What are Personal and Title Loan Differences?
A secured loan is protected by an asset or collateral while an unsecured loan is not. A Personal loan is considered an unsecured loan since it is not secured by an asset and can often be obtained without credit history or credit check. Usually, providing a paystub or bank statement is required for approval. Title Loans are secured loans as they are secured by collateral, a vehicle (title).
Your personal credit score is not usually a factor in approval or loan amount. The value of your vehicle is often the main factor. The lender or bank will hold the title of the vehicle until the loan has been paid.What is the difference between a Personal Loan and Title Loan?
What Type of loan is best for me?
While both personal loans and title loans do not usually require running credit report, there is a difference. A Personal Loan usually requires a proof of income while a Title Loan requires that you own a vehicle. Before choosing the type of loan best suited for your needs consult a reputable online source and make sure you look at competitive interest rates and terms.