With payday loans the amounts tend to be under $1000 the average being around $300 to $500, but in some instances payday loans may exceed $1000. The loan is repaid when the next paycheck arrives and is settled electronically via bank transfer or via a post dated check. If the borrower cannot pay the agreed amount off then a payday loan can be rolled over into the following month to give time for the recipient of the loan to pay the funds back. If you require under $1000 you can go strait to our payday loans online section.
Installment loans range from small amounts around $200 into thousands of dollars. The difference between a payday loan and an installment loan is that the installment is due monthly and can be paid back over an extended period of time. The loan, plus interest is basically put into a sequence of monthly payments. A borrower should consider this option if they have larger expenses or needs as the interest is lower than a payday loan. The installment loan lender will look at your personal circumstances, credit score, annual salary to see what you can afford to pay back. Further questions maybe be asked about your work situation, how long you have been employed, by whom to determine your ability to manage your repayments.
A vital element of an installment loan is your credit score so if you know in advance that you may be applying then you stand a much better chance if you pay attention to this ahead of your loan application. There are plenty of credit score tools online like experian that can give you this information. Installment loans are great for purchasing more expensive items or services such as building, cars, education, white goods, paying down existing debt and so on. It is possible that you may already have too many payday loans and are considering an installment loan but in that case you may want to consider our payday loan consolidation plans that help reduce the debt burden with smaller interest payments.
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