What’s the Difference between Installment Loans vs. Payday Loans?
Both installment loans and payday loans are loan options if you need cash fast to pay for emergency expenses. Compare the features and benefits of each loan to determine which loan is best for you.
What is an Installment loan?
Installment loans allow you to borrow a fixed loan amount and then pay it back over time or in monthly installments. Personal Installment loans are usually affordable and don’t come with prepayment penalties. Prepayment penalty. It’s easy to set a budget and determine how much you owe upfront.
What is a Payday Loan?
Payday loans are short-term loans that you repay with your next paycheck. Payday loans typically pay back in two to four weeks.
Even though your credit score won’t be considered, you may be approved for an unsecured loan in as little as one day. A payday loan may be a good option if you need quick cash to pay your bills or get your next paycheck.
Comparison of installment and payday loans
There are many variations between payday loans and installment loans.
Installment loans are available in amounts up to thousands of dollars. However, payday loans are usually only available to a handful of people.
Repaying a fixed-rate personal installment loan can take several months. Payday loans will need to be repaid within weeks of your next paycheck.
APR on Loans
Payday loans usually have lower interest rates and fees than installment loans. Payday loans may have an APR of up to three digits.
Before approving you for a personal loan, many lenders will review your credit score. At the same time, payday lenders might credit check your credit score to approve you for a loan.
They may not require that you have good credit. However, installment loans typically have lower creditworthiness requirements than traditional loans.
Are you in search of a Payday or Installment loan?
You may be able to differentiate between an installment loan and a payday loan. A payday loan may be an option if you need cash quickly, and you are sure that you will repay the loan by your next paycheck. An installment loan or personal loan might be better if you cannot repay the payday loan or wish to borrow additional cash.
Paydaydaze offers Installment and Payday loans
Paydaydaze offers both payday and installment loans that can be used to quickly get you the cash you need. Your funds will be available after applying for an installment loan from Paydaydaze as long as your application has been approved.
Paydaydaze.com also offers personal loans.
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