Basics of Installment and Payday Loans
Before comparing both these funding options, let us understand what payday loans and installment loans are. A payday loan, as you might be knowing, is an emergency cash loan preferred by borrowers for cash up to $500 to take care of the shaky financial situation. The majority of the borrowers depend on such financing to pay bills, fix their vehicles or to address any kind of temporary cash shortage. These need to be paid off by the coming salary day, and are not considered wise to use for long term solution.
Installment loans are also borrowed by people from low income groups for similar purposes, but here they do not have to get debt free by the coming paycheck day. Rather, they can pay the loan in multiple installments slowly. Lenders like CashAmericaToday provide flexible repayment terms up to 3 months for cash up to $1,000 even with a bad credit score.
Is an Installment Loan Better Than a Payday Loan?
If you are considering “should I choose an installment loan over a payday loan?”, then go for the installment loan because it is definitely the better option. Maybe you have already noticed that you can get higher amounts of cash with an installment loan– apart from the greater repayment flexibility which helps your credit in the long run. However, that is not everything that makes this funding option this alternative better compared to the payday advance option.
CashAmericaToday accepts every kind of credit; bad, poor, no history for installment loans, and funds you the same day of your online application. If your income level is low, with other lenders it might be tricky to score a loan, but here you won’t be denied. Apart from that, you would be paying significantly lower interest rates – and no hidden fees- if you choose your lender right. Normally payday loans cost you a bit more, and this is another reason you should be taking out an installment loan from us. Apply!