An online installment loan is a good option for someone who needs quick cash. There are different types of loans one may opt for. Two of the most popular types are cash advances and payday loans. Are you are considering contacting an online installment loan direct lender to get cash to pay for an emergency? You may wish to note the main differences between these two types of direct loans. It helps to make a proper lending decision. A payday loan is more suitable for you than an online installment loan, or vice versa. So it is important to understand the differences between them. One of the key differences is that direct lender installment loans are going to offer you more cash than payday loans. So if you need a bigger sum of money, it is often better to go for an online installment loan. Such a loan is ideal for long-term cash needs, and people who prefer to pay the lender back in increments generally opt for this type of loan.
The top online installment loans from a direct lender will all have equal monthly payments. A borrower will have to pay back to the direct lender every month. These direct loan installments or repayments are set out in a payment schedule before the online loan agreement. Often a smaller principal and an extended maturity is available on installment loans, making it easier to refinance them. If you opt for a longer term financial note you will have more time to refinance the loan. So if you plan to take this slowly and prefer regular repayments, then this is the best option for you. Also, an installment loan will need collateral in most cases. Personal property such as jewelry and cars are often used, but real estate does not apply for direct loans. Another widely used choice is a car title loan where you use the vehicle’s pink slip as collateral. Some states like California and Florida have dozens of title loan companies who give high dollar loans. Other states including Texas and Arizona will require that all online loan companies be licensed to provide funds. Texas will require any online lender be registered and current with the Texas Office of Consumer Credit.
Payday loans are simple and flexible in terms of the payoff time. We often see the little amount of money you’re borrow and the APR is modest. They are definitely the quickest way to get the cash you might need. The amount of money that are lent with cash advance companies are relatively smaller than those from installment loans. The main aim of payday loans is to provide one with the cash he or she might need to cover certain expenses in between paychecks. Much like what you see with mortgage loan companies, a direct lender needs to show specific payoff amounts. Often borrowers are looking for direct online loans. They will opt for a payday loan and repay the sum of money they borrowed. This happens when they get their next wage or salary in the bank checking account. Unlike installment loans, there are often no payment schedules or monthly repayments involved. Payday loans are much simpler and more straightforward.
Another factor with an installment loan versus payday loan is that cash advance borrowers will often have bad credit or past due bills when they take out a loan. If someone applies for personal loan from a bank they would see a denial. The bank would base that on their past credit history or missed loan payments. You can now search for different types of direct loan lenders by using our online APR comparison tool. Both options are simple and more convenient as you can basically apply from the comfort of your own home or office. As a general rule of thumb most lenders will give you a maximum of $1500 through a payday loan. Personal and bank loans can go up to several thousand dollars. Regardless of which one seems best, it is important to check the installment lender’s reputation. Read all the online terms and conditions when you get to the loan application.