If you’re ever in a situation where you need to borrow money quickly from a lender, you’ll find that you have many options. These days, the financial services industry provides several ways for borrowers to get a loan depending on what suits their situation the best.

Two of the most popular options for borrowers are payday loans and title loans. These unique financial products might seem similar at first glance, but they have one significant difference: payday loans are those that you secure with your income or salary. Title loans, on the other hand, are secured with the title to your car.

Before you pick one or the other, you must understand the subtle differences between the two. That’s what we’ll cover in this article: you’ll see the benefits of both and decide for yourself which loan suits your needs the best.

What Is A Title Loan?

A title loan is a form of borrowing that you secure with your vehicle title. You can use this option for vehicles like cars, trucks, or vans. The maximum amount you can borrow will depend on the value of the vehicle.

What Do You Need To Get A Title Loan?

Applying for a title loan is an easy process with minimal requirements. You’ll need only three things to apply for a title loan:

• Driver’s license or state-issued ID.
• Lien-free title to your vehicle
• Vehicle inspection

What Are The Benefits Of Getting A Loan From Carolina Title Loans, Inc.?

Title loans with us offer a wide range of benefits over other forms of loans. They include:

• At Carolina Title Loans, Inc. we will work with you no matter your credit score: good, bad, or even non-existent.
• The car that you use as collateral is only needed for a quick inspection to determine its value. Once that is done, you can keep it to use every day as usual. Instead, the money you borrow is secured with the vehicle title.
• Quick application process and payout. You can get your money the next business day or even the same day, if possible. Carolina title loan amounts of up to $15,000 are available to those who qualify.

What Can I Use Title Loan Money For?

You can use a title loan for anything you want. There are no restrictions placed on how you use the money that you receive. However, title loans should only be used for financial emergencies, such as:

• Emergency medical procedures or bills: for themselves, their kids, or maybe even the family pet.
• To catch up on overdue bills and avoid eviction or disruption in services like power, water, or gas for the home.

To travel and be with family members during times of sickness or if a relative passes away.

What Is A Payday Loan?

A payday loan is typically a short-term loan for relatively smaller amounts. Those amounts will depend on how much you earn through your salary.

What Do You Need To Get A Payday Loan?

The basic requirements include:

• Being at least 18 years old with a driver’s license or government-issued I.D.
• Your most recent pay stub
• A blank check from an active checking account in your name 

What Are The Benefits Of Getting Payday Loans From A Lender?

Payday loans are a popular option for many people because of the convenience that it offers. While there are many other benefits, here are some of the top reasons people sometimes prefer payday loans:

• Fast application and payment process. Applying for and receiving a payday loan requires minimal effort and time.
• Low credit requirements. The amount that you borrow depends on how much of an income you have. Some places don’t even check your credit!
• Freedom. There are no limitations on how you can use the money you borrow. It’s yours to do as you please!

While both loans offer advantages, you may opt for a title loan if you own a vehicle and require a larger sum of money. But for those of you that do not own a vehicle, and do not require much to handle your emergency, a payday loan may fit your needs just fine.

Get Your Carolina Title Loan Today!

If you have more questions about applying for a title loan and if this type of loan is right for you and your financial needs, contact Carolina Title Loans, Inc. today. Our helpful loan representatives can answer any questions you may have about the process.

Simply fill out the online inquiry form on our homepage with your basic information and receive a call from a loan representative soon after. 

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.