Payday Loan vs Installment Loan: Which One Should You Choose?
The problem with payday loan vs installment loan often seems to be that people don’t really understand that both of them are actually pretty different – even though they mostly seem similar in many aspects. But actually, each loan has its own place.
And the few differences they do have are really important and should be crucial to your decision on which one to apply for. Here is a quick breakdown of both payday loans vs installment loans.
Payday Loan vs Installment Loan Similarities
For those, who’ve never had to get one before – both payday loans online and installment loans are a type of short-term unsecured fast loans. 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 for most loans at traditional financial institutions and they only help for 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. This means you can qualify for either a payday loan or a signature installment loan even if your credit is bad. And there is a possibility 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 big differences between payday loans vs installment loans. First – the loan amount. At Nevada Title and Payday Loans, Inc., the maximum loan amount for a payday loan is $500, while a maximum loan amount for an installment loan is $1,500.
Second – the loan repayment terms. A payday loan is usually paid off all at once when you get your next paycheck – hence the name. That said, the loan terms may vary, so you’ll need to make sure you act per your agreement. The installment loan, on the other hand, is designed to allow you a longer repayment period and is always repaid over, well, 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 useful for short-term problems that don’t require a lot of money. Remember, any loan you get is on you to pay off. Over-borrowing money is going to 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’s, or covering emergency help from a locksmith/plumber/electrician.
When Should You Get An Installment Loan?
An installment loan, on the other hand, is better suited for problems you know will require more funds to settle, whether it’s due to their overall higher costs, or their reoccurring nature. Getting an installment loan would be something 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 have medical problems where the final cost is yet unclear. In other words when you need larger financial flexibility and/or some buffer.
How To Get The Loan You Need
If you have all the required items for either loan – which, again, is your ID or driver’s license, proof of income, and a blank check from an active checking account in your name – just 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 for you – there’s no reason not to start right now. It could take as little as 30 minutes to get approved, so get started by filling out the online form for either loan today!
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.