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. As a matter of fact, there are numerous payday lenders who are pleased to offer such service. However, such loans come with higher interest and bigger penalties than regular loans.
Personal loans on the other hand are often for a bigger amount meaning, they can offer a solution to your immediate financial problems and paid in installment over a period of time. 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.
There are several other things that set the two loans apart whether you believe it or not.
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. Since payday loans are approved within minutes and that the loan is disbursed almost the next business day, they seem to be advantageous especially for borrowers who face urgent financial situation.
If you face the possibility of your phone service, electricity suspended or whatever reason and you don’t have the money to pay for it, payday loans are proven to be a good solution.
Repayment period – there are different methods of payment for personal loans including months, years to two years. By contrast, repayment period for payday loans can be as fast as a week however, payday loans have periods that could last to almost 2 weeks.
Co-signer or collateral required – personal loans most of the time are not requiring collateral for borrowers to be provided. 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. While collateral or cosigners aren’t required in payday loans, there are some lenders that are requiring borrowers to show references alongside their bank information and employment records at the same time.
Title lenders are the kind of payday lender that is providing loans in exchange for the title of the car or house of the borrower. 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. The borrower is going to lose his or her asset in the event that they have failed to repay the amount loaned.