Title Loans vs. Payday Loans: How Are They Different?

November 25, 2020 | Louis Tully

 

Deciding between title or payday loans.  

If you’ve been hit by a sudden emergency and need cash fast to fix it, you might need to look into title loans or payday loans.

There are certain similarities between the two that make them appealing for potential borrowers, particularly the easiness and speed at which they can be acquired, but there are also pretty big differences which you should know about before deciding which type of loan suits you better. We’ll cover those differences below and show you how easy it is to acquire the best payday loans in South Carolina.

What You Should Know About Title Loans

For starters, title loans are among some of the easiest to acquire for a number of reasons. Title loans are a short-term secured loan type that allows you to leverage the value of your title in order to secure your loan money. They’re among some of the easiest to apply for because they’re fast! The application and approval process typically takes between 30-45 minutes. During this time, you complete and submit your application, your car is inspected, and you find out how much money you’ll receive. Furthermore, you only need to supply a few basic pieces of information during your application, which includes:

  • Your driver’s license
  • The title to your vehicle
  • Your vehicle for inspection

Because title loans are a secured loan type with your vehicle acting as collateral, we’re able to overlook your credit score when determining your eligibility for a title loan. This allows us to welcome all types of income and all credit scores: good, bad, and nonexistent.

These days the process of taking out title loans is so well organized that you don’t even need to go to the shop. You can just go to the website and take the loan out online while sitting at your desk. You will have to meet with a representative to have your vehicle inspected, which determines how much money you’ll receive, but don’t worry, we come to you, at the location and time of your choosing.

Can I Keep My Car?

There’s a common misconception floating around that taking out a title loan means giving your car to the lender for the duration until the loan is fully paid off, but this couldn’t be further from the truth. You get to keep and operate your car as you normally would.

What You Should Know About Payday Loans

Just as title loans, payday loans are definitely up there on the list of the quick and easiest loans to take out. Another similarity payday loans share with title loans is that credit score doesn’t play a role in loan acquisition. While we may conduct a credit check, we welcome all forms of credit when applying for a payday loan.

The one major difference is that, unlike title loans, payday loans are an unsecured type of loan, which doesn’t call for a guarantor or collateral. This is an advantage in some cases: first of all, you don’t need to risk your car as collateral, second of all – if you don’t have a vehicle or if your vehicle isn’t in good condition, you won’t be able to take out a title loan. But you will be able to take out a payday loan as long as you have any type of steady income.

How Do I Take Out A Payday Loan?

Applying for a payday loan is easy, thanks to our fast and streamlined process that begins with you filling out the short form found on our homepage and submitting it. Upon submitting it, a representative will contact you to review your information and explain what has to happen next in order for you to secure up to $550 in same day cash.

During your application, you’ll be asked to provide a few pieces of information that will help to determine how much you’ll receive for your payday loan. This information includes:

  • Your driver’s license
  • Your most recent paystub
  • A blank check from your active checking account

Once this information has been reviewed, you’ll find out whether or not you’ve been approved and how much you’ll have been approved for! It’s that painless and straightforward, unlike traditional banks that can take anywhere from a few days to a week to decide on whether or not you’re even eligible for a loan.

 Woman who secured her payday loan.

 

At Carolina Payday Loans, Inc. we understand that the need for emergency money can be stressful and frightening which is why we’ve created a process that is easy to navigate, easy to complete, and stress-free. We’re also here to help you every step of the way when you set out to secure your fast payday loan, and we are available to support you when you need it most so, start your application and fast track your financial relief today.