Facing a difficult financial situation everyone wants to find the best deal. Nowadays there are a lot of options to choose from. Among the most popular there are such as an auto loan and a payday loan online. If you need money now, then you are recommended to consider your financial situation to define, which amount of money will be helpful for you and which repayment period is fine for you at the current moment. To get answers to all these questions you should learn more about the distinctive features of the above mentioned types of loans. Only the well-informed decision can be reasonable. Find out if it is a good idea to get an auto loan or to give preference to the short-term loan online.
Auto loan: Advantages and Disadvantages You will Get if Choose This Option
A secured auto loan is a cash loan, which is one of the fastest and easiest ways to get a relatively large amount of money for any of your needs. By offering cash loans secured by auto, the organization is guided by the needs of customers who are looking for a source of money for diverse needs. It is important that you have the opportunity to repay the borrowed loan secured by the car on time. A loan secured by a car is a great opportunity to get money quickly by simply placing your vehicle in the so-called car pawnshop. There is no need to collect documents and look for security, the whole process of registration is as simple as possible, and failures like in a bank just do not take place.
Getting this kind of loan is a completely different kind of loan than a bank offers. Nobody is interested in the applicant’s credit history, nobody will ask about certificates from work and stutter about the financial situation. Everything goes much easier but the most important thing is the lack of a check on the financial security of a citizen. And it does not matter whether he works or not, whether he receives income or he lives at the expense of somebody. So, to arrange a loan is not a problem at all.
If you need a loan secured by car, you can get it without any fuss. Loans are issued after the customer arrives at the auto pawnshop office on his vehicle. An estimate of the vehicle’s market cost will be made immediately, on which basis it will be determined, which amount a citizen can receive. Usually you can arrange a loan amounting to 70-80% of the cost of the car, the exact figure is determined after the inspection of the transport. After the agreement of the owner of the car with the terms of the loans are issued directly. More precisely, there is a pledge agreement, after which the money is transferred to the borrower. This is a very fast process, there are no long reviews. In most cases money is given within 30-60 minutes.
In recent years, the auto pawnshops have been particularly popular. This is due to the fact that they give loans much faster than the traditional banks and other financial institutions. In these institutions, getting a loan can be secured by a car or another vehicle.
How to Get the Auto Loan?
Getting a loan secured by a car has become much easier today. To do this, you just have to be the owner of the car and have a desire to get a loan. The rest will be done by the auto-pawnshop. The main difference, from the classic form of a loan, is the lack of documents confirming the income of the client.
There are various methods for borrowing money secured by a car. The main differences are in documentary. Most often, the car pawnshop and the client sign a loan agreement. This is the contract, which specifies all conditions for obtaining a loan. Among them there are monthly payments, amount of credit, terms, etc. and a pledge agreement (the pledge agreement stipulates a ban on the alienation of the car by the owner until the moment of full settlement according to the loan agreement). There are cases when, for some reason, it is not possible to sign a pledge agreement. An auto-pawnshop can offer an individual approach to each client. Usually, a car loan is secured when the car is left to a guarded parking lot in a pawnshop.
Often the regular customers have an opportunity to use the car if the loan amount does not exceed 30% of the market value of the car. In this case, the car needs to be further insured, but this is not so essential condition. Sometimes it is possible to get comfort and convenience from driving your own car. The minimum market price for the vehicle is 6-10% per month if the car is parked in a car pawnshop. If the client wants to drive this car, the rate will be about 15-20% per month.
Rates of 10-15% per month provoke even decent customers not to fulfill the requirements of a loan agreement. There are many situations when borrowers aren’t able to repay the loan, which means that they risk losing their vehicle. If you have decided to receive money quickly and have the car or any other vehicle you can get money for, think twice before you apply for an auto loan. The significant disadvantage of the auto loan is the fairly high interest rate. At an effective rate, this type of lending can be compared to non-secured loans. Consequently, the secured car loan is intended to be used in a few months or days
Payday Loan: Which Pros Can You Expect from the Short-Term Loan Lender?
A payday loan occupies the first place among the simplest loan options in terms of requirements. The main thing you should have is the regular income to be able to repay the loan on the due date. Payday lenders aren’t interested much in how you are going to spend this amount of money. It is up to you to decide if the situation you have faced really requires such radical measures as getting a payday advance online.
The internet loan has many pros and only a few cons. Let’s start from the benefits you will enjoy if choose this option.
- An ability to get money exactly when you need it without waiting for long hours.
- A chance to solve all your financial problems confidentially without the need to share them with relatives and friends.
- A possibility to find the best deal after comparing the offers of payday loan lenders.
