Payday Loan vs. Installment Loan
When you need cash, there are many different options for how you can get it. Payday loans and installment loans are two of the more common types of advances you have probably heard of. The two couldn’t be more different, and installment loans are the much safer option if you have access to them. Here are just a few of the differences:
While there is no set definition of a payday loan, it is usually a short-term, high cost loan, generally for $500 or less, that is typically due on your next payday. Depending on your state law, payday loans may be available through storefront payday lenders or online.
- The loans are for small amounts, and many states set a limit on payday loan size. $500 is a common loan limit although limits range above and below this amount.
- A payday loan is usually repaid in a single payment on the borrower’s next payday, or when income is received from another source such as a pension or Social Security. Continue reading “The laws in your state may permit, regulate, or prohibit these loans”