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. However, a signature loan requires no collateral at all and can be paid back over a long period of time. Many signature loan terms can be up to a year in duration.
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 more fees in a shorter period of time. Also, you could be left with no way to pay for living expenses to cover 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 if 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 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*