Title Loans vs. Flex Loans in Tennessee: What Are They?
Are you stuck between applying for a title loan or a flex loan? If you need fast cash, you can apply for title loans or flex loans in Tennessee. To make an informed decision, it is essential to compare both options and understand the key differences between them.
Title loans are a convenient way for Tennessee residents to borrow against the value of their vehicles. In order to unlock emergency cash through a title loan, a qualified borrower must pledge their vehicle title as collateral for the loan.1 3
To obtain title loan approval, you must submit the correct paperwork and meet the necessary application criteria.1 A title loan is a secured loan option, unlike a flex loan. Simply put, a flex loan is an open 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. Therefore, you can conveniently access the cash you need whenever you need it – as long as you don’t go over your approved credit limit! Flex loans and title loans are quite flexible, so you do not need a strong credit history to obtain loan approval for either loan option.1
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 who offers flex loans and submit your application online or over the phone. In order for the lender to approve your application, you will need to:
- Meet the Necessary Requirements
- Provide the Correct Paperwork to Verify Your Information
How Much Money Can I Get With a Flex Loan vs. a Title Loan?
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 laws in your state, your lender, and your income.
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.
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 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! Click here 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, but there are a few key differences between them, such as:
- 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 is an unsecured line of credit, so prospective borrowers in Tennessee do not have to pledge any form of collateral in order to obtain loan approval.
- Different 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 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!
- High vs. Competitive Interest Rates: If you are eligible for a title loan serviced by LoanMart, you can access certain perks, like competitive interest rates and no prepayment penalties! 1 5 However, since flex loans are unsecured, if you have a poor credit score, you can expect to receive high interest rates.
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 on the dotted line. 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!
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, consider applying for a title loan serviced by LoanMart in Tennessee! You can conveniently apply for the emergency cash you need online or over the phone today.1 3
The application process for a title loan can be convenient and straightforward:1