What in the World is an Auto Title Loan? (cont.)
Contributed by Melanie Vannuys
That being said, if you look in the phone book, especially if you live in a larger metropolitan area, you will likely find an auto title loan officer in your area. You may do an Internet search to find one, but you probably won't be able to apply online since there's no way to get the title to the lender.
One variation to this type of loan is for those of you who may not own a car or you don't want to use your car as collateral (smart thinking! ) It's called a "Pay Day Loan," and unless you drive with your eyes closed, you've surely seen them on your last trip to the mall. These little businesses have popped up everywhere!
A pay day loan works in a similar fashion as the auto title loan, minus the auto title. You write a check to the lender and they agree to hold the check until a few days after your next pay day. They will loan you the amount you wrote the check for, minus their fee of course, and then when you get paid you deposit that amount into your checking account and the lender cashes your check.
