Advantages of a Title LoanPerformance 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.
The Different Types of Loans
Payday Cash Advance
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)./h6>
Unsecured Signature Loans
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.