SMS Payday Loan Or Installment Loan: Which Is The Better Choice?

Looking for financing can be daunting especially if you do not know the right type of loan for you. Do you need a small loan or something larger? The amount that you are planning to apply for will depend on what you are looking to use it for and what kind of financial situation you are in at the moment. All of these will greatly affect your decision.

 SMS Payday Loan Or Installment Loan Differences

If you are looking for an immediate financial support, you might want to consider an installment loan or a payday loan. If you visit, you will be able to find here a wide range of options when it comes to SMS loans. For the meantime, to help you decide which is the better choice for you, here is the breakdown of these loan types that can help you understand the difference between the two.

Typical Borrower.

  • Payday Loans. Every borrower differs and the flexible eligibility criteria of payday loans will attract borrowers that have a bad credit or if they have no credit history, have lower income, no bank accounts, and they need small loans with a quick turn-around.
  • Installment Loans. This is perfect for anyone that has a good or bad credit since lenders are catering to both. Also, the choice if you are looking for a larger amount and pay off the loan over time. This is the best option if you want to take out a secured or an unsecured loan.

Loan Amount And Its Terms.

  • Payday Loans. The loan terms and the maximum amount are generally regulated by the state but you can borrow in the range of $50 to $1000 and the terms are usually offered between 7 to 60 days.
  • Installment Loans. The loan amount and terms will vary between the lenders where you can borrow between $1000 to $100,000 depending on the lender and also your eligibility. The loan can be paid off in installments over time between 6 to 60

The Loan Cost.

  • Payday Loans. These are somewhat more costly but most of the time, what you will pay will depend on where you are from. The payday loans are lent over a short period of time so if you are not able to pay off the loan within its terms, it could lead to refinancing or rolling over the remaining amount which can incur more fees and charges.
  • Installment Loans. The installment loans will vary in cost and how much you pay will depend on how good your credit score is, or whether the loan is secured on unsecured. The lender you applied with will also be a factor.

What You Need To Know About SMS Loans

If you are in need of a quick source of money, the most convenient option would be the SMS payday loans. This is where you can get cash in just a matter of hours once you have completed the application and you get approved. The method does not just involve an instant text message. Like alternate loans, you have to undergo the application procedure. This will incorporate credit checks and also the affordability appraisals that are in accordance with the company directions.

Weighing up your loan options is important that before you apply for any type of credit. Choosing for payday loans and installment loans will all depend on what you need. Consider the pros and cons of these two methods to help you better decide.