Everybody wants to able to sustain a stable financial lifestyle. The sad truth is that sustaining a stable financial state for a long period of time is an extremely hard task for many people. For some, it is even impossible even if you put a lot of effort into planning your monthly budget in the best possible way, calculating your expenses and earnings, you may still find yourself in a tight spot. Whether your electricity bill has skyrocketed this month or are faced with an unexpected expense, an emergency such as your car breaking down or facing a major health problem, you will need some cash in order to take care of those expenses.
In such situations, the more you wait, the worse it gets, so you need to act as soon as possible. When people find themselves in such situations, they immediately start looking for solutions. While for some, it is possible to get help from friends or family, others have to make it on their own and that usually means seeking financial assistance from a lending institution. Today, the loan lending industry offers a huge variety of loans that borrowers can choose from. While taking out a standard loan from a traditional loan institution will also be something on people’s radar, in reality not many can qualify for such loans. Also, traditional loans from lending institutions such as banks take forever, and when you are dealing with an emergency expense, ‘forever’ is the last word you want to hear when solving your financial troubles.
Fast auto and payday loans
This leads to many borrowers to fast auto and payday loans. Fast auto and payday loans are
- both quick
- quite easy to qualify for.
This is why many borrowers are choosing one of these services when dealing with an emergency expense. Even though both options can get you pretty much the same results, they are also quite different. That is why we are going to explain what a fast auto loan is, after which we will do the same for quick payday loans. You should keep in mind that both options should mainly be used as last resorts, as they both can be quite dangerous for the borrowers and, therefore, should not be used for things that are not that important.
What is a fast auto loan?
Fast auto loans are loans that you get by using an asset as a collateral. In the case with quick title loans, the collateral that you would be using in order to get your loan is your vehicle. Fast auto loans have two main advantages on their side. They have an incredibly fast and easy application process, enabling you to take care of your financial trouble as soon as possible, and also, they do usually do not require you to have a stellar credit score to qualify for your fast auto loan. With fast auto loans, you may be able to get hold of a small-sum of money such as a $100 in a matter of hours.
When talking about title loans, the fast car title loan is the type that is most commonly used. In order to apply for a fast auto loan, you must own a car so that you would be able to sign the title of your car to the auto loan lender. The amount of money you will get from your fast auto loan will depend on the worth of your car. Normally, borrowers take up to 25% of their vehicle’s value as a loan amount. The fast auto loan lender will also keep your car as collateral. What that means, is that if you, for some reason, do not manage to repay the quick title loan on time, you will most likely lose your car. Normally, with a fast auto loan, you are able to get a loan amount of up to $1000. However, the amount can be higher depending on where you live and the title loan lending company that you are working with.
With fast auto title loans, you are usually able to choose between two repayment options. You can either pay back the full loan amount in a month, or you can choose to repay the loan over a longer period of time with scheduled payments in the form of installments each month. Whether you will get to choose the second option, of course, depends on your specific situation and the fast auto loan lending company that you have chosen to work with.
What is a fast payday loan?
Payday loans are probably the most popular form of short term loans out there. With a fast payday loan, you are able to get a rather small sum of money that you must repay within your next payday. Quick payday loans are normally granted for an amount that does not exceed $500, and a standard payday loan term period is no more than a month.
However, depending on where you live, you may be able to get a fast payday loan with different terms as each state in the country has different payday loan lending regulation laws, and so each payday loan can have unique terms depending on that and also on your specific financial situations. Unlike fast auto loans, in order to get a payday loan, you do not need to own a vehicle and use it as collateral for the loan. What fast payday loans and auto loans have in common is that they are fast and easy to qualify for. Much like with auto loans, you do not need to have a perfect credit score to qualify for a payday loan.
What payday loan lenders expect from you is
- a stable monthly income that allows you to pay back the amount you have taken on time.
Due to these advantages and other factors, payday loans have really high interest rates and fees. That means that if you are considering to take out a payday loan, you must be absolutely certain in your abilities to repay that loan in full on time. Otherwise, you risk falling into a debt cycle and that, of course, is the last thing that anyone would ever want.