Here, it will be discussed how auto title loans can make for a better choice as opposed to the traditional method of loans.
Auto title loans vs. payday loans:
People who have tried payday loans must know the ramifications that usually follow this type of a loan. For those who are unaware of how payday loans function here is the gist of it.
A payday loan also denoted as a “payday advance” states a diminutive, temporary, undependable loan. Despite the actual employment being of a nature that has the capacity to suffice the interest rates on this loan, the repayment of payday loans is connected to the debtor’s payday. These loans are often also connected to pre-decided lines of credit. For approval, previous employment records are usually required. On the next payday a loan sum should be taken from the salary of the debtor and paid to the payday lender.
Now here is the catch, the loan interest not only puts a strain on your income, you are paying back a loan at a mammoth 10 to 20% interest rate! This will eat away a quarter of your annual pay!
As opposed to this practice you can opt for a car title loan. The process is simple, the interest rate is low and you do not have to suffer huge cuts every month that put a strain on your income. The beauty of title loans is that any class of people can avail this service. The loan offers you the chance to pay as much as you like each month after a definitive payment method has been planned by YOU. You don’t have to pay any payments outside of the time frame you have had the loan.
Auto title lenders do not avail any outside payments from you. They will not penalize on full repayment of your loan, in fact it is encouraged most of the times.
Auto title loans vs. Bank loans:
People tend to prefer the banks for getting a loan because it is the most likely place you will not get “swindled” by a smooth talking money lender. But, here is where the difficulty comes in. There are no sure short ways of getting a loan approved especially, if you have bad credit lines. The bank takes time, extensive paperwork and tons of details and histories before they give you a loan. The interest is not all that reasonable either, partly because of the inflation plaguing the country.
Auto title loans offer a quick service; you have a loan approved with minimal details, no credit histories and an equity check against ONLY the entitlement of your car within the day. That is how quick the loan is. The interest rates are exceptionally low and you don’t have to go through the motions before you can get back to liquidity.