- An opportunity to get money even if you have a poor credit rating.
- A great chance to receive money without going out anywhere.
- Simplicity of the application process and the comfort of getting money deposit to the bank account within one working day.
- Minimum of requirements, where the credit history isn’t mentioned.
Up to $1500 can be yours after you fill out a simple application form that can be found online. Take into account that you should use the loan calculator to make sure you know how much you will need to pay back in the end of the loan term. You should bear in mind that the interest rate isn’t the lowest one compared to other types of a credit. Calculate the exact amount you will have to repay and don’t forget to be careful while reading the contract. Some lenders may use the fine print to hide the commission, which you may not see when getting acquainted with the payday advance agreement.
Getting a loan online is a piece of cake for those who can meet simple requirements, which aren’t many. All borrowers who are older than 18 and are citizens of the country may count on getting a loan online without any problems. Sure, that those who can’t provide any evidence of having a monthly income on the regular basis, have no high chances to receive money. Instant or emergency loans can save you from any serious problem the same moment some trouble happened as you will get money almost instantly. There is no a hard credit check, which means that you will have an opportunity to solve your emergency situation as quickly as possible. Money will be transferred within one business day.
These are the main pros each payday loan borrower can get if needs cash instantly. If you have never got short-term loans it may seem that this is just the perfect option of getting the necessary amount of money whenever you need it. However, there is no such a thing, which doesn’t have any cons. Wonder which disadvantages does this method of obtaining money have? Let’s have a closer look at the cons now.
- Things to Keep in Mind When You Have an Intention to Get an Instant Loan
Payday loans are great when you have an emergency but they can’t be used for unnecessary things, otherwise you will overpay much and take risks not to return money at all. There is nothing perfect and an instant loan isn’t an exception. If you have decided to get a loan from the alternative lender, you should first of all check out his reliability and trustworthiness. Not all payday lenders can be trusted as there are many fraudsters nowadays. Some of such internet lenders may want to attract you with the low interest rates but in fact signing a loan agreement you will find out that they have the hidden commission. You won’t be able to change anything later if the document has your signature. By the way, you should take into account that the electronic form of agreement is considered to be 100% valid.
If you want to make sure that the lender you have found is the one who can offer you a fair cooperation, the very first thing you should do is to contact the customer support and ask all questions you are interested in. If you haven’t decided yet whether you can trust the lender or not, you should read the Terms and Conditions carefully as well as check out the legacy of the services provided. No third-party lenders are more preferable as you will be able to contract the lender directly. Take into account that you will need to read the reviews of the customers who have already used the service. If you don’t find any negative reviews, then the lender really takes care of the clients’ needs.
Among the options that can be considered disadvantages of small-dollar loans are the following:
- The relatively small amount of money;
- The short period, within which you can use money;
- Risks that you may be unable to repay money in full till the deadline;
- The risk to damage your credit history in case you don’t pay the loan back.
These are the only things to keep in mind when you decided to get a loan online. However, if you are a responsible borrower who knows how to use money wisely you will never face the unwanted loan consequences that may take place while borrowing money online.
Whom is It Better to Borrow Money from: Direct Payday Lender & Third-Party Lender
One of the major things to consider is the choice of the lender. There are two types of lenders. The first one is known as the direct payday lender while another one is the mediator or the go-between. What does this mean and how they differ? The direct payday lender has certain advantages. If you contact the lender without the third-party companies you will be able to save money. In case you have any issue that must be clarified, you will have an opportunity to talk to the instant payday lender at once.
When you deal with the mediator company you have to pay for the convenience as they do the whole work instead of you. The third-party lender is engaged in the process of the direct lender’s search. The mediator company will find the best deal for you in the shortest period of time. The offer will meet your expectations as such companies have a large network of direct lenders who provide borrowers with the short-term loans online. However, this variant isn’t as perfect as it may seem. First of all, nobody wants to pay more, especially, taking into account that you are getting a payday loan, which isn’t the cheapest loan option to borrow. Moreover, some borrowers don’t like dealing with the third-party lenders as there is a risk of sharing the personal information with the dishonest lender.
If you have the question you need to discuss with the direct lender you will have to contact the mediator first and only after the mediator will provide you with the opportunity to clarify all issues with your direct lender. Sometimes this variant may be not very convenient. Bear in mind that in any case you will receive money from the direct lender. It is up to you to decide whether it is a good idea to share your contacts and financial details with mediators or it is better to go to the direct no third-party lender from the very beginning. Each option has its pros and cons. Choose the one you like most after the careful consideration of their distinctive features.