bank loan vs title loan online

Should I Get A Bank Loan Or A Title Pawn Online?

Detractors of private loans often make it seem like bank loans and title pawns online are the darkest enemies that cannot coexist.

In reality, both types of loans have specific places and could be beneficial in certain situations and detrimental in others. In certain circumstances getting a bank loan could help you better, in others getting an online title pawn could be immensely more helpful.

If you have trouble determining which one fits your exact situation better – ask yourself these 5 questions before making the final decision. Learn about how much money you need, if you need the cash fast, how your credit will be affected, how you could improve your credit, what your approval chance are, and how you can apply and receive your title pawn online.

Questions To Ask Yourself When Choosing Between A Bank Loan And A Title Pawn Online

1. How Much Money Do I Need?

One of the biggest differences between getting a personal bank loan and getting a title pawn online is the maximum loan amount you can qualify for. The maximum loan amount for a title loan is $15,000, while the personal bank loan limit could be up to $100,000 depending on the bank and your credit situation.

If you need more than $15,000 to settle your financial problems, getting a title pawn might not the right option.

2. How Soon Do I Need The Money?

One of the biggest benefits of getting a title pawn is just how quickly you can do it. At Alabama Title Loans, Inc. the process itself has been simplified and streamlined to take as little time as possible, on average lasting only around 30 to 45 minutes, with the borrower getting the cash they qualified for on the next bank business day at the very latest.

The process for a bank loan is much more complicated and can last up to several weeks, and the waiting period before getting cash can last up to 3-5 additional business days. If you’re on a tight schedule and need cash ASAP, title pawn would be a more suitable option. On the other hand, if you have a looser timeframe, a bank loan shouldn’t be easily disregarded.

3. What Does My Credit Look Like?

The worse your credit score, the higher the chances that time spend applying for a bank loan is just wasted. One of the biggest differences between a bank loan and a title pawn is the influence a credit score has on your approval chances.

Being approved for a bank loan with a bad credit score is virtually impossible, while a title pawn is technically available to borrowers of all credit types – including ones who have no credit history to speak off.

This doesn’t mean there won’t be any credit checks, especially if you’re applying for a larger loan amount. It does mean that unlike with a bank loan, a bad (or nonexistent) credit score doesn’t automatically disqualify you – as long as you provide required items that meet the lender’s standards you can still get approved.

title pawns for bad credit score

4. Can I Risk Lowering My Credit Score?

That said, plenty of people with great credit scores apply for title pawns online. This is because title pawns, unlike bank loans, are private – most lenders, including Alabama Title Loans, Inc. don’t report to any credit bureaus. Thus, title pawns don’t go onto any credit reports and don’t run the risk of lowering credit scores.

If you wish to keep your loan fully private and keep it from influencing your existing credit situation in any way – title pawn would be a more suitable option than a bank loan for you.

5. What Are The Approval Chances With My Income?

Another big determinant of successful approval for a bank loan is your income situation. As title pawns are secured with the collateral you provide, their role lessens significantly in comparison. With a car title pawn, you aren’t even likely to be asked to provide proof of income.

With a bank loan, the stability of your income source will have a large influence on whether or not you’re approved. If your current income stream is unstable, you’ll have a better chance of getting a title pawn online than with a bank loan.

How To Get A Title Pawn Online

If you’ve determined that getting a title pawn online would work better in your circumstances, you’ll need to provide 3 items to prove your eligibility – a state-issued ID/driver’s license to prove you’re of legal age, your car for inspection to determine the loan amount you qualify for, and the car’s lien-free title in your name to act as collateral.

Getting started is easy – you just need to submit an online form on our website. It’ll send your information to our nearest store, and soon enough our loan representative will give you a call with further instructions.

Take the qualifying items to the meeting they’ll arrange for you at a convenient location (not necessarily our store – choose any place you like, and we’ll come to you). The loan representative will inspect your car and documents to determine if you qualify, and if they approve you – they’ll help you through the final procedure then and there. You’ll get the cash on the next bank business day at the latest.

woman getting title loans online

Get An Online Title Pawn Today!

For those who need to get emergency cash quickly, without jumping through complicated bureaucratic hoops and risking their credit situation, getting online title pawns could be a more acceptable option than getting a bank loan. You can easily get started right now and complete all the procedures in under an hour with ease.

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.