When you’re facing unexpected financial challenges, it’s essential to find the best solution fast. In Alabama, two popular options include title pawns and payday loans. Each has its advantages, but how do you choose the right one for your urgent expenses? In this article, we’ll compare title pawns and payday loans to help you make an informed decision.

How To Choose Between Title Pawns And Payday Loans For Urgent Expenses

When you visit Alabama Title Loans, Inc., you have two options available: title pawns and payday loans. These options can provide quick assistance with your urgent expenses. And while having options are a good thing, that also means you need to consider certain things before you can decide which financial option you should choose. To help you out along the way, here are four considerations when choosing between our title pawn and payday loan:

1. The Process For Either Option

The first thing you should think about when choosing between our two options is the process. The good thing is our process for both of our title pawns and our payday loans are simple and quick. However, there is a difference between the two processes. Knowing this will make choosing between the two easier for you. Basically, when you get a title pawn, you will fill out the online form on our website and then set up an appointment to meet the representative either at the store or at another location.

When it comes to getting our payday loans, you will fill out the online form like for our title pawns, but for this loan, you have to come into the store to finish the process. This means the loan representative is not able to meet you at another location to finish the payday loan process. But we have plenty of store locations in Alabama that you can choose from, so there is a good chance that there is a store near you.

2. Amount Of Money You Could Get

The next thing you need to keep in mind is how much money you could get with either a title pawn or a payday loan. When it comes to our title pawns, you can get between $300 to $15,000. With this pawn, we use your car’s value and overall condition to determine how much money we can lend to you. On the other hand, when it comes to our payday loans, you can get between $100 - $500. For this one, we use your income to help us determine how much we can lend to you.

3. Required Documents For Title Pawns vs. Payday Loans

When it comes to us determining if you qualify for either a title pawn or a payday loan, there are required items we need to see. And as with everything about these two financial options, the required items differ. When it comes to payday loans, you need your most recent pay stub, your driver’s license or state-issued photo ID, and a blank check from an active checking account in your name. For title pawns, you need your car’s title, the car, and your driver’s license or state-issued photo ID.

4. Do You Need Collateral for a Title Pawn or Payday Loan?

The last thing you need to know is whether or not you need collateral. You see, some loans and financial options require you to put up a personal item of value to secure the money. When it comes to our title pawns, you must use your vehicle’s lien-free title – that is in your name – as collateral. Now if you happen to not have this collateral, you can get a payday loan instead because this loan doesn’t require any collateral to secure the money. This is what’s called an unsecured loan.

What Makes Title Pawns Different From Payday Loans?

Now that you know what considerations to keep in mind, you should know more about each option to really be able to make your decision. Of course you want to keep all of the above considerations in mind, but there are some more things about each option that would help you to know in order to help you make a decision. So, to learn more about each option, here is what you need to know about each one:

Title Pawns

A title pawn is a way to borrow money by using your car title as collateral. The amount you can get will depend on how much the car is worth and its condition. And while we will hold onto your title while you repay the loan, you can keep your car and use it as you normally would. Just keep in mind that we will need to inspect your vehicle. The best part, we welcome you even if you have poor credit. If you’re approved, you can get your money as early as the same day or by the next business day.

Payday Loans

Payday loans are different because they’re unsecured loans, meaning you don’t have to provide any collateral to qualify. Instead, what you’re doing is borrowing money against your next paycheck. This means we will look at your income to determine if you are able to repay us on time – which is usually by the time you get your next paycheck. If you can’t provide your paycheck to us, you can use another source of income. Just call us so we can discuss it further with you.

Get Your Urgent Loan Now!

The next time you need help with any emergency expenses, don’t forget that we are here to help you out! Whether you need a title pawn or a payday loan to handle your urgent expenses, Alabama Title Loans, Inc. has got you covered. Just reach out by completing the online form on our website to let us help you get started on our simple and quick process to find out if you can get either our title pawn or our payday loan!

 

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