In this article, we will look at two types of loans: payday loans and installment loans. We will examine the pros and cons of each.
Payday Loans
As the name suggests, payday loans are organized around your payday schedule. Typically short-term and high-interest, these loans need to be repaid within two paydays, on average. If you’re unable to make your payments on time, you may be charged additional interest and fees.
While the payday schedule provides some predictability, you usually have less time to repay the loan. If you take out multiple payday loans, you may struggle to repay them all. You could get stuck in a payday loan repayment cycle over an extended period of time.
Installment Loans
By contrast, installment loans are typically provided for a longer period of time. You may pay a lower overall interest rate. Instead of taking out multiple payday loans, you could focus on repaying a single installment loan. You are likely going to need funds for a longer period of time, so an installment loan may serve you better.
The lenders in our network offer loans that range from $500-$5,000. Terms typically range from 4 months to 24 months or longer. If you have bad credit and an urgent need for cash, Friendly Lender is a good option. Traditional lenders will take a close look at your credit history. Friendly Lender won’t. That’s one more reason to choose Friendly Lender.
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Summary
Payday loans have drawbacks. An installment loan may serve you better in the long run. If you’re ever in need of online installment loans for bad credit, consider Friendly Lender!
