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Car Title Loans vs. Payday Loans

Car Title Loans vs Payday Loans

When you’re in need of quick cash from a loan provider, two of the best options are car title loans and payday loans.

Payday loans are a popular choice, because many people aren’t sure what a title loan is. They think it may take your car away or your title away, for good, but that’s not the case at all.

There are many differences between a car title loan and a payday loan, and we think you’ll be interested to see why a car title loan is the better choice of the two. So before you settle on a payday loan, read more here.

The Differences Between Car Title Loans and Payday Loans

Credit checks

When you apply to get a loan through a payday loan lender in the Memphis area, you’ll fill out an application, just like anywhere else, but your credit will also be investigated. As part of any payday loan’s standard process, your credit report will be run and used to decide both how much money you’ll receive and if you even qualify for any amount of loan through the Memphis payday loan lender.

When you apply for a loan through a car title loan provider like Mid-South Title Loans, you will also fill out an application, but your credit will not be used as a factor in our decision. We will not run a credit check, because we don’t need it to help us determine whether or not you qualify for a car title loan. Our car title loans are approved based on a few qualifying factors – most importantly, your car’s title.


Since Mid-South Title Loans is a car title loan provider, you probably know that your car’s title is involved, but you may not know how. First off, we don’t keep your title for good. We do ask to temporarily keep your title, while your loan is still in repayment. As soon as you get your loan paid off, you’ll get your title back. It’s a simple, easy process. But in order for your title to qualify for a title loan at Mid-South Title Loans, it needs to be lien-free or debt-free. And as long as you have a lien-free title that is issued to you within 80 miles of your nearest Mid-South Title Loans location, you qualify for a title loan.

In addition having a lien-free title, you’ll need a few more simple requirements:

  • A driver’s license or photo ID, showing you are 18 or older
  • Your titled vehicle is in driving condition
  • Current car insurance
  • A filled out application

That’s it. There are no extensive verification documents, which helps us keep our process simple and short.

When you apply for a loan through a payday loan provider, you’ll need a few more than just the basic requirements. Payday loan lenders usually ask for proof of income and access to your bank account. If you don’t keep your paystubs, proof of income can be a pain to get. Plus, asking for access to your bank account isn’t exactly a non-invasive way of lending. They do so because then they can automatically withdraw your payments, and if you miss any payment, they will keep withdrawing until they get it – ruthless.

Loan terms

When you get a loan through Mid-South Title Loans, your loan will be under a 30-day renewable contract. This means that you, initially, have 30 days to pay back your loan. You can choose to pay it back sooner, and you can even opt to renew your contract, if you need more time to pay. We hope that the 30 days provides you with enough time to get your loan paid back in full, so that you don’t have to pay back additional interest.

Your loan term depends on the amount lent to you at a payday loan lender. Even if you’re only borrowing a couple hundred dollars, you are told that you can pay it back in multiple payments, which, when coupled with the abnormally high interest rates, results in paying more than you need to. Just like how banks and credit unions present you with the option to pay small monthly payments and pay lots of interest without knowing it, so do payday loan lenders. The problem is, they also have the highest interest rates around.

Loan amounts

Payday loan amounts and car title loan amounts are similar, but can vary from provider to provider. At Mid-South Title Loans, we write up title loans in amounts between $150 and $2500.

Get Started on Your Car Title Loan Today

When you’re trying to decide between a payday loan and a car title loan, we hope you can see the clear benefits of choosing a title loan over a payday loan. We’d love to serve you with a loan option that is quick, easy, and painless. We know you’ll love our car title loans and our helpful, professional service process. If you want to get a free inspection on your car, bring it by any of our Memphis locations today!

Have any questions now that we can answer for you? We’re available at your convenience. Stop by or call the location near you to talk to one of our friendly car title loan professionals today! You can also send us a message through our website’s form. We look forward to hearing from you!

Proudly Serving Car Title Loans to the Memphis, Tennessee Area

Mid-South Title Loans is your #1 car title loan provider in 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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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