Consumers have a multitude of options when it comes to getting cash into their hands quickly. Payday loans and title loans are two brands of cash advances that do not require the applicant to have good credit. In fact, lenders eliminate the credit check process entirely and grant their customers cash advances under different qualifying circumstances. A consumer who needs fast cash may be confused about whether to apply for a payday loan or a title loan. The following provides some insight about the differences between the two products:
The payday loan received its name from its structure. Lenders provide funds for customers based on their future paychecks. Payday advances are short-term advances that the borrower must repay within 14 days in most cases. Borrowers can request an amount of money between $100 and $1,000 depending on the state in which they live and their monthly income amount. They must be 18 years of age with a valid bank account and a stable source of income. The lender will deduct its loan proceeds plus all applicable fees approximately 14 days from the loan date.
Title loans have a different structure from that of payday advances. Lenders do not issue title loans based on the borrower’s monthly income or credit score. Instead, they base their loan amounts on the value of the customer’s vehicle. Therefore, a person with a new vehicle may have access to $5,000 or more. Title loans can last for approximately 30 days.
The main difference between a payday loan and a title loan is that title lenders request collateral. The borrower must allow the lender to place a lien on the vehicle until he or she repays the advance. The lien secures the advance, and the lenders can offer more flexibility because of such.
The choice of which loan type to request is up to each individual consumer. A title loan is better for people who need a little more time to repay an advance. A title loan would also be more convenient for a person who needs flexibility on the loan amount.
However, payday loans are better for consumers who want to borrow funds without taking the high risk of compromising their vehicle ownership. Lenders can issue either loan type to an approved applicant within 24 hours.
Applying for an online payday loan is safe and secure. Online cash approvals give you money to pay for unexpected expenses such as car repairs, dental work or any other type of financial emergency. Many people do not want to ask family members for a loan when they only need the money until payday. Most online payday loan companies offer you instant cash within the next business day. Choose to have your money transferred to your checking account.
Most online applications can be completed in just five minutes. If you have a steady job, checking account and state identification card, then you can receive up to $1,000 cash. The loan amounts differ according to the company you choose. Whether you need cash to pay bills, household expenses or other reasons, you can relieve your financial stress by obtaining a quick online payday loan.
Fill out the application in the privacy of your own home. Friendly customer service reps will explain the terms of your loan. These types of unsecured loans are often short-term loans. You should expect to pay the loan back in a few weeks. These type of loans do not require a credit check. If you have bad credit, then you can still obtain an online payday loan. Choose a payday loan company that has a good reputation.
Keep in mind that you will need to have worked at your job at least three months to qualify. A payday loan company will verify your employment, checking account and other information before approving your loan. The best part about payday loans is the speed at which you can get the cash you need. Unexpected expenses are a part of life and seem to happen when you least expect it. Plan to pay your loan back according to the terms of your contract to avoid penalties.