The two most sought types of short-term loans are installment loans and payday loans. They are in-demand because they do not require the traditional credit check. The best option for people who have low credit score or poor credit standing and need quick cash 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. In this article, let us discuss the differences between an installment loan from a payday loan. To read more about the loan tips wirelend.com
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A payday loan is a type of short-term unsecured loan involving a small amount of money that is taken against or linked the borrower's next paycheck. 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. In terms of loan amount, payday loans usually range from $100 to $1000. Once all the needed documents are submitted, a lender can approve the payday loan in just a matter of minutes. The borrower is given the option to have the money credited to his bank account or to collect it in cash. 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 the main difference of a payday loan from the installment loan, wherein an installment loan can be paid in several months or in an installment basis, while a payday loan needs to be paid in full in a month. While payday loans have usually high fees and interest rates, payday loans are the best option for people who have a bad credit score, and those who want to borrow fast cash. It is relatively easy to borrow money from lending companies offering payday loans online and throughout the key cities in the country, so you can get fast cash if you have medical emergency or you need money for your child's project or unexpected educational expense. Go to the reference of this site in here!
When it comes to installment loans, the loan amount is higher as compared to payday loans, which range between $200 and $2000, and some lenders or lending companies even provide higher loan amounts than these. Installment loans have lower interest rates than payday loans. The basic requirements are the same which include a copy of payslips, checking bank account information, and the borrower must be at least 18 years old. Installment loans are best for people who need to get quick cash but know that they won't be able to pay in just a month, and the interest rate is fixed every month. Wire Lend is a trusted, reliable, and reputable lending company, willing to help you get either a payday loan or an installment loan. Find out more information about loan https://en.wikipedia.org/wiki/Loan