The two most sought types of short-term loans are installment loans and payday loans. The reason why these loans are in-demand is that they don’t 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. We will share the facts, benefits, and differences between installment loans and payday loans.
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. The loan amount ranges between $100 and $1000. A lender can approve the payday loan in just a matter of minutes after the borrower submitted all the needed documents. The borrower has the option to collect the money in cash or have it credited to his bank account. When it comes to the duration of the payday loan, it is only until the borrower receives his next paycheck, which means that the entire loan amount must be paid in full on the borrower’s next payday. This is actually the main difference between a payday loan and n installment loan because an installment loan can be paid in installments or several months. Although the interest and fees of a payday loan are usually high, this is a great option for people who need to get fast cash, most especially for those who have a poor credit score. A payday loan is helpful if you need to get fast cash to pay a hospital bill or any medical emergency, for funding your child’s new musical instrument, or unexpected expenses, and you can get fast cash online or office of the lending agency.
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. Installment loans have lower interest rates 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.