Payday Loans vs. Signature Loans
The primary differences between signature loans and a payday loans are the payment terms and interest rates associated with each. If you take out a payday loan, you are required to pay it back on your next payday. This is problematic because you will be left with no living expenses until that following paycheck. However, a signature loan requires no collateral at all and can be paid back over a long period of time. Also, a signature loan comes with a lower interest rate, so it’s easier to pay back than a payday loan. Many signature loan terms can be up to a year in duration. Conversely, cash from a payday loan only lasts until your next pay check. If you wish to extend the loan, you actually will need to take out a completely new payday loan.
Why is a signature loan better than a payday loan?
Ultimately, a signature loan with InstaLoan is a much smarter option than a payday loan. Typically, the fees and interest rates you will experience with a payday loan are much higher than with a signature loan. So, at the end of your loan’s duration, a signature loan is the less expensive option. With a payday loan, you will accumulate many more fees in a shorter period of time. Also, you will be left with no living expenses for your day-to-day needs because you’ll be forced to sign over your paycheck to your payday lender. At InstaLoan, our knowledgeable and highly trained team will sit down with you to customize a payment plan that fits your lifestyle and income. This will allow you to pay your loan back with ease and continue living your life comfortably. In addition, signature loans have the potential to positively affect your credit score, because signature loan payments are reported to credit bureaus. On the contrary, payday lenders will only share negative information to these credit bureaus when you miss your payments which will inevitably hurt your overall credit score.
Signature Loan Benefits Outweigh Payday Loan Benefits
The benefits of a signature loan dramatically outweigh the benefits of a payday loan:
- Fast approval process
- No credit or collateral needed
- Longer period of time to pay back the loan
- More beneficial to your overall credit history
- Lower interest rates than payday loans
- Loan amounts up to $250*