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Auto Finance Contributing Editor. Updated on 01262018. Payday and title loans give borrowers quick access to cash for a short time. With a title loan, lenders place a lien on a car owners car title in exchange for a loan. Payday loans are shorter term loans in which the lender essentially advances you one paycheck. Both payday and title loans are meant to be short-term solutions to help consumers get through a short-term financial crisis.
Borrowers should carefully consider their options before taking out a loan and make sure they understand fees and repayment terms associated with these loans before signing any paperwork.
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