There are so many different types of funding out there—there’s, payday loans, registration loans, title loans, and even signature loans. It can be difficult to get them all straight. But if you are looking for a loan, you want to be as informed as possible—so let’s get started.
Registration loans are only available in the state of Arizona, so if you live in any other state you won’t have to worry about those. Payday loans are a type of loan funding that typically has very short payback terms, this makes payday loans super risky and a type of funding you may want to stay away from.
Signature loans are also called “good faith loans,” and “character loans.” With this type of funding, the borrower’s signature and promise to pay back the loan is all that is used as collateral. This is why signature loans are called “good faith loans,” or “character loans,” because basically all that is used to secure the loan is the borrower’s signature indicating their good intentions.
Car title loans are another fantastic way to get fast funding. Car title loans are a way to use your vehicle title as collateral in exchange for your funding. Unlike other types of funding, LoanMart car title loans don’t make you deal with all of the hassles that come with traditional lenders. If you are looking for money and don’t have a lot of time to wait, a car title loan might be just the right choice for you.
Signature Loans vs. LoanMart Car Title Loans
So, what is the difference between signature loans and LoanMart car title loans? First off, signature loans do not have any form of collateral besides the borrower’s promise and signature—giving signature loans the label of unsecured loans. LoanMart car title loans on the other hand use the vehicle’s title as collateral—this means that LoanMart car title loans are secured loans.
Here is a convenient chart that explains some of the other major differences between signature loans and LoanMart car title loans.
|Signature Loans||LoanMart Car Title Loans|
|Interest Rates||Usually VERY High||Competitive Rates|
|Credit Score Requirements||Lenders Look for Good Credit||Poor or No Credit OK|
So, what does this mean? Well, you know that signature loans are unsecured loans, because of the risk factor of not having a physically reliable form of collateral. Some say secured loans, like car title loans, are much safer because there is a physical form of collateral that is used.
Signature loans are also known for their high interest rates. Since there is a sort of lack of collateral for signature loans, lenders usually jack up the interest rate because of the increased risk factor. LoanMart car title loans on the other hand come with competitive interest rates. You can even work with your LoanMart title loan agent to come up with the best interest rates that will fit in with your financial situation1.
Lenders of signature loans tend to accept more applicants who have a high credit score. Some lenders think that people with a high credit score are more reliable and less of a risk when it comes to paying back the loan. But other lenders, like LoanMart, know your credit score certainly does not define you. At LoanMart, when you inquire about a car title loan we will look more at your ability to repay the loan as well as the equity of your vehicle. We don’t even really care what your credit score is—people with all types of credit are encouraged to inquire about a LoanMart car title loan.
What Do People Say About LoanMart?
The best way to know more about a company is to see what other people have said about it. Check out the awesome LoanMart thank-you page to see how LoanMart has helped change the lives of people throughout the United States!
People from all over the nation have come to LoanMart for financial assistance. Here are just a few words from the personal stories our family of borrowers have sent in to us:
- “This loan played a huge part in saving me and my family from a disaster.” – Rigoberto H
- “This [LoanMart car title loan] meant everything to me during my tough family time.” – Diane W
- “I appreciate the constant communication, upfront information, and the ease with which I was able to receive this loan.” – R. Mejia
- “Thank you for being an outstanding example of what customer service is all about.” -Sheri H
Getting a LoanMart title loan is easy, fast, and efficient! Get started on your fantastic deal for a LoanMart car title loan today1!