Personal Loans vs. A Car Title Loan

Oct 21, 2021
Title Loans


Sometimes, the money that we need isn't always available. Whether you need to pay for unexpected medical bills, plan a wedding, or even make rent, there are various financing options available. In most instances, personal loans require a decent credit score and lengthy paperwork. In comparison, car title loans work differently, allowing for fast approval and no credit check.

 

It's important to compare your options when making a decision on the best financing option for you. With this in mind, here's all you need to know about personal loans and car title loans.

 

Differences Between A Personal Loan And A Car Title Loan?

 

There are a few key differences between a personal loan and a car title loan that may influence your decision on which option to take.

 

A personal loan is taken out with a fixed interest rate that is usually determined by your credit score and credit history, as well as the lender's arrangement. The loan term usually ranges between 24 to 60 months. Individuals with bad credit scores won't get a favorable rate with this arrangement.

 

A car title loan is a short-term loan that typically comes with higher interest rates. With a car title loan, the amount available is based on the value of the car. In exchange for the money, the vehicle is used as collateral. When getting a car title loan with Rapid Auto Loan, no credit history needs to be shared and we offer competitive interest rates.

 

Pros Of A Personal Loan

 

Personal loans are a traditional option for receiving money. A fixed amount of money is loaned at a set interest rate, without having to offer collateral to secure the funds. There are a few key benefits that make a personal loan a good option.

 

Some of these key benefits include;

 

Flexibility and versatility for the money to be used for a variety of purposes

 

Lower interest rates that are usually lower than credit card rates

 

Higher borrowing limits than credit cards, especially those with a decent credit history

 

No collateral is required in order to secure the funds

 

Easy management as the money is shared as a single, lump-sum

 

Even with these benefits, there are a few drawbacks to consider. For example, fees and penalties can be high, personal loans can increase debt, monthly payments are more expensive than credit cards.

 

Pros Of A Car Title Loan

 

For many people, a car title loan is a better option than a personal loan. Car title loans offer their own unique benefits that are better suited for various individuals, especially those with a bad credit history.

 

Some of the benefits of a car title loan include the following;

 

Easy process with an application form and speedy turnaround time

 

Quick approval that offers fast access to cash when needed urgently

 

Easy to qualify as a car is offered as collateral instead of relying on a credit history

 

Life continues without interruption as the vehicle used for collateral can still be used by the owner

 

There are a few considerations when taking out a car title loan, such as higher interest rates and a shorter payback term. At Rapid Auto Loans, we understand that life can be stressful and offer 12 monthly payments, with the first one being due after 30 days from the loan date.

 

We're committed to providing quick, short-term loans with an easy application process. We offer an easy payment plan and don't require a credit history. Our valuable service has contributed to our high customer retention rate - and we'd love to add you to our list of valued customers.

 

Apply for a car title loan today, or contact us at 954-678-5781 to find out more.

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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.