Payday Loan vs Installment Loan: Which One Should You Choose?

Choosing between payday and installment loans can be challenging. However, at Nevada Title and Payday Loans, Inc., we're here to help you understand the difference. 

When a financial emergency hits, you'll search for quick cash to tackle your urgent expenses. Deciding between a payday and an installment loan comes down to understanding what loan best suits your financial needs. From the loan amount to its requirements, it's essential to explore the similarities and differences between these two loans.

Their few differences are significant and should be crucial to deciding which one to apply for. Please keep reading to dive into the debate between Nevada payday and installment loans and find out which is better for you.

Should You Choose A Payday Loan Or Installment Loan?

Payday Loan vs Installment Loan Similarities

Online payday and installment loans are short-term, unsecured, fast loans for those who've yet to get one. Unsecured means you don’t need to put up collateral to get approved.

Fast means the approval process takes very little time, and there’s a minimal waiting period before you get your cash. Short-term means that the loan repayment period will be shorter than it would be for most loans at traditional financial institutions, and they only help in short-term situations. Usually, this is because of small loan amounts.

Nevada Title and Payday Loans, Inc. works with prospective clients with both good and poor credit. You can qualify for a payday or signature installment loan even if your credit is terrible. And you can qualify if you are unemployed. The list of qualifying requirements looks the same as well. You’ll need:

• A valid state-issued ID or a driver’s license to prove you’re over 18 years of age;
• Proof of income in the form of your most recent pay stub;
• A blank check from an active checking account in your name.

Payday Loan vs Installment Loan Differences

There are two significant differences between payday loans and installment loans. The first is the loan amount. At Nevada Title and Payday Loans, Inc., the maximum loan amount for a payday loan is $500, while the maximum for an installment loan is $1,500.

Second, the loan repayment terms. A payday loan is usually paid off once you get your next paycheck—hence the name. The loan terms may vary, so you’ll need to ensure you act per your agreement. On the other hand, an installment loan is designed to allow you a more extended repayment period and is always repaid over several installments.

When Should You Get A Payday Loan?

While the smaller loan amount may make a payday loan seem less attractive than an installment loan, it’s far more helpful for short-term problems that don’t require a lot of money. Remember, any loan you get is yours to pay off. Overborrowing money will damage your finances in the long run.

Payday loans are designed to tide you over until your next paycheck. They’re a good option if you need to cover some overdue bills/fees or take care of a one-off emergency, like an unplanned doctor’s visit, taking a car to a mechanic, or covering emergency help from a locksmith/plumber/electrician.

When Should You Get An Installment Loan?

On the other hand, an installment loan is better suited for problems you know will require more funds to settle, whether due to their higher costs or reoccurring nature. Getting an installment loan would be worth looking into if you have to cover a lot of financial obligations at once.

They can also help when you need to make an abrupt move due to problems with your living situation or medical issues for which the final cost is unclear. In other words, when you need more considerable financial flexibility and some buffer.

 

How Can You Get The Loan That's Right For You?

If you have all the required items for either loan—again, your ID or driver’s license, proof of income, and a blank check from an active checking account in your name—submit an online form to the website to get started.

The form sends your information to the nearest Nevada loan location, and when it gets processed, a loan representative will give you a call with further instructions. You’ll need to take the items to the meeting they’ll schedule.

The loan representative will assess your documents and determine if you qualify for the loan and for how much. If they approve you, you’ll finish the paperwork then and there and get the money soon after – either the same day or the next bank business day.

Apply For The Loan You Need Today!

If the answer to the payday loan vs. installment loan problem has become clear, there’s no reason not to start right now. Approval could take as little as 30 minutes, so start filling out the online form for either loan today! 

Note: The information in this article is only for informational purposes. You should contact your financial advisor about your specific financial situation.