Two of the most sought and popular types of short-term loans are installment loans and payday loans. They are in-demand because they do not require the traditional credit check. For people who have a low credit score or poor credit, their best option is either an installment loan or payday loan. These loans are easy to get and a borrower can apply online, wherein the money will be credited to the account by the next business day. In this article, allow us to share the differences between an installment loan from a payday loan.
A payday loan is taken against the borrower’s next paycheck, and this is a type of short-term unsecured loan. In terms of payday loan’s minimum requirements or eligibility, the borrower should have a regular or stable source of income, at the legal age (at least 18 years old), and a bank account. A payday loan amount ranges from $100 to $1000. A lender can approve the payday loan in just a matter of minutes upon the submission of the required documents. The borrower can either collect the money in cash or have it credited to his bank account. The amount borrowed should be paid off on the next paycheck. On the other hand, an installment loan can be paid in several months or in an installment basis, which is its difference from the payday loan that needs to be paid in full in a month. While payday loans have usually high fees and interest rates, payday loans are the best option for people who have a bad credit score, and those who want to borrow fast cash. It is relatively easy to borrow money from lending companies offering payday loans online and throughout the key cities in the country, so you can get fast cash if you have medical emergency or you need money for your child’s project or unexpected educational expense.
When it comes to installment loans, the loan amount is usually higher ranging from $200 to $2000, and some lending companies also provide higher loan amounts as well. In terms of interest rates, they are lower than payday loans. The requirements are similar to payday loans including legal age (at least 18years of age), copy of payslips, and checking bank account information. There is a fixed interest rate and this is the best option for those who need fast cash but won’t be able to pay it in just a month. Wire Lend is a trusted, reliable, and reputable lending company, willing to help you get either a payday loan or an installment loan.