"Payday Loans" and "Installment Loans" in Carrollton, Texas

Sometimes you might be looking for a loan because the cash or savings you have is not enough to do what you want. A loan offers you access to a larger amount of funds which you cannot find in other financing options. If you are looking to take a loan, there are different types of loans available to borrowers. It’s likely you know about mortgage loans and personal loans. Other loans you can take as a form of financing include payday and installment loans. Here, we will take a look at payday loans and installment loans to see the difference and which one is better for you.

Payday loans in Carrollton: 24/7 online approval $100-$1000 cash advance!

"What is a Payday Loan?"

Payday loans are a short term loan that is paid in one lump sum and not installments. Payday loans are easy to obtain since you don’t need collateral to obtain it, but the interest rate is usually high. With a payday loan, the lender will give you money as a loan and you will have to repay it on your next payday. Payday loans are also called cash advance loans. Payday loans have gained a negative reputation recently because they are usually taken by borrowers with bad credit history. Also payday lenders usually trick people to take out loans they cannot afford to repay them so that they can charge a large amount of interest.

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Installment loans in Carrollton: Up to $3000 personal loans up to 24 months!

"What is an Installment Loan?"

Installment loans are basically a loan paid in installments, typically in monthly installments. Examples of installment loans include car loans, personal loans and mortgage loans. Installment loans are a good financing option for people looking for larger financing. You can use installment loans to buy a house, car or pay for your children college fees. The borrower and lender usually agree on the repayment period so that it is manageable. If the loan is not repaid on time, the interest will accrue meaning the borrower will pay a larger amount of interest in the future.

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Difference between a payday loan and installment loan

Payday loans and installment loans are often referred to as a 'high cost small dollar' loan because they have a high interest rate and are often given out to people with smaller incomes. However, payday loans and installment loans have some differences. These are some of the difference between the two:

· Payday loans are a short term loan that is due on your next payday i.e. 30 days. Installment loans, on the other hand, are paid over a period of months.

· Installments are usually regulated and licensed by State and Federal agencies. Payday loans are not regulated and in some states, they are illegal.

· Payday loans are unsecured loans since you don’t need collateral to obtain it. Most of the time installment loans are secured loans, but in some cases they can be unsecured.

· Payday loans do not require a credit check which makes it easy to obtain. In installment loans, the lender evaluates the borrower’s credit history prior to giving them the loan.

Choosing the lender

When you are considering to take payday and installment loans, it is recommended you go to reputable lenders. Make sure the lender is transparent and they are not hiding crucial details of the loan like interest rate and penalties. Installment loans usually take 24 hours to obtain if you have right documentations. Payday loan approval is instant since the lender does not need to do a credit check.

Which loan should you take?

Before deciding between a payday loan and installment loan, you need to consider various factors like your credit history. With a payday loan, your credit history will not affect your ability to obtain the loan. But with installment loans they check your credit score before giving you the loan. Also, it is important you consider whether you can afford to pay the loan in installments or a lump sum. Payday loans are suitable for borrowers who can pay it at once, while lump sum loans is best for people who require manageable periodical payments. Payday loans may look easy to obtain, but it might be a financial trap which might cost you dearly in the long term. Consider your financial situation and look at the risk of obtaining each loan. Then go for the one which benefits outweigh the risks.

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