Payday Loan Vs. Title Loans in Jackson Mississippi

Are you struggling with a rough phase of your life when money

is tight? Indeed, you have been searching for an easy way to get access to

cash and come to know about two fantastic options, which are payday loan and title

loans in Jackson, Mississippi. Before you pick any loan option, you should have a clear idea about their interest rates, risks involved, and their benefits. It’s time to make a quick comparison on such ground between

a payday loan and title loan.

What is a Payday Loan? 

In this loan, you borrow money without putting anything as collateral. This loan is based on your income and salary. These loans must be paid back in less time, and you only get a few dollars through this unsecured loan facility.

1. Interest Rate

It’s an expensive short-term loan option because ARP is almost 400 percent. So, you may pay more than 33 percent interest in this kind of loan. 

2. Risk 

If you don’t make a payment, then a payday loan provider has the right to clear your bank account for recovering the loan amount. When you have nothing in the bank, things may take wrong turns as collection agents of payday loans don’t have a good reputation.

3.Benefits

Quick access to cash is available. You don’t need to use any of your property as collateral for this loan. You can apply for a payday loan online and also in-store. Fast approval makes this loan an excellent choice among borrowers in Jackson, Mississippi.

What is a Title Loan?

It’s a secured auto loan where you need to borrow money against your car’s title. A car owner put his car at risk of getting this loan. People opt for a car title loan as they can have their hands on a significant amount of money, you can borrow $500 to $25000 through this loan. The exact loan amount is based on your car’s market value, your lender, and your state. 

1. Interest Rate

APR of the car title loan is only 300 percent, so you need to pay almost 25 percent as interest with title loans in Jackson, Mississippi.

2. Risks

If you don’t pay back the loan amount, then the lender has to hold lien on your car; he can sell it and recover his loan amount.

3. Benefits–

You can enjoy fast loan approval alongside quick cash access like overnight through a car title loan facility. No matter what your credit score is, you are eligible for this loan. People without salary can’t get a payday loan, but they are suitable for a title loan. When it comes to finding the best places for a title loan, you should tap on the online market for better rates and terms.

Wrap up

If you need quick cash without going through any complicated loan application process, then both payday loans and car title loans are the best options. However, your borrowing cost will be high with a payday loan, and you can save some money with title loans in Jackson, Mississippi. As far as risk is concerned, you will lose your car only when you don’t pay. People who need immediate access to significant cash should consider auto title loans. However, when the need is small, then it can be fulfilled through a pay loan. I hope this comparison of two quick loans will help you pick a better financial route.