Payday title loans is a catch-all phrase some lending companies use to mean two entirely different types of lending options.
Payday loans do not entail any form of collateral. Although of course, you allow the lender to hold your check for you amounting to the principal loan amount plus the loan fee. Title loans, on the other hand, entails lending money against your car's title.
Thus, the amount of loan that you'll be approved for would also depend on your car's value.
As in any type of financial agreement, you should be well aware of the terms and conditions of each and prepared for the possible consequences that come with it. You may think of pay day title loans as a quick fix for your financial problems.
But in reality, guaranteed payday loans and title loans deserve to have guaranteed payments as well.
After all, failure to pay on time means additional expenses for your payday loan, while it means losing your car for title loans.
Ideally, having an emergency fund to cover unexpected expenses is the best way to go.
Unfortunately, this is not always the case with many of us. And true enough, this is where various lending products like a payday title loan come into play.
Depending on the nature of your emergency, you should choose a lending product that best suits your needs.
If you just need a small amount of money, which you can definitely pay back by the next paycheck, then look for a reputable lender where you can get a guaranteed payday loan. But if you need something higher and can pay back in say, 30 days – then you may consider getting a title loan.
