Those who have an emergency situation occur might need to borrow a little bit of money to make it to their next paycheck without having to eat Raman noodles for all three meals a day for an entire week. When this happens, they will want to decide if they should use a payday loan or an installment loan to get the money they need.
Payday loans are fast loans a person can obtain and repay in full with their next paycheck. They’ll be able to qualify with for this type of loan even if they don’t have great credit and will be able to receive the money they need as fast as possible. Sometimes, they can receive the money the same day they apply for the loan. These are very short-term loans, so the person only has until their next paycheck to repay the loan in full plus the interest.
Installment loans are still considered short-term loans, but the person has longer to repay them. A person won’t need an excellent credit score to apply for this type of loan and can get the money they need within the same day or by the next business day. Depending on how often they’re paid, the person can make weekly, biweekly, or monthly payments for about six months to fully repay the loan.
Which One is Better?
Which one is better will depend on a person’s situation. If they only need to borrow a tiny bit of money and they can easily repay it with their next paycheck, a payday loan might be the better option. They could save on the interest because they’re paying it back faster.
However, if the person needs to borrow a larger amount of money or they do not want to have to fully repay the loan with one paycheck, they might want to consider an installment loan. They’ll have up to six months to fully repay the loan plus the interest and can pay it off early with no penalty if they prefer.
If you need a little bit of extra money, companies like Maxlend Loans will offer both of these options so you can choose the one that’s right for you. Take a look at the website now to learn more about your options and to see how easy it can be for you to get the money you need.