We get this question a lot from skeptics. There are a handful of people who lump car title loans into the same category as paydays loans and another handful who thinks they both are the same thing. True, they have similarities:
- They are both bad credit loans.
- They both can get you cash quickly.
- They both accept almost every applicant.
That’s where the similarities end.
What is a payday loan, you ask? It is an unsecured loan that allows you to take out money quickly no matter what your credit score looks like. The key word here is “unsecured”. This means that there is absolutely nothing backing up the loan. No credit, no asset.
This is problematic for borrowers because they can only take out very small amounts of cash, experience high interest rates, and have very rigid repayment periods. Because borrowers use nothing to back up the loan, payday lenders do not feel comfortable lending out that much money in fear they won’t get it back. They also have high interest rates and strict repayment schedules to ensure they do not lose money should a borrower back out on the agreement. Pay days lenders only give you until your next payday to take care of the amount you borrow.
Car Title Loans
Car title loans, also known as auto title loans or equity loans, are secured loans backed up by your vehicle title. You can get a large sum of money based on the value of your car and never have to worry about undergoing a credit check.
Using your automobile as security for the loan enables you to take out cash based on your car value – depending on the make and model, you could get as much as $30,000! The interest rates will also be kept low, so you can manage repayments more easily, and you have much more flexibility when setting up a schedule. You can have several months and even a couple years to pay back your loan if you need them!
Don’t just take our word for it – do a little research, and you will find that car title loans are superior to payday loans! Apply for title loans online on our website to get a free quote of how much a car title loan can get you and talk to an expert to get more information before deciding on anything. Even if you chose not to get one of our loans, we are happy to help educate you about the industry for the future!