Is A Title Loan Or A Payday Loan Better For You?
When you need a little financial help, do you know what type of loan is better for you? Looking at loan options can seem overwhelming – especially when title loans and payday loans are two good financial options that can help you out. So, which loan is better for you, a title loan or payday loan? We here at Texas Title and Payday Loan Services, Inc. can help make that decision a little easier for you!
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
We mentioned above that title loans are backed by your vehicle if you have a lien-free title in your name, but what does that mean? In simple terms, this loan uses your vehicle’s title as collateral. That means we hold onto your title – not the vehicle – while you repay the loan. But while we aren’t holding onto the vehicle, we do need to inspect it before we can determine if you qualify for approval. This is because we base how much you can get off of its condition and resale value.
On the other hand, payday loans require you to show proof of income in the form of your most recent pay stub because we determine if you qualify for approval based on how much you can realistically repay. Showing us your pay stub shows us you're able to pay back the loan because you have money coming in. Payday loans help to bridge the gap in your finances when unexpected expenses happen while you are in between pay checks.
Based on this information, which loan is better for you? Well, title and payday loans have largely different maximum limits for borrowing. If you need a bit more help and you have the title to your vehicle in your name and free of any outstanding liens, a title loan is the way to go. You can borrow up to $15,000 with us. On the other hand, if you happen to not need that much money, a payday loan might be the way to go. The maximum limit for payday loans is up to $1,200 with us.
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 know which of these loans – title or payday – is better for you and your situation. It's important to make the right decision so the loan you apply for suits your needs the best. If you're ready to apply or you even just want one of our specialists to help you decide which loan is best for you, go to our homepage and get started with your online application today. You could find out if you can get the cash you need in no time.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.