Cash Advance Loans Or Installment Loans – Which Is Better? Find Here!
Unprecedented expenses and unforeseen bills can put you in a fix. You don’t need a huge amount, but enough to meet your immediate liabilities. Thankfully, we have a bunch of short-term lending options available today. Both installment loans and cash advance loans belong to that category, but certain aspects are different. Here is a quick take at both!
What’s a cash advance?
Also known as fast loans or payday loans, cash advance loans are secured against your next paycheck. Obviously, you need to have a stable job with a steady income, besides being a resident of the US. Also, the applicant must be of 18 years or more. Cash advance loans are more useful when you need a small amount, anywhere between $50 and $1000. The amount must be repaid within your next payday or in 4 weeks.
The pros of cash advance loans
- No security required. Your income is your security.
- Get quick approval. Funds can be transferred on the same day.
- Great for short-term lending.
- Option to extend the repayment or due date.
- A preferable form of lending when you are sure of repaying it back.
What’s an installment loan?
An installment loan, as the name suggests, can be repaid in installment, and the term can be anywhere between 6 and 18 months. The lending amount is also much higher, often up to $3000, depending on the state. If you need a bigger sum and flexible lending terms, this is the loan you need to go for. The requirements are same as cash advance loans, and you don’t have to pledge any security or collateral.
The pros of installment loans
- Get bigger loans with better repayment options
- Quick approval. Yes, you can get funds on the next business day too
- No collateral required.
- No additional prepayment penalties.
- Repay in installments, which helps in planning finances better.
Both installment loans and payday loans are easy to get, and the one you should choose depends on the amount you need. If you are absolutely sure of repaying the loan in time and need less than $1000, a payday loan might work better. On the other hand, installment loans are ideal for people who need more money and don’t want to bother about immediate payment. You can check online to find platforms that can connect you to lenders, but do read the terms and conditions before taking a call.