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Payday, Personal, Title, Installment Loans: What the Difference

Sometimes, we have an emergency need of money. It is not infrequent that we don’t know where to find the necessary sum for lease payment or car repairing. Here, we come across numerous advertisements promising “bad credit loans”, “personal loans with no credit check” or “easy approval loans”. Don’t hurry to embrace these “juicy” offers!

Actually, there really are “no credit check” loans. They may differ in their amounts, terms, methods of repayment, and rates of interest. But some things remain the same for most of loans, and it is important to study them before taking the money. Most significantly, you should be aware of the hidden pitfalls of microcredits, such as highly overrated fees. For instance, some lenders charge triple digit annual interest rates, and the borrowers don’t realize it till it’s too late.

In this article, we will tell you about different types of fast loans and help you find a proper place where you can borrow the sum you need without the slightest problem. We are going to pay special attention to online loans, as they are especially popular nowadays.


Online Payday Loans

The distinctive feature of these microcredits is that when a borrower takes the money, he has to write a personal check payable to the lender for the entire sum of the loan plus additional fees and charges. Online Payday loans are short-term (one month or lower) and, what is more important, they are extremely expensive. For instance, you can borrow $200 for a couple of weeks. The fee in this case will be $30 or so. It seems all right, but think about the annual percentage rate – it is about 400%!

Naturally, you can say that you are not going to extend the loan term, and therefore you won’t have to waste extra money. But look at the statistics again: an average borrower rolls over a payday loan 4 times, which costs him about $250. If you want to get into the details of such loans, please, fill our form and our specialists contact with you to explain any question.

Online Personal Loans and Installment loans

Personal loans as Installment loans are qualitatively different from the abovementioned types of microcredits. These are single-type loans given for a period of several months (up to one year). They are provided online, the interest rate is generally high, but the borrower credit history does not mean much. Personal loans are very similar to payday loans; the difference is that they are given for a longer period of time.

Personal loans with no credit check or personal loans online are not real personal loans; this term is used to denote a kind of installment or payday loans with a longer period. Below, you can read about real personal loans. The procedure of obtaining such microcredits is much more complicated and it is highly dependent on the borrower’s credit history. But, what is quite important, the interest rate for real personal loans is much lower.

Real Personal Loans

Real personal loans (also called unsecured loans or signature loans) amount from $1,000 up to $35,000. The repayment terms generally range from 1 to 5 years. The annual interest rate tends to fall between 6% and 36%; it depends mostly on the borrower’s credit grade and the lender’s policies. It is important to note that real personal loans are unsecured, which means a borrower can obtain the necessary sum with no collateral based on the credit. A person can use the money for debt consolidation, weddings, vacations, and a million of other purposes. As distinguished from open-ended credit lines, real personal loans are given to the borrower in a lump sum.

They are not given online. When applying for such credits, a borrower has to complete an application form, provide bank statements, earnings statements, and some other documents. The lender considers the person’s application and, if it is approved, grants him the money. The sum of the loan (plus additional fees) is repaid in a number of scheduled monthly installments. Our lenders don’t work with Real Personal Loans loans.

Title Loans

In order to obtain the necessary sum, borrowers have to use their cars as collateral. Typically, the money is granted for a few weeks or months. In cases of title loans, lenders do not check the borrower’s credit history, as the latter sign a lien on the car title. The income verification is minimal. When the borrower repays the loan, the car title is returned to him. But if the person can’t pay back the whole sum, the lender can repossess the vehicle. According to the statistics, people lose $4,000 cars because they can’t pay off $400 loans. We don’t work with such loans too.

Thus, if you want to obtain fast money, but do not feel like paying an enormous interest or using your car as collateral, a personal loan is the best solution for you, but in this case you must have perfect credit history.

Anyway, do not hurry to apply to the first lender you come across. Compare at least several companies, study their terms and conditions, and try to find the most profitable variant. To do that you can use the services of our website: we represent a wide range of lenders providing personal loans from $100 to $3,000. We partner with the whole net of companies working in different regions of the USA, so that you could easily find the best lender in your state.

Fill in our application form and find out all you wanted to know about personal, installment or any other loans from our experts. Our services are absolutely free of charge, so why have a go?

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