Title Loans vs. Payday Loans: How Are They Different?
November 24, 2020 | Louis Tully
Getting your hands on some extra cash can be difficult, especially if you're pressed for time. Luckily, however, there are tons of resources that help individuals who are struggling financially and are in need of quick cash. For example, title loans and payday loans are popular options for people facing financial emergencies, such as high medical bills, unexpected travel costs, or similar situations.
But with an increasing number of options to choose from, things can get a little confusing. However, it's important to know what you're getting into, especially when it comes to dealing with your finances. If you're looking to get some extra cash, title loans and payday loans are both feasible options. Here's a comparison of the two types of loans and how they can each help you deal with whatever financial crisis you may be facing.
Payday Loans: A Breakdown
To understand the difference between payday loans and title loans, it's important to point out the characteristics of each. A payday loan is a short-term loan given to borrowers who then repay the loan amount on their next payday. It's an option for people in need of some emergency cash to bridge the gap between paychecks.
Fast payday loans are commonly known as fast payday loans because they're one of the quickest ways to get your hands on cash. Typically, borrowers receive their loans on the same day that they submit their application. In addition, some lenders offer online payday loans that don't require a store visit, so you can apply for and receive your loan from the comfort of your home.
Compared to conventional loans, payday loans have much fewer requirements and paperwork. To be eligible for a payday, all you need is a valid ID, an active bank account, a source of income, and an active contact number. You also need to be above 18 years old.
Title Loans: A Breakdown
Like payday loans, title loans are short-term loans, typically given to individuals in need of quick cash. To get a title loan, borrowers put up their car titles as collateral, which is returned when the loan amount is repaid in total.
Similar to payday loans, title loans are both quick and easy to obtain, making them a great option for people facing financial circumstances that require immediate cash, such as costly medical bills, unexpected travel costs, or car repairs.
Another similarity between title loans and payday loans is that both have few requirements for eligibility. The requirements for a title loan are similar to those for a payday loan. In both cases, your lender won't be bothered about your credit history, so you don't need to worry about your credit score when you apply for either.
The main difference between a title loan and a payday loan is that while payday loans are repaid on the borrowers' next payday, title loans don't have a set deadline for repayment. Of course, you will decide on a repayment scheme with your title lender.
How To Take Out A Title Loan
If you own a car, a title cash loan might be the option for you. The best part of taking out a title loan is that you don't have to surrender your car to your lender. You'll only have to surrender your car title, which means you can keep driving your car! Here’s a step-by-step guide on the simple process of taking out a title loan:
- Fill out a short form found on our Cash Cow Louisiana homepage where you input your vehicle information and submit it. This will allow a representative to call you to schedule a meeting to have your car inspected.
- During the meeting, you’ll be asked to provide: your driver’s license, the title to your vehicle, and your vehicle for inspection.
- After the inspection, you’ll find out how much money you’ll receive and it will be issued to you often on the same day, provided you start the application early enough!
How To Take Out A Payday Loan
When it comes to completing the application for a payday loan, the process looks very similar to title loans in that you start by filling out the online form. From there, the process looks like this:
- You’ll receive a call from a representative who will schedule a meeting to review your information and finalize your payday loan.
- The information that you’ll be asked to provide is your driver’s license, your most recent paystub, and a blank check to your bank account.
- You’ll find out how much money you’ll receive and you’ll be issued the loan money on the same day that you apply!
Applying for a title loan or a payday loan is a straightforward process because we’ve streamlined our application process so you can obtain the money you need in a pinch. The next time you’re facing a financial emergency, visit the Cash Cow Louisiana homepage, and explore your loan options. Now that you have a good idea of how these loan types are different, you’re prepared to make an informed decision. Apply today!