Article

Payday Loans Vs Installment Loan

Written by Kimmy Burgess

Topic: Financial LiteracyPublished October 21, 2019
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When facing a financial emergency, you may need to take out a loan. There are different types of loans to choose from. However, the two most common loan types usually considered are payday loans and personal installment loans.

The Basics of Installment Loans

There are different types of installment loans including consolidated loans, mortgages, auto loans, and more. However, personal loans are the most commonly requested installment loan.

Here are the pros and cons of a personal installment loan to help you decide whether it is the right option for you.

Pros
  • May be less expensive
  • Lower APRs
  • Longer repayment terms
  • Qualified borrowers can take out larger loans
Cons
  • Requires a long time for loan approval
  • Good personal financial history required
  • Auto repossession, bankruptcy, and foreclosure may prevent getting an installment loan

Whenever You Need Immediate Funds, a Payday Loan Is an Excellent Choice!

You can take out installment loans only if you do not require quick cash and have a good personal financial history. An installment loan will never provide immediate access to funds, so it won’t be useful when you need cash for an emergency.

Learn more:Payday Loans Vs Installment Loans: Which One to Consider?

Article author

About the Author

Kimmy Burgess is the Manager of Cash in a Snap, which helps clients get connected to its large network of reputed lenders to get a no fax payday cash advance when they need it. Kimmy has over 20+ years' experience in Administrative Management, with many years in the lending industry. Her expertise includes customer service, client services and other functions in the payday lending business.

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