difference between title pawn and payday loan

Alabama Title Pawns vs. Payday Loans: What’s the Difference?

If you’ve recently found yourself in some financial trouble, you might be thinking about getting a loan – a fast short-term fast loan, specifically – to deal with it. This could be either a title pawn or payday loan.

Short-term fast loans definitely warrant looking into in case of an emergency, since they tend to be accessible, have an easy application process, and the process usually lasts for less than a day.

Honestly, the question you need to ask when it comes to short-term fast loans is: which type is correct for my specific situation?

Alabama Title Pawns vs. Payday Loans: What to Choose?

What Are Title Pawns?

Title pawns are a type of secured fast loans. Secured loans call for the borrower to provide a guarantor or collateral to get approved. In the case of title pawns, it’s your car title that will act as collateral.

Since the lender’s assets are protected by the provided collateral, the approval process for title pawns tends to be the easiest, even compared to other fast loans – you will only need a few documents, and you can easily get approved even if you’re unemployed (you aren’t likely to even be asked about your income source).

Title pawns are suitable for large unexpected expenses and/or ongoing emergencies since they typically allow you access to larger loan amounts (with Alabama title pawns you can get up to $15,000).

What Are Payday Loans?

Payday loans are unsecured fast loans. They don’t require either a guarantor or collateral.

This means, while still pretty simple to qualify for, you will need to provide a few more documents when applying for a payday loan – a proof of income among them (since there is no collateral to protect the lender’s assets).

Payday loans are typically suitable for smaller emergencies that only require a few hundred dollars to solve (at Alabama title pawns you can get up to $500 with a payday loan), especially when you don’t want to risk your assets and put them up as collateral.

How to Qualify for Alabama Title Pawns

The minimum requirement for an Alabama title pawn is to be of legal age (18+) and outright own your car.

To prove to the lender you meet these requirements, you’ll need to provide:

  • A state-issued ID or driver’s license – to verify your identity and age;
  • Your vehicle – the maximum loan amount you qualify for will be determined based on its value;
  • The vehicle’s lien-free title in your name – to prove you’re the owner of the car and to act as collateral.

Need a large sum of cash to take care of an emergency on short notice? With Alabama title pawns you could get up to $15,000 cash TODAY. Here’s how:

  1. If you’re all set with the required items and have the valid state-issued ID/driver’s license, your vehicle, and the vehicle’s lien-free title in your name ready to go – getting Alabama title pawns shouldn’t be much work.
  2. You start the process by submitting a filled-out form on the website and wait for the loan representative from the nearest store to give you a call.
  3. Listen to their instructions and ask any questions you might have.
  4. After that, you’ll just have to take your required items to the meeting the representative sets up. At the meeting, they’ll assess your car and documents to determine how much cash you qualify for and what the terms of your loan should be.
  5. If they decide you can be approved – you’ll just finish the paperwork then and there and get the cash. The process typically takes around 30 to 45 minutes.

happy couple approved for Alabama title pawn

How to Qualify for Alabama Payday Loans

As mentioned above, you will need to provide the lender with a few more documents when it comes to payday loans since they’re unsecured.

  • A government-issued photo ID – again, to verify your identity and age (you need to be over 18);
  • Your social security card;
  • Your most recent pay stub as proof of income;
  • A bank statement for the last 30 days from a checking account in your name;
  • A blank check from an active checking account in your name.

Tip: if you’re currently unemployed you might be allowed to provide alternative proof of income – ask the loan representative about your options!

Need a few hundred bucks to cover a small unexpected expense? With Alabama payday loans you could get up to $500 TODAY. Here’s how:

  1. The process for Alabama payday loans is pretty similar to that of Alabama title pawns. Make sure you’ve got all the documents - the photo ID, your social security card, your most recent pay stub, a blank check, and a statement for the last 30 days from your checking account.
  2. After that, you submit the correct form on the website and wait for the loan representative to get in touch with you.
  3. Again, take the required items to the meeting as per their instructions and wait for them to determine if you qualify for the loan, based on your documents.
  4. If approved – you’ll finish the process on spot and get the cash the same day!

Get Started Today!

Whether you opt for Alabama online payday loans or go for car title loans Alabama has to offer, our dedicated loan specialists are always ready to assist you. Just give us a call or fill out a short online form on our website – and we will call you right back to explain how the process works, and how you can benefit from title or payday loans. Don’t wait – submit your inquiry today!

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

Louis Tully

Louis Tully is a full-time finance writer offering financial expertise to everyday consumers. He understands the core values of finance and used his writing talents to share his own experiences with money to his readers. His articles teach how financial failures can easily become successes by making new habits and creating realistic goals.