Choosing Between Texas Car Title and Payday Loan

Title and Payday Loan

Texas Car Title Loans Are Alternative of Payday Lenders

 

The current lending market is providing consumers with numerous choices on financing making it easy and convenient to handle varying financial problems. People in Texas can now apply for title or payday loans to get some quick cash since these are processed shortly after application. There are applicants who are able to access the required funds on the day of application.

What is a car title loan?

Some application procedures by lenders can be very frustrating especially when looking for financing to handle an urgent financial problem. If you have a car title on your name, you can now be guaranteed of quick funding by applying for a car title loan. This means that you will be using your car to guarantee the loan provider of having all repayments made as required.

Qualifying for a title loan is very easy since the lenders do not verify the credit rankings of applicants. This means that your application will still be reviewed even with poor or no credit history. It is also common with some loan providers to process the same without considering employment status or income source. Most title loans are payable just several months after approval.

What is a payday loan?

A payday loan provides a convenient way of paying for urgent financial problems that may crop up before the end of the month. This can be considered as an advance that the applicant will be required to settle after receiving his salary. The major requirement on the loan is proof of regular income whether from employment or other sources like disability allowances and unemployment benefits among others.

In most cases, a payday loan is payable within 30 days but some lenders may be willing to extend the repayment over a number of months. The decision is usually made depending on factors like:

  • Required amount

  • Applicants monthly income

  • Other monthly commitments

Choosing between the two offers

You can substitute the two loans for each other since they are both available easily and within a short time. However, you will need to have a regular income source to qualify for a payday loan and a car title to qualify for an auto title loan. If you are looking for a longer repayment period, a title loan will be more convenient and the lenders can also approve larger amounts based on the value of your vehicle.

How do the interest rates compare?

The interest rates are high in both cases owing to the risks involved and this is why the loans should only be considered for urgent situations. However, there are cases where you may qualify for more competitive offers by having a high credit standing or using a creditworthy cosigner. It is also important to compare quotes from different lenders in Texas to ensure that you are in for the best deals.

Applicants should be keen to pick affordable offers on title and payday loans since they are known to greatly contribute to low credit standings. This is so because they carry only short repayment periods and it is very easy to miss a payment or default. There are online calculators that are freely available and consumers should make use of them to make informed decisions.

The online application process

To enhance convenience, there are many lenders who have extended their services online and it takes only a couple of minutes to submit an application. This is all about providing some few personal and financial details. Those applying for title loans will also be required to provide some details on their vehicles. Online application also makes it easy for lenders to approve applications and disburse the funds.