Differences Between Car Title Loans, Personal Loans, And Payday Loans

Daniel Joelson

Daniel Joelson

Total Posts: 583

Published Date: January 5, 2022

Daniel Joelson has been in the consumer finance space since 1994, he has helped to develop underwriting manuals for the financial sector. With a vast amount of Knowledge in consumer finance, he has been writing articles for all types of loans. With his knowledge, he is able to help many people to answer different financial problems.

Different Types of Loans

If you need to get some fast money, car title loans, payday loans, and personal loans are great options for you to get the money that you need.

 

  • Payday loans: This is a loan that is an advance on your future paycheck. They generally have a higher interest rate and are to be paid back when you receive your next paycheck. They are generally small-dollar loans

 

  • Car title loans: These loans use the equity that you have in your vehicle, the terms are on average 24 months with no prepayment penalties. They have competitive interest rates and can offer larger dollar loans.

 

  • Personal loans: This loan is generally through a bank or a private finance company, and the money borrowed is usually paid back over several years with a fixed interest rate. they can be harder to qualify for.

Details on Payday Loans

If you need some fast cash for an emergency before you receive your next paycheck, you may want to get a payday loan. The payday loan needs to be paid back within about two weeks, or by the time you receive your next paycheck. You may also be able to roll the payday loan to pay later for a small fee.

Each payday lender will have its own requirements for a payday loan and depending on the lender and the state where you live they can differ from lender to lender.

To qualify for one, you will complete an application, they can approve you very quickly, and then you will have to sign the loan documents.

After you receive your cash with your payday loan, you will need to repay it, plus whatever fees and interest. You can also roll it over, to extend the terms, this can become more expensive.

Requirements will vary from lender to lender, you will need to be over 18, have a checking account, show proof of employment, and have a working telephone number.

If you default on a payday loan, it will affect your credit score. You may also have garnished wages and it will affect your credit and your ability to get another payday loan in the future.

Details on Car Title Loans

A car title loan is a secured loan by using the equity that you have in your vehicle. The title loan company will hold the title of your vehicle as security until the title loan is paid off. If the car title loan cannot be paid back, the title loan company will retain ownership of the vehicle, and sell it to get their money back.

You continue to use your car while you pay back your car title loan, as long as you make your payments you can continue to use your vehicle.

If you are searching for a car title loan near me, we have a large referral network, so we can help you no matter where you are living. You can get cash for your car, motorcycle, or RV, by using the equity that you have in them.

With a car title loan, your car equity becomes your credit, so your credit score is not so important, as long as you have the equity in your vehicle, and proof of income to support it, we can get you approved.

you can apply for title loans online, and get approved instantly, and get the same-day funding that you are looking for. the dollar amount will depend on the equity that you have in your vehicle.

Details on Personal Loans

If you have good credit, getting a personal loan might be a better option for you, but the process will take longer to get approved, personal loans are good if you have high credit card balances, you can consolidate them into one payment at a lower rate.

Personal loans are similar to bank loans, so the underwriting and requirements are more difficult to qualify for than payday loans and title loans.

With personal loans, you will get a lower interest rate than with a payday loan or a car title loan, but they are much harder to qualify for, and the underwriting process takes longer to know if you have been approved.

Personal loans will have a loan term ranging from 24 months and up, you will have to make your monthly payments.

Different Benefits For Each Loan Type

All three loans have their own benefits, with car title loans and payday loans, the approval process is fast, you will be able to find out how much you have qualified for within minutes.

Both car title loans and payday loans have higher interest rates than personal loans. With car title loans there are no prepayment penalties, so you can pay it off at any time. Both are not credit-based loans, so bad credit will not prevent you from getting a car title loan or a payday loan.

The personal loans application process is much more extensive and is credit-based, so for people with bad credit, it will be difficult to qualify for.

Personal loans will have a lower interest rate and can be repaid over a longer period of time, so the payments will be lower.

Choosing the Loan for You

There are no right or wrong answers for your car title loan, payday loan, and personal loan comparison, it will really depend on what is the best fit for you.

Here at TFC Title Loans, we are always trying to provide you with the best loan information, if you need an auto title loan, you can apply with us, we have the largest referral network in the nation, and all of the title loan companies that we work with are in compliance with the CFPB, so you know you will be working with a trusted company.

Contact us today, we are here to answer any of your questions, and we will take the guesswork out of finding the right title loan company for you.

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Disclosures

DISCLAIMER: As our policy to make sure you know what we do and what are our limitations, we offer you these disclaimers. We are NOT A LENDER and we do not make short term cash loans or credit decisions. We are a referral service and work only with licensed lenders/brokers.

We may act as the broker for the loan and may not be the direct lender. Loan proceeds are intended primarily for personal, family and household purposes. We do not offer or service student loans.

*Loan amounts by the lenders vary based on your vehicle and your ability to repay the loan.

*Since we do not lend money directly we cannot offer you a solicitation for a loan, except in the state of California. In all other serviced states we WILL match you with a lender based on the information you provide on this website. We will not charge you for this service and our service is not available in all states. States that are serviced by this Web Site may change from time to time and without notice. Personal Unsecured Loans and Auto Title Loans are not available in all states and all areas.

*Auto Title Loan companies typically do not have pre-payment penalties, but we cannot guarantee that every lender meets this standard. Small Business Loans typically do have pre-payment penalties and occasionally will use your car as collateral to secure the loan.

*All lenders are responsible for their own interest rates and payment terms. TFC Title Loans has no control over these rates or payments. Use of the work competitive or reasonable does not mean affordable and borrowers should use their own discretion when working directly with the lender.

*The amount of people who applied for a loan and we helped and those who received a loan is not the same. We cannot guarantee we will find a lender who will fund you.Just because you give us information on this web site, in no way do we guarantee you will be approved for a car title loan or any other type of loan. Not all lenders can provide loan amounts you may see on this web site because loan amounts are limited by state law and/or the lender. Some lenders may require you to use a GPS locator device on your car, active all the time. They may or may not pay for this or charge you for this. This is up to the lender and we have no control over this policy of the lender. Typically larger loans or higher risk loans use a GPS.

*In some circumstances faxing may be required. Use of your cell phone to receive updates is optional.

*Car Title Loans are expensive and you may have other ways to get funding that is less expensive. These types of loans are meant to provide you with short term financing to solve immediate cash needs and should not be considered a long term solution. Residents of some states may not be eligible for a loan. Rejections for loans are not disclosed to our firm and you may want to contact the lender directly.

*Car Title Loan lenders are usually licensed by the State in which you reside. You should consult directly with these regulatory agencies to make sure your lender is licensed and in compliance. These agencies are there to protect you and we advise making sure any lender you receive money from is fully licensed.

*Trading Financial Credit, LLC dba TFC Title Loans, Car Title Loans California, Dineromax. If you are using a screen reader and are having problems using this website, please give us a call at 1-844-242-3543 for immediate assistance.

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