Payday Loans Vs Installment Loans

by Kimmy Burgess Your Money Problems Solved

When facing a financial emergency, you may need to take out a loan. There are different types of loans to choose from. However, the two most common loan types usually considered are payday loans and personal installment loans.

The Basics of Installment Loans

There are different types of installment loans including consolidated loans, mortgages, auto loans, and more. However, personal loans are the most commonly requested installment loan.

Here are the pros and cons of a personal installment loan to help you decide whether it is the right option for you.

Pros

May be less expensive

Lower APRs

Longer repayment terms

Qualified borrowers can take out larger loans

Cons

Requires a long time for loan approval

Good personal financial history required

Auto repossession, bankruptcy, and foreclosure may prevent getting an installment loan

Whenever You Need Immediate Funds, a Payday Loan Is an Excellent Choice!

You can take out installment loans only if you do not require quick cash and have a good personal financial history. An installment loan will never provide immediate access to funds, so it won’t be useful when you need cash for an emergency.

Learn more: Payday Loans Vs Installment Loans: Which One to Consider?