Which is better to choose – payday loan or installment loan
An undoubted advantage of installment loans is their easier repayment. It is true that every month you have to save the amount, but like everything repaid in installments, it is easier – you do not need to immediately collect a high amount to pay the debt.
The price for such “comfort” is costs – non-bank installment loans are not cheap . Therefore, if someone has a chance to receive such help from a bank, they should definitely check this option (you can compare offers here).
Another issue is the ease of receiving it – in this case, rather difficult, because a person who does not earn regular income (they do not have to come from remuneration from work) has rather little chance of getting financing.
It is also worth remembering that when we need an amount of several thousand USD or more, a short-term loan is not an option. In loan companies you can borrow up to $ 15,000 in installments.
Payday loan – quick and short-term solution
The payday loans are a slightly different loan product. They are granted for very short periods (from 1 to 60 days), they must be repaid immediately together with the costs due. When it comes to costs , there are ways to avoid them (e.g. promotion of the first free loan for new customers – more).
The advantage is the speed of procedures and more liberal criteria than in the case of long-term loans. However, a person who has negative information in BIK databases may have a problem getting help in many loan companies.
Take into account your needs
When deciding on the type of loan, let’s think about which solution will be financially advantageous for us. If we can deal with one-time repayment, it may be worth reaching for payday pay – it will be a cheaper alternative. If we have doubts whether we can repay the loan “at once”, a better solution would be an installment loan.