month or so. You might also qualify for a title or payday loan in the shortest timeframe, but that’s where the similarities end.

Loan Type

Loans are divided into two main categories: secured and unsecured. The former is backed up by collateral, while unsecured loans do not require the borrower to put up a valuable asset.

Title loans are secured loans, as you would have to hand a lien-free title to the car over to the lender. If you fail to repay the loan, the lender might repossess your vehicle.

On the other hand, payday loans are among the most popular unsecured loans. You won’t need to provide any valuable asset to qualify for such a lending option. 

Documents Needed

To take out a title loan, you’ll typically need the following:

• Your ID to prove your identity and the fact that you’re over 18
• Proof of income
• A lien-free title to the vehicle
• The actual vehicle for inspection

The requirements of the lenders might differ, but you can generally expect to be asked to provide the following items to take out a payday loan:

• Your government-issued photo ID or driver’s license
• Proof of income (your most recent pay stub, for example)
• A blank check from an active checking account in your name

Loan Amount

If you opt for a title loan, you might qualify for a more significant amount simply because the loan is secured. The exact amount would depend on the value and condition of your vehicle, as determined during the physical inspection. Overall, you might qualify for up to a few thousand dollars.

The maximum amount you could get your hands on if you qualify for a payday loan is usually $400. The loan amount will depend on your salary and ability to repay. 

When Should You Choose A Title Loan?

• You have a lien-free title and need access to a relatively large amount to cover your financial emergency.
• You do not have a checking account.
• You have an inadequate or non-existent credit score (if you have less-than-perfect credit, lenders might be willing to work with you only if you manage to provide collateral)

When Should You Choose A Payday Loan?

• You do not have a vehicle that you own outright (you’re still making payments on your car)
• You don’t want to put your valuable assets at risk.
• You want to repay the loan as soon as possible (a payday loan can be paid off with your next paycheck, which you might receive in only a couple of weeks)

How To Pick The Right Loan Lender

No matter what loan you decide to take out, choosing the right lender is perhaps the most essential part of the process. 

If you’re looking for a reputable service provider with many positive reviews and years of experience, consider Tennessee Title Loans, Inc.

With a title loan offered by our company, you might qualify for up to $2,500. Furthermore, you’ll get to keep your vehicle while repaying.

If you choose a payday loan, poor credit won’t necessarily stop you from receiving the much-needed cash. We are also ready to consider alternative sources of income in case you can’t provide a pay stub.

How Fast Will You Get Your Emergency Money?

One of the best parts about taking out a Tennessee Title Loans, Inc. loan is that you might qualify in only 30 minutes. If approved, you will get the money the same or the following bank business day. 

Take Care Of Your Urgent Expense Today!

Both title and payday loans can help you handle financial emergencies. Those with clear car titles might opt for title loans, while those looking to access a few hundred dollars may choose payday loans. In any case, Tennessee Title Loans Inc. is committed to helping you get the money you need as quickly as possible. 

We are happy to answer any questions and recommend a suitable lending option for your case. To get started, fill out the short inquiry form, and we’ll call you soon!

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