Do you need money now? There are many different types of loans available, including personal loans and car title loans. But you’ve probably also heard about payday loans. How are these different from car title loans? More importantly, which loan will work better for you? At 1st Capital Finance, we specialize in title loans in Rock Hill, SC. At the same time, we want to make sure our customers get the right loan for their needs. Here’s a breakdown of how car title loans stack up to payday loans.
What Are Payday Loans?
If you’re approved for a payday loan, you’ll write the desired loan amount (plus any additional lender fees) on a post-dated personal check. After giving this check to the lender, they will advance your loan for a set period of time (usually 14 days). When that period is finished, you must pay back the money you borrowed to the lender. Or, you can let them deposit the post-dated check. If you need a loan extension, you’ll have to write another post-dated check for the entire amount and fees.
Should you fail to repay the lender, you can expect to face hefty finance charges and even more fees. While payday loans can get you speedy cash, these loans are known for their extremely high interest rates. These rates make it challenging for borrowers to pay off their balances in the strict timeframe that goes along with these loans. Often, many people get trapped in a payday loan loop that they can’t easily get out of.
How Do Car Title Loans Compare?
Car title loans get you the cash you need without the hassle of a strict, short payback period. More importantly, these loans are considered to be secure since there’s collateral involved. Your vehicle serves as reassurance to the lender that you’ll pay back your debt. These loans don’t require credit checks, making them the right choice for many people.
If you’re interested in learning more about car title loans in Rock Hill, SC or Myrtle Beach, SC, contact 1st Capital Finance. We’re happy to help you get the cash you need today!