What You Should Know About Payday Loans And Car Title Loans
There are many ways to get emergency cash advances fast and without having to take out much formalities and two of the best options the borrowers have are payday loans and car title loans. These loans are similar and different at the same time. If you know the difference and properties of each, you can take the most benefit out of these options and satisfy your cash requirements efficiently. So, let’s get into the details of both these types of loans.
Car Title Loans: What is A Car Title Loan?
If you need cash now but don't know where to turn, this loan may be exactly the help you need. A title loan is an emergency cash advance secured by your car's or other vehicle's title and registration. The lender evaluates the equity in your vehicle in order to determine how much money they will lend you. You repay the principal plus any interest charges and fees over time. If you repay your loan according to the terms, at the end of the loan period your lender will transfer ownership of your vehicle's title documents back to you.
How Does A Title Loan Work?
A title loan works like a personal check in that it is drawn against the value of an asset and is secured by collateral. For availing this type of loan, you need to know how it works.
- You receive a cash advance on your vehicle's title and registration or even the value of the vehicle itself.
- Rates vary from lender to lender, we offer industry's most competitive rates.
- Loan amounts also vary from lender to lender and we at Premium Loans Canada offer loans for up to $45,000.
- Title lending is secured by collateral - your car's or other vehicle's title or registration.
- There are no credit checks or job history checks. This means that even if you have an unstable credit history, you can avail a title loan with us.
Payday loans: What Is A Payday Loan?
Payday loans are short-term credit options. They are meant to bridge the gap between pay periods in cases of emergencies when there is an unanticipated expense, such as a medical bill or car repair. A payday loan could also provide an extra few hundred dollars to help with holiday spending.
How Does A Payday Loan Work?
You'll have to pay a certain percentage of your income as collateral for the loan. The total loan amount typically ranges from $300 to $1500, depending on your state's maximum borrowing limit. You may have to make monthly payments on the collateral until the loan is paid off. Payday loans have the following features:
- An easy application process
-If you're approved for a loan, you can get it the same day.
-Payday loans are easy to repay. Your payments are directly deducted from your paycheck.
- Like title loans, you can get approved for a payday loan with bad credit or no credit at all as long as you have a steady job and regular paycheck.
-There is no collateral required to qualify for a payday loan.
-These loans are given for a very short duration and at a high interest rate.
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