Paying bills can be very stressful if you're a bit low on cash. Fortunately, there are several different loans you could obtain that will give you the cash you need to resolve the situation — payday, personal, and title loans. But how do you know which type of loan is the best option for you? Learn the differences between payday, personal, and title loans so you can make an informed decision.
Payday loans are also commonly known as cash advances. These short-term loans are ideal for anyone who needs a bit of cash to get them through to their next payday. Because they typically don't require a credit check, they are also good options for those with less-than-perfect credit. To qualify for most payday loans, you typically need to have an active checking account that's in good standing and a copy of your paycheck stub. When you borrow money, you write a post-dated check to the lender in the amount that you borrowed plus interest. Most companies require your post-dated check to be dated for your next payday. When the due date arrives, the amount owed is automatically withdrawn from your checking account.
If you prefer to pay your loan off in installment payments instead of one lump sum, a personal loan might be a better option for you. However, if your credit score isn't ideal, it may be difficult for you to obtain a personal loan. To qualify for a loan, you have to fill out an application and provide proof of income to the bank for review. The lender will then pull your credit report, review all of your financial information, and determine whether you qualify for a loan. If approved, you sign a contract agreeing to repay the loan monthly, in pre-set installments.
A title loan is similar to a personal loan. However, the lender places a lien on your vehicle until the loan is paid in full. If the loan goes unpaid, your vehicle can be repossessed by the lender. To qualify for a title loan, you have to own a vehicle outright — it has to be completely paid off and the title has to be in your name. Like personal loans, title loans require borrowers to fill out an application, provide proof of income, and pass a credit check to be approved for the loan. Unlike personal loans, title loans don't have extremely strict restrictions when it comes to your credit score because if the loan isn't repaid, the lender gets your car.
Ultimately, the type of loan you obtain is completely up to you. However, if you need cash quickly and can afford to repay it on your next payday, a payday loan is a great option. If you need to repay your loan in smaller payments, a personal loan or title loan may be a better fit for you. For more information, visit websites like http://www.paydayexpresscashadvance.com.