If you're going through a tough financial emergency, it's totally understandable to think about getting a loan. A quick look around shows there are many options out there you might not have anticipated. So, how do you decide which one is right for you? Should it be a title loan, a flex loan, or perhaps a payday loan?

In this guide from Tennessee Title Loans, Inc., we will explain the three loan options we offer. We will define their requirements, approval process, loan amounts, and other details that can influence which is best for your financial situation.

Understanding Emergency Loans In Tennessee

Before diving into the nitty-gritty, you must understand the ins and outs of each loan type. After all, you can't make a worthy decision without this integral knowledge. Learn more about our three loan types below before learning how to choose between them.

The following are the three loans we offer at Tennessee Loans, Inc.:

1. Title Loans

Title loans are short-term loans that allow you to borrow money based on the value of your vehicle. Unlike typical bank loans, you don't need to have a good credit score, and there's no need to worry about complying with difficult requirements.

You can get approved as long as you have fully paid off your vehicle. You must use your lien-free vehicle title as collateral. Approval is only allowed for cars, trucks, and vans; motorcycles, RVs, boats, etc. are not accepted.

You can borrow up to $2,500 as long as you have the following required items:

• Your driver’s license or state-issued photo ID
• A lien-free vehicle title in your name
• Proof of income
• Your vehicle for a quick inspection

2. Payday Loans

A payday loan, also called a cash advance or payday advance, lets you borrow up to $400 from your upcoming paycheck. If you can show proof of current income, you'll typically get approved in less than 24 hours. The amount you can borrow depends on your income. Just remember, you'll need to pay back the payday loan with your next paycheck.

Here are the eligibility requirements for payday loans:

• A state-issued photo ID card displaying your full name and age
• Your most recent pay stub to prove your income
• A blank check from an active checking account in your name

3. Flex Loans

Flex loans, otherwise known as lines of credit, provide access to money "on demand." Similar to title loans, you must own a vehicle outright to obtain one. Unlike payday and title loans, which provide a lump sum, flex loans allow you to withdraw money from an account as needed, ensuring you only repay the exact amount borrowed (plus interest).

Typically, they're available for a predetermined amount of time, allowing you to withdraw borrowed funds until that date. You can get approved for a credit line of up to $4,000.

These are the required items for a flex loan in Tennessee:

• A state-issued photo ID card displaying your full name and age
• A lien-free vehicle title in your name
• Proof of income
• Your vehicle for a quick inspection

How To Choose Between Payday Loans, Flex Loans, and Title Loans

Now that you understand each loan, let's discover how you can choose between them depending on your situation and expectations. Each caters to different financing situations based on how much you can borrow and what you need to get approved. Discover more details below to make an informed decision when borrowing a loan:

Here are some ways to choose between title loans, flex loans, and payday loans:

1. Consider Your Vehicle Ownership Status

As we have already mentioned, you need a vehicle to receive a title loan and flex loan, but you do not need one to get a payday loan. If you don't own a car, truck, or van outright, you can cross title and flex loan off your list immediately. 

Title loans use your vehicle's value to confirm how much you can borrow — the more it's worth, the more you can gain approval for.

We use a variety of metrics to establish your car's value, including but not necessarily limited to:

• Its mileage — Cars with high mileage (over 12,000 miles per year) aren't worth as much as those with average mileage (between 10,000 and 12,000 miles per year) and low mileage (under 10,000 miles per year).
• Its make and model — Some makes and models are more expensive than others. For instance, you'll receive more for a BMW or Lexus than you will for an average make like Kia or Toyota.
• Its service history — Vehicles with complete service histories are worth more than those that don't have one.
• Its condition — We take into account both the cosmetic and mechanical condition of the vehicle. Everything from dents to scratches to stained interiors can reduce its value. The more you take care of your car, the more it is usually worth. 
• Its modifications — Even though you love your custom paint job, loud exhaust, and racing stripes, it doesn't mean everybody else will. In fact, modifications can significantly lower the vehicle's value, as other people may struggle to find the value in your additions or changes.

2. Understand Loan Amounts

If you need to borrow a more significant sum, a title loan or a flex loan will be your best bet. Payday loans are small-dollar loans, with lending limits of just $100 to $400. However, you can borrow between $300 and $2,500 with a title loan and up to $4,000 with a flex loan. 

You should be able to afford larger financial emergencies, such as medical bills and home or auto repairs, with a line of credit or title loans. However, payday loans are perfect for small emergencies, like overdue bills or unexpected travel costs.

3. Think About The Repayment Structure

Each of these loans has a different repayment structure. 

Title loans are generally repaid within 30 days, depending on how much you borrow. You can pay everything at once or make small payments over time.

Payday loans are repaid in one lump sum on your next paycheck. Flex loans are repaid regularly, but only when you withdraw money from them. If you don't need to borrow very much and own a vehicle, your choice of loan may come down to how it's repaid.

4. Determine If It Is A One-Off Emergency

If you feel you will only need to afford this one emergency, title loans and payday loans are your best option. You can borrow money within 24 hours, cover your financial emergency, and repay your loan.

However, recurring financial emergencies may necessitate you borrowing a flex loan. With a flex loan, you can continually borrow from a line of credit, as long as you repay what you borrow. This can help if you need to afford medical bills now and rent in a few weeks.

What Is The Approval Process For Our Emergency Loans?

Review the information above to determine which best fits your financial situation. After determining which loans work best, you can begin the approval process. Thankfully, the process is similar for each, and you can get approved the same day you apply.

As long as you have the required items, you can get approved after just a few simple steps:

• Fill out our online form with your basic information
• Answer a phone call to discuss your loan terms
• Bring your required items to the nearest Tennessee store location
• Have your requirements verified in person
• If you’re getting a title loan or line of credit, have your vehicle inspected for its value
• If approved, sign the loan agreement to finalize the process
• Receive your emergency cash later that day or by the next business day

Borrow Our Emergency Loans – Receive A Payday Loan, Title Loan, Or Flex Loan Today!

Borrow a loan for any urgent financial need; Tennessee Title Loans, Inc. can assist with our title loans, payday loans, or flex loans. You can borrow money regardless of your credit situation and receive your funds within one business day. Get started now – submit your basic information through our online form before visiting us in person for approval in less than 30 minutes!

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