How Do Title Loans Differ From Payday Loans?

Oct 28, 2021
Title Loans


Times are tough, and we all know what it's like to need some extra cash. At a moment's notice, your entire world can flip upside down, and you could need some help. Well, if this happens, you'll have a few options available to you. Two common loan options are title loans and payday loans. Let's look at the differences to see what's best for you.

 

How Do Payday Loans Work?

 

Like a title loan, a payday loan is a short-term loan, meaning you have very little time to pay it back. Since this loan is contingent on your next payday, the lender will typically expect that you pay this loan back in about two weeks or when you get your next paycheck.

 

That is a tiny window of time to pay a loan back. In addition to that short time frame, there is usually a very high-interest rate on these loans. These lenders know you're in need, and they're not afraid to use that to their advantage.

 

At the end of the day, you could be paying an additional $10-$30 for every $100 you borrow due to the APR. The lender may not ask you to pay this loan back in a two-week period, but the longer you wait to pay it back, the more interest you will have to pay.

 

How Do Title Loans Work?

 

Title loans work off the value of your car. So, when you get a title loan, your vehicle will be the collateral. Your loan amount will be a percentage of the value of your car. The loan amount will be manageable for you and your circumstances.

 

The payment of title loans can work in a similar way to payday loans, but let's specifically talk about a title loan from Rapid Auto Loans. Title loans are also short-term loans, but you'll have up to a year to pay them back. We'll split the loan into twelve easy-to-manage monthly payments.

 

We will never expect you to pay off the entire loan up front in one lump sum. We know that you might have difficulty coming up with all of that money, so we've got you covered. Even if you can't pay one of the monthly payments, give us a call, and we'll work with you.

 

Which One's Better?

 

A title loan from Rapid Auto Loans is, in our humble opinion, the better option. We'll never directly come after your paycheck or any of the money in your bank account. We trust you to pay the loan back over the course of a year, and for most people, that is a very realistic goal. In fact, 40% of our loans are from returning clients.

 

Also, our title loans are the better option because of how lenient our payment plan is. You know we give you a twelve-month payment plan, but we also don't charge prepayment penalties. So, if you can pay the loan back before the twelve months are up, you can pay off your entire loan. You can even pay your loan online.

 

Better Than Payday Loans

 

We'll never check your credit or how much money is in your bank account. To get this loan, the borrower just needs to prove that they own their vehicle outright. The application only takes a few minutes, and you could be approved the same day.

 

Unlike payday loans, Rapid Auto Loans gives you the opportunity to take out a loan without a threat against your paycheck. Feel free to check out our website to apply for a car title loan or to learn more. We look forward to working with you soon.

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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:
3,233.68

APPROVED LOAN AMOUNT

0.00

Government Fee

25.00

Credit investigative Fee

11.55

Documentary Stamp Tax

3,270.23

Total amount Financed

11/1/2016

Original Loan Date

29.07%

APR

316.39

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.