We work hard for our money, but there never seems to be enough of it.
It seems like you can barely keep up with replacing old or broken items in the home, when the car dies, or the washing machine breaks. Perhaps you’re so stressed out you just need a good vacation.
All of these require a chunk of cash that most likely you don’t have. A loan is a great option to help you get what you want, and all you have to do is pay it back in installments, or one lump sum. The big decision is deciding whether you should get a payday loan or personal loan from a licensed moneylender or a bank.
A payday loan can be obtained from a licensed moneylender who usually has a storefront or an online business. You’ll often see them in strip malls or through a Google search. Most likely you’re aware of them, but haven’t used this type of service to date. It’s fairly simple to get a payday loan from one of these places, as long as you’re employed.
How it works is that you’ll apply for your loan. Your collateral will be your next paycheck. Once you get paid, you’ll be required to pay back the loan in full. For example, you need $500 for car repairs. A payday loan will get you the $500. When you get paid, you’ll be required to pay back the $500, plus interest, for example $600.
To get a personal loan, you can either visit your bank or a licensed money lender. You’ll need to actually have a checking or savings account in good standing. They’ll have you fill out a lengthy application and ask a lot of questions.
A bank’s criteria is high when granting a loan.
They may say no, even if you are employed. After you have your loan you’ll start repaying it with biweekly payments. These payments include the initial loan, plus interest is added on. You’ll pay off your loan on a specific payment schedule.
There are advantages and disadvantages to both types of loans. A payday loan can involve a high interest rate. You will be made aware of how much money you’ll have to repay on your payday, so you can judge if this type of loan is right for you. Bank loans involve small amounts of interest and can be a more affordable way to obtain a loan.
Many people still obtain payday loans because the application questions are minimal, and it’s a fast source of immediate cash. Many people do not qualify for a personal bank loan.
When obtaining a payday loan, be sure to visit a licensed moneylender. These businesses are required to follow strict laws. In many jurisdictions there are limits as to how much interest they can charge.
If you need cash fast, but don’t think you qualify for a personal loan, a payday loan may be right for you. If you are a foreigner, please check out this page about foreigner loans.