If you are experiencing a short-term cash flow problem and need quick cash to cover an unforeseen expense or emergency, your fastest and only option might be a loan. But what loan service should you consider – payday loans or title loans in Charlotte NC? Before applying for either of these, you should understand the difference between the two.
Accessibility: Payday loans are available in 36 states. Regulations vary state-to-state.
Interest Charges: The Consumer Financial Protection Bureau reports the interest charges on payday loans average 300-400% APR.
Applying For Payday Loans: You can access payday loans via the internet. When applying online, you’ll need to write a post-dated check to the lender that includes the amount you intend to borrow plus the interest.
How it Works: If your application is approved, the lender then sends/gives the money with a standard loan period of 14 days. When 14 days are over, you can either settle the loan and charges in cash or allow the lender to deposit the post-dated check. In case you want to extend the loan, you’ll need to repeat the process. That is, you’ll write the amount for the post-dated check with the lender’s additional charges. (The lender holds the right to charge additional fees if you fail to pay in full.)
Challenges: Borrowers might get stuck in a cycle of taking a string of payday loans because the interest rates and fees add up quickly.
Accessibility: Title Loans are available in 25 states. Regulations vary by state.
Interest Charges: The Federal Trade Commission reports the average interest rate on title loans is about 300% APR.
Applying For Title Loans: First, you must own the vehicle outright. To get a car title loan, the lender will want to see your vehicle to assess its value before offering you a loan based on the value of your car (usually 25-50% of the car’s worth).
How it Works: Your car will be collateral for the loan, which means that the lender takes possession of the car title until the loan is paid in full. If you cannot repay the loan in full (loan amount, interest, and fees), the lender can repossess the car and sell it.
Challenges: Besides interest charges, additional fees can be charged – be sure to understand the total amount you will be expected to pay to regain your title. Failure to pay the total amount on time can result in you losing your car.
Read Before You Sign
Federal regulations require all lenders to spell out all fees you could be charged in writing – read all paperwork before signing.
Cash Fast Loan Centers
Do you need some quick cash? Cash Fast Loan Centers can get you the financial assistance you need in the shortest possible time. We can handle your need for payday or title loans in Charlotte NC, at our South Carolina locations just 15 minutes away. Check us out today.