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Which Loan Methods should financially struggling People turn to?

There are a lot of people out there who struggle financially, and they do not really talk about it. Meeting basic necessities like filling up the gas tank, buying groceries, or making utility payments become a delicate balancing act; and if a big unexpected expense falls on their lap, that delicate balancing act can all topple over in an instant.

When financially stable people talk about the financially struggling, they often forget about pride. Sure, it is important to be able to afford the fundamentals in life, but it is also important to retain a sense of dignity and one’s self. It’s certainly hard to do that when society tells a person that they must provide for their family, but they keep falling short.

It’s not even their fault. Bad credit, bad economy, competitive job market, unfair wages, and hundred other factors can prevent even the hardest workers from living the comfortable life they always wanted.

Loans are one way in which these people can keep their pride and their life from falling over like a stack of Jenga blocks. By getting a quick short-term loan, they can take care of urgent expenses and keep their tower standing tall. Many turn to:

  • Banks

  • Payday Loans

  • Title Loans

What is the difference? Which loan caters to them best?

Banks

Although banks are a safe option, they take weeks to months to approve an applicant, and they will lend out money to anyone without a good credit score. People with bad credit or no credit cannot even hope to apply because they’d never qualify. Even if they did qualify, the processing time might not help them out with their financial dilemma in time.

Payday Loans

The other bad credit loan option many rely on is payday loans, but frankly these loans are unsecured and therefore often a big rip-off for the borrowers. Because the loan is not secured by an asset, payday lenders only offer measly loan amounts based on income, jack up the interest rates to outrageous heights, and only allow until the next paycheck to pay back the loan. Even though they advertise it as a great loan opportunity, it usually hurts borrowers more than helps.

Title Loans

Title loans provide a safer borrowing method designed to actually help those in financially unstable positions. Better than banks and payday loans, they allow people with bad credit to get a loan since the money lent is dependent on the car value and not credit history. They also let people access their money much more quickly – many times within 24 hours of applying.  It allows people to get:

  • A hefty loan amount in 24 hour’s time

  • Cash despite having bad or no credit

  • Flexible repayment periods

  • Low and manageable interest rates

  • An easy online title loan application

The most thrifty borrowers know to pay off their car title loan as soon as possible, but having a little wiggle room with the repayment schedule can really ease a lot of potential stress!

If you are interested in title loans and are curious about how much you could qualify for, apply online on our homepage, and we will send you a free quote.

 

Scott Carver
Scott Carver
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