What Is A Personal Installment Loan Versus Just A Regular Payday Loan?
Which Loan is Right for Me?
Just about everybody has heard of a paydayloan. Some of what you’ve heard may be good, or bad. But, regardless of what you’ve heard, millions of payday loans are made each year. And, with all those payday loans being made, there will inherently be good stories and bad stories and stories in-between.
In a nutshell, a payday loan is a short-term loan based on your paycheck. If you don’t have a paycheck, you cannot get a payday loan. Needless to say, in order to have a paycheck, you must be employed. Typically, you get a payday loan and you pay it back within two weeks or whenever your next paycheck is. There are exceptions and some lenders are willing to offer extensions under some circumstances. The maximum amount of a payday loan is typically $1000.
Typical qualifications for a personal installment loan and/or a payday loan:
- Must be at least 18 years old; and
- Must be employed; and
- Must have a checking account
A payday loan and a personal installment loan are similar and the qualifications are the same. But, the way you pay the loans are different.
What is a Personal Installment Loan?
Personal installment loans are not as well publicized as payday loans. An installment loan is like a payday loan except that you pay an installment loan over a period of time. This is beneficial to a borrower who needs smaller payments over a longer period of time. However, keep in mind that an installment loan is still a short-term loan and the length of time can vary from two weeks to a year.
There are benefits to getting a personal installment loan or a payday loan:
- Filling out the applications is quick and can be done online (4 minutes)
- Bad credit—okay
- No credit—okay
- No faxing or mailing of documents
- On-line application is safe and secure
Filling out the loan application is quick and easy
Just a click away and a few questions and answers and you’re on your way to approval. Everything can be done on the internet from application to approval to deposit of money into your checking account.
Bad credit installment loans and bad credit payday loans okay
Even people with bad credit need loans from time-to-time. The payday loan and installment loan market addresses the needs of those who may have bad credit but are in need of a short-term loan.
No credit installment loans and no credit payday loans okay
Surprisingly, there are many people who don’t have good credit or bad credit—they have no credit at all. There are young adults with no credit. There are senior citizens with no credit. This is not a factor with short-term loans such as payday and installment loans.
Bankruptcy installment loans and bankruptcy payday loans
What do you do if you have a bankruptcy on your credit report and you need a loan? Apply for a bankruptcy installment loan or a bankruptcy payday loan where your bankruptcy is irrelevant and approval of your loan is not based on bankruptcy.
No faxing or mailing of documents
One of the most frustrating things borrowers are faced with when applying for a loan is the need to provide supporting documentations to verify the information in the application. Short-term installment loans and payday loans do not require the applicant to fax or send in supporting documentation in order to get approval for their loan.
Online application is safe and secure
You don’t need to worry about your private information falling into the wrong hands when applying for an installment loan or payday loan. Everything is done via the internet on a safe and secure internet site.
Whether you decide to apply for an installment loan or a payday loan, remember that the cost of penalties, late charges, and overdraft fees from banks, landlords and other creditors is a lot more than the cost of the short-term loan. If your need a short-term loan to pay a bill or keep a check from bouncing, remember that the process is quick, safe, and easy. If you need an installment loan or a payday loan for some other purpose, the process is quick, safe, and easy.