What Makes Payday Loans Different from Personal Loans?
A payday loan is a form of short-term borrowing, which is incredibly easy to apply for. They’re unsecured loans since they require no collateral. Lenders of this nature usually extend credit with high interest, using the borrower’s income as basis. The principal? A chunk off the borrower’s next paycheck.
According to a 2012 report by the Consumer Financial Protection Bureau (CFPB), 80% of payday loans get renewed.
There’s usually a lot of caution that has to be taken when taking out payday loans. Many people have a tendency to confuse or interchange payday loans with personal loans. Those are actually two rather different things.
Payday Loans vs. Personal Loans
While there are some similarities between payday loans and personal loans, they also differ in a number of ways. Payday loans tend to be smaller amounts of money borrowed until the borrower’s next paycheck, while personal loans are often larger amounts borrowed for longer periods of time.
Personal loans can be arranged without collateral, while payday loans will either require the borrower to use property as collateral or will charge high fees. Personal loans generally carry lower interest rates than payday loans and also have hidden fees. Although payday loans are considered predatory lending, personal loans often provide a legitimate source of funds.
There’s actually a much broader category where personal loans are involved. Banks, credit unions, and online loan companies generally offer personal loans. This is why they’re often referred to as signature loans and bank loans alike. A small loan company can be a good choice if the borrower has a relatively low income and own some sort of security, such as a car or house, that can be used to secure the loan.
It will be upon the borrower to provide proof that they can eventually repay the loan, which is an advantage in comparison to payday loans. The loan can be used for a number of purposes such as to consolidate credit card debts, pay for college tuition, or make home improvements.
Personal Loans
The borrower will have to complete an application that will be reviewed by the lender. If the application is approved, they will then give out the loan terms. These are the terms under which the borrower can accept or reject the loan. That would be the time to review them and speak to a representative before finalizing the paperwork.
The loan will be funded once the paperwork is fully accomplished. At that point, the borrower will be paid out the funds. It can either get issued by check or through a direct deposit. They can come either secured on secured. The latter require collateral of some type as a borrowing condition. Cash assets, like a certificate of deposit (CD) or savings account will serve the purpose.
Conclusion
Payday loans and personal loans are often mistaken as being the same or, at least, interchangeable. They’re actually two different things: payday loans are unsecured, short-term loans with high interest. Personal loans are secure, on the other hand, often issued by a bank or similar entity.
Trying to find personal loans for bad credit in Bessemer, AL? Drop Bessemer Finance Company a line today! We have a variety of personal loan sizes to meet a wide range of client needs.
Hi, this is a comment.
To get started with moderating, editing, and deleting comments, please visit the Comments screen in the dashboard.
Commenter avatars come from Gravatar.
cialis free samples
cialis paypal online
viagra soft cheap
viagra pricing
panacea pharmacy
cialis au
tadalafil medication
tadalafil enteraction with medicine
can i buy viagra over the counter in usa
where to buy flagyl
lisinopril action
can you crush furosemide tablets
lisinopril coughing
flagyl dose for diverticulitis
how long for zoloft to kick in
zoloft dosing
zithromax suspension dosing
gabapentin ruined my life
how much is lasix
buy zithromax without prescription
emzirirken glucophage
lasix use
hiperinsulinismo glucophage
cephalexin or amoxicillin which is stronger
escitalopram medication
is keflex the same as cephalexin
amoxicillin for dogs dosage
how long should i take gabapentin for nerve pain
escitalopram side effects in females
what is amoxicillin and clavulanate potassium used for
gabapentin and pregabalin
is bactrim a cephalosporin
ciprofloxacin dose for uti
bactrim indications
cephalexin 500mg for uti how many days
cephalexin是什么药
ciprofloxacin and dexamethasone combination ear drops
is bactrim a strong antibiotic
cephalexin 250mg
is cephalexin a strong antibiotic?
bactrim for staph infection
how much amoxicillin for a cat
RabBeats offers a fusion of style and functionality, providing vapers with sleek devices and flavorful e-liquids. With attention to quality and design, RabBeats Vape elevates the vaping experience to new heights.
how long does amoxicillin take to work
escitalopram 20mg side effects
gabapentin withdrawal
escitalopram grapefruit
neurontin high feeling
ddavp dose di
citalopram reviews for anxiety
ddavp nasal dosing
depakote drug interaction
depakote dosage for bipolar
citalopram ansiedad
100mg cozaar
cozaar hypertension
ddavp nasal spray nocturnal enuresis
depakote for bipolar
how long does it take depakote to reach therapeutic levels
what is citalopram for
ddavp renal insufficiency
generic for cozaar
citalopram hbr
cozaar side effects weight gain
verapamil diltiazem
is diclofenac stronger than ibuprofen
diclofenac potasico 50 mg
ezetimibe buy
augmentin 500
diltiazem side effects elderly
amoxicillin augmentin
ezetimibe emedicine
contrave 90 mg side effects
flexeril and benadryl
flexeril and ibuprofen
effexor adhd
flomax side effects men
argument or controversy 7 letters
what exactly does flomax do
best time to take effexor medication
aspirin breastfeeding
how to pronounce aripiprazole
aripiprazole pronounce
common side effects of allopurinol
can cats take aspirin
amitriptyline and adderall
allopurinol colchicine combination
amitriptyline 10 mg para que sirve
augmentin mrsa
baclofen brand names
can i take advil with celebrex
does baclofen make you sleepy
augmentin for bronchitis
bupropion withdrawal
how does celebrex work
max dose of bupropion
weight gain celexa
what is ashwagandha good for
ashwagandha overdose
seroquel and celexa
valium and buspirone
celecoxib generico precio
buspirone side effects in dogs
acarbose comprar
actos ciudadanos
zn semaglutide
still hungry on semaglutide
acarbose api
actos alcohol
low dose abilify for anxiety
abilify depression
protonix rob holland
replacement for robaxin
remeron weight gain avoid
methocarbamol robaxin 750 mg
protonix and pregnancy
repaglinide classification
remeron bipolar
how repaglinide works
metformin 25g
best time to take protonix
ivermectin for sale
buy valtrex on line
propecia synthroid
spironolactone labs to monitor
50 mg spironolactone acne reddit
synthroid sinemet
sitagliptin generic
sitagliptin kidney injury
Wow, marvelous weblog format! How lengthy have you ever been running a blog for?
you made running a blog glance easy. The total look of your site is excellent, let alone the content material!
You can see similar here e-commerce
ivermectin 3 mg tabs
synthroid jsp
max dose of tizanidine
tadalafil 10 mg online india
venlafaxine immediate release vs extended release
venlafaxine half life
tamsulosin and lexapro
tizanidine alcohol
voltaren medication
tamsulosin hcl drug classification
purchase voltaren patch 5%
zofran teaching patient
wellbutrin withdrawal duration
wellbutrin heartbreak
zyprexa and smoking
zofran oxycodone
zetia coupon
can you buy azithromycin without a prescription
zetia generic alternative
can u give a dog zofran
zyprexa definition
generic metformin 10 mg tablet
how does zofran make you feel
zyprexa side effects long term
metformin 584
tadalafil and testosterone
valtrex cost generic
levitra 20mg buy online
tadacip (tadalafil)
levitra online brand
goodrx tadalafil
levitra buying online
cialis uses
online levitra order