Payday Loans vs Title Loans: The Differences Between These Personal Loans
November 4, 2021 | June Mckaig
Struggling to decide whether you want to get payday loans or title loans? When you are faced with emergency expenses, it is important you know which one can help with what. Here are the differences and similarities of these loans so you can make the right decision for your specific emergency expenses.
Differences And Similarities To Payday Loans And Title Loans
What Are 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, and poor.
The Payday Loan Process
When it comes to our process for Mississippi payday loans and title loans, they are both pretty similar. The difference is with this loan, you can only qualify for anything between $100 - $400. One of the largest advantages of payday loans is that the procedure is simple and convenient. It's what sets us apart from the long-winded, complicated process of acquiring traditional loans. Our process starts online. This means you don’t even have to come to the store to get started.
The Payday Loan Requirements
Similar to the process, the requirements are basic. You don't have to worry about finding a lot of documents that you haven't thought about all year. Instead, you just need to supply the following:
- Your driver's license or another kind of state-issued photo identification;
- Your most recent pay stub;
- A blank check from your checking account open in your name.
What Are Title Loans?
Like payday loans, Mississippi title loans are a short-term loan type. Unlike payday loans, however, they are secured. In other words, they 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.
The Title Loan Process
As you'll remember, the process of getting a payday loan is simple. And you'll be pleased to know that the procedure for acquiring a title loan is just as easy. Now as with payday loans where you can only get a few hundred dollars, with title loans, you can qualify for anything between $300 - $2,500.
However, some might argue that it's a tad more involved than payday loans because we have to spend a bit of extra time appraising your vehicle to determine how much you could qualify for. We consider many factors when deciding how much we can offer you, including:
- Your vehicle's condition — Both cosmetic and mechanical conditions affect the total value of your vehicle. The best way to keep your car in good shape is to ensure you fix up any dings, dents, and scratches, and rotate the tires, change the oil, and keep up with regular services.
- Your vehicle's age — As a general rule, the older your car, the less valuable it is as vehicles lose up to 60% of their value during the first five years following their conception.
- The odometer reading — The more miles your car has traveled, the less it's worth.
- Your vehicle's make and model — BMW, Mercedes, Audi, and other luxury vehicles will always cost more than bog-standard cars like Toyota and Nissan.
The Title Loan Requirements
When it comes to title loans, the requirements are decidedly different from payday loans. The good thing is that this list, just like our payday loan requirements list, is simple and short to remember. Just bring in the following three items:
- 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.
The Payday And Title Loan Process
As we mentioned earlier, the process for both title loans and payday loans are pretty similar. Just follow this guide below to learn more about each process:
- 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, 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 some 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 very next bank business day.
Get Title And Payday Loans From Us Today!
Whichever type of loan you decide to get, you benefit from a quick, fuss-free process. But always be sure to consider new financial obligations carefully. You want to afford them comfortably. You must also carefully consider the differences between the loans so you make sure you choose the right one. Once you are ready, fill out the online form to get started.