Generally, it is confusing to take a loan since there is so much variety available nowadays! However, payday and installment loans are the preferable options by the majority. Further when it comes to choosing between the two then it depends on the situation of the person and relevant conditions as well. 

Here we have gathered the complete solution to the question “Should I get a payday or an installment loan?” Read further to know more about the same. 

What Is An Installment Loan?

Installment loans are short-term loans that can easily be taken on by any bank, irrespective of having a bank account there or not. As the name suggests, there is a fixed time period that will be given to repay the loan you have taken on with the loan. You will have to make smaller payments to repay the entire amount over this period of time. These loans are easy to fulfill because it is easier for most people to pay in these smaller amounts of installments rather than making larger payments. 

These installment loans give you a regulated period of time to ensure that you are able to keep a regulated gap in smaller payments to make sure your funds are being used properly. This makes larger amounts of money available to you and makes them more affordable. You never know when you may need a large sum to make ends meet. This is where people opt for these installment loans. 

There is a fixed rate of interest on multiple installment loans that ensure there is a fixed amount of money that you need to pay back every month. This rate of interest differs based on where you are getting the loan from and what type of loan you have.  However, people would any day prefer to get the loan and eventually pay it back over time even with the different rates of interest. 

There are many types of installment loans that you can opt for, depending on what you would need the sum for. This is important because there is a relatively long process to getting a loan. You will have to provide the bank with a lot of documentation when you are trying to get a loan. Once the loan has been sanctioned, you will get the whole amount. However, you may get the amount in portions. This is usually the case with education loans. The interest you get on these loans depends on the kind of loans you are getting. Your credit score definitely plays a role in determining the rate of interest you will get on your loans but not always.    

What Is A Payday Loan?

There are many people who do not have good credit scores. It is easily possible to stack up a lot of debt to income ratio cycles that you are not able to get out of. Even if you are paying all of your loan installments and credit card debts on time, you may find it difficult to make ends meet. You may run into a situation where you need a loan, even if it is a relatively small amount of money. However, if you have a bad credit score, even a small sum of loans will not be sanctioned to you. 

This can be very disappointing because you are not getting a loan. However, this does not mean that your needs and wants will just go away. This is where we have payday lending options at Money-Wise. They are the easiest way of getting a quick loan when you are in need. The procedures and documents required here are way less than at a conventional bank. This is simply because Money-Wise knows that you are in urgent need of money. They do not want to delay the process for you further. They want to ensure that you have all the right support for you to get the payday loan quickly. 

What Is Better – An Installment Loan Or A Payday Loan?

This is unfortunately not a straightforward question. There are different parameters involved in both kinds of title loans. It is important that you understand the criteria for both of them separately. It is not always possible for everyone to get a loan from the bank. This is a time of great stress and turmoil. You may need extra money for rent and other utilities but you cannot take on more debt consolidation from the bank. It is possible that you are not able to use your credit card as well. 

The only answer in such situations is opting for a payday loan. You do not have to provide documentation for your credit score because it is obvious that you are there because a conventional bank may have turned you down. You may also need a relatively small amount that the bank would not provide you with any which way. A typical payday loan will usually be a portion more than half your monthly income. You will definitely have to go in with your pay stubs. They are the only document that will determine the amount of secured loan you are eligible for. 

Concluding About Online Payday Loans

There is a lot of debate about whether or not payday loans are good for you. However, it needs to be understood that they are usually taken in as a last resort. Such a feature is important for people who do not have a good credit score. You cannot put your life on hold just because you are unable to get funds from the bank. This is a great option for people because they have so many kinds of debts. They come in the form of home loans, credit card debt, personal loan, and online installment loan on various utility products like your car and the maintenance that comes with it. Payday loans are a great option for you to explore. It is important to keep certain options available to you because you never know when you may need such an option. Money-Wise makes it easier for you to get access to such payment options.