If you’re facing an unexpected expense, you might be asking yourself: “Can I get a payday loan when I already have a title loan?” It’s a common question, especially when you need money urgently and want to explore every available option.
Let’s walk through what Texas law says about this, the main differences between the two loans, and how to choose the right loan for your financial situation.
Can You Get a Payday Loan When You Have a Title Loan?
In Texas, you cannot have both a payday loan and a title loan at the same time. State lending laws limit borrowers to one short-term loan agreement until the existing one is paid off in full.
Here’s what that means for you:
- You must repay your current title loan before applying for a payday loan.
- You also cannot hold multiple payday loans from different lenders.
If you don’t own your car outright, a payday loan might be the right solution for fast cash. But if you own your car title, a title loan may offer higher loan amounts and more flexible repayment options.
Understanding Payday Loans vs. Title Loans
Knowing how payday loans and title loans work helps you choose the best option when facing a financial emergency. Both loans can help with urgent expenses, but they differ in how much you can borrow and what’s required to qualify.
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
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
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 Right for You?
Not sure which loan is better for your situation? Consider your financial goals:
Choose a Payday Loan if you need:
- Fast cash for bills or groceries
- Help covering expenses until your next paycheck
- No vehicle ownership or collateral
Choose a Title Loan if you need:
- Larger cash amounts for car repairs or medical bills
- More flexible repayment options
- You own your car outright
Both loans are designed for speed and convenience, making them reliable options when you need money now.
How to Apply for a Payday or Title Loan in Texas
You can start your loan application online or visit a nearby store for in-person help.
- Start Online: Complete the quick online payday loan form or title loan form.
- Talk to a Loan Representative: Confirm your details and loan eligibility.
- Submit Required Documents: Provide your ID, income proof, and title (for title loans).
- Get Approved & Get Cash: Receive your money the same day — often within minutes of approval.
FAQs About Payday Loans and Title Loans in Texas
1. Can I get a payday loan if I already have a title loan?
No. Texas law doesn’t allow borrowers to have a payday loan and title loan at the same time. You must repay one before taking another.
2. What happens if I can’t repay my payday loan on time?
If you’re unable to repay on time, contact your lender immediately. Some lenders may offer renewal or payment plan options.
3. Can I apply for a payday loan with bad credit?
Yes! Many payday lenders in Texas accept applicants with poor or no credit as long as you meet the income requirements.
4. How much can I borrow with a title loan?
You can typically borrow up to $15,000 depending on your car’s value, condition, and mileage.
5. Are title loans and payday loans available near me?
Yes. Texas Car Title and Payday Loan Services, Inc. has multiple locations across Texas. You can find payday loans near you to get started today.
Get the Cash You Need in Texas Today
Whether you choose a payday loan or a title loan, both options can provide fast emergency cash when you need it most. The process is quick, simple, and designed to help Texans get back on track financially.
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.
