Payday loan or installment loan?
Both payday loans and online installment loans are available online, so you don’t even have to leave the house to get it. In both cases, formalities are limited to the minimum necessary, but you will need an ID card and a bank account to which the money is to be transferred. Both these forms of loans are therefore connected by easy availability and a large selection of companies that offer them. And how are they different? Payday loans are usually liabilities incurred for smaller amounts and for a shorter period.
People who decide to do so usually have 30 to 60 days to pay off their debts. Some companies may extend this time, but this is often associated with additional costs. Installment loans can in most cases be taken out for larger amounts, and the repayment period is up to three years. So it allows you to set low installments, which do not put too much burden on the household budget.
Which solution is better?
The answer to this question is difficult, because a lot depends on the situation of the borrower and his financial capabilities. Certainly, however, installment loans are easier to pay off due to the possibility of spreading them into convenient installments – a one-time payment of up to USD 4,000 is a much bigger problem for many people than paying monthly amounts of eg USD 400.
This is important due to the fact that delays in paying out payday loans are associated with additional costs. It is worth noting that all types of loans taken out in installments are usually more thought out, as one of the monthly expenses that should be included in the home budget for the near future.
In what situations is it worth choosing an online installment loan?
A quick loan available via the Internet allows you to receive funds to your account in a short time, so this solution will certainly work in an emergency. It can also be an interesting alternative to a cash loan in a bank that requires many formalities. Of course, it is very important to choose a reliable company that conducts its business legally.
Therefore, before taking out a loan, it is worth verifying whether the selected non-banking institution is on the National Finance Supervision register. It should be mentioned that, contrary to the opinions of many people, this type of loan is available to customers without a negative history in the Credit Information Bureau, therefore people with problems in the past with repayment of other liabilities may face a negative decision. And although this may seem like a major impediment,