Need Cash Quick? 4 Reasons You Should Choose A Car Title Loan Over A Payday Loan
If you're in need of emergency cash, you might think that a payday loan is your only option. However, that's not the case. While payday loans are available to you, there may be a better option. If you own your car free and clear, you can take out a title loan. With a title loan, you give the title to your loan provider and they hold it until you pay the loan off in full. That doesn't mean you lose the use of your car though. In fact, you'll hold onto your car throughout the duration of the loan term. If you're still torn between a payday loan and car title cash loans, here are four reasons the title loan is your best option.
Your Credit Isn't Verified
If you're considering a payday loan, you should know that they may conduct a soft credit check. This means that they'll look at your current credit score, as well as the repayment history on your current accounts. While this might not affect your score, it's still a check of your credit. However, when you take out a title loan, there is no check on your credit— not even a soft check.
Lower Interest Rates Than Payday Loans
If you're still considering a payday loan, it's important to note that your interest rate may be higher than if you were to go with a title loan. Unfortunately, higher interest rates mean that you'll be paying more money for your loan. To keep your interest rates lower, go with a title loan instead.
Higher Loan Amounts
If you need more than just a few hundred dollars for the emergency you're facing, you need more than a payday loan. Most payday loan companies will only allow an individual to borrow a set amount of money per pay period. However, when you opt for a title loan, the value of your car will determine the amount of money you're able to borrow.
Extended Repayment Period
If your emergency is going to last for a while, you need a loan that won't require repayment from your next available paycheck. Unfortunately, payday loans don't give you the option of extending your repayment period, which means you're left to take out another payday loan as soon as the current one is paid off. One of the benefits of a title loan is that you have an extended repayment period, which means you won't get caught up in the borrow/repay/borrow cycle.