Payday Loan Vs Auto Title Loan, Which Is Right For You?

From time-to-time everyone experiences an occasional setback. Whether it’s an unexpected bill, Auto Title Loan repair or just some extra cash for the holidays, obtaining a short term loan can be difficult, especially for people who have experienced credit problems in the past. Given the state of our economy and the high unemployment rates, traditional lenders like banks, credit unions or credit card companies, have increased their qualification standards, leaving more and more people in the lurch when seeking credit.

Fast Cash Loan -Income Requirements:

In most cases, borrowers applying for a payday loan or cash advance will need to substantiate their income. Most borrowers will usually qualify if they can demonstrate as monthly income of at least $1,200. Obviously, the higher the amount borrowed the higher amount you may qualify for. Borrowers can usually verify their income through bank statement or paystubs. For car title loans, there are no credit check or job requirement, all you need is a fully paid vehicle.

Car Title Loan Are Way Better Than Payday Loan

Generally speaking, Auto Title Loan are easier to qualify for than payday loan or cash advances because they are secured by the value of your car or truck. While most auto title lenders would prefer borrowers with verifiable income, many are not as concerned about income requirements since they’re holding the title on your car as security. In fact, some don’t require any income at all.

Quick Cash For Cars – Interest Rates and Repayment Terms:

The repayment terms of payday loans and auto title loan may differ substantially. In most cases, payday loans are design to help borrowers in need of short term cash bridge the gap between paydays. Hence the name “payday loan.” So, depending on your pay cycle, payday loans are usually grant for a period of less than thirty days. Some lenders will allow borrowers to renew their payday loan, giving the borrower the option of just paying the interest or the interest combined with a partial principle reduction or the entire loan in full.

Auto title loan differ in many ways. First and foremost, since the loan is secure by your car or truck, interest and fees are substantially lower than payday loans. The duration of the loan are longer (up to 2 years), making monthly payment more affordable for the borrower. Apply for a car title loan with us today!

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