Flex Loans vs. Title Loans in Tennessee

Flex Loans vs. Title Loans in Tennessee: What Are They?

Are you having a hard time deciding between applying for a title loan or a flex loan? If you are a Tennessee resident both title loans and flex loans are available in your state. To make an informed decision, keep reading our helpful guide that compares both options and can help you understand the key differences between them.

What Are Flex Loans in Tennessee?

Simply put, a flex loan is an personal line of credit that qualified Tennessee residents can obtain from state-licensed lenders. Similar to a credit card, a flex loan can allow you to withdraw money from your available credit line – with multiple withdrawals until you’ve reached your credit limit. As opposed to credit cards however, flex loans usually do not come with a physical card that you can use at retailers to make purchases.

To obtain approval for a flex loan, you need to meet the lender’s requirements for a flex loan, which typically include:

• A valid government ID
• Proof of income
• An active bank account

Continue reading to learn more about the key differences between title loans vs. flex loans in Tennessee!

Are Flex Loans Legal in the State of Tennessee?

Yes, flex loans are legal in Tennessee, and you can apply for a flex loan through a state-licensed lender. If you would like to apply for a flex loan, you will need to find a lender that offers flex loans and submit your application online or over the phone.

What Are Title Loans in Tennessee?

Title loans in Tennessee are a convenient way for residents to borrow against the value of their vehicles. In order to unlock emergency cash through a car title loan, a qualified borrower must pledge their vehicle title as collateral for the loan.^{1 3}

Whether you live in Nashville, Memphis, Knoxville or a smaller town in the Volunteer state, to obtain title loan approval, you typically need to meet the following requirements:¹

• Ownership of a vehicle with Tennessee-issued title in your name
• A valid government ID
• Proof of income
• Proof of residence

The primary benefits that come with getting cash through an auto title loan in Tennessee are a fast application and approval process, combined with high approval rates.¹ The main risk of a Tennessee auto title loan is that your vehicle is used as collateral.

How Much Money Can I Get With a Flex Loan vs. a Title Loan?

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Whether you are applying for a title loan or a flex loan, the most important factors that affect the amount of money you can receive are the applicable lending laws, your income, and the lender you choose to work with. 

• Flex Loan Amounts: You may be able to access up to $4,000 if you are eligible for a flex loan in the state of Tennessee. Through a flex loan, you can borrow as much (or as little) as you’d like, but you will not be able to go over your approved credit limit. Although it is possible to access up to $4,000 through a flex loan, if you do not meet the necessary requirements, you will not be approved for a $4,000 credit limit. Your lender determines your approved credit limit for a flex loan, and it is largely based on your income.

• Title Loan Amounts: You can typically receive anywhere from 25%-50% of your vehicle’s total value if you are eligible for a title loan in Tennessee. The maximum amount of quick funding you are able to obtain through a car title loan serviced by LoanMart in Tennessee is primarily determined by your income and the value of your vehicle.¹ Use LoanMart’s online title loan calculator to learn more about the current value of your car, truck, or SUV, and get a loan quote with no obligation today! Or call 855-422-7412 to find out if you qualify for instant pre-approval.¹

What are the Key Differences Between Title Loans and Flex Loans in Tennessee?

Title loans and flex loans share some similarities, including that they are both quite flexible, so you do not need a strong credit history to obtain loan approval for either loan option.¹ But there are a few key differences between them, including:

1. Secured vs. Unsecured: A title loan is a type of secured loan, so an eligible borrower is required to pledge their car or truck title as collateral for the loan in order to receive quick funding. A flex loan in Tennessee can be secured or unsecured, so prospective borrowers in Tennessee may not have to pledge any form of collateral in order to obtain loan approval.
2. Payment Terms: Similar to a credit card, you have the ability to pay just the minimum payment on your flex loan each month. Paying the minimum amount due on your loan may seem like a good idea if you have other debt obligations to take care of, but if you don’t completely pay off your flex loan balance within a short period of time, your debt could quickly become overwhelming. In most cases, if you are eligible for a title loan in Tennessee, you can repay your loan in equal installments over a specified period of time. Paying your loan in installments can be convenient for several reasons, but the most notable one is that you can easily budget for your monthly loan payment!  
3. Interest Rates: If you are eligible for a title loan serviced by LoanMart, you can access competitive interest rates and no prepayment penalties! ^{1 5} However, since flex loans are often times unsecured, if you have a poor credit score, you can expect to receive high interest rates, potentially as high as 279%!
4. Access to Funds: With a flex loan, you can repeatedly access funds up to your approved credit limit. A title loan on the other hand only comes with a one-time cash disbursement. However, if you keep your auto title loan in good standing, it can be possible to request an increase on your title loan, and borrow additional funds against your vehicle by signing a new loan contract.¹

As you can see, there are a few distinct differences between car title loans and flex loans in Tennessee. Whether you are applying for a title loan or a flex loan, it is important to make an informed decision and do your research before you sign a loan contract. If you have any questions about applying for title loans in Tennessee, visit our FAQ page or call 855-422-7412 to speak to a LoanMart title loan representative! 

How to Choose Between Title Loans and Flex Loans

If you are not yet sure whether a flex loan or a title loan is the better option for you, consider giving some thoughts to the following:

• Determine your needs: How much exactly are you looking to borrow? If your cash needs exceeds $4,000, a flexible line of credit is likely not going to meet your needs.
• Consider your repayment ability: Take an honest look at your monthly budget and evaluate if you are in a position to take on an additional loan payment. Be sure to only opt for an option that comes with manageable repayment terms.
• Find a trustworthy lender: When looking for a flex loan online or researching title loan options in TN, be sure to check credible review sites for unbiased customer opinions. You can also research licensing databases to identify reputable lenders.
• Compare costs: Once you’ve determined which loan option is a better fit for your needs, it’s generally a good idea to shop around. Apply with multiple lenders to see what you qualify for, and what product offers the lowest cost of borrowing!
• Evaluate alternatives: Arguably, this could even be the first step in your thought process. Are there alternatives to applying for credit? For example, can you delay another payment, or temporarily get financial help from friends or family?

Where Can I Apply for Title Loans Instead of Flex Loans in Tennessee?

Now that you know more about the differences between title loans and flex loans, you can make an informed decision about applying for either one! If you own a vehicle and are considering to get a title loan, online title loans serviced by LoanMart can be an option to consider! Whether you live in rural Tennessee or a larger city, like Clarksville, Franklin or Murfreesboro, the application process for a title loan can be convenient and straightforward:¹

1. Complete a Short Online Application or Call a Title Loan Representative at 855-422-7412
2. Submit the Necessary Documents
3. Get Approved, Sign Your Contract and Get Your Money!¹