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We will take a look at the difference between a personal loan and a line of credit. This will enable you to make an informed decision when the need to do so arises.

This article was brought to you by TFC Title Loans, we try to bring to you the most informative information. If you are interested in getting an auto title loan, we are able to help you with our large referral network.

We will help you to get the most money by using the equity that you have in your vehicle, the application is fast and we can provide you with same-day funding.

All of our referral partners are in compliance with the CFPB. We will help you to get the money that you need but from a trusted and reliable title lender.

Difference between a line of credit and a personal loan

The main thing that distinguishes a personal loan from a line of credit is that a line of credit revolves while a personal loan does not revolve. Personal loans have fixed rates that are meant to be paid monthly in installments.

Personal loans are usually used for debt consolidation or large purchases. Line of credit is most suitable if you need to access funds on an ongoing case such as a credit card.

How personal loans work

Personal loans have fixed interest rates and can be used for any purpose. If you can get a low-interest rate and a fixed monthly payment on your personal loan, then it certainly wouldn’t be a bad idea. A personal loan is most suitable for individuals who want consistency in their repayment plan and also want to maintain a budget on a monthly basis. Throughout the life of the loan, the interest rate on a personal loan doesn’t change.

Advantages of getting a personal loan.

  • You have the opportunity to budget your expenses since the amount you pay monthly doesn’t change.
  • You can get the funds you need at once for major projects.
  • It offers the opportunity to refinance your credit cards.
  • It is easy and fast to get a personal loan.
  • Over the life of a personal loan, you are most likely to pay less in interest compared to what you pay over a credit card. 

Disadvantages of getting a personal loan

  • You are faced with the temptation of using new paid-off credit cards which will pile up more debts.
  • If you need more money, you will need to apply for another loan.

Line of credit and how it works

A line of credit is your credit card. Credit cards are good because they can be used for several purposes. Immediately you start using your line of credit, all outstanding balances will start to accrue interest until it is completely paid off.

For instance, if your line of credit is $1,000, and you have an unpaid balance of $30, then interest will accrue on the $30 balance.

Advantages of getting a line of credit

  • Your line of credit can be reused.
  • You have immediate access to funds when you need them.

Disadvantages of getting a line of credit

  • It encourages overspending.
  • The interest rate varies and this may alter your budget.
  • You most likely will make only the minimum payment most times.

Which is better; a personal loan or line of credit?

Now let’s see which is better between a personal loan and a line of credit. When you need to decide which is better, you need to define your goals and what you need to achieve. You also have to consider the entire cost of both and which one will be easier for you to get.

  • If you need to get a one-time sum and you prefer making fixed monthly payments, then a personal loan is the best choice for you.
  • On the other hand, if you are more concerned about getting access to recurring credit and you wouldn’t mind paying interest on your outstanding balance every month, then a line of credit is the most suitable option in this case.

Online Car Title Loans By TFC

You can get your equity car title loan from TFC Title Loans without any stress. All you need to do is to apply online and we will get across to you to let you know what to do and how to go about it.

We have an understanding of how personal loans are administered and you can count on our experience and expertise. We will take our time to understand your unique needs and offer you expert recommendations via our loan experts who have many years of experience in the business.

Why choose TFC Title Loans

  • We offer good interest rates on our loans.
  • No prepayment penalties when you decide to pay off the loan before the time stated in your time.
  • We will not keep you waiting because we offer same-day funding.
  • You still have the opportunity to drive your car around while you are paying off the loan.
  • There are no hidden charges when you apply for a car title loan at TFC.
  • It is fast, simple, and straightforward to get our title loan.
  • With a few documents, you can apply and get approved.
  • There are no credit checks when you apply for our title loans.
  • You are going to get a large loan amount that you might not get elsewhere.

Get in touch with us to get started with your loan application at TFC Title Loans.


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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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