Should You Get a Payday or Title Loan?

Payday Loan

Payday loans and title loans are both prominent ways to get money. Through the years, many people have relied on these types of funding for bills and payments like medical bills,  a down payment for a family home, and many other unique kinds of financial situations.

Payday loans are a popular type of funding because you can usually get the money you’re looking for pretty fast. Many times, payday loan lenders will give a borrower a check right away, but the catch is that the balance of the loan is usually due the next time the borrower gets paid from their job—hence the name payday loan.

How Do I Stop Payday Debt Collector Calls?

So, what can be done to stop the constant harassment? Paying back a loan is already stressful, it doesn’t have to be made worse by constant calling. Luckily, there are some steps you can take to stop debt collectors that may be hounding you day and night.

Test if the Debt Collector is Legit

It may be hard to believe, but not all debt collectors are who they say they are. There are scam artists who call people posing as debt collectors. Like actual debt collectors, they may call you day and night until you pay what they say you owe.

But there is a solution to find out if the company that is calling you is actually legit. By simply asking the person who calls you for a physical street address, like where to send a check, you can find out if you are dealing with a legit collector or not.

If the collector is unwilling to give you their address or gives you an address that is not listed on the company’s website, then the caller is likely a scam artist.

Report Your Debt Collector to the FTC

Debt collectors can be very aggressive when it comes to contacting people. So, don’t think you are the only one this is happening to.  Because debt collectors can be aggressive with everyone, you are within your rights to call the FTC (Federal Trade Commission) and report their tactics to stop the harassment.

And if reporting them doesn’t work, simply mentioning to the collect  ors that you reported their actions to the FTC should get them off your back.

Hire an Attorney to Stop the Debt Collector Calls

If neither you nor the FTCs efforts stop the constant calls from debt collectors, then perhaps an attorney may be able to fix the problem. Thanks to the FDCPA (Fair Debt Collection Practices Act), there is legal action that may be taken against debt collectors who constantly harass people about paying their debts.

By contacting a debt lawyer, they may be able to find the debt collector who is hounding you and prosecute them for harassment.

Writing a Letter to Stop Debt Collectors Calls

If the company you are dealing with is legit, then by law they are required to stop calling you if you write them a letter.

As long as you do the following, you should stop receiving debt collector calls:

• The letter informs the collector that you don’t have the means to pay your debt
• The letter is sent by certified mail
• You keep a copy of the letter
• Have proof you mailed the letter

While you may have a hard time dealing with payday lenders and debt collectors, you shouldn’t have such a hard time.

Try Negotiating with Your Debt Collector

One option you could try if all else fails, is simply have you or your attorney negotiate a deal. To put a deal in place, you will first need to figure out how much you are able to pay the collection agency and see if they will accept the amount you offer.

If the collection agency agrees to the terms, you should get everything in writing before you make a payment. This written proof with guarantee the terms you and the agency have set in place, as well as guarantee that no more calls will occur in regards to your debt.

Consider Consolidating Your Debt

Debt collectors are a hassle that nobody wants to deal with. So, to avoid them all together, why not consolidate your debt before you default. Consolidating has you taking out another debt to pay for the one you’re having trouble with.

While it may seem odd to take out another loan to pay for an existing one, it may actually be quite a reasonable plan. That’s because the new loan should typically have better rates and terms, thus making the new loan easier to pay off than the old one.

However, in order to consolidate your debt, you may need to have a good credit score first. To get a new loan, you will have to go through a credit check and if your score is too low, you may not qualify for better rates. So, it’s best to know where your credit score is before considering consolidation.

Credit Rating                      Credit Score

 Excellent                             720– 850                                           

   Good                                 690 – 719                                 

 Average                               630– 689                                                           

    Bad                                  300 – 629

Registration Loan vs. Payday Loan

A registration loan is a way to receive funding for a loan using the registration to your vehicle as collateral. Registration loans are very similar to payday loans. A payday loan is a short-term, high interest loan that is typically expected to be paid back in full at the time of the borrowers next payday, hence the name payday loan.

