Can You Get a Payday Loan When You Already Have a Title Loan in Texas?

When facing a financial emergency, you have many borrowing options to get emergency cash, including title loans and payday loans. Many may wonder if you can get a title loan and payday loan together to increase the amount of money you can borrow when faced with an expensive financial emergency.

In this guide from Texas Car Title and Payday Loan Services, Inc., we will answer the question, “Can you get a payday loan with a title loan?” We will also explain these emergency cash loans and what situations each is better suited for.

Can You Get A Payday Loan With A Title Loan?

Expensive financial emergencies, such as home repairs and medical bills, may be too much for you to afford with just one emergency cash loan. You may want to get a title loan and payday loan together to increase your emergency cash, but this is not possible.

Texas law prevents people from getting two emergency cash loans at the same time. These loans have risks and downsides, such as interest rates, late fees, and asset seizure. The law prevents borrowers from getting two at once to prevent them from being unable to pay them both back.

You cannot get a payday loan when you have a title loan. You must pay off the title loan first before you can get payday loans in Texas. You also cannot get multiple payday loans or title loans from different loan lenders.

Explaining Title Loans And Payday Loans

Now that you understand you cannot get a payday loan when you have a title loan, it’s essential to differentiate the two types of loans to determine which is right for you. These emergency cash loans are different and will fit different financial emergencies. Understanding the differences and learning about the best ways to use them can help you during an economic crisis.

Learn the details of payday loans and title loans below:

Hands holding a stack of cash with bold text asking, 'Can You Get A Payday Loan When You Already Have A Title Loan In Texas?' highlighting the comparison between title loans and payday loans.

1. Payday Loans

A payday loan is an unsecured, short-term loan that can help you cover immediate cash needs until you get your next paycheck. It allows you to borrow up to $1,200 in cash from your next paycheck. This type of emergency cash loan helps best when facing shorter-term, smaller financial emergencies.

How much you can borrow depends on your income level. You will have to prove your income to determine how much you make regularly. A loan lender like Texas Car Title and Payday Loan Services, Inc. will allow you to borrow more money if you make more money.

You can borrow the money you need and use your next paycheck to repay the loan amount. It’s beneficial for those who need cash fast because you don’t require collateral to secure the loan.

The following are the requirements needed for payday loans in Texas:

  • Your driver’s license or another state-issued photo ID
  • Your most recent pay stub to prove your income
  • A blank check from an active checking account in your name

2. Title Loans

A title loan is a secured loan, meaning you must have collateral to put up. In this case, you use your lien-free car title, which has no outstanding debts, judgments, or liens. Borrowers can only get approved for a car title loan if they have fully paid off their vehicle.

You can borrow up to $15,000 in emergency cash. How much you can qualify for depends on the value of your car. During an in-person meeting, one of our loan representatives will inspect your car to determine its value. The factors that affect how much you can borrow include your car’s age, make, model, condition, and mileage.

Repayment of title loans in Texas usually takes a few months. Most borrowers will make monthly payments, as they likely won’t be able to repay the full cost at once.

The following are the required items for Texas title loans:

  • Your driver’s license or another state-issued photo ID
  • A lien-free car title in your name
  • Your vehicle for an inspection

What Are The Differences Between Title Loans And Payday Loans?

The main difference between title loans and payday loans in Texas is collateral. Title loans require a clear vehicle title as collateral, whereas payday loans do not require collateral. If you have not fully paid off your car, you will want to opt for a payday loan.

However, those who have paid off their cars can get title loans to benefit from larger borrowing amounts. Title loans allow you to receive up to $15,000, whereas payday loans only allow you to borrow $1,200. Title loans are better for large expenses, whereas payday loans may be preferable for smaller expenses.

The other significant difference is the repayment process. Since title loans have more significant loan amounts, it will take longer to repay the loan. Payday loans offer a more manageable repayment process since you can repay it in one payment from your next paycheck.

What Cash Loan Is Better For Financial Emergencies?

Title loans and payday loans in Texas can help in different situations. When faced with a considerable expense, title loans will likely be more helpful. Due to their smaller loan amounts and more manageable repayment, payday loans would likely be better for shorter-term expenses.

The following are some financial emergencies and which emergency cash loan is better:

  • Overdue bills: If you need to cover your rent/mortgage or utility bill for a month, a payday loan will likely be the better option. You can quickly borrow money, afford your monthly expenses, and repay the loan with your next paycheck as you get back on your budget.
  • Home or auto repairs: Extensive repair projects can be pricey, especially if you have to fully rebuild a room in your home or replace car parts. You may not be able to fully pay for them with a payday loan, so a title loan is a better choice.
  • Medical bills: Medical costs like medication, surgery, and hospitalization can range in cost, with your health insurance paying for a portion. If you only need to pay a small amount, you should opt for payday loans. However, title loans can help with more expensive medical costs.
  • Unexpected travel costs: Paying for travel costs will likely cost less money than some of the above financial emergencies. For that reason, getting a payday loan should be enough to afford your expenses.

Notebook with 'Payday' written on it placed on a background of $100 bills and a pen, symbolizing financial options and the comparison between payday loans and title loans.

Get Approved For Title Loans And Payday Loans In Texas Today!

While you cannot get a payday loan when you have a title loan, you can get one of either of them when faced with a financial emergency. Both have a quick approval process with minimal requirements that allow you to get same-day approval.

You can borrow money from Texas Car Title and Payday Loan Services, Inc. to help with urgent financial emergencies today by submitting our online contact form. One of our loan associates will call you shortly to discuss how to get approved today for a payday loan or title loan in Texas.

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

Daniel Dewitt

Daniel Dewitt is a lifetime blogger with a finely-honed ability to break down, analyze, and interpret economic trends for the layman. He's fiercely invested in spreading financial literacy and helping everyday people gain the tools they need for their own economic success.