If you need more cash and need it for a longer period of time than the couple of weeks offered by a payday loan, then you need to know about the advantages of a title loan. A title loan is a loan that is for people who own a car. If you have a car that is paid for, then you have the title on the car. This can be used as collateral for a loan.
You don’t have to leave your car with the lender
Unlike a loan you get at a pawn shop, you don’t leave your car with the lender. All you need to do is leave your title. In case a borrower does not pay back the loan, they will have it towed away because they will be the new owners. However, this rarely happens. If you did have a problem making a payment, you simply need to contact the lender. Once you have paid back the loan, the lender will return your title to you.
This type of loan has many advantages
The differences that make this type of loan attractive versus a payday loan are many. To begin with, a title loan can be structured as an installment loan. This means that you can borrow the money for a longer period of time. In addition to this, a title loan offers better interest rates than payday loans due to the security offered to the lender for the loan. Another thing that may be an advantage in your circumstances is that it is often possible to get a larger loan with your car’s title than a payday loan. Both types of loans are limited. A payday loan is limited to a percentage of your paycheck and a title loan to a percentage of the value of your car. Usually a person’s car is worth more than a paycheck.
Like a payday loan, your credit rating will not be an issue, but a lender will want proof of income.
If you want more information about title loans mississippi, you can go online to find the nearest location for a lender.