When it comes to getting fast cash, there are a lot of options out there. Two of the most common quick-cash loans you may come across are payday loans and installment loans. Each has its own advantages, and the one you choose should be based on your current financial needs. So which one is better for you? Payday loan vs. installment loan, let’s find out!
Which Is Better for Bad Credit?
If you’re currently struggling with having poor credit, this will definitely play into your decision. While both of these loans can be for borrowers with a bad credit score, they have many differences you should be aware of before making your decision.
When it comes down to it, personal installment loans are usually a better and more affordable option out of the two loans. And depending on the lender, you can probably still get one even with below average credit.
If you have poor credit, you may not have as many choices for funding. Luckily, both of these options are usually available to borrowers with less-than-perfect credit histories. But installment loans tend to be more affordable and allow borrowers a longer time to repay the loan.
Read on to find out more about the pros and cons associated with each of these quick-cash options!
Payday Loans Online
The great thing about getting fast cash in the 21st century is that many lenders now offer a fully online loan process. Payday loans are no exception to this. There are a plethora of lenders online offering “emergency loans” or “fast-cash” options for borrowers in need.
Payday loans are typically small-dollar loans, ranging up to a few hundred dollars in most cases. The name comes from the fact that they are usually paid back on the borrowers next payday. The repayment period is rarely more than a couple of weeks.
Because these loans are geared toward borrowers with poor credit scores, they tend to carry high interest rates. And because the interest can be rather high (depending on the lender) and the repayment period is short, these loans can be difficult to repay on time.
If you have poor credit, and you’re considering a personal loan, it may be wise to opt for a personal installment loan.
Personal Installment Loans Online
There are many lenders that also offer personal installment loans online. These loans are a great alternative to short-term loans like payday and title loans. Many borrowers have an easier time repaying personal installment loans than any other loans.
Installment loans also carry lower interest rates than most payday loans. And borrowers are able to spread their payments out over a longer period of time. Many personal installment lenders provide several months, or even years, for borrowers to repay their loans.
With lower interest rates and longer repayment periods, it’s no question that borrowers with low scores would likely prefer a personal installment loan.
Payday Loan vs. Installment Loan: The Winner
The winner of payday loan vs. installment loan is… obviously the installment loan. But you’ve already figured that out.
If you’re currently struggling financially, and you need some fast cash to handle an emergency, consider a personal installment loan or even a loan with a co-signer. At CreditNinja, our personal installment loans are designed for borrowers just like you.
The best part is, the entire application, funding, and repayment process can all be done from the comfort of your home. No more waiting in long lines or filling out tons of paperwork. You can apply, get a decision, and get your cash deposited right into your bank account with CreditNinja.
Apply today to get the cash you need, and get your life back on track!