Easy Title Loans vs Traditional Bank Loans: How They Are Different

It's a lot easier to get a loan than you think. While traditional banks deny many borrowers from a loan due to their imperfect credit, there's a way to get easy title loans even if your scores are less than amazing. Best of all, it's not nearly as hard as you've been led to believe.

So, what's the difference between a simple title loan and a traditional bank loan? Believe it or not, the difference is relatively simple.

What Are Title Loans?

Easy title loans are a form of secured financing that uses your vehicle ownership documents as collateral for fast cash. Because of this method, the borrower's credit report is seldom even considered when underwriting the contract. Plus, the process of getting one is relatively simple, and many who meet the basic requirements qualifies.

What Are Traditional Bank Loans?

Loans from traditional banks are secured loans that use your most valuable possessions as collateral for money, albeit sometimes slow to reach the bank. Borrowers need ideal credit ratings and substantial incomes to qualify, with more stipulations on those asking for lots of cash. Meanwhile, the process is somewhat too complex for applicants in a hurry.

title loan vs traditional bank loan

How Are Easy Title Loans And Traditional Bank Loans Different?

Easy title loans and traditional bank loans both end with the same thing - much-needed money being delivered into your account. However, that's pretty much where the similarities end. In fact, there are 5 ways that easy title loans and traditional bank loans are different.

1. The Application Process

With a title loan, you just hop online to submit a short form with basic personal and financial information on it. In some cases, you can even get a preliminary answer within half an hour of applying. But with many banks, you may have to jump through red tape and wait a while before receiving approval.

2. The Ability To Get Approved

The degree to which applicants get approved for title loans tends to be higher than applicants for traditional bank loans. Banks have higher requirements to qualify for a loan, which leaves many borrowers out of cash. This is where a title loan can help.

3. The Payment Plans

Most traditional banks need borrowers to pay back their loans on a specific date determined at signing. Qualified applicants may adjust the due date a bit, but title loan borrowing is more convenient. In some cases, you can dictate whether you want weekly, bi-weekly, or monthly arrangements.

4. The Required Collateral

You'll need assets that are of equal or greater value than the money you're borrowing when you approach a traditional bank. You also need a good credit rating. However, title loans let you borrow large sums of cash based solely on the value of your vehicle alone. They do not need to know your home value, your debt-to-income ratio, or if you have employment.

5. The Payouts

It's hard to tell what a traditional bank will give you until it's time to review the contract. On the contrary, easy title loans give you up to $15,000 in the state of Missouri, meaning you can stop the guessing games and start making serious financial plans with more of an insight into your money.

As you can see, traditional loans and title loans are two completely different loans, with one reserved exclusively for people who have never experienced a credit blunder and the other one available for those who have. Best of all, you don't need to wait for your finances to fail before you get a title loan.

NOTE: With both types of loans, applicants must usually be at least 18 years old to qualify.

easy title loan cash

How to Get Easy Title Loans Without Going Through Traditional Banks

Many consumers think they're stuck with traditional banks for loans and that's just not true. Just follow these two steps to understand how to get one:

Go Online to Submit Your Application.

Fill out the short form on the Missouri Title Loans, Inc. home page. It should only take a few minutes and you'll get an answer within 30 minutes or less.

Gather Your Required Items Ahead of Time.

Here's what you'll need to bring with you to the title loan locations:

  • The vehicle itself for a quick appraisal
  • Your driver's license or a government-issued photo ID
  • The lien-free title of the vehicle (listed in your name)

Try to also have banking information to make the payout step even more efficient.

Get Easy Title Loans Online Today

Don't go straight to the bank with your borrowing needs. Title loans are a way to avoid all the red tape and still get the money your budget requires now.

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.

Louis Tully

Louis Tully is a full-time finance writer offering financial expertise to everyday consumers. He understands the core values of finance and used his writing talents to share his own experiences with money to his readers. His articles teach how financial failures can easily become successes by making new habits and creating realistic goals.