Why Title Loans and Traditional Loans are Different
June 2, 2020 | Peyton Sawyer
Getting hit with an unexpected expense should be expected. What’s important for you and your financial health is being prepared when that unexpected expense happens. But being ready to handle any financial situation that arises can be difficult, especially if you do not know what type of emergency will surface. Because of that, you can never be sure that what you have saved in an emergency fund, if anything at all, is sufficient. Truth is, even if you’ve started saving, it may not be enough. Depending on the situation you find yourself in, it is hard to be certain. So, what can you do if you find that you need more money to address a financial problem? Would you consider requesting a traditional loan or a title loan?
Knowing the Difference Between Your Loan Options Is Important
Fortunately, there are several lending options that you can consider when you experience a cash emergency. But not all options will be a good fit, that is why finding the right one for you and your situation is so important.
You should always know the difference between each type of lending option before making a financial commitment to borrow money. So, whether you are considering a title loan or a traditional loan, taking the time to know what they are and how they differ is essential in the decision-making process.
Title Loans in Arizona
A title loan is a short-term loan option that requires an asset to be used as collateral. This type of loan is requested from a private lender. Because title loans online welcome all credit they have become increasingly more popular than other loan options.
At Southwest Title Loans, you can get quick cash title loans online for any reason, just by providing a few simple requirements. Those requirements include; an owned vehicle, a lien-free vehicle title, a valid driver’s license or state issued ID, and a quick vehicle inspection. If you can provide those simple items, then you can qualify for cash the very same day you need it.
How a Title Loan Works
You can get the title loan process started in Arizona by completing and submitting the easy online request form. Once you have finished that step, a store representative will call you to confirm the information you have provided. If you have any questions, you can ask at that time. When the call has ended, gather your requirements, and head over to the Southwest Title Loans location to continue the car title loan process. Upon arrival, supply the required items and allow a brief vehicle inspection to determine the value of your vehicle. This will help to determine the title loan amount you are eligible to receive.
If you agree to the amount and terms of agreement, simply sign the contract to receive the title loan cash right then and there. You will be happy to know, that with this type of loan you can keep your vehicle while you repay the title loan.
Traditional Bank Loans
A traditional loan is also known as a bank loan. A loan like this is requested from a traditional banking institution. And as many of you know, getting approved for a traditional loan can be a lengthy, invasive and difficult process. One that depends mostly on your credit. Proving that you are not a high-risk applicant means a good credit score, a good credit history and an acceptable length of established credit. It also will require collateral needed to secure the loan.
How Do Title Loans and Compare to Traditional Loans?
When comparing title loans and traditional loans, you will find the approval process and requirements are quite different. A traditional loan from your local banking institution will require a strong look into your credit and a longer approval process. So, addressing a situation or emergency immediately is not really an option with this type of lending option. With title loans online, you can handle the emergency you are experiencing the same day it occurs with the fast approval process and simple title loan requirements. While credit is considered with this type of loan, it does not weigh as heavy in the decision-making process. All credit is welcome.
Why Using a Title Loan Instead of a Traditional Loan is More Common Today
With the strict approval process of a traditional loan, more and more individuals, have started looking into alternative lending options to receive the cash they need. Qualifying for a title loan is typically easier than a bank loan, which makes title loans more common today.