Payday Loans vs Title Loans: The Differences Between These Personal Loans
When you have an urgent financial emergency, borrowing money through personal loans can allow you to afford your urgent costs. However, what separates payday loans vs title loans in Mississippi? Both can provide emergency cash, but which is the best option for your financial emergency?
In this guide from Mississippi Title Loans, Inc., we will explain the differences between payday and title loans. We will go over secured vs unsecured loans and help you decide which Mississippi personal loan is better for your financial crisis.
Payday Loans Vs Title Loans: Explaining These Personal Loans
Before you can decide which is better for your financial emergency, it’s vital to understand what title loans and payday loans in Mississippi are. Knowing the definition of each, along with the differences in requirements and benefits, can better prepare you to determine which is best for you. Below, we will explain payday loans and title loans and establish some of their differences.
The following are the explanations of the personal loans available in Mississippi:
1. Payday Loans
Payday loans are short-term, unsecured loans that you can use to cover unexpected bills and emergencies before receiving your next paycheck. Since it's unsecured, you don't need to put up any collateral, ensuring you don't lose any valuable assets if you fail to repay.
The good thing is we here at Mississippi Title Loans, Inc. welcome anyone with any credit to come in — either perfect, good, or poor. Borrowers can receive up to $400 in emergency cash through payday loans if they can meet the minimal requirements.
The following are the requirements for payday loans in Mississippi:
- Your driver's license or another kind of state-issued photo identification
- Your most recent pay stub to establish your income
- A blank check from your checking account open in your name
2. Title Loans
Title loans are secured loans that require collateral. For a title loan, we ask you to supply your vehicle's lien-free title as a promise that you will repay the loan amount on time. You can use a truck, car, or van as the vehicle, but not a boat, motorcycle, RV, or another mode of transport. Borrowers must have fully paid off their car to use its title as collateral for title loans.
With a Mississippi title loan, you can borrow up to $2,500 in emergency cash; the amount depends on the value of your vehicle. During an in-person meeting, our loan representative will inspect your vehicle to verify your loan amount. Like payday loans, car title loans also have simple requirements you should be able to meet easily.
The following are the requirements for title loans in Mississippi:
- Your driver’s license or state-issued photo ID
- Your vehicle for the quick inspection
- Lien-free vehicle title in your name for the collateral
Secured Vs Unsecured Loans: What Are The Differences?
One of the significant differences between payday and title loans is that one is a secured loan, and the other is an unsecured loan. If a personal loan requires collateral to get approved, it is a secured loan, whereas unsecured loans do not require collateral.
Title loans require collateral in the form of a clear car title, which allows borrowers to borrow more money. Since you use high-value collateral, a loan lender like Mississippi Title Loans, Inc. will be more willing to offer more money. They can seize your car if you fail to repay the title loan.
Payday loans do not require collateral. While this can make it easier to get approved, as you won’t have to fully pay off your car to gain approval, it does mean you won’t be able to borrow as much money.
What Are The Differences Between Payday And Title Loans?
In addition to collateral, there are other differences between payday and title loans that can differentiate which is best for your financial situation. It’s vital to consider these differences to determine which short-term loan in Mississippi is best for you. While both can help, some may work better for your current situation.
The following are some of the differences between title and payday loans:
- Loan amounts: Title loans allow borrowers to receive up to $2,500, whereas payday loans offer up to $400. Payday loans can be good when faced with a small emergency, whereas title loans can help with more expensive situations.
- Repayment process: Due to the small loan amounts, most borrowers repay their payday loans by their next paycheck. Title loans are repaid over the course of a couple of weeks or months because it is harder for borrowers to pay large loan amounts back at once.
- Approval process: Both have a similar approval process, but title loans differ in one way: the vehicle inspection. You can get approved for payday loans by having the requirements, but title loans require borrowers to give their car over for a quick inspection to determine its value.
Which Short-Term Loan In Mississippi Should You Choose For Your Financial Emergency?
Different financial emergencies will call for a different loan. When faced with a short-term, inexpensive emergency, a payday loan would be the better option. For example, you may have overdue bills and just need a bit of help to get through the month to get back on your budget. In this case, a payday loan can offer a lower-risk borrowing option to help you with your relatively inexpensive financial emergency.
However, borrowing a title loan better serves you during more expensive financial emergencies. These can include medical bills and home or auto repairs. They can cost thousands of dollars, which payday loans cannot cover. Title loans can get you the money you need to afford expensive costs.
How To Get Approved For Title Loans And Payday Loans
As we mentioned earlier, the process for both title loans and payday loans are pretty similar. You only need to complete a few steps and can receive your emergency funds within one business day. The in-person process for both can take less than 30 minutes, allowing for easy approval for emergency funds!
The following are the steps involved in approval for payday loans and title loans in Mississippi:
- Fill out the online form on this website. Wait for one of our loan representatives to give you a call. They tell you about the process and the required items and answer your questions. We will also set up a meeting for you to meet with the representative. You don't have to come to your local Mississippi Title Loans, Inc. location if you don't want to. We can come to you instead.
- Regardless of where you decide to meet, you need to bring your required items with you. The specific items change depending on the type of loan you are applying for. Remember, for title loans you need your driver’s license or state-issued ID, your vehicle, and its title. For payday loans, you need your driver’s license or ID, a blank check from a checking account, and a recent pay stub.
- For title loans, one of our loan associates inspects your vehicle and paperwork to determine whether you qualify for approval and how much. For payday loans, one of your associates will assess your information to determine if you qualify for approval and how much. Either of these steps only takes a few minutes to complete.
- If you meet the eligibility criteria, you complete the paperwork with the help of our loan associate. This is where you can ask any remaining questions and learn about the loan terms that go with either loan. Finally, you get the cash you need for either the title loan or payday loan on the same or the very next bank business day.
Get Approved For Title Loans Or Payday Loans In Mississippi Today!
When considering payday loans vs title loans, just know that both can help during a financial crisis. Whichever type of loan you decide to get, you benefit from a quick, fuss-free process. Mississippi Title Loans, Inc. can help you get same-day approval for payday loans and title loans in Mississippi with our simple process and requirements.
You can start the process for both online by filling out our online contact form. A loan representative will call you soon to explain how you can get approved for title loans and payday loans today!
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.