If you are looking for fast cash, you may be tempted to get a payday loan. After all, you’ve likely seen these services advertised in the past and the general idea sounds like a good one. However, if you need money quickly, you may want to consider borrowing against your vehicle instead.
Why? There are a number of reasons.
Advantages of a Car Title Loan over a Payday Loan
One of the main reasons to avoid payday loans is that these loans cost you a very large amount of money.
For example, many payday loan companies charge around $20 to borrow $100 for a two-week period. This may not seem like much at first, but it adds up to over 500% interest over the course of a year.
As you can see, if you’re not able to pay one of these loans back quickly, you’re going to end up paying a very large amount of money. Sure, you’ll be able to get cash quickly, but it will certainly cost you.
Another option for fast cash is a car title loan. A car title loan is a loan where you borrow against the value of your car. To get a car title loan, you need to own your car outright.
A car title loan is a secured loan, which means that you usually don’t need a credit check to get one. It also means that you’ll be able to get the cash you need quite quickly. In most cases, you’ll only need to wait a day or two before you receive the money from a car title loan.
A big advantage to a car title loan is that the interest rate that you will pay will be significantly lower than the interest charged on a payday loan.
The actual rate that you will be charged will depend on your particular situation and the lender that you are working with, but it will certainly be lower than the incredibly high rates that are charged on payday loans.
If you are looking for a car title loan, it’s important that you work with a reputable company. Not only will a reputable company be easier to deal with, but it will also be more likely to offer you a lower interest rate.
You’ll also want to ensure that the company you are working with reports to the major credit bureaus. Getting a car title loan and paying it back on time can help you improve your credit rating. However, in order to do so, it’s very important that you don’t miss any payments.
Finally, you don’t have to worry about losing access to your car when you get a car title loan. As long as you make your payments, you can use your vehicle in the same manner that you always have. You don’t have to worry about changing your lifestyle just to get an affordable loan.