Title Loans vs. Signature Installment Loans: What Are The Differences?
December 2, 2020 | Louis Tully
There are times in life when you need urgent and quick cash. Emergencies like unexpected hospital bills, home, or car repairs can leave you reeling and in financial distress. During such times, if your savings are not enough then your only option is to get a loan. But with so many loans on the market, how do you know which ones are right for you and your circumstance?
Financial institutions and banks require cumbersome paperwork and spotless credit history. In the absence of either, your best bet will be to get a title loan online or signature installment loans, Wisconsin. If you are in the market of getting one then it is important to know the difference between both these types of loans which will help you make an informed decision as to which one will best suit you and your needs.
A car title loan is a short-term secured loan that allows you to leverage the value of your title in order to secure up to $15,000. Essentially, when you get a title loan you are borrowing money and giving your vehicle’s title as collateral. You will be told the exact amount you are eligible for after your car is inspected. All types of vehicles including cars, motorcycles, RVs, and trucks are accepted. Contrary to popular belief, your car will not be requisitioned and you can keep on using it.
Signature Installment Loans
Signature installment loans, unlike title loans, are a short-term unsecured loan that allows you to access up to $1,500. Unlike title loans, you do not need a car, or any form of collateral for that matter, to get an installment loan. You can get an installment loan by providing your most recent paystub as proof of employment. Not only will this help us determine how much money you’ll receive, but it will allow us to fast track your loan.
The Main Difference Between Title and Installment Loans
The biggest and most obvious difference between title loans and installment loans is the collateral – whereas title loans require collateral of you to secure them, installment loans do not. This makes them, in many ways, easier to obtain, especially if you don’t have a title to offer up for collateral.
Secondly, you can borrow a higher amount if you get a title loan, depending on the value and condition of your car which will be determined during the inspection of your vehicle. Because this amount is higher, title loans are often meant to be repaid over a larger period of time, whereas installment loans are meant to be repaid at a quicker pace.
For title loans, the title to your vehicle must be in your name and it must be lien-free. A lien-free title means it is completely paid off. There can be no other financial attachments to the car. If you have a title that’s in your name and the title isn’t a lien-free one, you can always secure an installment loan.
Now that you know the differences between these two loan types, I’ll explain some of the benefits and walk you through the steps of securing them.
The Benefits of These Loans
They’re Quick and Easy
The main advantage of title loans and signature installment loans online is that they are easy to acquire and ensure same day cash payment. The application process can be finished in as little as 30 minutes and starts by you filling out and submitting a form that only takes minutes to complete. You find out whether or not you’ve been approved on the same day and the money will be deposited to you shortly thereafter!
You Keep Using Your Car
For title loans, you get to keep and operate your car as you normally would for the duration of your loan.
No Credit Checks
Another advantage of title loans and installment loans is that you do not require a strong credit history. While traditional lenders go through extensive credit checks, your credit score won’t be a determining factor for these loans. We welcome all credit – good, bad, and nonexistent!
How to Acquire These Loans
The process for applying for and acquiring these loans is simple and starts with you filling out a short form found on our homepage and submitting it. You’ll be able to choose which loan type you need and, from there, the process looks like this:
- You’ll receive a call from a representative who will walk you through the next steps and schedule a meeting to review your information.
- Depending on the loan you’re applying for, you’ll be asked to provide a few pieces of information, which includes:
- For Title Loans: Your driver’s license, the title to your vehicle, and your vehicle for inspection.
- For Signature Installment Loans: Your driver’s license, your most recent paystub, a blank check to your bank account.
- You’ll meet with the representative, who will review your information and determine how much money you’ll receive on your loan.
- The money will be deposited to you on the same day!
When it comes to securing emergency loan money in Wisconsin, we make the process simple for you because you can start your application process online, from the comfort of your own home. From there, you’ll only be asked to supply a few basic pieces of information because when you’re facing an emergency, the last thing you should have to deal with is a long and complicated process. That’s why our process and fast and streamlined so you can fast track your financial relief. Apply today.