What is a Signature Loan and How Does it Work?
There are generally two types of loans: “secured loans” and “unsecured loans.” Secured loans are protected by collateral. A “signature loan,” a term used by select lending institutions, is categorized as a type of “unsecured” loan since it is not protected by collateral. A TitleMax title-secured account is considered “secured” since it is protected by an asset, in this case, a vehicle. A signature loan may often be a smaller amount than an account secured with a vehicle title, as it is not protected by an asset and may be viewed as a higher risk loan than secured lending options. Although title-secured loans are generally larger than signature loans, the amount available is determined by the value of the asset (vehicle). A simple online loan calculator can help estimate how much you can get. The lender will hold the title of the vehicle until the loan has been paid. With a signature loan, proof of income is usually required and is a factor in determining the amount approved. TitleMax is a simple and convenient way to get title-secured loans in-store or unsecured personal loans in-store or online. Whether you’re better suited for a secured or personal loan, TitleMax is a great source for a quick and convenient process.
Types of Loans at TitleMax
Personal Unsecured Loans
Credit card purchases, student loans, and personal loans are all similar in that they are unsecured loans that do not require collateral. Lenders of these types of unsecured loans take on more of a risk if the borrower defaults (non-payment). Interest rates may be higher for a signature loan. For signature loan approval, a lender may check your credit and payment history. If you’re looking for signature loans with no credit check), this may be hard to find. At TitleMax, credit is a factor, but don’t worry. It’s not the only part of your application we consider, and it’s entirely possibly to still get a TitleMax loan with less than perfect credit.
Title-Secured Loans/Pawns
A title-secured loan/pawn is a way to get cash using your car title. The size of your title-secured account is determined by the amount of cash you need, your vehicle’s value, and in some states your ability to repay. A typical TitleMax title-secured loan or pawn varies between $1,000 and $10,0001. Depending on the state or product, borrowers repay the account with a single payment, or on an installment plan.
How to Get a TitleMax Personal Loan
The benefit of applying for our personal loans is that you don’t need to offer collateral like your vehicle to get approved. However, you will need the following:
In-Store Personal Unsecured Loans
- Proof of Income (Dated within 30 Days)
- Proof of Residency
- Valid Government-Issued ID
- Voided Check
- Active Checking Account Statement (Dated within 45 Days)
- (In AZ) Valid AZ Vehicle Registration in Your Name