Personal Loan and Title Loans Compared
There are two loan categories, “secured loans” and “unsecured loans”. A secured loan is protected by an asset or collateral while an unsecured loan is not. A Personal loan is considered an unsecured loan since it is not secured by an asset and can often be obtained without credit history or credit check. Usually, providing a paystub or bank statement is required for approval since the ability to pay is one requirement for approval. A Personal loan is similar to a Credit Card in that the loan amount approved is affected by level of income.
What is the difference between a Personal Loan and Title Loan?
A Title loan is categorized as a secured loan as it is protected by an asset or collateral. In this case the asset is a vehicle and may include motorcycles as well. A simple online title loans calculator can help tell you how much loan you can get. Your personal credit score is not usually a factor in approval or loan amount. The value of your vehicle is often the main factor. The lender or bank will hold the title of the vehicle until the loan has been paid.
What type of loan is better for me?
While both personal loans and title loans do not usually require running credit reports, there is a difference. A Personal Loan usually requires proof of income, while a Title Loan requires that you own a vehicle. Before choosing the type of loan best suited for your needs, consult a reputable online source and make sure you look at competitive interest rates and terms.
TitleMax Title Loan and Pawn
TitleMax® is one of the nation’s largest car title lending companies. TitleMax® has designed the title loan process to be incredibly simple and efficient. From start to finish, it typically takes as little as 30 minutes to put cash in your pocket at one of 1100+ locations. Thousands of people turn to TitleMax® every day to get the cash they need. The other benefits you can expect with TitleMax®:
- All credit types welcome
- Friendly customer service
- Cash in about 30 minutes
- Competitive interest rates
- All makes and models accepted