What’S The Difference Between Payday Loan And Installment Loan

Life doesn’t always go as planned. A short-term loan can assist you in bridging the gap between an emergency payment and your upcoming paycheck when you incur unforeseen expenses.

While both payday loans and installment loans can be used to address pressing financial needs, which one is best for you?

We’ll explain the distinctions between these loans, what you need to know to see if you qualify, and how to apply in this blog.

A payday loan is generally repaid in one lump-sum payment after about two weeks, whereas installment loans allow borrowers several months or even a couple of years to repay the principal and interest.

What is the difference between an installment loan and a payday loan?

If approved, both loans provide quick access to the money you require. You can use these funds to help pay for unexpected expenses like medical bills or home and auto repairs. But as you’ll see below, the repayment terms for installment and payday loans are different. In some states, both are additionally accessible at ACE Cash Express.

What is an installment loan?

Installment loans are repaid over time. If you are approved for a short-term installment loan, you will have to make several payments that are roughly equal in amount. To possibly save on interest and/or fees, you can also make these payments beforehand or pay off the loan entirely.

Applying for an installment loan at ACE Cash Express is simple and quick in the following states and for the following sums:

What is a payday loan?

Payday loans have a shorter repayment period than installment loans. You will typically pay it back in full by your following payday rather than making scheduled installments. These loans, which are also known as cash advances, can be paid off early to avoid additional interest and other fees. At ACE Cash Express, you may submit an online application for a payday loan for these sums in these states:

Additionally, you can apply for a payday loan in person at ACE Cash Express in certain states. Visit our payday loan page to learn more.

Can I get an installment or payday loan with poor credit?

If you have bad credit, you might be able to get a short-term loan. Although it doesn’t guarantee you will be accepted, ACE Cash Express considers a number of factors in addition to a borrower’s non-traditional credit score when determining whether or not to grant a short-term loan. For instance, when you apply for an online installment loan, information about your financial situation and history will be used to make a decision. You will typically find out if you are approved for an installment loan using our application in just a few minutes.

What do I need to apply for an online loan?

Through our straightforward application process, you can apply for a payday loan or an installment loan online. Open the application on your computer or mobile device, then complete it by following the onscreen instructions. Make sure the following information is close at hand because you will need to input it:

  • Valid Identification
  • Proof of a steady, reliable income
  • Proof of an active bank account
  • You will receive a decision shortly after submitting the application information. If you are approved, you can then pick up your cash at an ACE Cash Express location near you or have it deposited overnight into your bank account. 2.

    Whatever your urgent financial needs, a short-term loan may help you handle them.

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    Is an installment loan or payday loan better?

    Payday loans and short-term loans may seem like the answer for those in need of quick cash. However, over time, installment loans are typically much safer and less expensive.

    Is payday loan is the same a installment loan?

    A payday loan typically isn’t an installment loan; instead, it’s a short-term loan with a single due date and higher interest rates. Usually $1,000 or less, they are due back in a week or two (or on your next “payday”). Payday loans do not require a credit check.

    What is a payday loan and what is an installment loan?

    Mortgages, auto loans, and other personal loans fall under the category of installment loans, which are generally longer-term and subject to credit checks. Although they technically fall under the category of installment loans, payday loans have much shorter payment terms, higher interest rates, and no credit checks.

    What are examples of installment loans?

    A personal loan is the most typical type of installment loan, but there are other types as well, such as no credit check loans, mortgages, and auto loans.