Title Loans VS. Installment Loans: What’s The Difference?
October 29, 2021 | Daniel Dewitt
It’s good to know your options when dealing with a financial emergency. Two options that are both quick and easy to qualify for our title loans and installment loans. But which is right for you? The truth is they both can be – it just depends on how you use them.
Title loans and installment loans have many similarities, but there are important differences to know when figuring out which path to take back to financial security. Here’s a close look at title loans and installment loans.
Important Differences Between Title Loans And Installment Loans
The Basics About Title Loans And Installment Loans
First and foremost, title loans and installment loans are both designed as short-term help for short-term financial emergencies such as a much-needed car or home repair, unexpected medical bills, or last-minute emergency travel. Both are paid off over a set period of time to a financial provider.
Title loans New Mexico typically offer higher amounts of money if you qualify. For example, at New Mexico Title Loans, Inc., title loans are offered between $300 and $10,000, depending on the value and condition of your vehicle.
Installment loans are typically smaller amounts of cash. At New Mexico Title Loans, Inc., you can qualify for installment loans of up to $1,250. This is suited for smaller emergency expenses that need your immediate attention.
One of the big differences is in the basic loan transaction. Title loans are secured loans that require collateral. Title loans use your car’s title as collateral in exchange for a loan, and you keep your car for the duration of the loan.
Installment loans are unsecured do not require any form of collateral. You are simply borrowing a set amount of money to repay over a set number of payments, also referred to as installments. The amount you can qualify for is determined by your income and credit report.
Requirements For Title Loans And Installment Loans
Some of the requirements for title loans and installment loans at New Mexico Title Loans, Inc. are the same. For instance, you need to be at least 18 years old and have a driver’s license or state-issued form of photo identification for both.
If you have not-so-great credit, that does not disqualify you automatically for either title loans or installment loans at New Mexico Title Loans, Inc. either. And you should not use either loan for frivolous spending since these loans are designed for emergencies. Here are the key differences:
- To qualify for title loans, you also need your vehicle for inspection and a lien-free title to your vehicle. A quick vehicle inspection helps us determine the amount of loan you may qualify for. A lien-free title just means that there are no judgments or outstanding loans against your car — you own it outright.
- To qualify for installment loans, you will need to show proof of income through your most recent pay stub and have a checking account in your name that is also open. Employment and a checking account are not needed for title loans.
- Another big difference is with title loans, you have the option of having us come to you if you’d rather not come into the store. With signature installment loans New Mexico, you must finish the process at the nearest store location.
The Process For Getting Title Loans Or Installment Loans
Here’s a big similarity between title loans and installment loans at New Mexico Title Loans, Inc.: both take just a little time to qualify for from beginning to end. Both can take as little as 30 minutes from the time you come into the store!
The process for title loans and installment loans can both begin online by filling out the short form on our website with some basic personal information that will always be kept confidential. Just be sure to select the right form for the loan you are pursuing.
Next, one of our loan representatives will give you a call soon after your form is submitted. For both title loans and installment loans, they will confirm your information and guide you through the next step for each.
Whether you have us come to you or you come to us, for title loans, your car will undergo a quick inspection to determine the amount you qualify for. They will also assess your information to determine if you qualify for approval.
For installment loans, you’ll also gather the required materials, but you will need to bring them to the nearest New Mexico Title Loans, Inc. location near you. When you arrive, you’ll have a face-to-face meeting with a loan representative who will review your documents to determine if you qualify.
If you do qualify for either loan, you’ll fill out some basic paperwork, go over the loan terms, and answer any questions. Once you sign the paperwork, you can get the money either the same day or the next bank business day.
Get Started With Your Loan Today!
It’s easy to pursue both title loans and installment loans today through New Mexico Title Loans, Inc. when you need help with emergency expenses. For both, all you need to do is go online, give us a call, or drop by for an in-person chat if you prefer. We look forward to helping you today with either title loans or installment loans.