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PAYDAY LOANS VS. CAR TITLE LOANS

There are many options available when you are looking for money when times are tight. Two of the most popular options are payday loans and car title loans. These loan alternatives are secured loans that can provide cash relatively fast. To help you make a better decision on what option is better for you, here’s some information about Payday Loans vs. Car Title Loans.

Payday Loan

Payday loans use the promise of your next paycheck as security for the loan. Payday loans use post-dated checks that will be deposited on your next payday or electronic funds transfer as collateral. The amount of loan depends on the amount of your next paycheck. Payday loans typically range from $100 to $1,000. Other highlights of a payday loan are:

Short Terms – usually 2 weeks – or the next pay period for repayment
Low loan amounts – Usually no more than $255
Interest is a flat fee per $100 borrowed
Average APR 390% (based on $15 per $100 – two weeks) not including any additional fees
Must have employment and bank checking account

One of the key differences in comparing payday loans vs. car title loans, is that you can typically borrow more money with a car title loan.

Car Title Loan

Car title loans are secured loans that use the equity of your car as collateral for the money you need. With a car title loan you can borrow between $2,000 to $50,000 depending on the state you live in and the amount of equity you have in your vehicle. Many vehicles can be put up as collateral including cars, motorcycles, trucks, work trucks, RV’s and more. You continue to drive your car and the lender places a lien on the vehicles registration as security.

Longer Terms – Term is usually 12 to 36 months
Lower Interest rates – 60% – 130%, Significantly lower than payday loans
Higher loan amounts – Loan amount is based on the value of the car and the ability to repay
Can help you repair your credit – Lenders report to the credit bureau, helping you improve your credit when you maintain a current loan

Payday Loans vs. Car Title Loans Summary

Another difference in the comparison of payday loans vs. car title loans is the interest rate on average is much lower when you get a car title loan.

When you are in a bind, a car title loan will provide you access to more money and you will pay less interest and fees upon repayment over the life of the loan. These loans also spread the repayment over a period of a couple years as opposed to one pay period. Payday loans must be paid immediately, which can be difficult if business is slow.

1(800)Car-Title® offers competitive interest rates for car title loans with flexible terms. You can get the money you need in a short period of time. Even if you have bad credit, you can get anywhere from $2,000 to $50,000 using the equity in your car.

Contact us today for a no obligation quote. Our car title loan application is quick and easy. Fill out the form on this page to get a free quote or call us at 1-800-227-8485 to speak to a loan officer today.

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USA Patriot Act Disclosure: Important information about procedures for opening a new account

To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. What this means for you: When you apply for a loan, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver's license or other identifying documents.

Loans may be made by one of several lenders, including: Wilshire Commercial Capital L.L.C. dba 1 (800) Car-Title and Wilshire Consumer Credit, a licensed lender in certain states. Loans not available in all states. In California, loans are made pursuant to a Department of Business Oversight California Finance Lenders License. See State Disclosures for additional information.

Accessibility Statement. We are committed to ensuring digital accessibility for people with disabilities. We are continually improving the user experience for everyone and applying the relevant accessibility standards in compliance with Web Content Accessibility Guidelines. For feedback on our website accessibility or if you have any problems with the access of our website please call our toll-free number 800-589-0290 or email us at WilshireCustomerCare@WilshireConsumer.com and we will assist you.

Wilshire Commercial Capital, LLC dba 1 (800) Car-Title and Wilshire Consumer Credit is located at 4727 Wilshire Blvd, Suite 100, Los Angeles, CA 90010.

TO REPORT A PROBLEM OR COMPLAINT WITH THIS LENDER, YOU MAY WRITE OR CALL Tracy Bergiman, Director of Compliance, 4751 Wilshire Blvd. Suite 100, Los Angeles, CA 90010, 323-837-5775, tbergiman@westlakefinancial.com.

New Mexico Only: This lender is licensed and regulated by the New Mexico Regulation and Licensing Department, Financial Institutions Division, P.O. Box 25101, 2550 Cerrillos Road, Santa Fe, New Mexico 87504. To report any unresolved problems or complaints, contact the division by telephone at (505) 476-4885 or visit the website: https://www.rld.nm.gov/financial-institutions/.