Installment Loans

Short-term "quick cash" loans that have easy approvals are the top loan products in the nation. Two of the most popular types of quick cash loans are the payday loan and the installment loan. The differences between the two are as follows:

Payday Loan

The payday loan received its name from its qualifying criteria and its repayment requirements. The idea is for the borrower to repay the advance plus applicable fees within a short time period. The monies that the borrower uses to repay a payday loan should come from his or her paycheck. Payday loans are short-term products that have an average life of approximately 14 days. Lenders generally do not check a person's credit to qualify him or her for a payday advance. Instead, the lenders check the person's ability to repay the advance. Applicants for payday loans need to have stable jobs, valid bank accounts, and monthly incomes that meet the lenders' requirements. A person can borrow an amount of money that is between $100 and $1,500.

Installment Loan

Installment loans are very similar to payday loans. The major difference between the two products is their repayment schedule. Many debtors were having problems repaying payday loans because of their short-term repayment requirements. Lenders started issuing installment loans to ease the burden for such consumers. A borrower can take an installment loan, and the lender may give that person 45 days to 90 days to repay it. The borrower can make small equal payments over time instead of being hit with one large payment.

Generous installment lenders may give their borrowers up to one year to repay the advance. The qualification requirements for an installment loan are similar to the requirements for a payday loan. The applicant must be 18 years of age, working at a reliable job, and prepared to repay the advance. However, the borrower will have much more time to repay an installment loan than he or she will with a payday loan. Installment loans have a better repayment ratio than traditional payday advances have.

Which One Is Best?

A consumer should look at his or her financial profile before deciding whether to take a payday loan or an installment loan. People who have quick emergencies would be better suited for a traditional payday loan. Struggling consumers who may have difficulty with a quick repayment should seek installment loans.

Short-term loans are emergency credit products of relatively small amounts designed for short-term financial issues only and can become an expensive product if used for long-term purposes.

The owner and operator of is not a lender and is not involved into making credit decisions associated with lending or making loan offers. Instead, the website is designedonly for amatching service, which enables the users contact with the lenders and third parties. The website does not charge any fees for its service, nor does it oblige any user to initiate contact with any of the lenders or third parties or accept any loan product or service offered by the lenders. All the data concerning short-term loan products and the industry is presented on the website for information purposes only. does not endorse any particular lender, nor does it represent or is responsible for the actions or inactions of the lenders. does not collect, store or has access to the information regarding the fees and charges associated with the contacting lenders and/or any loan products. Short-term loans are not available in all the states. Not all the lenders in the network can provide the loans up to $1,000. cannot guarantee that the user of the website will be approved by any lender or for any loan product, will be matched with a lender, or if matched, will receive a short-term loan offer on the terms requested in the online form. The lenders may need to perform credit check via one or more credit bureaus, including but not limited to major credit bureaus in order to determine credit reliability and the scopes of credit products to offer. The lenders in the network may need to perform additional verifications, including but not limited to social security number, driver license number, national ID or other identification documents. The terms and scopes of loan products vary from lender to lender and can depend on numerous factors, including but not limited to the state of residence and credit standing of the applicant, as well as the terms determined by each lender individually.

APR Representative
APR (Annual Percentage Rate) is the loan rate calculated for the annual term. Since is not a lender and has no information regarding the terms and other details of short-term loan products offered by lenders individually, cannot provide the exact APR charged for any loan product offered by the lenders. The APRs greatly vary from lender to lender, state to state and depend on numerous factors, including but not limited to the credit standing of an applicant. Additional charges associated with the loan offer, including but not limited to origination fees, late payment, non-payment charges and penalties, as well as non-financial actions, such as late payment reporting and debt collection actions, may be applied by the lenders. These financial and non-financial actions have nothing to do with, and has no information regaining whatsoever actions may be taken by the lenders. All the financial and non-financial charges and actions are to be disclosed in any particular loan agreement in a clear and transparent manner. The APR is calculated as the annual charge and is not a financial charge for a short-term product.

Late Payment Implications
It is highly recommended to contact the lender if late payment is expected or considered possible. In this case, late payment fees and charges may be implied. Federal and state regulations are determined for the cases of late payment and may vary from case to case. All the details concerning the procedures and costs associated with late payment are disclosed in loan agreement and should be reviewed prior to signing any related document.

Non-payment Implications
Financial and non-financial penalties may be implied in cases of non-payment or missed payment. Fees and other financial charges for late payment are to be disclosed in loan agreement. Additional actions related to non-payment, such as renewals,may be implied upon given consent. The terms of renewal are to be disclosed in each loan agreement individually. Additional charges and fees associated with renewal may be applied.

Debt collection practices and other related procedures may be performed. All the actions related to these practices are adjusted to Fair Debt Collection Practices Act regulations and other applicable federal and state laws in order to protect consumers from unfair lending and negative borrowing experience. The majority of lenders do not refer to outside collection agencies and attempt to collect the debt via in-house means.

Non-payment and late payment may have negative impact on the borrowers’ credit standing and downgrade their credit scores, as the lenders may report delinquency to credit bureaus, including but not limited to Equifax, Transunion, and Experian. In this case the results of non-payment and late payment may be recorded and remain in credit reports for the determined amount of time.