Is A Title Loan Or A Payday Loan Better For You?

Deciding between various loan options can be overwhelming, especially when choosing between title loans and payday loans. These financial solutions offer valuable assistance when you need financial support. Which one is better suited for your needs? At Texas Title and Payday Loan Services, Inc., we simplify this decision-making process for you. Explore the details of title loans vs. payday loans to understand these options and determine the best fit for your financial circumstances.

Title loans are backed by your vehicle when you have the clear title in your name. Payday loans are backed by your most recent pay stub from work. But what exactly do these descriptions mean? And how do they help you determine which loan is better for you? To answer those questions, there are more things you need to know about these loans. Keep reading to find out more about them!

Which Loan Is Better? Title vs. Payday Loan

Title Loans: Title loans use your vehicle’s title as collateral if you have a lien-free title in your name. We hold onto your title – not the vehicle – while you repay the loan. An inspection of your vehicle is required to determine its condition and resale value, which affects the loan amount.

Payday Loans: Payday loans require proof of income through your most recent pay stub. We determine your eligibility based on how much you can realistically repay. Payday loans help bridge financial gaps when unexpected expenses occur between paychecks.

Borrowing Limits:

• Title Loans: Borrow up to $15,000 based on your vehicle’s value.
• Payday Loans: Borrow up to $1,200 based on your income.

Which Is Easier To Get?

Ultimately, the processes to get a title or payday loan are the same. Either can be started right here on our website. Simply go to our homepage to fill out the online application for either of these loans. Once you submit the application, one of our knowledgeable representatives will reach out to you on the phone shortly. During the conversation with the loan specialist, you can ask any and all questions you have about the loan you'd like.

The agent will make sure we have all the correct information in the system for you. They will help you decide what the best option is for your needs. Once you decide, the representative will schedule an appointment with you to review your documents. If you're applying for a title loan, this meeting – which includes the vehicle inspection – can happen either at the nearest store or at another location of your choosing. If you are going for a payday loan, you must come into the nearest store. 

What If I Have Bad Credit?

One of the best things about both of these loans is you can qualify even if you have poor credit. Now, while that is true for title loans, you should know that we might still have to do a credit check before we can decide if you qualify – especially if you are eligible to get a high amount of money. Either way, you can still qualify if you have bad credit. When it comes to a payday loan, we don’t have to check your credit. In fact, we don’t report your loan to any major credit bureaus at all.

Do I Need A Checking Account?

If you're applying for a title loan, you do not have to have a checking account to find out if you can qualify for approval. It's not a requirement of this type of loan – even if you are approved. However, if you're seeking a payday loan, you do need an active checking account in your name before we can tell you if you qualify for approval. You must present a blank check from your checking account to the agent you meet with at your appointment.

What's Needed To Qualify?

You don't need much to find out if you can qualify for either of these loans with us. The title loan requirements include the lien-free title in your name, proof of income, a state-issued ID, and your vehicle. Payday loan requirements are your most recent paystub as proof of income, a state-issued ID, and a blank check from your active checking account. The requirements are similar but slightly different due to the nature of what we use to back each of these loans.

Get Either Of Our Loans Today!

By now, you should have a better understanding of whether a title loan or payday loan is right for your needs. Making the right decision ensures the loan you choose suits your financial situation best. Ready to apply? Visit our homepage to start your online application or speak with one of our specialists for guidance. Get the cash you need quickly and easily!

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