When searching for a fast cash solution, you may be surprised at the number of different loan types advertised. In fact, it can all be a bit overwhelming and leave you wondering what the differences are and which loan is right for you. Title loans online are typically more popular, but both of these similar borrowing options are worth considering. Many people are confused at the differences between two very popular loans: an auto equity loan and a title loan.
An auto equity loan uses the actual value of your car to secure the loan, or work as collateral. It is often times a short term loan solution, though some lenders may be willing to stretch the repayment period into a longer term. One important requirement to note is that an auto equity loan can only be approved if the borrower can provide a free and clear title. That means the vehicle has been paid off and there are no more payments owed to the bank or another lender.
A title loan works in much of the same way as an auto equity loan with just a few minor differences. For one, it requires that the car's title (proof of ownership) be handed over to the lender before receiving the title cash. You can get a title loan for almost anything that has a title: a boat, motorcycle, and in some cases, farming equipment may qualify. One great bonus about a title loan is that there is no credit score check, so people with credit issues like bad credit, no credit, or even a bankruptcy on file can still borrow the money they need.
The biggest difference is in name only. Both work in very much the same ways and while one name may give more emphasis on the title or the equity, the reality is that both loans operate the same.
You could say there are more similarities than there are differences. Both loans can offer you:
Understanding how your specific loan type works is important in order to make the best financial choices available to you. Don't let the different names intimidate you, just know that in any case, the bottom line is that both loans give you the cash you need, fast.
By working with our lenders, you could end up saving up to 20% on your repayment, and eliminate the risk of being taken advantage of.
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