What's The Difference Between A Title Loan and A Payday Loan?

Dec 23, 2021
Title Loans

If you need cash, but don't qualify for a traditional loan, then a title loan or payday loan might be the best answer. A car title loan lends money against the value of your vehicle and a payday loan is more like a credit card with really high interest rates. Read on to find out what sets these two loans apart from one another and if they are right for you.


What is a Payday Loan?


A payday loan is not a loan, it's an advance on your paycheck. You can borrow $500 or more, up to your next paycheck. Payday lenders require that you repay this money in full within two weeks because once you make a payment, they will be able to take back the whole amount you borrowed. They also require all borrowers to give their bank account information which gives them access to your funds.


What is an Auto Title Loan?


A car title loan is a secured loan where the lender allows you to borrow up to 60% of your car's value in exchange for the title of the vehicle. With Rapid Auto title loans, the average amount borrowed is $2,000. Borrowers are responsible for repaying the full amount of the loan with 12 flexible, monthly payments. Repayment plans are made in your best interest and may be customized to best suit your needs. Rapid Auto Loans even offers a 10-day grace period for late payments!




Both payday loans and mostcar title loans must be repaid in full within 30 days. Rapid Auto Loans is unique in its repayment plans; instead of the traditional 30 days, they offer a 12-month repayment plan for all their car title loans. This gives consumers more flexibility and less stress. 


If you don't repay payday loans in this time, the lender has the right to take the full balance of the loan out of your bank account, even if you have already withdrawn all your funds.


When it comes to car title loans, if you miss a payment, the title loan company has the legal right to take possession of your car. Rapid Auto Loans offers a 10-day grace period for all missed payments and encourages anyone struggling with repayment to call our office to work something out that will work best for you. 




There are some key differences between payday loans and car title loans. Payday loan lenders have direct access to your bank account. This means that if you do not pay them back in the required amount of time then they will take the full balance owed out of your account.When it comes to car title loans, lenders cannot access your bank account. Instead, they can repossess your car and take whatever payments you have made towards the title loan since they are secured by your vehicle. The differences don't stop there, however.


Which Loan Should You Take Out?


So, which loan is right for you? Both payday loans and car title loans are used by many people in the United States who struggle with tight finances and/or bad credit. Payday loans are predatory and depending where you live, can charge outrageous interest rates that can be as much as 688%! It's for that reason alone we'd suggest opting for a car title loan; more specifically, from Rapid Auto Loans. With competitive interest rates of 18% to 30% and flexible repayment schedules, why consider going anywhere else? All you need is a vehicle with valid insurance.


If you need cash quickly, but don't qualify for a traditional loan then just having access to the money you need to pay bills may be enough. This can be done easily and in as little as 30 minutes with a title loan from Rapid Auto Loans! All you have to do is fill out our simple car title loan application online and within minutes, one of our agents will contact you to discuss your options.


Car Title Loans Are Better Than Payday Loans


Short-term loans can be a lifesaver in a financial emergency, and you deserve to work with a company you can trust. Rapid Auto Loans was founded on the principle of helping people when they need it, not taking advantage of their situation by charging outlandish interest rates. 


If you need a short-term loan, contact Rapid Auto Loans for help. Our lending officers can help you through the title loan process quickly. We don't check your credit history, either. Our loans are good for up to one year, giving you plenty of time to get it repaid. If you have a car and insurance, we can help you get the loan that you need. Let us help you get back on the road to financial independence, call 954-678-5781 to get started.



How To Avoid Title Loan Repossession

While nobody wants to consider defaulting on their title loan, not making a payment is a genuine possibility. Potentially, it could result in the repossession of your vehicle. In these still troubling times, there are several reasons people may fall behind on their payments. Understanding title loans and repossession laws are critical to weighing your options and settling on a solution. Rapid Auto Loans is here to explain everything you need to know to avoid title loan repossession.

car equity

Your vehicle may be worth more than you know. With a car equity loan, the value of your vehicle determines how much cash you qualify for. This is why you should do all you can to prolong the value of your car. If you’ve never thought too much about car maintenance, then now is a perfect time. Need fast cash? Give your car the TLC it deserves. Here are our top tips on how to prolong the life of your vehicle.

quick personal loan

Life happens. Bills pile up and your car is on the brink. You could use some extra cash today, but the bank won't loan you because credit checks say you're a risky bet. Where do you turn for a quick personal loan? A car title loan offers fast cash for those with a vehicle as collateral. No credit check is necessary, and funds can be obtained in as little as one day.

Can I Get A Car Title Loan With Past Bankruptcy

Having past bankruptcy on your record can be a pain. Getting emergency funding is difficult with lenders often being reluctant to offer financing. This is where a car title loan can save the day. Here’s how you can get a car title loan even with past bankruptcy.

save money, fast cash

There is nothing more frustrating than getting to the end of the month and realizing you’ve spent too much money. You tried your best to save money, but the budget was simply too tight.

Fun, Affordable Vacations For Thrifty Families

Many people think that they can never go on vacation again after having kids or paying back student loans. They think it’s just too expensive. Factoring in the cost of plane tickets, hotel rooms, attractions, and food, it’s easy for costs to quickly add up. But that all depends on where you decide to go, and how you get there. Read on for some affordable vacation ideas for the thrifty family.

Rapid Auto Loans is a consumer finance company licensed under Florida 516. The term title loan is used for marketing purposes only.
All loans have a repayment period of 12 months and there is no minimum prepayment penalty. Interest Rates are determined and approved by the State of Florida based on the borrowed amount and the maximum APR (which includes interest rate plus fees and other costs for a year) is 30%. You pay interest only for the time your loan is outstanding. Below is a representative example of the total cost of the loan, including all applicable fees:



Government Fee


Credit investigative Fee


Documentary Stamp Tax


Total amount Financed


Original Loan Date




Monthly Payment (x12)

Rapid Auto uses “Auto Title Loans” for advertisement purposes only and provides auto equity loans. The lenders are licensed under the “Florida Consumer Finance Act” under Florida Statute 516 and as such lenders loans is exempt from any licensing requirements under the “Florida Title Loan Act” to the extent that any of lenders activities involve the making of a loan of money to a consumer secured by bailment of a certificate of title to a motor vehicle.