Payday Loan vs. Installment Loan

Woman giving money to a man
Surprise expenses come up for many of us — often without warning. If you’ve had an emergency expense and need a little help making ends meet, you may be considering a payday vs. installment loan. Both are viable options but, depending on your needs, one might be a better fit. To help you make the right choice, we’ll compare installment loans vs. payday loans here, so you can get the Xpress Cash funding you need on terms that suit your budget.

What are Payday Loans?

A payday loan is a short-term loan that allows you to get the cash you need to cover emergency expenses now. Payday loans, also known as ‘cash advance’ loans, are due for repayment on your next payday, hence the name. There are benefits to this kind of financing if you need cash now:

  • Almost Instant Approval
  • No Credit Check
  • No Monthly Payments
  • No Collateral
  • Amounts from $50 to $1,000

Payday loans are an excellent choice for borrowers who need immediate approval but worry that a poor credit history or using Social Security income will make borrowing money difficult. Keep in mind, however, that payday loans can be difficult to get out of if you miss the original repayment date.

What are Installment Loans?

Installment or personal loans allow you to borrow more money and repay it over a set time, often a period of months or years. Installment loans can be more challenging to qualify for, but the benefits can be great:

  • Flexible Repayment Options
  • Can Help Build Good Credit
  • More Purchasing Power
  • Lower Interest Rates Than Short-Term Loans

If you have a personal or medical emergency, have gotten in over your head with your credit cards, or need to pay for expensive repairs, an installment loan will allow you to do that while building — or rebuilding — your credit profile.

Other Loan Options

In some states, borrowers have additional options to help get the funding they need for unexpected expenses; title loans. A title loan allows you to use the collateral available in the vehicle you own to pay down other debt. You can still drive your vehicle as you normally would, but now you make payments to the lender, who hold the title against default.

Explore Your Lending Options at Xpress Cash

To learn more about the lending options available to you and whether you can have two payday loans at once, feel free to contact us online or visit one of our branches in Michigan, Wisconsin, or Idaho today to speak with a loan specialist who can walk you through the process.