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

Choosing payday loans vs. installment loans can be challenging for those who have never gotten one of these emergency loans before. While they are similar loans, specific details differentiate them, making one better for your situation than the other.

In this guide from Nevada Title and Payday Loans, Inc., learn about the differences between payday loans and installment loans. Consider what separates these two loans to choose which can help best with your financial emergency.

Which Is Better: Payday Loans Or Installment Loans?

When you need emergency cash to handle urgent expenses, payday loans and installment loans can help you during rough economic times. However, which is the better option for you depends on a number of factors, including requirements, loan amounts, etc. Below, we will go over what separates quick payday loans from installment loans to help you make your decision.

The following are the differences between installment loans and payday loans in Nevada:

What Are Payday Loans And Installment Loans?

Payday loans are unsecured loans that allow people to borrow from their future paychecks. Once they can prove they have current income, borrowers can receive emergency cash and use that money to get through a quick financial emergency.

Installment loans are also unsecured but designed to help with longer-term, more expensive financial emergencies. Sometimes referred to as signature installment loans, borrowers can get approved by providing their signatures, allowing them to receive emergency funds they can pay back in fixed installment payments.

How Much Can You Borrow With Payday Loans Vs Installment Loans?

The significant difference between these two types of emergency cash loans is the loan amount. The maximum amount you can borrow with emergency payday loans is $500. How much you can borrow depends on your income level, as you will get approved for more cash the more money you make consistently.

Long-term installment loans allow borrowers to receive up to $1,500 in emergency funds. The repayment process for installment loans is more structured than payday loans. They are designed to help with longer-term urgent expenses, allowing you to borrow more money.

Requirements For Installment Loans And Payday Loans

There are also slight differences in the requirements for these emergency cash loans. Both loans require the borrower to have their most recent pay stub and a driver’s license or other state-issued ID card. The pay stub can prove they have income, which is used to determine the value of their loan. The driver’s license proves their identity and that they are over 18 years old.

The difference comes from how you prove your checking account. You need a blank check from an active checking account in your name for payday loans. For installment loans, you need a statement from an open checking account in your name.

The Pros And Cons Of Payday Loans

Payday loans are outstanding when someone needs quick cash for a minor financial emergency. They are short-term loans you can get approved for the same day you apply, allowing you to pay for urgent expenses quickly. Another advantage of payday loans is how easy repayment is. Most borrowers can repay their loans fully using their next paycheck.

However, there are some drawbacks or cons of payday loans. It’s not great if you have an expensive financial emergency, as you may not be able to borrow enough. You also may wish for a longer repayment process, which isn’t the best choice for emergency payday loans. It’s vital to consider payday loan benefits and risks before applying.

The Pros And Cons Of Installment Loans

Installment loans also have pros and cons for borrowers to consider. Long-term installment loans allow borrowers to pay for urgent expenses that may take longer or require more money. They also allow borrowers to repay them in installments over a few months, giving you more time to handle the repayment.

That could also be considered a disadvantage for some borrowers looking to repay their loans faster. You have more money to repay over a longer course of time, which may not fit with your finances.

Should You Get A Payday Loan Or An Installment Loan?

Which emergency cash loan you should take depends on several factors. How much money do you need? Is your financial emergency a short-term or long-term issue? How much can you afford to repay?

Quick payday loans in Nevada may be better for those facing short-term, less expensive urgent expenses. For example, you missed a week of work this month and have overdue bills. A payday loan can work well if you only need a few hundred dollars to handle this one-time payment.

However, someone who suffered an injury and may miss a couple of weeks of work may want to consider an installment loan. They will get more money for their bills and be given more time to repay their loan. This can help them bridge the gap between paychecks while healing from their injury.

Getting An Emergency Loan With Nevada Title And Payday Loans, Inc.

Nevada Title and Payday Loans, Inc. offers both payday loans and installment loans; the approval process is the same for both! We allow borrowers to get same-day approval for these emergency loans after completing a few simple steps.

The following are the steps involved in getting emergency cash loans with us:

• Fill out our online inquiry form with your name, zip code, email address, etc.
• Answer a phone call from one of our loan representatives to discuss your loan
• Agree on a meeting location, such as your home, office, or a Nevada loan location
• Gather your required items and head to the meeting place
• Have your required items verified in less than 30 minutes
• If approved, sign loan documents
• Receive your emergency cash the same day or the next business day

Apply For Payday Loans Or Installment Loans In Nevada Today!

Payday and installment loans provide quick financing options when facing a financial emergency. Nevada Title and Payday Loans, Inc. allows borrowers to get approved for both of these loans and can provide emergency cash during your financial crisis the same day you apply.

Don’t wait; start the process today by filling out our online form. One of our friendly loan agents will call you to answer any questions and explain the step-by-step process for loan approval.

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