Unless you’ve come from old money, chances are you’ve been in a financial pickle where you’ve needed cash quickly. It could’ve been for medical bills, debt consolidation, or immediate repairs on your home or car.
Whatever the reason, you may have applied for or considered one of the many forms of loan or credit available these days.
Here at Quick Title Loans we specialize in car title loans, although we know that these aren’t the only types of credit available.
Different loan or credit systems have their own advantages and disadvantages. We think it’s only fair that our customers can compare the pros and cons between the different types.
Here are the benefits and drawbacks of common credit and loan systems:
These are the most versatile and common forms of loans which can come from a variety of providers. This is also the oldest form of loan with evidence that vendors were offering loans at interest in ancient civilizations in Greece, Rome, and the Middle East.
- They can be taken out for any number of reasons including: debt consolidation, living costs, or even vacations. They can also be used for credit building.
- Minimal documentation is required to gain a personal loan compared with mortgage or auto loans.
- Often the loan amount can be accessed between 1 and 7 days after applying, which is ideal in dire scenarios.
- Generally speaking, no collateral or security is needed to acquire a personal loan, which makes it much less risky than other loan types.
- Personal loans usually have much more manageable lengths of term ranging between 12 months and 10 years.
- As they don’t have collateral or security, lenders usually consider personal loans high-risk which results in much higher interest rates.
- They directly impact your credit score as they increase the amount of debt in your name, they bring down the age of your credit accounts, spark an inquiry during the approval process, and are registered as a newly opened debt account.
- In some cases getting a personal loan prior to getting another type of loan can lower your approval chances, or raise the rate you get charged.
- Some lenders will try to tack on as many fees as possible for their own financial gain, including processing fees, loan origination fees, and even prepayment penalties for paying the loan prior to the agreed time.
- Fixed monthly payments can seem great for the budget-conscious, although they can be difficult if you’re used to smaller monthly payments. Often if you miss a payment you’ll be charged for it.
Also known as a check loan or cash advance. Payday loans are similar to personal loans, except the term is usually between 1 and 4 weeks, and the amount borrowable is capped at around $500.
- Easy and quick application process, usually an online form which takes 5-10 minutes to complete
- As with personal loans the money can be accessed usually within 24 hours or up to a week
- They have even less requirements than personal loans, only requiring a social security number, a job, an active bank account, and the loanee must be over 18.
- They generally don’t check your credit, which means no hard inquiry into your credit, unnecessarily lowering your score.
- They’re unsecured like personal loans.
- Failure to repay can result in lenders sending your debt to collections or taking you to court
- The average interest rate on payday loans is 400% (read more here), and interest rates depend on where you are in the States.
- They’re considered predatory, and usually target low-socioeconomic people, trapping them in debt and poverty cycles.
- They don’t help you build credit
Car Title Loans
It’s not uncommon for people in modern Western societies to have assets but no cash. That’s where title loans can come in handy, allowing you to leverage your asset for cash, and make repayments to regain the title.
For these pros and cons we’ll be considering car title loans from Quick Title Loan.
- Our car title loans don’t require credit checks, we instead assess your income and ability to make repayments.
- We can offer approval within 1 minute, and access to the money as fast as within 30 minutes.
- You’ll still be able to continue using the vehicle, as you’ll only be handing over the title (pink slip).
- We can offer a car title loan even if you’ve lost your title or if it has several names to it.
- We service Southern California, including Bell, Bell Gardens, Bellflower, Cudahy, Downey, Echo Park, Huntington Park, Los Angeles, Lynwood, Montebello, Norwalk, Pico Rivera, South Gate, Whittier, Wilmington, Lomita, Carson, and Long Beach.
- We will do everything we can to help you make your repayments, and can even assist in finding you affordable and adequate insurance.
- All of our loans start at $2,500 and can go much higher depending on the value of the vehicle.
- Failure to work with us to make the repayments may result in our repossession of the vehicle to cover our losses.
- As we accept bad credit, our interest rates reflect the risk that we take by offering car title loans.
So, if you’re in a bind or strapped for cash and have a vehicle (RVs, boats, trucks included), get in touch with us about our car title loans in Southgate CA (or wherever in Southern California we offer our services).