Understanding The Key Differences Between Cash Advance And Installment Loans
If you have ever found yourself short on cash and needing to pay a bill, you already know how incredibly valuable it can be to have a cash advance company to turn to when you need a little help. One of the more recent types of money services offered by cash advance lenders is the installment loan.
If you like the ease of obtaining a cash advance loan, then you will definitely like the idea of being able to get an installment loan in the same way. Before you head off to take out an installment loan of your own, it is important to understand the differences between a cash advance and an installment loan through a payday lender.
Difference #1 - Cash advance loans must be paid back all at once, while installment advance loans do not.
When you accept an installment loan through a cash advance agency, you will be accepting a payment plan instead of one big payback date. You will repay your loan in installments instead of all in one lump sum, which makes it less likely that you will get stuck in a cycle of rewriting the same payday loan every week.
Difference #2 - The longer term of the installment loan can mean more interest to pay back than with the traditional cash advance.
If there is one downfall to be considered with installment loans offered by payday advance companies, it is that you may end up paying more in interest if you choose not to pay the loan back all at once. However, for most consumers, the added cost is worth the ability to get more time to pay back the loan.
Difference #3 - Installment loans through cash advance companies may mean larger loan amounts.
When you go to take out a regular cash advance loan through a payday lending company, you will be approved for a specific amount based on the amount of money you normally make when you get paid. Most lenders will not offer more than your average paycheck because this would make it too difficult for you to pay the loan back, along with interest rates and fees due. One of the best benefits of an installment loan is that you may be able to obtain a larger sum of money, as you will only be paying a portion of the loan back at a time.
If you think an installment loan could be the right choice for you over a cash advance, be sure to talk openly with the lender about the differences between the two loan types. Any time you borrow money from a financial institution, it is best to go into it with a good grasp of understanding the loans.
Talk to a company like Payday Advance to learn more.
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