Title Loans vs. Flex Loans in Tennessee: What are They?

Are you struggling to pay for an unexpected financial emergency? If you can’t decide between applying for a title loan or a flex loan, it’s important to compare both options so you can make an informed decision before you sign on the dotted line.

A flex loan is an open line of credit that state-licensed lenders offer to qualified applicants in the state of Tennessee. Like a credit card, you can withdraw money from your available credit line with a flex loan and access as much cash as you need until you reach your approved credit limit! As its name would suggest, flex loans can be flexible during the application process, so you may not need a good credit score to obtain approval. While it is possible to get approved for a flex loan with a bad credit score, one of the most significant drawbacks of an unsecured flex loan is that the interest rates are typically high if you do not have a strong credit history.

On the other hand, a title loan is a secured loan option. If you are eligible for a title loan, you can access a portion of your vehicle’s overall value and use your loan proceeds to handle an unexpected expense. Since title loans are secured by the title to your qualifying car or truck, you can still be eligible for the emergency cash you need even if your financial history isn’t perfect! You can access competitive interest rates if you qualify for a ChoiceCash title loan!1

Keep reading to learn more about the difference between title loans vs. flex loans in Tennessee!

Are Flex Loans Legal in Tennessee?

Yes, flex loans are legal in the state of Tennessee. The application process is fairly convenient and simple. All you need to do is to find a lender who offers flex loans and submit your application online. You will typically need to provide a few documents during your application, such as proof of income and a valid, government-issued photo identification card.

How Much Can I Get with a Flex Loan vs. a Title Loan?

flex loans

The amount of money you could receive through a flex loan or a title loan will depend on various factors, including (but not limited to) the following:

  • Your Lender
  • State Laws
  • Your Income

If you are eligible for a flex loan in the state of Tennessee, you can potentially access up to $4,000. As long as you do not exceed your approved credit limit, you may borrow as much or as little as you’d like through a flex loan. Your credit limit is set by the lender and primarily depends on your income, so you may not qualify for a $4,000 credit limit if you do not meet the necessary requirements.

A qualified borrower will usually be able to access up to 50% of their car’s overall value through a title loan.1 The total amount that an eligible borrower can receive through a title loan is predominately based on their ability to repay the loan and the total value of their vehicle. You can use the ChoiceCash title loan calculator to obtain an estimate of your vehicle’s current value and a loan quote with no obligation today!1 Click here or call 855-422-7402 to apply for a ChoiceCash title loan serviced by LoanMart in Tennessee. Don’t wait to find out if you qualify for instant pre-approval!1

What are the Key Differences Between Title Loans and Flex Loans in Tennessee?

Although they do share some similarities, title loans and flex loans are not the same. Take a closer look at some of the most significant differences between title loans and flex loans:

  • Payment Terms: With a flex loan, you can access flexible payment terms, so you have the ability to pay just the minimum payment on your loan each month. Although it can be tempting to pay the minimum amount due on your loan, you may end up with a large amount of debt if you do not completely pay off your balance within a short period of time. With a title loan, in some cases, you will be able to repay your loan in equal installments over a set period of time, allowing you to budget for your loan payment each month. With ChoiceCash title loans, qualified borrowers have the chance to get rewarded! Your payments may decrease every month if you pay your loan on time and meet the necessary criteria!1 2
  • Secured Vs. Unsecured: A title loan is a secured loan, and a flex loan is an unsecured line of credit. With a title loan, a qualified borrower can pledge the title to their car or truck as collateral for the loan and access quick funding to get back on their feet. You will not be required to pledge an asset as collateral in order to apply for a flex loan in Tennessee. Since title loans are secured by the title to your vehicle, if you fail to keep up with your title loan payments and default on your loan, your vehicle may be repossessed by the title lender. Whether you choose to apply for a title loan or a flex loan, it is important to prioritize your loan payments.
  • Interest Rates: Flex loans are unsecured, so they tend to come with high interest rates if you do not have a strong credit history. Since title loans are backed by collateral, a qualified borrower can receive competitive interest rates. If you have a title to a qualifying vehicle in your name and are searching for competitive interest rates that won’t break the bank, a title loan may be a suitable option for you!1

It is important to make an informed decision before applying for a title loan or a flex loan in Tennessee. Do you have any questions about applying for title loans in the state of Tennessee? You can expect quality customer service agents to answer the phone when you call ChoiceCash at 855-422-7402! ChoiceCash title loan agents are available six days a week for extended hours to take your call and answer your questions.

What are the Downsides of Getting a Flex Loan Near Me?

If you’re stuck between applying for a title loan or a flex loan, you might be wondering, “Are there any downsides that come with applying for a flex loan near me?” Although there are certain advantages that come with applying for a flex loan in Tennessee, such as a flexible application process, they may not be the best choice for everyone. Flex loans typically have high interest rates, so the repayment process can be difficult if you are not prepared to handle it. You could easily fall into a cycle of debt if you are not careful.

Additionally, with a flex loan, you are allowed to pay just the minimum payment on your loan. If you continue to make just the minimum payment on your loan each month, you will end up paying a lot more in the long run!

Should I Apply for a Title Loan or a Flex Loan in Tennessee?

flex loans tennessee

It depends. Since everyone is different, it is important to make a decision based on your own financial situation and goals. A flex loan may be an appealing choice for some Tennessee residents, but it may not be the right fit for you. You should compare the pros and cons of each loan option before signing a loan agreement! Additionally, you should make a choice that reflects your financial goals, preferences, and current financial situation.

If a title loan sounds like a suitable option for you, call 855-422-7402 or click here to start the application process! You can take advantage of a few different benefits if you are eligible for a ChoiceCash title loan serviced by LoanMart, such as:1

  • Competitive Interest Rates1
  • Convenient Ways to Repay Your Loan1
  • Payments That May Decrease!2
  • Excellent Customer Service
  • Keep Driving Your Car1

Where Can I Apply for Title Loans Instead of Flex Loans in Tennessee?

Now that you know more about title loans and flex loans, you may be searching for a title loan in Tennessee. Applying for a title loan in Tennessee should be simple!

With ChoiceCash title loans, you can take advantage of a straightforward and convenient application process! It takes just a few simple steps to apply for a title loan:1

  1. Submit a Brief Loan Inquiry Online or Over the Phone at 855-422-7402
  2. Upload a Few Documents to Verify Your Information
  3. Find Out if You Qualify and Collect Your Funds!1

Find out if you can qualify for a ChoiceCash title loan in Tennessee today! Click here to get started, or call 855-422-7402 to speak to a ChoiceCash title loan agent. Our title loan representatives are available six days a week for extended hours to take your call and walk you through the application process.

Eligible borrowers could choose direct deposit or have their funds added to a debit card to get their money in as little as 24 hours!1 Visit the FAQ page or call a title loan representative if you have any questions about the application process.

Sebastían S.
Sebastían S.
Sebastían S. is a graduate of Texas State University and a contributing member of the ChoiceCash content team with over two years of experience in the financial services industry. As a proficient digital content writer, his writing style combines transparency and expertise in order to make complex financial topics accessible to a wide audience. Whether the topic is about title loans, debt management, or budgeting, Sebastian's objective is to provide readers with accurate and relevant information that is easily understood. Find him on Linkedin.