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. Payday loans are actually secured right on your next payday, hence the name. The payday lenders are very eager to offer this solution to their customer’s financial woes. You may be inclined in applying for such kind of loan but you ought to know that these come with bigger penalties and higher interests as well.
With personal loans on the other hand, it offers bigger amount or in other words, it can used for more of your immediate financial problems and can be paid in installment for a certain 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 face the possibility of your phone service, electricity suspended or whatever reason and you don’t have the money to pay for it, payday loans are proven to be a good solution.
Repayment period – personal loans are offering varied repayment periods for customers from months, years to two years. By contrast, repayment period for the payday loans could be as quick as one week although, a lot of payday loans have periods that can last closer to 14 days.
Co-signer or collateral required – personal loans most of the time are not requiring collateral for borrowers to be provided. 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. Even though the borrower has submitted the title of their asset, the lender still has possession of it until they get to pay the full amount. The borrower is going to lose his or her asset in the event that they have failed to repay the amount loaned.