Get Started Now

image

Get Started Now!

By clicking on "Get Started!", I agree to the Terms of Use, Privacy Policy and ESIGN Consent

image

Payday Installment Loans

What’s the difference between a payday installment loan versus a payday loan?

Payday loans can be used to pay unexpected expenses. However, the loan must be repaid in monthly installments over a number of years. This type of borrowing is also known as a payday installment loan.

Payday installment loans are not like conventional payday loans. They don’t have a due date. Instead, you pay interest in a shorter time frame and in smaller amounts than your paydays. State legislation may have an impact on the terms and availability of these loans.

These loans are commonly referred to by the term “installment loans”, which is an analogy to traditional bank loans. Despite being more risky and costly due to their high APRs they can be even more expensive.

What’s the difference between a payday installment loan versus a payday loan?

Lenders may offer loans that are as fast as payday loans, but that allow you to repay the loan in monthly installments. This depends on the state’s restrictions or high-cost loan regulations.

Like other installment loans (car loans and conventional personal loans), these loans can be paid off over several installments.

These loans are typically more expensive than traditional installment loans. They have higher loan amounts and interest rates. These loans have shorter payback terms. These loans can be obtained from both local and online lenders.

Too high interest rates

Payday installment loans have an average APR of 300 percent. It all depends on where you live. Some lenders will allow you to repay your loan early and without imposing a penalty. This could save you significant interest.

This is how it works: If you pay your loan off quickly, your interest rate will decrease.

Fees

Certain lenders may charge an origination fee, which could increase the loan’s cost. You would receive $1.050 if you applied for a $1000 loan that included a 5% origination fee.

You would receive $950 if $50 were taken from the loan money. Late fees may apply if you do not receive your payments on time. If your account is not able to pay the payment, you may be charged a fee for returning checks. You should thoroughly read the terms of any loan that you are considering to avoid hidden fees or
penalties.

Loan amounts

For relatively small amounts, payday installment loans can be obtained. You can borrow anywhere from a few hundred dollars to a few thousand. Your salary and the

state’s maximum loan limit will determine how much you can borrow. Lenders may check your credit history and credit score. Lenders may decline to lend to you.

Repayment terms

A payday installment loan is not like a traditional payday loan that must be repaid on your next paycheck. Instead, it has a longer repayment term. It can take anywhere from several months to many years.

The lender’s terms and regulations can vary depending on where you live. When your monthly payments are due, your paydays will be due. Lenders may require access to your bank account in certain instances to collect payments.

Apply

To determine if you are eligible, online loan applications will be required. To determine if you are qualified, the lender will conduct a credit check and validate your identity. You must have a savings or checking account in order to apply.

Lender financing

If you have been authorized, the loan money could be available in banks, on your debit card, or in your bank account. Depending on the lender’s process, it is possible to receive the money as soon as you apply.

What are the conditions to get a payday loan?

Payday installment loans can be a very expensive credit option. These loans shouldn’t be considered a last resort. This loan might be better suited for you if you are in severe financial difficulties and have no other options. If you fail to make your payments on-time, your car could be taken from you.

What are my options when it comes to payday loan installments?

If you have a quick need for money, here are some more options.

Credit card use

Credit card APRs typically range between 12 percent and 30 percent. Credit cards can be as affordable as payday loans at 300 percent but may still be more expensive.

Alternatives to payday loans

Small-dollar loans may be offered by federal credit unions. These loans can be obtained in amounts from $200 up to $1,000 and payback terms of one to six months. The interest rate for the loan is only 28%, despite the $20 application fee.

A traditional bank might be able help you with a short-term mortgage.

As an alternative to payday loans, small loans can also be obtained from certain institutions. Although these loans are typically less expensive than payday installment loans they have lower annual percentage rates. If you have poor credit or had financial

problems in the past, you may not be eligible. Co-signer/co-applicant If you have good credit, you may be able to get a loan with a shorter term. A bank will offer a personal loan.

Borrow money from a friend, family member or neighbor.

You can borrow money from your friend if you’re able.

A family member can lend you money
This could be a better alternative to payday loans.

Next, what?

Payday installment loans can be short-term loans that have high interest rates and must be repaid over time. If you’re often in short of cash, it is worth speaking to a credit counselor before applying for a payday loan.

A credit counselor will give you an honest assessment and help you to develop a viable strategy.

If you are in an emergency, it is important to be cautious. A strategy should be in place to repay your loan on time, and avoid paying interest.