Auto loans and payday loans are the most popular ways of getting some extra cash on short notice. Many people will settle for any of them without looking at the financial repercussions that the loan might bring. For most working-class Americans, the level of risk may seem too high for either option. But sometimes you have no choice. So, an auto loan or a payday loan when you need money badly? Which one should you choose?
Auto Loans Vs Payday Loans
With auto loans and payday loans, finding alternative ways to come up with some extra cash doesn’t have to be an extreme sport. All you need is your car’s title and a job to secure an auto loan and payday loan, respectively. Below, we compare key features of auto loans and payday loans to help you determine which one’s the best for you. Here we go.
The transactions of some payday loan lenders have turned out to be scams and as a result, these agencies have earned a shady reputation. Many people have learned to refrain from these agencies making auto loans the more desirable option. But a majority of payday loans lenders are legitimate businesses and quite reliable when it comes to getting quick cash as long as you know how to avoid the scams.
Loan agencies will charge interest regardless of the type of loan you are applying for. However, payday loans tend to have a higher interest rate compared to auto loans. This is because the APR (Annual Percentage Rate) of payday loan is significantly higher than that of auto loans. Note that interest rates depend on loan amounts.
Both auto loans and payday loans don’t have a lot of requirements for approval. All you need is to have a full-time job to get a payday loan. Some lenders will require applicants to be debt-free, but that’s uncommon. On the other hand, you’ll need a car to get an auto loan. All you need to get approval for an auto loan is the car’s title and some easy-to-get documents to verify your personal information.
Auto loans tend to have higher loan amounts depending on your car’s make, model, and current condition — can be $10,000 or more. The higher the value of your car, the more you can get on auto loans. Payday loans range from $100 to $1,000 depending on your monthly income and the state you live in.
When we need money fast, we tend to look for short-term loans such as payday loans and auto loans. The best option between the two depends on the circumstances. If you have a car but don’t have a job or vice versa, you don’t have a choice as you’ll have to settle for one of them. Money 4 You Payday Loans offers payday loans for Utah residents at reasonable rates, we’ll even teach you how to do tax return. Call us if you need access to quick cash, hassle-free or assistance with your finances.