Title Loans Vs Payday Loans: The Important Ways They Differ
December 2, 2020 | Emma Frost
When you think of fast, short-term loans, both Nevada title loans and payday loans come to mind. Although they do have similarities and both are easier to get than traditional loans, they have differences too. Yes, you can use either loan for emergencies, but they differ in ways you have to know.
What Are Title Loans And Payday Loans?
One difference to note is the definition of each loan. Title loans are short-term loans that you get in return for your car title. Your car title has to be in your name and free of prior loans and liens. You simply hand it over to Nevada Title & Payday Loans for a certain period of time, until you have paid back the loan with fees. Title loans can be acquired with any vehicle – not necessarily just a car – as the name suggests.
In contrast, payday loans are loans that bridge the gap between paychecks. They also have short terms, meaning you usually pay them back when your next paycheck comes in. This also means a payday loan will not permanently fix your finances. They are there to help in situations – not solve them completely.
Payday loans are considered unsecured because – unlike secure loans like car title loans – you do not need to put anything up as collateral.
Differences Between Title Loans And Payday Loans
Title and payday loans have some distinct differences. You have to keep these in mind when choosing which loan could best help you in your situation:
- Payday loans ask for proof of income and require you have a blank check from an active checking account in your name. Title loans on the other hand ask for your title. Title loans also base how much you qualify for on the value and condition of your vehicle.
- Payday loans have a shorter term, which means you pay it back usually by the time your next paycheck is due – approximately two weeks. Title loans give you some more time to pay back your loan.
- Since title loans use your vehicle as collateral, they offer bigger loans. Since the amount you qualify for is based on your vehicle’s condition, you can get a lot more. At Nevada Title & Payday Loans, you can get anything up to $15,000. However, payday loans are smaller because they are always lesser than your monthly salary and must be repaid the next time you get your paycheck. Here in Nevada, you can qualify for up to $500.
- Title loans are most useful in bigger situations. Anything like big medical bills, major home repairs, or emergency travel. Now payday loans are better for those situations that pop up that require your immediate attention. So that can be anything like a pipe burst in your home, or you get into a fender bender.
- Obviously, since they are called vehicle title loans, you have to own a vehicle to get a title loan. If you do not have a vehicle in your name that is free of prior loans, this kind of loan is not available to you. Now payday loans do not require you to own anything because there is no collateral. So if you need quick cash but don’t own a vehicle, you can look into these loans.
Benefits Of Both Payday Loans And Title Loans
Now that you understand how these loans are different, you have to know about their common benefits!
Both title and payday loans have few requirements. A title loan asks for a car title, your driver’s license or ID, and your vehicle. Now, a payday loan requires you to have your most recent pay stub, your photo ID, and a blank check from an active checking account in your name.
For either loan, your credit score does not play a role in your chances for approval! So don’t worry if you have a bad credit score or have no credit history at all. You will not be asked for other forms of collateral or cosigners like traditional loans either. Both are fast loans, which essentially means that you get your money in a matter of 30 minutes or less after you’ve applied and received an approval.
And the final benefit is how easy it is to apply for either loan! You can begin either one right on our website by filling out our online form! Just make sure you let us know which loan you intend on pursuing.
How To Get Either Loan In Nevada
Our process for either loan is fast, easy, and convenient for anyone to go through Here is a quick breakdown of what you can expect:
- Fill out the online form on our homepage. This is where you decide which loan you are going for.
- Wait for a loan associate to give you a call. The loan rep will go over the necessary items you have to bring with you and answer any of your questions.
- Head over to a title loan center all around Nevada to finish.
- We will go over your necessary items, see if we can approve you, and discuss the terms in detail.
- Please do not forget the required items for either loan. You’ll need your ID, vehicle title, and vehicle for title loans. For payday loans, you’ll need your ID, blank check from an active checking account, and your most recent pay stub.
- For a title loan, we will have to do a vehicle inspection to determine how much you qualify for. If you are approved and agree with the terms, you can sign the paperwork.
- If approved, you can walk out with the cash you qualify for. That's all there is to it!
Get A Title Loan Or Payday Loan To Help Out, Today!
The reason we recommend title and payday loans are how much more convenient they are compared to other loan options out there. No one wants the additional misery of being rejected by lenders just because you are not able to meet their long list of conditions.
Traditional lenders will never approve your name if they feel you aren’t financially stable enough. They look at your level of income and your credit history and often make you run back and forth for weeks.
Title loans and payday loans, on the other hand, are options you can count on in emergencies!