For consumers who have bad credit there are often very few methods to obtain some much needed cash without having to give up the right to something. The biggest options that are typically available to most consumers who have poor credit are generally either taking items to a pawnshop, pawning your car title or getting a title loan and then finally a payday advance. Choosing the best option for you is never easy, but there are certain times when one of these tools is much better suited to your needs than other tools. Deciding the difference for your needs involves understanding the difference.
A title loan is often a choice amongst consumers when they own their vehicle fully. If you are still making payments on your vehicle then a title loan is generally not a suitable option for you. You need to own your car fully in able to authorize a lien on the title which a title loan requires. The good aspect of title loans is that generally the amount that you can borrow is much higher than a typical payday advance would permit. The biggest consideration for a title loan varies depending upon the amount that your car is worth as well as how much you actually need. They do tend to be extremely expensive though, which can create a few problems if you are on a very tight budget.
A payday advance on the other hand is a loan that is guaranteed based on your checking account. You simply write the lender a check and then you are given the money for the loan. The amount of the check that you give to the lender is the amount you are borrowing plus any fees that are charged, including the interest fees. This type of loan is generally much better suited for consumers who do not own their vehicle fully or for those who merely need a small amount of money for a very short period of time. Additionally, many consumers are quite leery about putting their vehicle at risk in the event that they are unable to make payments, which again makes a payday advance a much safer option since there is no risk of losing your vehicle if you missed a payment for a payday loan.
If you are unsure about which type of loan you should go with the typical answer should be choosing a payday advance. Using these loans, you can simply roll over any balance that you cannot afford to pay upon the initial pick up date, which can provide you with a substantial amount of flexibility. In addition, with the manner in which the loans are structured you can easily make small payments towards the principal and get them paid off sooner. Regardless of the amount you need, if you have any uncertainty at all about whether you can repay the loan in a timely basis, it is important to ensure that your vehicle is safe. You will not be able to get to work if you lose your vehicle. This reason alone is enough to encourage many consumers to shun the title loan industry and instead look to payday advances to help them survive until the next payday when there are short-term cash needs.