Signature Loans compared to Title loans
Loans fall into two categories “secured loans” and “unsecured loans”. A Signature loan is considered “unsecured” since it is not protected by an asset. A Title loan is considered “secured” since it is protected by an asset, a motor vehicle. Although title loans are generally larger than signature loans, the loan amount is determined by the value of the asset (vehicle) including factors such as year, make, model and mileage. With a Signature loan proof of income is usually required and it is a factor in determining the amount of loan approved.
Signature Loans vs. Title Loans
Credit cards are all similar in structure to a signature loan as it does not require collateral. Lenders of these types of unsecured loans take more of a risk if the borrower goes into default, so interest rates may be higher for a Signature Loan. For Signature loan approval, payment history may be considered prior to approval and providing proof of sufficient income is usually a requirement. The lender may also require a co-signer on the loan, but the co-signer would traditionally sign a promissory note and only called in the event the original borrow defaults on payment.
A title loan is a way to get cash using your car title instead of your credit score. A typical car title loan may vary between $1,000 and $3,000 depending on the amount of loan desired and the value of the vehicle (asset). Borrowers can repay the car title loan with a single payment, or repay the loan on an installment plan.
Title Loan benefits with Titlebucks
As one of the nation’s largest car title lending companies, Getting a car title loan with TitleBucks has great benefits:
- Get quick approval for a title loan online
- All credit types welcome
- Cash in about 30 minutes
- Friendly customer service
- All makes and models accepted
- You get to keep driving your car