What's The Difference Between A Title Loan and A Payday Loan?
If you need cash, but don't qualify for a traditional loan, then a title loan or payday loan might be the best answer. A car title loan lends money against the value of your vehicle and a payday loan is more like a credit card with really high interest rates. Read on to find out what sets these two loans apart from one another and if they are right for you.
What is a Payday Loan?
A payday loan is not a loan, it's an advance on your paycheck. You can borrow $500 or more, up to your next paycheck. Payday lenders require that you repay this money in full within two weeks because once you make a payment, they will be able to take back the whole amount you borrowed. They also require all borrowers to give their bank account information which gives them access to your funds.
What is an Auto Title Loan?
A car title loan is a secured loan where the lender allows you to borrow up to 60% of your car's value in exchange for the title of the vehicle. With Rapid Auto title loans, the average amount borrowed is $2,000. Borrowers are responsible for repaying the full amount of the loan with 12 flexible, monthly payments. Repayment plans are made in your best interest and may be customized to best suit your needs. Rapid Auto Loans even offers a 10-day grace period for late payments!
Similarities
Both payday loans and mostcar title loans must be repaid in full within 30 days. Rapid Auto Loans is unique in its repayment plans; instead of the traditional 30 days, they offer a 12-month repayment plan for all their car title loans. This gives consumers more flexibility and less stress.
If you don't repay payday loans in this time, the lender has the right to take the full balance of the loan out of your bank account, even if you have already withdrawn all your funds.
When it comes to car title loans, if you miss a payment, the title loan company has the legal right to take possession of your car. Rapid Auto Loans offers a 10-day grace period for all missed payments and encourages anyone struggling with repayment to call our office to work something out that will work best for you.
Differences
There are some key differences between payday loans and car title loans. Payday loan lenders have direct access to your bank account. This means that if you do not pay them back in the required amount of time then they will take the full balance owed out of your account.When it comes to car title loans, lenders cannot access your bank account. Instead, they can repossess your car and take whatever payments you have made towards the title loan since they are secured by your vehicle. The differences don't stop there, however.
Which Loan Should You Take Out?
So, which loan is right for you? Both payday loans and car title loans are used by many people in the United States who struggle with tight finances and/or bad credit. Payday loans are predatory and depending where you live, can charge outrageous interest rates that can be as much as 688%! It's for that reason alone we'd suggest opting for a car title loan; more specifically, from Rapid Auto Loans. With competitive interest rates of 18% to 30% and flexible repayment schedules, why consider going anywhere else? All you need is a vehicle with valid insurance.
If you need cash quickly, but don't qualify for a traditional loan then just having access to the money you need to pay bills may be enough. This can be done easily and in as little as 30 minutes with a title loan from Rapid Auto Loans! All you have to do is fill out our simple car title loan application online and within minutes, one of our agents will contact you to discuss your options.
Car Title Loans Are Better Than Payday Loans
Short-term loans can be a lifesaver in a financial emergency, and you deserve to work with a company you can trust. Rapid Auto Loans was founded on the principle of helping people when they need it, not taking advantage of their situation by charging outlandish interest rates.
If you need a short-term loan, contact Rapid Auto Loans for help. Our lending officers can help you through the title loan process quickly. We don't check your credit history, either. Our loans are good for up to one year, giving you plenty of time to get it repaid. If you have a car and insurance, we can help you get the loan that you need. Let us help you get back on the road to financial independence, call 954-678-5781 to get started.
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