There are many options available when you need money in difficult times. Two of the most popular options are payday loans and auto title loans. These loan alternatives are collateralized loans, which can provide money relatively quickly. To help you make a better decision about which option is best for you, we will explain each type of loan.

Payday loans

Payday loans use your salary as a promise to pay you money. Payday loans use post-dated checks as collateral, which are deposited on your next payday or with electronic funds transfer. The loan amount depends on the value of your next paycheck. Loans range from $ 100 to $ 1,000.

• Short-term loans: generally two weeks or the next repayment period.
• Low-Amount Loans: Generally, not more than $ 255.
• Interest is a fixed rate for every $ 100 borrowed.
• The average annual interest rate or APR is 390% (based on $ 15 for every $ 100 in two weeks) without including any additional charges.
• You must have a job and a bank checking account.

Car title loan

The loans on car titles are cash loans that use your vehicle title as collateral. With a car title loan, you can borrow between $ 2,000 and $ 50,000 depending on the state where you live and your vehicle’s current value. Many vehicles can be collateral, including cars, trucks, work trucks, RVs, and others. You can continue driving your car, and the lender sets a lien on the license plate of the vehicle under warranty.

• Long-term loans: the terms are usually 12 to 36 months.
• Lower Interest Rates – Interest ranges from 60% to 130% (significantly lower than interest on a payday loan).
• Loans with higher amounts: the loan amount is based on the vehicle’s value and the ability to pay.
• It could help improve your credit: Lenders inform credit bureaus, which favors your credit when you keep a current loan.

When you’re in a tight spot, a car title loan will give you access to more money, and you’ll pay less interest and fees over the life of the loan. These loans also extend payments over two years instead of a single payment period. Day loans must be repaid immediately, which can be difficult if your work or business is slow.

You can get the money you need quickly. Even if you have bad credit, you could get anywhere from $ 2,000 to $ 50,000, depending on your vehicle’s value.

If you need car title loans in Los Angeles, below you can find more information: