key differences of title loans

How Does A Title Loan Differ From A Traditional Loan?

There are a few options that you can consider if you ever find yourself in a difficult financial situation, and a title loan from us at Cash Cow is one of them. But what exactly is the main difference between this loan and a more traditional loan? Is one better than the other?

These are things you need to keep in mind to make the right choice. Keep reading to find out three key differences between a traditional loan and a title loan so you can make a decision about which loan can help you out the best.

What Are The Three Differences Between A Title Loan And A Traditional Loan?

1. How The Loans Work

When it comes to these two loans, they actually work quite differently. A title loan New Orleans, for example, allows you to use your vehicle’s lien-free title as collateral to secure the money. We here at Cash Cow hold onto the title to your car as security for repayment.

Though some traditional banks do offer car title loans, there are quite a few other types – including unsecured loans – that you would be able to apply for if you decide to deal with a banking institution.

2. The Requirements

If you’re planning on obtaining a title loan from Cash Cow, you are required to bring in only a few easy items for us to assess. And depending on how much you could get, we might have to perform a credit check – but your score is not the main factor that will help us determine if you qualify.

When you apply for any loan from a traditional bank on the other hand, you would usually be required to provide a lot more documents and your credit would play a much bigger role.

differences between loans and title loans

3. How Fast You’ll Get The Loan Amount

The process of applying for a traditional loan is typically a lot longer than applying for a title loan with us at Cash Cow. You would have to spend additional time gathering required documents and waiting in line. Furthermore, it might take up to a few weeks to even decide whether or not you qualify.

When it comes to our car title loans here, the process is easy and fast. You wouldn’t even have to drive to one of our stores; our representatives will come to you and give you a decision the same day.

When Would You Go For A Title Loan?

Now that you know a few differences, you should know when you would go for a car title loan with us. It is not recommended to go for title loans if you’re looking for business funds or you need to shop for trivial purchases.

This loan is designed for situations when you urgently need to cover an unexpected bill and you don’t have enough money set aside to do that. Vet bills, emergency home repairs, paying rent or utility bills – a title loan can help you cover these types of expenses.

How To Apply For A Title Loan New Orleans

With Cash Cow, we’ve made sure to make the process as simple as possible. In fact, you wouldn’t even need to bring a ton of documents to the meeting with the loan representative.

In fact, all you’re going to need is your driver’s license or your state-issued photo ID, a lien-free car title in your name, and the actual vehicle for the inspection. Once you have these items ready, you can move onto the process, which we’ve broken down below:

  1. Get the process started online by submitting the short form found on our website so we can get your basic information in our system.
  2. We will then give you a call to go over the required items, answer any questions you have, and set up a meeting either at the nearest store or at a location of your choosing.
  3. Regardless of where we meet, make sure you have the required items ready to go. We will inspect your vehicle and assess your other items to determine if you qualify.
  4. Once we are done assessing everything, we will let you know if you are approved. If you are, get the money later that day or the next.

title loans compared to loans

Submit Your Inquiry Right Now!

The main reason our customers decide to go for a New Orleans title loan is because it’s simple and fast to get through our process. Unlike traditional loans from a bank, you don’t need to have a perfect credit score or have to wait days or weeks to find out if you qualify.

Plus, if you are approved, you get the money you need quickly! Are you ready to get started on the car title loan process at Cash Cow? Then fill out the online form to allow us to help you out!

 

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

Emma Frost

Emma Frost is a lifestyle and finance blogger with a talent for communication and a passion for financial literacy. She uses her writing talents to explore topics that help her readers gain financial stability and growth.