What’s the Difference Between a Car Title Loan and Bad Credit Loan

Are you strapped for cash? In need of a loan? If so, you have options. Chances are you’ve heard of car title loans and bad credit loans. However, you might be curious about what the best option is for you. At Cash Loans Alberta, we provide short and long-term financial assistance by offering quick and easy loan approvals. So whether you require a car title loan or a bad credit loan, we can help.

But what’s the difference between these loan types, and which is best for your situation? Keep reading to find out.

Car Title Loan

A car title loan (also referred to simply as a title loan) is a secured loan option. It allows you to borrow money against your vehicle. Meaning you can use your vehicle title as a form of collateral. If you choose this loan, the lender has authorization to place a lien on your car’s title. This process enables the temporary suspension of your vehicle title in exchange for the requested loan. And the best part? You can keep and continue using your vehicle.

Bad Credit Loan

A bad credit loan is reserved for those with poor credit scores. For example, if your credit score is under 575, you may qualify for a bad credit loan. When properly managed, this loan can help build your credit score. If you meet the requirement of a credit score under 575, you can search for online lenders who offer bad credit loans. These lenders will help you acquire the money you need.

Car Title Loan vs Bad Credit Loan: What’s the Difference?

Each loan is used to help you regain your financial footing, and both can be used to improve your credit score. However, there are differences between them. A car title loan involves you borrowing against your vehicle (using it as collateral) until the loan is repaid. In contrast, a bad credit loan is for those who need financial assistance due to a poor credit score.

The Best Loan Option for You

So which loan is best for you? That will depend on your circumstance. For example, if you own a vehicle and need cash fast, a car title loan is your best option. On the other hand, if you have a poor credit score and need money but don’t own a vehicle, you should opt for a bad credit loan. At Cash Loans Alberta, we provide fast cash authorizations for your convenience.

So contact us today to get quick and easy loan approval.