The Difference Between Installment Loans and Payday Loans
Get installment loans and payday loans online
If you’re looking for a short-term loan, you have a couple of different options. The main types are installment loans and payday loans, which are similar. You can get both types online, through Personal Money Store. Both types of loans will get you quick cash, usually transferred to your bank account very fast.
There are different advantages to both installment loans and payday loans, so make sure you get the right type of loan for you. First, let’s look at installment loans.
Fast cash and a payment plan
If you need cash fast but you need more money than you can pay back with your next paycheck, you can get an installment loan. It is a short-term loan, so you should only borrow an amount that you can pay back within the next few weeks. The term of your loan depends on your lender, but you should expect to finish paying off your loan within a couple of months.
You will get the full amount of your loan today, but instead of having to pay back your loan amount and lender’s fees all in one big chunk, like a payday loan, you can it break up into payments. Here is my advice about installment loans: Schedule your payments for each time you get a paycheck. Make the payments as big as you can while still being able to realistically afford it. But know that once you make a loan agreement, you must stick to it.
Quick cash, short loan terms
If you just need a little bit of cash to help you through the next few days, a payday loan is perfect. You’ll get your cash quickly, pay it back next time you get a paycheck, and you’re done. You won’t have to think about it again. It’s a one-time expense to help you with an emergency expense when you don’t have cash lying around. You might even want to look into a down payment assistance loan if you are trying to buy a vehicle.
Just as with an installment loan, you can get started online, be approved online and have access to your cash fast. However, the plan here is that you’ll pay back your loan and your lender’s fees as soon as you get your next paycheck. It’s quick and — as long as you plan carefully and only borrow within your means — it can be painless.
Be careful, though. If you can’t pay back your full loan amount plus lender’s fees all in one fell swoop — and on your loan due date — there can be hefty fines. So, if you’re not sure whether you can afford to pay back your loan all at once, play it safe and go with an installment loan.
The loans are different; the process is the same
Whether you choose an installment loan or a payday loan, the process is the same. You can get started online, get approved online, make a loan agreement online and get your cash electronically transferred from your lender directly into your bank account.
Either way, you could have access to your cash fast. Plus, there are fast credit checks and no need to use a phone, fax or anything other than your computer.