A short-term loan is a good way to keep your finances afloat when there’s an emergency or a crisis. However, choosing the appropriate loan is challenging as payday loans and bad credit car loans Markham Ontario have several similarities. Here’s a quick breakdown of how these two loans stack up against each other.
5 Differences Between Auto Title Loans and Payday Loans
- How It Works: Title loans use a car’s title as collateral, with a typical contract lasting for about 30 days. Meanwhile, payday loans require the borrower to issue postdated checks. The loan period is usually set for the next payday.
- Amount You Can Borrow: You can borrow anywhere from $100 to $5,500 for title loans. The amount can be higher depending on the car equity, with some lenders offering between 25% to 50% of the vehicle’s value. Payday loans typically range from $100 to $1,000.
- Interest Rates: Title lending companies usually offer a 25% monthly interest rate while payday lenders charge $15 to $30 for every $100 borrowed.
- Payment Terms: Both loans are short-term. Title loans usually come with a one-month contract while payday lenders will demand that you repay the loan the next time your paycheck arrives.
- Required Documents: You’ll need to submit government-mandated IDs for both loans. Title loans also require a lien-free title and proof of insurance while you’ll need to show a regular source of income and a bank account for payday loans.
Borrow More Money Than Any Competitor Has to Offer
Canada Car Cash can offer you more money than other lenders since they only deal with title loans. Their interest rates are the lowest around and they also offer extended loan terms. You don’t even have to worry about credit or employment checks. Sign up at their website or call their toll-free number at 1-844-598-7631.
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