Car Title Loans Vs. Payday Loans
Pay day loans are a way to source cash, and there are particular circumstances when a pay day loan is the preferable option. Payday loans can be less expensive than defaulting on other debts or overdraft/credit card debt. They assist Canadian's in avoiding NSF fees, and the simple process to obtain a payday loan draws in consumers across the country.
The dark side to payday loans is the interest rates, which are distorted by the short term lending period. When calculated annually they are currently as high as 600 per cent. Currently, payday loan lenders in Canada are able to charge up to $23 per $100 borrowed. Pay day loan customers are generally full time employed individuals, which is another obstacle for Canadian's who require funds but are out of work seasonally or long-term.
A benefit of payday loans is that you can borrow money and pay back the funds in a much shorter time period compared to a title loan because of the length of the loan term. In most provinces a payday loan is up to 14 days and the interest rate for that period is 21%.
To contrast payday loans with car title loans, the first thing to consider is the lending period. A car title loan is written over years, not weeks however you have the option to pay out early at any time without penalty. The short term benefit of a payday loan can actually be realized with a car title loan if the customer takes the initiative to pay back the funds in that shorter time period.
Quick Cash Canada title loans are written up to 7 years and the annual interest rate is 29%, or 2.42% per month. It often appears intimidating to look down the road at the total figure you will owe, but when you calculate it against the use of recurring payday loans you are actually saving a considerable amount in interest and obtaining larger sums of cash up front.
Payday loans, similar to car title loans can be provided the same day. The rapid lending options preferred by many Canadian's requires comparison because payday loans and car title loans are competing for the customers who require a quick approval.
|Quick Cash Canada||Pay Day Loans||Other Car Title Loan Providers||Pawning a Vehicle|
|Same day approval||Same day approval||Up to 10 business days||Same day approval|
|No credit check||Credit Check required||In some cases a credit check is required||No credit check|
|No Employment required||Employment IS required||No employment required||No employment required|
|Monthly Interest: 2.42%||Monthly Interest: 21%||Monthly Interest: Up to 25%||Monthly Interest: 20% - 30%|
|Loan Length: Up to 5 years||Loan Length: Up to 14 days||Loan Length: 30 - 90 days||Loan Length: 30 days or less|
|YOU KEEP THE CAR||YOU KEEP THE CAR||YOU KEEP THE CAR||YOU KEEP THE CAR|
Quick Cash Canada car title loans allow you to use your fully owned vehicle to qualify for a loan amount. The equity in your vehicle, much like a home equity loan, will determine the amount that you can borrow. The benefits of using a car title loan with Quick Cash Canada is that you can repay the loan according to your own schedule, you have a minimum monthly payment but are free to pay out or pay additional funds at any point in time. The benefit is mitigating interest that would otherwise have accumulated.
Our annual interest rate of 29% is significantly lower than the 500% annual interest charged by pawn shops to pawn a vehicle and the 600% annual interest figure payday loans charge. The length of these shorter term loans allow them to distort interest rates and paint a picture that is much less attractive than the reality. With car title loans at Quick Cash Canada being written over years instead of months we are held to a different standard legally and cannot charge interest rates as high as other quick financing options. I urge you, if you are looking at any of the options mentioned to look carefully at the hidden fees, interest charges if you calculated them on an annual basis and get as much information as you can.
Car title loans charge higher interest rates than other credit providing institutions because of the quick cash nature of our business. The benefits of our business model are consistent with payday loans, quick cash, simple processes and operations that are suited to individuals who may not qualify for traditional loans at a bank - whether this is because of their personal situation, or how quickly they require the cash in their hands. Ultimately, when comparing Quick Cash Canada title loans with other non traditional methods of obtaining funds our fees and interest charges are unbeatable; we have created a happy medium between low interest fees and easy of application/approval that set us apart from payday loans and other car title loan companies as well as the lending options of financial institutions.
The payday loan association has outlined the rules for lending at the following website: Click Here