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

Facing a financial emergency? If you already have a title loan, you may be wondering if you can also get a payday loan to cover additional expenses. While both loans offer fast cash solutions, Texas law does not allow borrowers to have both at the same time.

In this guide from Texas Car Title and Payday Loan Services, Inc., we’ll explain:

• Can you get a payday loan when you have a title loan?
• The key differences between title loans and payday loans
• Which loan is best for your financial needs?

Let’s dive in!

Can You Get a Payday Loan When You Have a Title Loan?

If you’re dealing with unexpected expenses, you may want to get a payday loan and a title loan together. However, Texas law prohibits multiple short-term loans at the same time.

Here’s what you need to know:

• You cannot have a payday loan and title loan simultaneously.
• You must pay off your title loan first before applying for a payday loan.
• Texas law also prevents you from having multiple payday loans from different lenders.

Need emergency cash? If you don’t own a vehicle outright, a payday loan may be the better choice. If you have a clear car title, a title loan could help you borrow a larger amount.

Check your payday loan eligibility here.

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:

What Are 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

Start your payday loan application here.

What Are 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

Check your title loan eligibility here.

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.

Which Loan Is Better for Financial Emergencies?

Not sure whether to choose a payday loan or title loan? Here’s a breakdown of common expenses and the best loan option:

Best for Payday Loans:

• Overdue bills (Rent, utilities)
• Unexpected travel expenses
• Minor medical expenses

Best for Title Loans:

• Major car repairs
• Large medical bills
• Home improvement projects

Get a Payday Loan or Title Loan 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.

Apply for a payday loan now and get same-day cash!

Need more info? Call 1-800-514-2274 to speak with a loan expert 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.