When financial emergencies arise, fast cash options like title loans or payday loans from Tennessee Title Loans, Inc. can be a lifeline. But how do you know which loan is best for your situation? Let’s explore the differences between these two loan types to help you make an informed decision.

Title Loans vs. Payday Loans: What’s the Difference?

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)

Why Choose Tennessee Title Loans, Inc.?

No matter which option you choose, working with a trusted lender is essential. At Tennessee Title Loans, Inc., we provide:

• Title loans up to $2,500, with no need to give up your vehicle while repaying.
• Payday loans with flexible requirements, including options for those with alternative income sources.
• Fast approval—get your money in as little as 30 minutes.

Get Fast Cash in Just 30 Minutes

Both title loans and payday loans offer quick access to emergency funds. With Tennessee Title Loans, Inc., you can:

1. Submit an Online Form: Start your application process online from our homepage Tennessee Title Loans, Inc.
2. Speak to a Representative: We’ll contact you to confirm details and answer your questions.
3. Receive Your Funds: If approved, you can get your cash the same day or the next business day.

Take Control of Your Finances 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.