Title Loan vs. Other Types of Loans

Title loan vs other loans

If you are considering getting a loan to help with an unexpected financial crisis, you may be weighing the options and trying to decide between several types of loans. You will want to have an understanding of these different types of loans as well as their pros and cons so you can decide which makes the most sense for you. Auto title loans in particular are often the best solution for people who need cash fast, and don’t want to run up credit card bills, do not qualify for a bank loan, and can’t or don’t wish to borrow money from friends or family.

The auto title loan is a very simple and fast loan to get. Using your car as collateral, you can qualify for a Florida title loan through Embassy Loans in most circumstances. The great thing about title loans is that there is no credit check required, since the loan is secured against the value of your vehicle, and you can get the money you need fast – the same day, in some cases. The other major advantage vehicle title loans offer is that you get to keep your car with you while you repay the loan.

A payday cash loan is a much shorter term loan that requires that you give a personal postdated check to the lender. In most cases these loans will only be for a term of two weeks or so. You have a good deal longer to pay back a car title loan, making a title loan the better option for most situations. In addition, the interest rate on a payday cash loan can be extremely high. Your credit is not a concern in either scenario.

Bank loans and credit cards are often not the best solutions for people with financial problems. For starters, both of these options can be time-consuming processes, which may not work for you if you need emergency cash now. Bank loans and credit cards often require lengthy and complicated applications, and in most cases only those with very good credit will be approved. With a credit card, it is very easy to spend more than you should, and if you have trouble paying off the debt, the interest continues to accrue. A vehicle title loan has the advantage of being a finite loan with fixed parameters, so you can’t end up owing many times more than you ever expected to, as you can with a credit card. Using a credit card irresponsibly is also a very easy way to damage your credit – also not a worry with a title loan.

Finally, borrowing money from friends and family may be the worst available option. Even when it is offered, borrowing money is notorious for causing family tension. This may work fine for some families, but most families have enough tension as it is without adding the extra stress of financial debt to one another.

With any loan you choose, you have a responsibility to make sure you understand the terms of the loan and make arrangements within your budget to be able to pay the loan back on time. Call an Embassy Loans representative today with any questions you have, to ask for clarification on any matter concerning Florida title loans, or for help with filling out your Embassy Loans application.