For Those Considering A Payday Loan
Understanding Payday Loans and Better Alternatives
The idea of taking out a payday loan usually comes up in a time of financial emergency. If it is a true emergency – for example, you need rent money or a car repaired – a payday loan may be just what you need. The typical payday loan is taken for amounts of a few hundred dollars. Most people who use payday loans are not the people who are heading to their local financial institution and applying for a conventional loan. Normally, those with sub-standard credit are the ones considering payday loans.
To qualify and successfully take out a payday loan, you must have a job. You will need to have proof of employment and a paycheck with a future date on it. The lender will verify where you work and then draw up loan terms. There are no credit checks and payday loans are usually completed within minutes. Borrowers can have their money is as little as 15 minutes.
The problem with payday loans is, of course, the fees and the interest rates. Borrowers can expect to pay $20 for each $100 borrowed. Many payday loans end up with interest of 300 to 400 percent on a loan. Borrowers are encouraged to pay off payday loans as quickly as possible to avoid paying such high fees.
Why Car Title Loans Can Be a Smarter Option
An alternative that borrowers should consider are car title loans. The typical car title loan is taken out for $1,000 to several thousands of dollars. The procedure is a little different when compared to payday loans, but the processing is fast. There are no background or credit checks with car title loans either. Interested parties fill out an application to start the process.
Embassy Loans of Florida offers customers the ability to fill out the application online, or they can visit one of the company’s conveniently located offices. Once the application is done, Embassy Loans, like many lenders, will require documentation. Applicants will need to verify who they are, where they live, and prove that they own the vehicle.
With that complete, Embassy Loans will assess the vehicle for its value. This provides the remaining piece of information needed to complete the terms of the loan. Once that is done, the loan is finalized and the customer receives his or her money. The entire process usually takes between 25 and 45 minutes and then the borrower can receive his or her money. Borrowers continue to use their cars while they repay the loan. Should they not be able to pay, vehicles are repossessed and sold to recover any losses.
