Payday Installment Loans

Payday loans are slightly different from installment loans although some payday loan customers may wish to pay their loan back in installments if for some reason they cannot afford to pay their loan back on the specified day. In this article we are going to break down the difference between payday loans and installment loans. Payday installment loans give the loan customer an opportunity to pay their loan back in installments if they need to. 

Payday Loans 

Payday loans are short term loans designed to be paid back on a subsequent payday. For example, if you took out a loan on the 30th of the month, you would pay that money back plus interest on your next payday, which would be on the 30th or the last payday next month. Payday loan fees or annual percentage rates are usually much higher than other types of loans. However, they do serve a genuine purpose and that is to provide emergency loans to those who are in need. However, one of the disadvantages of payday loans is that the fees are high, being behind on a payday loan could adversely affect your credit rating, you will also have to pay late payment fees if you fail to pay on time. 

Installment Loans 

Installment loans are different from standard payday loans because the loan terms are usually longer, which means that the interest rate is generally lower than that of a payday loan. Installment loans are often larger than payday loans. However, although payday loans and installment loans are different, some lenders do offer payday installment loans. 

What Are Payday Installment Loans? 

Payday installment loans are payday loans that are offered on an installment basis. Therefore, instead of paying back the full amount on your next payday, you would pay back part of the loan on your next payday instead. This reduces the burden of paying back the loan within 30 days.