Key Differences Between Signature Loans and Title Loans

Just about everyone runs into financial difficulties that require extra cash, but sometimes it can be hard to come up with that money as quickly as you need it. Whether it’s an unexpected medical bill, car or home repairs, or some other expense, it’s important to understand all the options you have for getting the money you need. You may be considering getting a title loan or a signature loan, but before you sign any papers it’s important to know the differences between the two.

Title Loans

Title loans are provided in exchange for collateral such as your car, RV, trailer, or all-terrain vehicle such as a snowmobile or 4-wheeler. If you have one of these types of vehicles and you own most or all of it (you are not paying for a bank loan on the vehicle) you can put it up as collateral for a loan.

Title loans offer people several benefits over other loans, especially if you have bad credit and would have difficulty getting approved through a traditional lending institution. These loans allow you to get the money you need and even help you build credit when you make your payments on time. A good title loan company will allow you to determine an affordable payment plan to make sure you get the loan paid off.

Title loans also allow you to keep your vehicle while you make payments, which means you won’t have to worry about getting to work and shuttling the kids around as long as you are making payments on time. Generally the process takes just a few easy steps to apply and receive the money, and approval is usually done in the same day.

To qualify for this type of loan, you need to be employed or have a steady source of income, a car that is in good running condition with little or no body damage, is paid off, and the title is in your name.

Signature Loans

A signature loan differs from a title loan in that it does not require collateral. These loans are generally for smaller amounts of money and shorter duration than title loans, and most people find they are best for making ends meet between paychecks, avoiding overdraft charges, or covering small emergency expenses.

Signature loans are different from payday loans in that they don’t require a checking account, and anyone can qualify with a current job, residency in the state that you want to get the loan, and a valid driver’s license and social security number. All it takes is a simple application online or over the phone, completing the paperwork in person, and going through a 15-minute approval process.

When you need emergency cash, you can get it from Utah Money Center in the form of a title loan or a signature loan. Find out which one is best for you by calling today.