Why I Chose a Title Loan Over a Payday Loan

Just had a chat with a friend that got a payday loan, I tried to talk them out of it but I couldn’t!

So I wanted to share my story, and why I think payday loans are so bad and should be avoided.

Not too long ago I found myself in the unenviable position that many find themselves in. I needed money, and I needed it fast. I won’t go into why, but it was a legitimate reason I swear!

With my bad credit, all of the more ‘traditional’ options were unavailable to me. So I started looking into title loans and payday loans. Dubbed as quick fixes for the desperate or financially illiterate. They both sounded perfect for me. But I retained enough of my senses to realise that I could only pick one without spiralling out of control.

After much deliberation, I found a lender offering title loan near me and went with it. There are a few reasons why I chose a title loan over a payday loan.

  1. Amount

Assuming your car is worth a decent sum, title loans offer more money than the alternative. I needed to borrow $2500. Perfectly fine against my car with a title loan. Less fine with payday lenders who usually stop at around the $1-1500 mark.

  1. Longer term

While I wanted to pay it back ASAP to avoid the crazy interest rates, I didn’t want to pressure myself with the 2-week deadline of a payday loan. With a title loan, I bought myself up to a year to pay it off.

  1. Interest rates

They’re both bad, but payday loans are worse. I got a loan with an interest rate of 90%, the average for a title loan. With a longer length of time taken to pay it back, it’s a good job it’s less, to be honest.

  1. Credit rating

In a bad situation, I may have been. Stupid I am not. Title loan companies report to the credit bureau, so as long as I can keep up with the payments, my credit rating will improve. Leaving me better off than before.

  1. I had no job

I had lost my job at the time. And to get approved for a payday loan you have to prove you are employed as security. So they know that you’ll actually have a ‘payday’. The clue is in the name. The title loans company used my car as collateral. Which is something I did have to offer.

So far, I stand by my choice. No ‘title loans hell’ to report yet. Site I used to find a loan was financeflamingo.com, google maps also works. Make sure you read reviews of a place before you get loan! Some of the companies are very “shady”.

How I find cheap full coverage car insurance near me

All great cooks have a food budget, one way I expand my food budget is by being thrifty and making sure I get the best deals. That includes auto insurance. That’s why I wrote a little guide on how I find cheapest full coverage car insurance.

Car insurance quotes are the best way to find the policy that best fits your needs in auto coverage. Many people dread the idea of shopping for full coverage car insurance or any level of coverage. The process does not have to be as complicated as many assume it to be, and in fact, most find it less stressful to obtain a few quotes before making a final decision.

Arm yourself with knowledge and know exactly what you need to have on hand, to obtain the most accurate insurance quotes for your automobile.

Insurance Providers Want to Know

There is certain information that you will need to have accessible when shopping around for auto coverage. The requested information varies among providers but much of it is relatively standard across the board. One of the most common questions requests the number of miles you drive each day. This question is asked because there is increased risk of an accident with the more miles travelled. Another question that is commonly asked is if you own your vehicle or is it being financed. Financed vehicles are sometimes required to carry comprehensive coverage, as well as collision, plus any liability coverage the state requires. There is also the option for gap insurance, which pays the difference between the amount owed on the vehicle and its worth if the vehicle is totalled in an accident.

A few other questions you may be asked include:

  • The number of licensed drivers in the home
  • If there is a salvage title on the vehicle
  • Exclusion of any drivers
  • Number of vehicles being insured
  • Number of tickets and violations you have
  • The current insurance company you use
  • What is your gender
  • Married or single

Rate Determination

Many of the above questions play a factor in determining the overall rate you are quoted. In addition, many providers request a social security number to verify the driving history and determine your risk. In addition, some states may allow a pull on your credit to assess your credit worthiness. This pull is a soft hit and has no effect on your score. Some quotes consider the profession you are in, as there are a few which set the precedent for a cheaper rate, while other professions will call for a higher rate. In some cases, you may qualify for no deposit car insurance.

Proper preparation is necessary to obtain quotes for auto insurance. Have your information prepared, answer questions honestly, and make the decision that is best for you and your budget. Also make sure to use a quotes website like: http://www.autoinsurancemonkey.com/getting-cheap-car-insurance-in-nj/