Credit Cards vs Title Loans: Which is Better?
It is definitely smart to consider all your options before settling on the best one. And credit cards do seem to be the most obvious substitutes to auto title loans which appear to work along the same principle. Both give you a credit at a particular time. Both allow you to return the money later and move on with your life. Then why should you choose title loans Spartanburg SC over using your credit cards? Who says that the former is better?
Only when you look deeply can you understand the difference. Only when you ask the right questions, look into the terms and conditions, do you graspyour eligibility in using credit cards. When things are rough, barely anything goes your way, and credit cards work only to choke you further. Here are the truths laid out for you.
Credit cards set limits based on your past, title loans don’t
Everything that the banks look into before providing you with credit is all applicable for credit cards as well. Your current income, your credit score, your bank balance, and even your spending habits. All are taken into account to set a credit limit on your card up to which you can borrow. If you do not have a decent financial past to show, they will leave you high and dry.
But when you opt for the best title loans near me, none of these will haunt you. The only limit you will ever have is the Actual Cash Value of your car. The health of your vehicle will determine the amount you can borrow and not your credit score. As evident, title loans provide you with an easy way out while credit cards are continuous hassles.
Credit cards demand security deposits, title loans require nothing
Most credit card providers require you to maintain a certain amount in your bank as a security deposit. Many also float your credit limit based on the deposit you have. This money is basically sitting in your account that you cannot access just because you have to keep your card running.
However, with title loans Spartanburg SC, you don’t lose anything. Although you leverage your car to get the amount, you still get to drive it around. The loan providers only keep your title for assurance and you do not face any monetary drawback. You get the loan, your life remains the same, and you get back the title once you clear the payments.
So, end this credit cards title loans dilemma. Choose the better option. Use the valuation of your car to save you instead of getting all tied up in the banking system.