Auto Title Loans Versus Payday Loans Online
Quick cash advances are short-term loans a consumer can receive from a lender in a short amount of time. Most of these types of financial products have high interest rates. However, quick cash advances provide fast solutions when emergencies come up. A consumer can obtain automobile repairs, purchase goods and services, or bring his or her bill current with these special advances. The two main types of quick cash advances are payday loans online and auto title loans. Both of these types of loans are beneficial to individuals with poor credit ratings. However, there are quite a few differences between the two.
Auto Title Loan
An auto title loan is a short-term loan based on the value of the borrower's vehicle. To qualify for an auto title loan, the consumer must own his or her vehicle. He or she must have the title to the vehicle on his or her person. The individual can initiate the loan process online. However, to complete the application and accept the terms of the agreement, the consumer must walk into a branch location. The lender will need to inspect the condition of the vehicle and research its current value. The lender will also need to verify the borrower's source of income, identity and personal references.
Payday Loans Online
Payday advances are fast and efficient short-term loans. Lenders base these advances on the consumer's ability to make payment. The lenders consider several factors, such as the applicant's time at his or current job, income amounts and bank account history. Wage day advances are between $100 and $2,000. The lender expects repayment of these loans within 14 to 30 days. The main purpose of a wage day advance is to give the consumer extra finances until his or her next payday.
Pros and Cons
There are advantages and disadvantages to both types of quick cash advances. One benefit of both products is the speed of delivery. A consumer can receive funds within 24 hours from either source. Additionally, lenders do not verify the consumer's credit rating in either situation. Individuals with less than perfect credit have the opportunity to choose from these two excellent loan products.
A consumer can apply for more money from an auto title lender because the lenders use the vehicle's value against the advance. A consumer with a newer vehicle can receive $5,000 or more, which he or she could use for a down payment on a home or business. The disadvantage to an auto title loan is that the lender puts a lien on the borrower's vehicle. If that person fails to meet the agreement terms, the lender has the right to repossess the automobile.
The advantage to applying for a payday advance is that a consumer can apply online. It is not necessary for the individual to walk into a branch location, although such is an option. Most consumers can fill out fast online applications in fewer than five minutes. Alternatively, a consumer can make an application by telephone.
The disadvantage to a payday advance is the extremely short loan life. If a problem comes up within 14 days, and the borrower cannot make payment, the lender may attach additional finance charges. Auto title loans usually have an initial 30-day loan life.
A consumer can make either loan work for him or her. Before applying for either product, he or she must have a clear idea of his or her financial status.
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