The short answer is that car title loans are secured and payday loans are not. Car title loans are taken out against a vehicle, while payday loans are not taken out against any asset at all. When someone takes out a loan with us, they get a lower interest because we are able to use their car's title as collateral compared to someone taking out a payday loan, where there isn't anything used as collateral for the loan. Due to this, a payday loans interest rates are much higher than any auto title loan than you can get.
Car Title Loans allow people to get more money because of the collateral of a vehicle's title is used, as stated above. If the company has more security and gives the customer more of a reason to pay back their loans, the lender will be willing to loan out more money than a payday loan lender could even imagine. In some cases, a car title loan lender can give up to three times the amount payday loans can.
Another plus about a car title loan compared to a payday loan is that you receive a lower interest rate. This gives you the possibility to pay much less than you would when getting a non-secured loan.
The most noticeable reason auto title loans are better than payday loans is because of their low payment amounts. Our car title loan lenders offer a lot of flexibility on our plans. We don't only offer up to 42 months to pay back your loan, we also let you change up your payment details if you are having troubles paying back your loan!
At the end of the day, there are many reasons to choose a car title loan over payday loans. Hopefully you should never have to get either, but if you are in a situation where you have bad credit, with low interest and need it fast, give our title loan company a call or apply online today!