What Are Payday and Auto Title Loans
Payday and auto title loans are high cost, small-dollar loans. They are offered to individuals without a credit check and little consideration of their ability to repay. Payday loans are unsecured and simply require proof of employment and access to a bank account via a post-dated check or electronic ACH authorization. The initial term is typically two weeks, until after the next paycheck. Auto title loans are secured by a car title; the amount loaned is based on the value of the car and they have terms of thirty days. They are both marketed on the basis of speed and convenience to people who feel they have no other options.