Is An Auto Collateral Loan The Same As An Auto Title Loan?
When searching for quick cash solutions, you may come across terms like auto collateral loan and auto title loan. If you’re wondering, "Is an auto collateral loan the same as an auto title loan?", the answer is yes!
Both terms describe the same loan type, a secured loan that uses your vehicle title as collateral. The difference? "Auto collateral loan" emphasizes the role of collateral, while "auto title loan" highlights the title itself.
At Texas Title and Payday Loan Services, Inc., we offer fast auto title loans for those who need emergency cash. Keep reading to learn how they work and how to apply today!
Auto Collateral Loan Vs. Auto Title Loan – What’s The Difference?
An auto collateral loan and an auto title loan are just different names for the same financial product, a title loan.
What Is An Auto Title Loan?
A title loan is a secured loan, meaning that it requires collateral from the borrower to secure the loan. In this case, that collateral is the lien-free title of your vehicle. That's why the words ‘collateral’ and ‘title’ are used interchangeably. Functionally, the two are the same and describe easy title loans. When in practice, your car title acts as security for this loan here.
We place a lien against your car’s title, which incentivizes you as the borrower to repay the loan in full and on time. Doing so isn’t a malicious attempt to repossess your vehicle; in fact, it serves a beneficial twofold purpose. First, it allows us to mitigate the risk we undertake by lending you money. Second, it allows you as the borrower to demonstrate your commitment to repaying the loan on time and without any issue.
How Does An Auto Title Loan Work?
Unlike unsecured loans, which use other factors other than collateral to determine if you qualify for approval, secured loans actually have something at stake. This also means that we don’t have to rely so heavily on your credit to determine your eligibility. This means you can still apply and find out if you qualify for approval even if you have a poor credit history at the moment. To summarize, our process is as follows:
- You put up your car title as collateral, and we place a lien against it.
- You receive a lump sum of money and agree via contract to repay the loan over time.
- Once the loan is repaid in full, the lien is removed and we safely return your title.
When Should You Consider An Auto Title Loan?
An auto title loan can be a lifesaver in emergency situations when you need cash fast. You might still be wondering, “What’s this got to do with me?” Title loans can be helpful in situations where your ability to make payments is limited. For example, if your insurance refuses to pay for an important home repair, you may find yourself up a creek without a paddle.
In that situation, a title loan can help you cover those upfront expenses to keep you and your family safe. Not following through with urgent repairs, bills, or expenses can often be more detrimental to your finances. Always consider your options carefully. If you can avoid borrowing money, it’s usually better to do so. Still, life isn’t always so cut and dry, and there are times when a title loan can help in short-term emergency situations. Our clients use title loans for the following situations:
- Emergency medical bill
- Urgent repairs
- Important business travel
- Rent or utilities
- Other unplanned expenses
What Do You Need For An Auto Title Loan?
Whether you need urgent cash now or are preparing for an emergency, it’s good to know exactly what you need to get started to find out if you can get an auto collateral loan from us at Texas Car Title and Payday Loan Services, Inc. quickly and easily. The good thing is we’ve kept our list of required items short and simple for our customers to remember. Here’s what we require to take out one of our easy title loans:
- Your driver’s license or state-issued photo ID.
- Lien-free vehicle title in your name.
- Your car itself for inspection.
- Proof of income (or your most recent pay stub).
How To Apply For An Auto Title Loan
Follow these easy steps to get your auto title loan:
Fill Out the Online Form: Start your application now.
Talk to a Loan Representative: We’ll call to review your documents & loan details.
Bring Your Car for Inspection: A quick vehicle assessment helps determine your loan amount.
Get Approved & Receive Cash: If approved, you’ll receive same-day or next-day cash.
Get Your Auto Collateral Loan Today
We here at Texas Title and Payday Loan Services, Inc. are proud to offer easy title loans – which you now know that they are also referred to as an auto collateral loan or auto title loan – for emergency situations. So if you’re struggling to manage an urgent situation on your own, we may be able to help you with a short-term influx of cash to keep you afloat. Are you ready to get started? Fill out our online application to get started on the process today!
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.