A Payday Loan vs. a Car Title Loan: Which is Better For You?
There are many people going through financial difficulties right now. If you’re one of them, you’re probably doing your research to find out how you can find cash fast. Your research should turn up a few different options. Some of these options include payday loans and car title loans. Though they both could potentially get you the money you need right now, they have their advantages and disadvantages. Just like any other financial decision, make sure that you have all the facts before you commit to taking out a loan. So which is better, a payday loan or a car title loan? We can tell you.
What Is A Payday Loan
A payday loan can also be called a payday advance. It is a small and short term loan, usually unsecured. It may also be considered a cash advance. Payday loans are always connected to your paycheck and payday. Payday loans are known to be risky financial options because of their high interest rates. If you get a payday loan, you will need to pay off the balance by your next payday. Many people abuse payday loans to cover regular living expenses and not true emergencies and end up in major debt. Though payday loans are supposed to have interest rate limits, but payday loans are known for their outrageously high interest. Interest rates alone should keep you from utilizing a payday loan. They usually make the cycle of debt worse, not better.
Car Title Loan
So if a payday loan isn’t the smartest financial option but you need money, what should you do? A car title loan can get you the money you need, but in a much safer way. Car title loans are based on the value of your vehicle. You need to have car insurance, a clear title to your car, and a current driver’s license. If you fit those criteria, than a car title loan is a better choice than a payday loan for you. Our car title loans have longer terms and lower interest rates. We usually offer 2 year terms and our loan rates are less than 5% per month.
How to Get Started
If you’re interested in one of our car title loans instead of a payday loan, you can fill out our simple online application and get approved. You can also call and speak with a professional service representative if you have any questions about our process. We have made it as simple as possible so you can get the money you need quickly. Once you’re approved, we will have some paperwork to complete. You get to keep your car for the term of the loan. After the paperwork is finished, you can get the money that you need.