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When expenses come up and you donвЂ™t have the money to pay for them, the first solution that comes to mind may be to take out a loan. If your credit is bad, youвЂ™ll have very limited borrowing options. Traditional lenders view bad credit borrowers as high risk and may not even be able to provide a loan.
One common alternative is a payday loan. If you own a vehicle, you may be able to get a title loan as well. These two types of loans are specifically designed for people with a poor credit history or no credit at all.
Payday loans and title loans are considered legal in Texas. If youвЂ™re looking for Texas car title and payday loans, realize that not all companies are created equal. Some of the companies on our list offer both lending options or one over the other. But first, hereвЂ™s what you need to know when comparing Texas car title and payday loans.
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Title Loan Vs. A Payday Loan
Title loans and payday loans are pretty similar but they also have some key differences as well. A payday loan is a short-term loan for a small amount – usually not exceeding $1,500. The idea is that youвЂ™d pay the loan back by your next payday so it almost works like an advance.
The big downside is that payday loans come with extremely high-interest rates. According to the Consumer Financial Protection Bureau (CFPB), payday loan interest rates can be as high as 400% APR. Proof of income is an important factor that is weighed more heavily than your credit so bad credit is often okay when applying. Continue reading 8 Best Texas Car Title And Payday Loans