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How Do Title Loans Work vs. Traditional Loans?

How Do Title Loans Work vs. Traditional Loans?

Do you need money quickly, because you have bills that need to be paid off immediately? Maybe they are months past due, and you’re worried about collections taking them over. Maybe you’ve experienced a major job loss and are having trouble making ends meet. No matter what the scenario is, you need to find a way to get the money you need to cover bills and expenses.

When you need to get money from an outside source, you have lots of options, including both traditional loans and title loans. Traditional loans come from banks and credit unions in Memphis, and title loans come from a title loan provider, like Memphis’ Mid-South Title Loans.

If you’re considering both sources to get the funds you need, it’s important to understand the differences between the two. Let’s review.

Title Loans vs. Traditional Loans

The Requirements

Traditional loans: When you opt to apply for a traditional loan through a bank or credit union in Memphis, you’ll have the choice of either applying online or applying in person with a bank representative. Similar to a title loan, you’ll have to fill out your information in an application. In addition to filling out your information, you’ll have to provide a number of documents to prove your identity, your housing, and your employment. These can include pay stubs, W-2s, utility bills, mortgage or lease agreements, and your photo ID. Plus, your credit report is likely to be pulled, which may or may not result in a hit on your credit.

Title loans: When you apply for a title loan at Mid-South Title Loans, you’ll fill out an application online. In addition to your completed application, you’ll also need to have a lien-free title, proof of car insurance, and a photo ID. We don’t require a credit check or any verification documents. The most important document to us is your lien-free title, which we use as collateral while you pay your loan off.

The Process

Traditional loans: The process to obtain a traditional loan can be lengthy and extensive. Many times, you’ll have to set up an appointment to meet with a bank advisor, and then wait to be approved for your loan. Sometimes, this can take several days or even weeks, since they have to review the long list of documents you provided, as well as your credit report. If you’re approved, it can take several more days or weeks to get your money, after that. Depending on your Memphis bank or credit union of choice, it can take up to six weeks to get the money you need.

Title loans: The process to get a title loan at Memphis’ Mid-South Title Loans is quick and simple. Our goal is to get you the money you need as fast as possible. After you fill out your application, you’ll simply want to bring your car and the few required documents to your nearest Memphis Mid-South Title Loans location. We will inspect your car and analyze your needs and repayment ability to determine the loan amount. Once we write up the loan, we’ll need you to review the terms and provide your lien-free title for temporary keep, until your loan is paid off. After that, you’ll have your check in hand, and you’ll be on your way to use your money as needed.

The Terms

Traditional loans: Traditional loans are typically long-term, and they are repaid on a monthly basis. If your loan is in the form of a line of credit, you’ll keep it open for likely a long period of time – maybe forever. When it is a long-term loan, you’ll be paying a lot of interest, unless you decide to pay it off early, which doesn’t usually happen. Even though long-term loans seem attractive, the truth of the matter is that you end up paying a lot more than what you were initially lended.

Title loans: Title loans are short-term loans, and your title loan at Memphis’ Mid-South Title Loans is under a 30-day renewable contract. If you need more time than 30 days to pay off your loan, you may be able to renew it and pay additional interest. Short-term loans like title loans are beneficial to our Memphis area customers, because you don’t have to pay a lot of interest on your initial loan amount. We think that this is helpful, and you can get out of your financial situation easier, rather than your loan being another financial burden.

The Amount Lended

Traditional loans: Traditional loans are usually in the form of thousands of dollars, and many lenders will give you much more than you need. I bet you’ve seen the junk mail lenders saying that you’re pre-approved for up to $15,000. The reality is, it’s more than you need, but it is an attractive offer that seems to take away all of your money problems, which isn’t really true.

Title loans: Title loans are created to fill a financial gap, and the amount we lend is only up to $2500. This way, our Memphis customers can pay off their title loan over a short term, and it’s not a burden. We just get you what you need to cover your pressing expenses and bills, so you can get back on your feet.

Start Your Title Loan Application Today

Don’t wait to get the funds you need to cover the expenses you have and don’t waste your time getting a traditional loan. Experience all the benefits of a title loan at any of our Mid-South Title Loans locations in Memphis, Tennessee. We are ready to answer any of your questions today, and we’d love to provide a free car inspection to determine what it is worth. Come by, contact your nearest Memphis area Mid-South Title Loans location by phone, or contact us through our website now! We look forward to helping you with your financial needs.

Proudly Serving Memphis, Tennessee & the Surrounding Area

Mid-South Title Loans proudly provides title loans to Tennessee’s Memphis and Shelby counties, including the cities of Germantown, West Memphis, Midtown, Cooper-Young, East Memphis, South Memphis, Parkway Village, Whitehaven, Berclair, Raleigh Bartlett, Southaven, and the surrounding areas.

 

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OUR LOCATIONS

1680 Winchester Rd
Memphis, TN 38116
Phone: (901) 346-1040

4965 Summer Ave.
Memphis, TN 38122
Phone: (901) 821-9211

2798 S. Perkins Rd.
Memphis, TN 38118
Phone: (901) 794-5460