What makes registration loans and payday loans so similar? The short terms and the high interest rates. Just like payday loans, registration loans are notorious for tacking on high interest rates to extremely short loan terms. These kinds of loans are very tricky because if you do not pay them back in full right away you acquire lots of interest fees, making the loan more and more difficult to pay off. The lenders then try to convince you to take on another loan with the remaining balance, plus the old interest and fees into a new loan with new fees. Because of the risks of these loans, you might want to avoid them.

Why is a Title Loan Better than a Payday Loan?

Title loans are popular among people looking for fast funding because you are usually funded soon after being approved. You may be able to get approved and funded for a great deal on an auto title loan in as little as 24 hours3—it doesn’t get much better than that!

Title loans are also a good choice because unlike payday loans you don’t have to pay back your entire loan balance right away. Other lenders, like some payday loan lenders, will charge their borrowers what is called a balloon payment. A balloon payment is when the borrower of a loan must pay off the entire loan balance in full all on one massive payment.

While the choice is ultimately up to you, title loans are definitely a good way to get fast funding.

Potential Perks of Getting Your Title Loan Online

• Apply when it’s Convenient for You- To apply in person, you need to be aware of their business hours, and then move your schedule around so you can accommodate those business hours. But some people have different working hours that don’t correspond with daytime business hours, which can make applying for a loan in person difficult for some people. When you apply for a loan online, you can apply whenever its most convenient for you, even if that’s in the middle in of the night!
• Don’t Worry About Traveling for Your Loan– If you’re in a tough financial situation this burden is the last thing you need. Applying for a loan online can save you time and money because you don’t have to travel anywhere to apply and using your own computer doesn’t cost a thing!
• Save Everything Important in One Place– When you apply for a loan in person, you probably aren’t going to take a voice recorder with you to get a hard copy of everything you and your loan representative discuss—nobody has time for that. But it can be convenient to have a record of your conversations with your financial agents. Applying for a loan online is convenient because you can save all the correspondence between you and your loan agent right to your computer. That way, if you ever want to recall a past conversation, your answer is only a click away.

Not convinced?

1. High approval rates mean that you are more likely to get an auto title loan¹.
2. Easy to use technology and account management solutions. Log in on the web to get all the information you need 24 hours a day.
3. Funding available in as little as 1 business day³. Hundreds of thousands of people have turned to car title loans because processes give you money in as little as 24 hours³.
4. No prepayment penalties. You are free to pay off your loan early without penalties.

Is It Easy to Get a Car Title Loan?

Yes! Getting a great deal on a title loan has never been simpler! In order to make things easier for you, we have streamlined our auto title loan process in order to get you your money as fast as possible.

Here is how the process works:

1. Fill Out Your Information Request

If you hop on the homepage on our website, you’ll find a small information request located on the right-hand portion of the screen. Here you will fill out some basic information such as:

• Full name
• Cell phone number (or number where we can best reach you)
• Email address
• Date of birth
• Address of residence
• Year, Make, Model, Style, and Mileage of your car

That’s it! After your fill out your form in a few minutes, you will know if you have received approval for your title loan promptly!

1. Send Over Your Documents

When you are approved for your auto title loan, a representative will contact you to give you your free quote1. After you have discussed your free quote and any other questions or concerns you may have about your car title loan, your agent will ask you for a few documents. These will include:

• Government issued form of photo ID – Your driver’s license, passport, or even FOID card would be acceptable.
• Proof of residence – We just need something to verify where you live, like a utility bill for example.
• Proof of income – Something like your paystub, or a bank statement if you are self employed would do fine. Talk to your auto title loan agent to learn about all the different forms of income that are acceptable.
• Vehicle title with your name on it – However, don’t worry if you don’t know where your title is or if your name is not the only one listed—we still might be able to help you.
• Several photos of your car – For the best results, you want to take some photos of your car outside during the day, and from multiple angles.

After you have paid off your title loan, you can get your title back.

1. Get Your Money¹!

The last step of the car title loan process is to sign your contract and get your money! There are multiple ways you can pick up your title loan funding:

• A check in the mail;
• Electronic deposit into your bank account or electronic wallet;
• Pick up your funds at a participating money transfer location near you

It is very simple to apply for an auto title loan. The process of evaluating your car takes only few minutes.  Get started today with an auto title loan and you will be on your way to financial success¹.