Get Quick Cash Relief by Applying for Payday Loans
A lot of people mostly think that personal and payday loans are just the same or to say the least, very similar. What you must know is that, each follows a different set of arrangement. Payday loans are actually secured right on your next payday, hence the name. 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.
When it comes to personal loans however, they are available for a larger sum of money and mostly used for major financial issues which can be repaid for an installment basis. Reputable and well known lenders are offering both types of loans to assist you on your journey to fix your financial records.
Basically, there are many other things that made these loans are different from each.
Loan processing period – payday loans can be processed faster compared to personal loans which only needs a day or two weeks. Because payday loans can be approved within minutes and the loan can be deposited on the next business day, they are very beneficial for those who are in need of urgent financial situation.
Say for example that you face the probability of suspending your electricity or phone service or any urgent financial situation, then a payday loan can be a great solution for it.
Repayment period – there are different methods of payment for personal loans including 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. Payday loans however don’t require any collateral or cosigners in the process but there are payday loan lenders who might demand a list of references from the borrower together with their bank information and employment records.
There is the so-called title lenders in which the payday lender provides loans to people in exchange of their car or house title. Although, the borrower still has ownership to their car or house but, the lender is going to keep the title until they have fully paid the borrowed money. If they fail to make repayments of the amount, then that is when the borrower will lose his or her asset.