When you’re in the market for a loan, you find out that there are many different types of loans. In fact, there may be many more loan types than you ever thought possible. You probably already know about auto loans, student loans, and mortgages. But now you may notice there are fixed-rate loans and variable-rate loans. Plus, what do they mean by conventional, open-end, closed-end, direct installment loans, or unsecured and secured loans? Though these different loan types are interesting and necessary in their own right, today we’ll focus on the question, “What is the difference between payday loans and installment loans?”
Before we can talk about the differences, we first need to define these loan types.
Payday Loan
A payday loan, also sometimes called a cash advance, is a loan that you may take against your upcoming paycheck. Loans of this type are typically short–term and sometimes may be capped at $500 or less. You’ve probably seen commercials or advertisements for companies that offer payday loans. You can go to their establishment, sign some paperwork and get the loan if you qualify. You may have to pay the fees upfront, with the lender taking the fees from your loan first, before you receive any money. You then typically have to repay the full amount of the loan when you receive your next paycheck.
Though no collateral is required for a payday loan, you will likely need to give permission for the lender to take money from your bank account electronically on your payday.
You might think cash advances are a good option because you can get the money quickly, but what happens when you need all the money from your next paycheck to pay for something else, like your regular expenses? Wouldn’t it be better if you could pay back your loan in small installments instead of being required to pay it all back at one time? To better answer this, it’s important to understand the difference between payday loans and installment loans.
Installment Loan
An installment loan is just like the name implies. It’s a loan that you pay back in installments, instead of repaying the entire loan in one payment. Many loan types are installment loans. Auto loans, mortgages, and student loans are all examples of installment loans. Installment loans are also sometimes called personal loans because they can be used for personal reasons.
You may have heard of direct installment loans or even the term unsecured installment loan. Though these can slightly differ, regardless of the terminology, they are both types of installment loans.
The payment amount for each installment depends on how much you borrow, the interest rates and the length of the loan. Installment loans could last from only a few months to a few years, like you would see with a car loan. Installment loans can even last about 30 years, as a mortgage might.
Simple Lending – Personal Loans vs. Payday Loans
If you are comparing personal loans vs. payday loans, you’ll realize that both are a form of simple lending. You’ll probably also notice that personal loans may give you more flexibility than payday loans. You may have a longer time to pay a personal loan back, with smaller payments over time. Though it might take a little longer to get funding with personal loans than with payday loans, this isn’t always the case. Some direct lenders for installment loans online, like MaxLend, may be able to get you loans as quickly as the same day.*
Payday Loans Online
Life happens, and we all need extra cash at one time or another. Regardless of why you are searching for funds, are you looking for payday loans online? You can stop searching because we have payday loan alternatives. At MaxLend, we are direct lenders for installment loans. Our cash loans are great when you need money now. Plus, you won’t have to pay everything back by your next payday.
Our direct online installment loans provide you with an easy application and a way to get the money you need – sometimes as soon as the same day. They also ensure you have more time to pay the loan back. Can you say the same about payday loans?
MaxLend – Direct Lender for Online Loans
Now that you know about the difference between payday loans and installment loans, maybe it’s time to get an installment loan for yourself.
At MaxLend, we know that there are many reasons people take out loans. People may be relocating, starting a new job, getting a new car, paying vet bills, paying for medical emergencies, and other things. If you are in a situation like this, remember that MaxLend may be able to help. We offer cash loans up to $3,750. We’ve helped lots of people obtain quick, online unsecured installment loans. You may be able to get your loan as soon as the same day.*
If you have questions about our direct installment loans, you can read our frequently asked questions page or give us a call at 877-936-4336. We’re available 24 hours a day, 7 days a week. It’s quick and easy to apply for a MaxLend loan online.
Want to know more about MaxLend, your reliable online installment loan lenders? Not a problem. You can read some MaxLend installment loans reviews to see what others have to say about us. These are simple, fast loans reviews.
What are you waiting for? You can apply for cash online today and find out about our loan loyalty rewards program.
*Same Day Funding is available on business days where pre-approval, eSignature of the loan agreement and completion of the confirmation call, if a call is required, have occurred by 11:45 a.m. Eastern Time and a customer elects ACH as payment method. Other restrictions may apply. Certain financial institutions do not support same day funded transactions. When Same Day Funding is not available, funding will occur the next business day.