So, you are looking for quick cash and you have ruled out a life of crime. Have you considered a personal title loan? Yes, you say; but how does it differ from a payday loan? Or from a personal bank loan? You have questions, and we can answer them! Your main concerns may well fall into three categories: credit scores, how much money can you get, and payback terms. We can answer all three questions about all three kinds of loans.
Personal Title Loan
First, a personal title loan. For this loan, you need a vehicle—preferably one that you own outright, but even one you are still paying on can work. This vehicle—car, truck, motorcycle, RV—serves as collateral for your loan, so you don’t have to have a credit check done. You borrow money against the value you own in your vehicle, so you can’t borrow more than the car is worth or more than you own in the car. You pay it back gradually over time, in installments, and you can borrow again against the same vehicle or a different one after the original loan is repaid.
A payday loan is borrowing money against your next payday. You have to be able to prove employment, and the money to repay the loan is ordinarily taken directly from your direct deposit into your bank on your next pay day: you repay the entire amount, plus interest rather than making smaller installments over time. Many of these loans do not require a credit check, but since they are unsecured loans (no collateral), the interest can be even higher than a credit card’s rate. Many states have even outlawed this kind of lending.
An unsecured bank loan almost always requires a credit check, and because it is unsecured (no collateral), it also ordinarily has an interest rate that can be just as high as a credit card. Unlike a payday loan, a personal bank loan is repaid in installments over time.