Roughly 2 million people borrow money using title loans each year. And around 12 million people are taking out payday loans annually.
For many Americans, this has become the norm – taking out loans to make ends meet. Some use them regularly to pay for monthly bills, while others get them sporadically to help with emergency expenses.
If you’re thinking about getting pay day loans in Utah, but aren’t sure if it’s right for you, then this guide may help. We’re going to review the differences between a pay day loan vs title loan.
Let’s take a look.
What Are the Requirements for Pay Day Loans in Utah?
Pay day loans are great to use when you’re in need of quick funds to pay for small debts. For example, a light bill, rent, doctor visit, or food shopping.
In order to get pay day loans, you have to meet certain criteria. For instance, you need:
- Verifiable income
- Open and active checking account
- Be at least 18 years old
- Valid phone number
Pay day loans allow you borrow between $50 and $3,000. You’ll have to pay a fee, which sits around $20 per $100 you borrow. Your income will impact how much you can borrow.
You’re required to repay the loan on your next payday (can be between 8 and 36 days). This is normally automatically deducted from your checking account unless you repay it earlier.
What Are the Requirements for Title Loans in Utah?
The main difference between title loans and pay day loans is the collateral. With a pay day loan, you can get a loan just for showing you have employment and a bank account.
However, with a title loan, you must put your vehicle’s possession on the line. In the event you don’t repay your loan, the lender can confiscate your vehicle.
In order to qualify, you need:
- A car title in your name
- Driver’s license or state I.D.
- Your vehicle available for inspection
The amount of your loan depends on the value of your vehicle. Some lenders offer up to $15,000 to $20,000. The minimum you can take out varies, but is usually around $1,500 to $2,600.
The fee for these loans can range from $1,500 to $7,000.
Getting a Quick Loan
If you’re looking for a loan that doesn’t have a lot of risk or high fees, then you should opt for pay day loans in Utah. The fees are lower compared to title loans and you won’t risk losing your car.
Pay day loans are also available at lower limits, which may be more suitable for your needs. However, if you need a large lump sum of cash and feel confident you can pay it off quickly to avoid high interest rates, then title loans are your best bet.
Hopefully, this article helped you understand the differences between the two loans and how you can use them to stay ahead financially. If you need a quick quote for a pay day loan, then fill out our online application today!
Mike is the owner of Money 4 You Payday Loans in Utah. He has been serving the community for over 20 years and has kept that small-town, friendly business feel from the start. Money 4 You Payday Loans has 21 locations across Utah to serve you.
Money 4 You Payday Loans