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time, the lender has the right to take the full balance of the loan out of your bank account, even if you have already withdrawn all your funds.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.



4 Reasons To Consider An Auto Equity Loan

An auto equity loan offers a loan based on the equity that someone has in their vehicle. If they have paid off their car loan and it has a clear and free title, then its equity is equal to the car’s market value. Also known as a car title loan, Rapid Auto helps customers in need of quick emergency cash to stay current on their bills with this car title loan.

personal finance tips

Did you know that more than 50% of all households across the U.S. are invested in the stock market, in some shape or form? That's an impressive figure, considering what we have all been through as a result of the pandemic and the impact it has had on household income across the country.

What Are Short-Term Loans?

No matter how well we manage our money, unexpected expenses can still take a toll on our pocketbooks. Not all of us can borrow money from friends or family, which is why many choose to take out short-term loans. While getting the cash you need quickly can be tempting, there are several things you should consider before taking one out. Here, the experts at Rapid Auto Loans explain everything you need to know about short-term loans.

Tips To Reduce Your Medical Debt

The Top Ways You Can Reduce Your Medical Debt

Aug 5, 2021
Money Saving Tips

We all know what it’s like to have a medical emergency. The last thing you want to worry about on top of that is how you are going to pay for your treatment. And yet, many people in America today are facing this agonizing dilemma. Medical debt is one of the most common causes of bankruptcy. Here are some ways to reduce medical debt before it becomes a more serious burden on your family's finances.

Car Title Loans: Rapid Auto vs. The Competitors

Car title loans offer quick cash to someone facing financial hardships and needing emergency money. These loans use the value of your vehicle as collateral for the loan.

Credit Repair Tips For Managing Your Bills

Before starting a credit repair program, it is important to stay on top of your bills to stop late fees and negative hits to your credit score. The first step to staying on top of your bills is to always pay them on time. This article offers tips on how to stay on top of your bills, such as setting up auto-pay and reviewing bills online.

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.