Why direct installment loans are not the same as other loans
Online installment loans are often the best option when you need quick cash. However, there are different types of loans one may opt for. Two of the most popular types are direct installment loans and payday loans. If you are considering contacting a direct lender so as to get a loan, you may wish to note the main differences between these two types of loans so as to be able to make a well informed choice. A payday loan may be more suitable for you than an online installment loan, or vice versa. So it is important to understand the differences between them. One of the key differences is that installment loans are typically going to offer you more cash than payday loans. So if you need a bigger sum of money, it is often better to go for an online installment loan. Such a loan is ideal for long-term cash needs, and people who prefer to pay the lender back in increments generally opt for this type of loan.
The top online Installment loans are characterized by the equal payments that the borrower will have to pay back to the direct lender every month. These direct loan installments or repayments will be set out in a payment schedule before the loan agreement is finalized. Often a smaller principal and an extended maturity is available on installment loans, making it easier to refinance them. If you opt for a direct online installment loan you will have more time to refinance the loan. So if you plan to take this slowly and prefer regular repayments, then this is the best option for you. Also, an installment loan will require a collateral in most cases. Personal property such as jewelry and cars are often used, but real estate does not apply for direct loans.
Direct Installment loans typically last for months not weeks!
Payday loans, on the other hand, are simpler and characterized by their flexibility in terms of the payoff time and the little amount of money you’re borrowing. They are definitely the quickest way to get the cash you might need. However, the amounts of money that are lent with payday loans are relatively smaller than those in installment loans. The main aim of payday loans is to provide one with the cash he or she might need to cover certain expenses in between paychecks. Often borrowers that are looking for direct online loans who opt for a payday loan will be able to repay the sum of money they borrowed as soon as they get their next wage or salary, so unlike installment loans, there are often no payment schedules or monthly repayments involved. Therefore payday loans are much simpler and more straightforward. Another factor to consider is that payday loan borrowers will often have bad credit or past due bills at the time they take out a loan. If someone in that situation applied for an installment loan or personal loan from a bank they would probably be denied for the loan based on the past credit history. Nowadays you will be able to find both payday loans and installment loans online. So both options have been rendered simpler and more convenient as you can basically apply from the comfort of your own home or office. As a general rule of thumb most lenders will give you a maximum of $1500 through a payday loan, whereas direct installment loans typically range to several thousand dollars. Regardless of which one seems best suited for you, it is important to check the reputation of the lender in either case, and read all the loan terms and conditions.