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Because there’s no collateral to reassure the lender, the average personal loan rate is higher than the average auto loan rate. Rates can be as high as 36 percent — though those rates aren’t ...
Title loans: A car title loan uses your vehicle’s title as collateral. You borrow against the value of your car, which means lower interest rates than unsecured options.
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A title loan (also known as a car title loan) is a type of secured loan where borrowers can use their vehicle title as collateral. [1] Borrowers who get title loans must allow a lender to place a lien on their car title, and temporarily surrender the hard copy of their vehicle title, in exchange for a loan amount. [2]
Similarly, a loan taken out to buy a car may be secured by the car. The duration of the loan is much shorter – often corresponding to the useful life of the car. There are two types of auto loans, direct and indirect. In a direct auto loan, a bank lends the money directly to a consumer. In an indirect auto loan, a car dealership (or a ...
The application fee is capped at $20, and you’ll pay no more than 28 percent in interest. This makes payday alternative loans more affordable than car title loans and some bad credit personal loans.
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