Confusion Between Payday Loans And Installment Loans Solved

These days, customers have a huge variety of options to choose from when it comes to borrowing money or procuring a loan. One of the age-old and trusted sources has always been family. Credit unions, banks, and online lenders are other options that you might want to explore. However, many times it happens that you are in need of urgent money and all doors seem to be shut.

In such cases, payday loans come to rescue you. These are very short-duration loans, which do not ask for any asset of yours to be on the line. Further, all the work is done online hence, there is no hassle of excessive paperwork. Besides that, the process of execution of the loan is very quick and easy. The best payday loan direct lender is LoanPig.

At loan pig, they practice responsible lending to customers. Their process of payday loans in the UK is specifically engineered to give their customers access to not only their funds but also the funds of several different lenders. All of this at just one push of a button. They make sure that you are aware of all the late payment warnings and penalties so that you are not kept in dark.

They assure maximum transparency to their customers. They are hardly interested in your past credit history. They put the interest of their customers at the forefront and their interest secondary. They are a loan lender who tries to understand the past, present and future of the customer and do not depend on credit scores to lend money.

Difference between installment and payday loan

When it comes to payday loans and installments, there are certain key differences that must be mentioned. The primary difference is in the method by which they are repaid. While payday loans are short-term loans and they are repaid usually in a lump sum after 1-35 days of borrowing the money, the same is not the case for installment loans.

Installment loans, unlike payday loans, are repaid in several months. Installment loans differ a lot from payday loans. The amount of money that is borrowed in installment loans is generally higher than what is taken in payday loans. Installment loans can go up to 6 months to be repaid.

It is more affordable to repay the installment loans as you are not required to pay the lump sum at one time. All that you will have to do is to pay small installments over time. A larger single payment is usually difficult for people.

Similarities

Both payday loans and installment loans are methods of procuring loans. These are ways to meet an exigent situation where you find yourself in a dire need of money and require money instantly.

Conclusion

Unlike other sources, taking money from a reputed and trustworthy lender is the best way to borrow money as it ensures that you are in safe hands and do not get exploited.