America’s Loan Company offers affordable Bad Credit Personal Loans. Our aim is to provide our customers with loans with payments to fit their budgets. But, why get a Personal Loan from us instead of the typical Title Loan? After all, you can get a Title Loan approved in under 30 minutes. Whereas, we may take 1 to 3 days from application to contract signing, depending on how fast an applicant provides documents needed. The short answer, a little patience will save you money.
Title Loans Are More Expensive
What does it mean when loan is expensive? This refers to the amount of fees that you end up paying for the loan. A.P.R. is a measure used to determine how expensive the loan is. Title Loans are very expensive compared to America’s Loan Company’s Bad Credit Personal Loans. Here’s a few points to consider mentioned in a Consumer Finance Protection Bureau’s May 18, 2016 report on Title Loans (You can follow this link if you rather read it https://www.consumerfinance.gov/about-us/newsroom/cfpb-finds-one-five-auto-title-loan-borrowers-have-vehicle-seized-failing-repay-debt/):
- “One-in-five borrowers have their vehicle seized by the lender:”
- “Four-in-five auto title loans are not repaid in a single payment:” This means that you most likely to fall into a cycle of debt.
- “More than half of auto title loans become long-term debt burden:” Since you are more likely to fall into a cycle of debt, according to this report, you are likely to need to re-borrow four or more times.
- “The typical loan is about $700 and the typical annual percentage rate is about 300 percent,”
Are Our Personal Loans Different?
Our Bad Credit Personal loans are still geared towards customers with poor credit (650 credit score and below). However, our A.P.R. on Personal Loans are never in the triple digits. On our Home Page we give a few sample quotes. For instance, a qualified customer may borrow $1,500.00 over 2 years and have a 33.70% A.P.R.. Since our Bad Credit Loans are not as expensive and made to fit your budget, you are not as likely to fall into a cycle of debt. Therefore, in the case that we have to use your vehicle’s title as security for a Personal Loan, you are less likely to have the loan go into default and have to deal with a repossession.
As mentioned in a previous blog, always compare shop between lenders and get quotes. Although we may not be as cheap as getting a loan from a bank, we are very confident that our fees are much lower than what you will pay with many other lenders.