Get Quick Cash Relief by Applying for Payday Loans
Despite the fact that most people believe that personal and payday loans are the same, it is hardly similar. These two however are totally different structures. Generally speaking, these payday loans are already secured to your next payday and available for short term basis. There are a lot of payday lenders who are eager providing this solution to their customers. 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.
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. 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. 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 – 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 – personal loans most of the time are not requiring collateral for borrowers to be provided. However, some credit unions and banks might be requiring borrowers particularly those who have poor credit history to get a creditworthy cosigner. As for payday loans, they don’t need collateral or cosigners but some lenders may be demanding borrowers to show them list of references from the borrower along with their employment records as well as bank information.
There are also title lenders that you can find offering their service; this is basically a kind of lender who does provide loans but in exchange for the borrower’s 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. Now say for example that the borrower becomes irresponsible of making payments for their loan, they run the possibility of completely losing their prized possessions.