There are two types of loans: “secured loans” and “unsecured loans”. Secured loans are protected by collateral. A Signature loan is categorized as “unsecured” since it is not protected by collateral. A Title loan is considered “secured” since it is protected by an asset, in this case, a vehicle. A signature loan is often smaller than a title loan since it is not protected by an asset, so lenders are less likely to loan larger amounts. 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. A simple online title loans calculator can help tell you how much loan you can get. Your personal credit score is not usually a factor in determining approval or the loan amount. The lender or bank will hold the title of the vehicle until the loan has been paid. With a Signature loan proof of income is usually required and it is a factor in determining the amount of loan approved.
Credit card purchases, student loans and personal loans are all similar in that they are unsecured loans that do not require collateral. Lenders of these types of unsecured loans take more of a risk if the borrower goes into default (non-payment), so interest rates may be higher for an unsecured loan such as a Signature Loan. For Signature loan approval, a lender may check you credit and payment history, and require sufficient income to repay the loan. 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. When it comes to getting good information for car title loans, check with trusted online resources. The size of your title loan is determined by the amount of cash you need, your vehicle’s value, and your ability to repay. A typical car title loan may vary between $1,000 and $10,000 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.
As one of the nation’s largest car title lending companies, TitleMax® has streamlined the car title loan process to be as fast and simple as can be and takes about 30 minutes at one of 1000+ locations. Thousands of people turn to TitleMax® every day to get the cash they need. Getting a car title loan with TitleMax® has other practical benefits: