Unexpected expenses can be a budget killer and that’s where Lift Credit can help you. But how do you decide between an installment loan vs. a payday loan? While these loans are similar, there are some big differences that you need to know about before you make your decision.
What’s the Difference?
All loans are not created equal and when you’re trying to decide which type of loan to apply for, knowing the facts about each type could help you save time and money. If you’re looking for a quick solution that you will also repay quickly, a payday loan could be the right option. If you’re looking for an installment loan in Utah, Idaho, or Wisconsin and want more flexible repayment terms, an installment loan could be a better fit.
The 411 on Online Installment Loans
When a larger unexpected expense pops up in your life, an installment loan is a great solution because it will allow you to borrow more money with more flexible repayment terms. Here are some of the benefits to installment loans in Wisconsin, Idaho, and Utah with Life Credit:
- Set a repayment schedule that fits into your budget
- No early repayment penalty
- Lower APR than most payday loans
- Longer repayment terms
- No credit check with Lift Credit personal loans (great for people with bad credit)
The 411 on Online Payday Loans
When you need cash in a hurry, many people turn to payday loans. These unsecured loans are usually paid back at the next payday, hence the name. If you need money quickly and can repay it quickly, payday loans could be a good option for you. Here are some things to be aware of in regards to how payday loans work:
- Payday loans usually don’t require a credit check
- Higher APR and fees than other types of loans
- Quick approval
Payday loans aren’t a terrible idea, especially if you’re able to pay it off within the original terms of the loan. They are generally easy to get approved and you can get the money quickly. But it’s not without its drawbacks. The interest rate for these loans can be really high. You’ll definitely pay for the convenience.
An installment loan, on the other hand, is designed for people that have an immediate need and want to pay it off over a period of time. These loans offer lower interest rates and easier repayment plans that can work with your budget.
Help, I Missed a Payment!
No one wants to miss a loan payment, no matter what type of loan it is. But sometimes it happens and you’ll want to understand how this can affect your loan. Since the terms are shorter on payday loans, missing a payment is a big deal. This can mean paying more fees and possibly having a negative mark on your credit report.
Installment loans are a little more forgiving. Because the terms of the loan are usually longer than payday loans, there is a little more flexibility if you run into a problem making a payment. The best thing you can do, no matter which type of loan you choose, is to stay in contact with your lender.
Online payday loans and online installment loans are designed to help you when you’re in a bind. There are pros and cons to both types of loans and it pays to do your homework. Our friendly customer service agents are ready to help you decide whether an online payday loan or an online installment loan will work best for you.
Want an online installment loan with bad credit? We offer personal loans with no credit check. Apply for an installment loan today!