"Payday Loans" and "Installment Loans" in Denton, Texas

When it comes to financing, there are many options available to borrowers depending on their specific needs. If you are short of cash, you can decide to go for various financing options. A borrower can choose to save or borrow cash from a family member to finance his needs. Or they could go for loans. A loan offers borrowers a higher level of financing compared to other financing options like borrowing cash from friends. However, depending on the type of loan taken, there incur various interest rates. If you are looking to take a loan, there are payday and installment loans that you can use to finance your needs. So what is the difference between payday and installment loans?

Payday loans in Denton: 24/7 online approval $100-$1000 cash advance!

"What is a Payday Loan?"

A payday loan is a short term loan where a borrower borrows funds at a high interest rate that is typically due on the next payday. For you to get this loan, you need to write a post dated personal check stating the amount of money you wish to borrow. This will include a fee that is charged so that you can get the loan in cash. If a borrower is unable to repay the loan, the amount will be rolled over and he will incur additional fees. Payday loans are also referred to as check advance loans or cash advance loans because they are given out within days when you are short of wages.

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Installment loans in Denton: Up to $3000 personal loans up to 24 months!

"What is an Installment Loan?"

An installment loan is a loan that is paid within a specified period of time usually 30 days. Examples of installment loans include mortgage and car loans. Installments offers borrowers access to a large amount of savings that attract a lower interest rate compared to payday loans. You can use this loan to pay for your kids school fees or buy a house. Unlike payday loans, installments have a longer repayment period, giving you the peace of mind that you can pay the loan. If the loan is not paid on time it accrues.

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Difference between "payday loans" and "installment loans"

- Payday loans are a short term loan that incurs high interest rates that is paid in lump sum typically on the borrower’s next payday. Installment loans can last up to 30 years and incur a lower interest rate that is repaid in installments over a period of months.

- With payday loans a lender does not need to check the credit history of the borrower before giving them the loan. Installment loan lenders usually check the credit history of lenders before they can take the loan.

- Payday loans are unsecured loans hence they incur high interest rates. Installment loans are usually secured against your personal properties like cars.

- A payday loan amount usually ranges from $100 to $1,000. Installment loans usually range from $100 to thousands of dollars.

- Payday loans are not regulated by Federal law and in some states it is illegal. Installment loans are usually licensed and regulated by Federal and State agencies.

So, these are the facts and details about the payday loans and installment loans that you must know. Now, you can decide which one of this you want to apply for.

Which loan is better for you?

Before taking any loan you need to be sure you are going to pay it on time to avoid unnecessary penalties. Short term loans like payday loans may seem like a quick fix if you are short of money. But taking this loan is risky if you can’t pay it during your next payday and can have a long term financial repercussions. Today, there are lenders who offer payday loans to borrowers who cannot afford the loan so that they can impose penalties on them. This has led to low income borrowers being overburden with debts. Installment loans are considered a safe loan because there are no hidden costs that can increase your debt burden in future. Once you take an installment loan, you know how much money you should pay and after how long. Before taking out any loan, make sure you go for credible lenders so that you don’t find yourself paying deceptive fees or higher interest rates than you anticipated.

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