Advantages of a Title Loan

Performance Auto Loans is a financial services company specializing in Automotive financing at very competitive rates. We specialize in collateral Title Loan lending for consumers who require immediate financial relief with the utmost urgency. For borrowers who are looking for short or long term loans with flexible payment terms and competitive interest rates, a title loan is the best solution for your financial needs.

Below you can find a brief summary describing the different types of loans currently offered in the financial industry, specifically catering to individuals in need of immediate funding and have little to no credit history. Typically, borrowers of these types of loans can vary in age, income, and credit worthiness, but a Title Loan from Performance Auto Loans can provide the greatest amount of funding at the most competitive interest rates; all at low monthly payments and flexible payment terms to the borrower, in comparison to some of the other types of loan programs available in the marketplace today that carrying high risk, and high interest rates.

The Different Types of Loans

A Payday loan is a small, short-term unsecured loan; more commonly referred to as a cash advance. Payday loans are typically repaid at the borrower’s next payday, thereby making them extremely short term; usually 2-4 week term's. The charges and fees associated with such a short-term cash advance can cause unreasonably high interest rates for the borrower; most payday loans carry interest rates upwards of 400% APR or more.

Payday loans are a temporary short term solution for borrowers who require immediate funding, however, these borrowers typically come back again and again due to financial obligations and debts, making this type of loan beneficial for the lender, and not the borrower (it's a vicious cycle).

Much Like Payday cash advance loans, Signature loans provide the borrower with very limited resources and repayment term's; signature loans typically fall within the $2500 range and also carry extremely high interest rates for the borrower. Due to the fact that signature loans are unsecured in nature, this makes the borrower a high risk to the lender, regardless of credit worthiness, and in most cases the loan must be repaid in a matter of 2-3 months time.

The limited nature of a signature loan provides the borrower with very limited funding and repayment terms causing high monthly payments to the consumer in order to payoff the loan within the given time period. Lenders that specialize in unsecured Signature loans typically target low to mid income individuals with bad credit or no credit at all, and if the borrower falls upon hard times and is unable to repay the loan within the contractual time period, then in most cases the lender can take legal action against the borrower, sometimes even garnishing the wages of the borrower to collect on the unpaid loan.

Signature loans and payday loans alike, cause financial stress on the borrowers income and credit, and if your finances are not properly managed, these short term loans can hurt your credit score and your ability to financially secure your future.

Unlike Payday loans and Signature loans, a title loan requires the borrower to secure the loan with the title (pink slip) of a paid off vehicle belonging to the borrower. This type of loan is more beneficial to the borrower who requires a greater amount of funding and more flexible repayment terms, thereby relieving the financial stress that comes with short term unsecured loans.

Title Loans can vary greatly depending on the consumer and the valuation of the vehicle being used as collateral for the loan. Loan amounts can vary from $2500 to $20,000 and sometimes more depending on the type of vehicle and its current lending value. The repayment term can also vary from short-term 3-6 month repayment term's to much longer term's of 24-48 allowing the borrower greater financial flexibility in repaying the loan at lower monthly payments.

With regards to the interest rates carried on a Title Loan, that number also varies depending on the consumers credit history and credit worthiness, and because Title Loans carry lesser risk to the lender due to the collateral provided by the borrower, the interest rates are mush lower in comparison to Payday Loans and Signature Loans; These Interest rates typically range between 7% to 10% monthly. The average consumer of a title loan can range from low to mid to high income individuals, with little regard to credit score or credit history, in need of immediate personal financial funding for whatever the purpose may be. The flexible repayment terms or a title loan program offered from Performance Auto Loans allows a borrower to properly manage their finances and enhance their credit worthiness over time.

For a limited time get a $25 Chevron Gas Card with every new Title Loan!

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Restrictions apply. Contact us for details.

Given the high-risk nature of some of these loans to the lender, you as the borrower may have to pay, in most cases, higher interest rates and in some cases provide collateral for a loan. For this reason Performance Auto Loans highly recommends speaking with your professional financial advisor at your financial institution to find out if you, the borrower, can obtain a low interest rate loan directly from your bank; however, if this is not possible, then perhaps a collateral loan such as a TITLE LOAN is the perfect fit for your financial needs.