Can You Benefit Better With A Title Loan Or Payday Loan?

Written By Louis Tully

Published on December 22, 2023

While either a title loan or a payday loan from Cash Cow can help you out with emergencies, you have to know which one can help you better. To do that, you must first consider their similarities and differences before deciding.

Just like any kind of loan, these two loans have differences that you need to know about to decide which one can help you out. To know whether you should choose a title loan or a payday loan, you must first understand how each works.

Title Vs Payday Loans: Similarities And Differences

Title loans and payday loans are two different loans offered by us at Cash Cow that are both set up to help you with emergencies. Despite this important shared goal, they also have a few differences that you need to understand in order to know which loan can help you with a certain emergency. Here is a quick look at the similarities and differences between title loans and payday loans.

1. Quick Processing

First and foremost, you won’t have to waste too much time getting either kind of loan because we make sure that the process for either loan is simple and quick. In fact, the in-person process for either loan can last as fast as 30 minutes. That means you could find them convenient loan options during an emergency when you have little time to spare. We make sure you can easily understand the terms and steps of the process and have what you need to get through the process for either loan.

2. Required Items

Both title and payday loans also require only a few items for us to let you know if you qualify. As you will see, both loans only require a short list of items that you can prepare quickly. Despite that fact, there are some significant differences between the items we need to see for either a car title loan or a payday loan. Here’s what you’ll need to find out if you can get a title loan with us:

A driver’s license or state-issued ID.
A lien-free car title registered in your name.
Your vehicle for a quick inspection. You’ll get to keep the car when it's done.

Meanwhile, for a payday loan, you don’t need any collateral. This means we won’t need to see your car or your car’s title to let you know if you qualify for approval. Instead, we base your approval more on your financial situation. This means the items we need will focus more on your finances than on any personal items you own. To find out if you qualify, here’s what you’ll need for a payday loan:

A driver’s license or state-issued ID.
Your latest pay stub.
A blank check from an active checking account registered in your name.

man thinking about payday loans or title loans

3. Customer Support

Borrowing money can be challenging regardless of which option you choose. Both title and payday loans make that easier by providing a helpful representative to guide you every step of the way.

Whether you are just going through our website to learn more about our loans or you have begun the process, you can get ahold of us in a number of ways. First, you can always give us a call no matter where you are in the process.

However, if you’d rather speak to us in person, we have a number of store locations that you can visit. Just look at our locations page and you can scroll through all the stores we have in Louisiana.

From there, just follow the address we provide and you can ask us anything you’d like. Finally, we also offer a chat feature on our website so you can chat with us right online at any time you need us!

4. Secured vs. Unsecured

One significant difference is that title loans are secured loans because they use your lien-free car title as collateral. Meanwhile, a payday loan is an unsecured loan because it doesn’t require any collateral.

You might prefer to borrow money without using collateral, depending on your preferences. If you don’t have a car to use for the title loan, a payday loan might be a better choice. However, if you don’t have a job for a payday loan, you might want to look at a title loan.

5. Different Amounts

Lastly, you must understand that title loans and payday loans have different amounts that you could qualify to borrow. A title loan gives you access to amounts between $300 and $1,400.

The amount you qualify to receive will depend largely on how much your car is worth. Meanwhile, a payday loan offers between $100 and $300 which is based on how much you can repay. The loan representative will evaluate several factors to determine how much you can borrow.

Considerations Before Choosing

At this point, you’ve seen the similarities and differences between title and payday loans. Now, there are a few simple considerations you need to make before deciding which one can benefit you more. Asking these questions will help make the decision between these two loans easier for you to make. Keep reading to learn the three questions you need to ask.

How Much Money Do You Need?

Firstly, you need to calculate how much money you need to deal with whatever emergency expense you are struggling with. Again, you could qualify for a maximum of $300 with a payday loan, but a title loan could get you up to $15,000, depending on your car’s value. If you require a higher amount, you’ll probably benefit more from getting a title loan. A payday loan could be your choice if you can only repay a smaller amount

Which Loan Requirements Can You Meet?

Another thing to think about is whether you can meet the requirements for both loans or just one. For example, you might have the items necessary for one type of loan but not the other. You could benefit more by opting for that loan instead of going through the trouble of going for the other loan. Make sure you go over the requirements list of both loans to help you decide which loan would be better.

Do You Own Your Car?

Suppose you’re considering a title loan. In that case, you must ask yourself if you own your car outright. Remember that you must have a lien-free car title registered in your name to qualify. That means your car must be free from any outstanding loans before you can use the title as collateral. If that’s not the case, the effort necessary to qualify for this loan might outweigh any potential benefits for you, making a payday loan the better option.

paper plane choosing which way to go

Get Started Now!

Whether you choose to get a title loan or payday loan, get in touch with Cash Cow immediately for help getting the funds you need. Take the first step by filling out the simple online request form with your information to get started. Soon after, a friendly representative from a nearby store will call you to help you get started on the process. So, don’t wait any longer and get the online form filled out right now.

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