There are times when you need to get some money to pay for an emergency. It might be that somebody was hospitalized or you need to have something in your home repaired.
These are valid reasons to apply for an emergency loan. If you need money fast, you could get title loans in Utah if you have a fully paid car in good working condition.
Typically, applying for a title loan is fast and easy. You don’t even need a good credit score. You don’t need to sell your car — while you are repaying your loan, you can still use it on a daily basis.
To determine if you can repay the loan, there is one thing the lender needs to ensure: “Are you currently employed or have a steady source of income?” The title loan company wants to know if you have the capability to repay them.
The next questions are about the car — the collateral. Is the car fully paid for? Is the title in your name? The lender will also ask about the state of the car: Is the car in great running condition? Is it free of major damages?
Cheaper than Payday Loans
Due to the collateral, the loan has a lower interest rate than payday loans. Payday loans are short-term cash loans of small amounts. The loans range from $100 to $1,000, payable within two weeks. The average interest rate for payday loans is around 400% annual interest (APR).
It also has finance charges between $10 and $30 on a loan of $100. In some states with no caps, the interest rate can go higher than 780% annual interest. In comparison, title loans usually have less than half the interest rates of payday loans.