Get Quick Cash Relief by Applying for Payday Loans
As a matter of fact, numerous people think that payday loans and personal loans are similar but it is far from reality. These two however are totally different structures. Generally, payday loans are secured on your next paycheck and short term. There are a lot of payday lenders who are eager providing this solution to their customers. These loans however come with bigger penalties and higher interests.
Personal loans on the other hand are often for a bigger amount meaning, they can offer a solution to your immediate financial problems and paid in installment over a period of time. If you want to fix your financial records, then it will be recommended that you talk to well known lenders in the industry that are offering these types of loans.
Basically, there are many other things that made these loans are different from each.
Loan processing period – if you need faster processing time, then it will be recommended that you opt for payday loans which can be processed within a day or at maximum of two weeks. Due to the reason that it usually takes minutes for payday loans to be processed and the money can be deposited on the next business day after approval, they are sought after by borrowers who are in emergency situations.
If you’re facing the possibility of having your phone service or electricity suspended the next day, then applying for a payday loan can provide a resolution to your problem.
Repayment period – personal loans do offer a number of repayment periods for their customers ranging from months, years to two years. By contrast, the repayment period for a payday loan can last for only a week but some can extend to a maximum of 14 days.
Co-signer or collateral required – most of the time, personal loans don’t require the borrowers to provide collateral. On the other hand, some credit unions as well as banks may need borrowers especially those who got bad credit history to find a creditworthy cosigner. While collateral or cosigners aren’t required in payday loans, there are some lenders that are requiring borrowers to show references alongside their bank information and employment records at the same time.
There is the so-called title lenders in which the payday lender provides loans to people in exchange of their car or house title. Despite the fact the fact that the borrower has ownership to their house or car, the lender can still keep possession of it until they have paid the money borrowed in full. The borrower is going to lose his or her asset in the event that they have failed to repay the amount loaned.