Let Fast Payday Loans, Inc. help grow your financial literacy by showing you the difference between payday and installment loans. These quick and easy loans can be helpful options for anyone needing urgent cash, but each one has some unique differences worth knowing.

This guide will explain payday loans vs installment loans, including how they differ from one another, their requirements, loan amounts, and the process for getting approved. We will also explain which emergency cash loan works best for your financial emergency.

Payday Loans Vs Installment Loans: Defining These Emergency Cash Loans

Financial emergencies can arise out of nowhere, giving you no time to figure out how you will pay for them. This is where personal loans come into play. You can borrow money fast without needing collateral with payday loans and installment loans, but which is better for you?

Learn about the definitions of these two loans below:

1. Payday Loans

A payday loan is a short-term, unsecured loan, meaning you don’t need to provide any assets as collateral to secure the money. They essentially allow you to borrow money from a future paycheck and repay it the next time you get paid.

As long as you can prove your income, you can get approved for $100 to $1,000 in quick cash. We require borrowers to prove their income with their most recent pay stub. If you are a freelancer with earnings statements, you could get approved if you verify that you are making money consistently. Contact the Florida store location nearest to you to verify if you can get approved.

The following are the required items for payday loans in Florida:

• Adult: First, you must be at least 18 years old.
• Identification: You must provide identification, like your driver’s license or government-issued ID.
• Proof of income: Your most recent pay stub is also necessary as proof of income.
• Blank check: You’ll also need to provide a blank check from an active checking account in your name.

2. Installment Loans

Just like payday loans, installment loans are an unsecured finance option. You do not need to provide any asset as collateral, though there will be a short list of requirements you must fulfill. You can normally borrow around $1,000, as long as you agree to repay the loan in fixed installment payments.

That is how installment loans get their name: You must repay the loan in installments. These can cost a couple hundred dollars every month, allowing you to repay the loan in a couple of months. Much like payday loans, there are only a few requirements you must meet to get approved.

The following are the required items for an installment loan:

• Age and identity: You must provide identification that proves you are over 18 years old, such as your driver’s license or government-issued ID.
• Proof of income: You can use your most recent pay stub to verify that you have income.
• Checking account: Borrowers must have a checking account statement from an account in their name to verify their checking account.

What Are The Differences Between Payday Loans and Installment Loans?

While payday loans and installment loans are similar, there are differences that set them apart for borrowers who need emergency cash. Knowing how payday loans work and what differentiates them from installment loans is vital before borrowing money. Each caters to different financial needs, and understanding the differences can help with your decision-making.

The following are the differences between payday loans and installment loans:

• Loan amounts: Payday loans allow borrowers to receive up to $1,000, while installment loans can fluctuate based on the loan lender.
• Repayment: Borrowers will need to repay their payday loan with their next paycheck. For installment loans, repayment takes much longer, as you pay fixed installments over a few months.
• Credit check: We do not require credit checks for our payday loans. However, loan lenders will check your credit score for installment loans to help determine how much you can borrow.

What Can You Use Payday And Installment Loans For?

The good thing about payday and installment loans is that you can use them for any urgent financial need. That flexibility is crucial because people experience different financial crises, and these solutions could be helpful for most of them. 

Here are some common uses for emergency funds gotten through payday and installment loans:

1. Medical Bills

The fast processing times that come with payday and installment loans make them potentially helpful when dealing with things like medical bills. When you suffer an illness or injury, one of these loans could help you settle your bill with little or no delay. Then, you can focus your time and energy on recovering as best as possible.

Getting emergency cash for medical bills allows you to pay for medication, surgery, and other urgent medical costs quickly. Rather than not being able to get medical attention, you can have the security of knowing you can afford a hospital visit when you desperately need it,

2. Household Repairs

Repairs around the house, such as for your plumbing or roofing, are not the kind you can delay for long. Instead of waiting, accessing emergency funds could enable you to get the work started and keep your home livable.

If you have a leaking roof, you need to get cash as fast as possible to afford repairs. Payday loans and installment loans allow you to borrow money the same day you apply to pay for supplies to patch up your roof or pay a professional to do the home repairs for you.

3. Car Maintenance Or Repairs

Similarly, maintenance and repairs for your car also can’t be delayed for too long. You’ll need a working vehicle to get to work, send the kids to school, and run other daily errands. Spare parts, repairs, maintenance, and upgrades could be paid using a payday loan or installment loan.

Speed is of the utmost performance with auto repairs, as leaving lingering issues can put you and your family at risk while using your car. Borrow cash fast through payday loans and installment loans to get the auto repairs you need to keep yourself safe on the road.

4. Rent And Bills

Lastly, you could rely on one of these loans for your housing situation. For example, you can use the funds to catch up on rent to avoid an eviction. Similarly, catching up on your overdue bills can help you avoid late fees, penalties, and service disruptions.

Fast loans for rent payments can help you when you risk eviction. You can receive your money within one business day to quickly resolve any overdue bills and avoid getting evicted due to financial situations that are out of your hands, such as losing your job.

How Do I Get A Payday Loan?

Fast Payday Loans, Inc. offers payday loans to Florida residents who need cash fast. Our approval process takes less than a day, with some borrowers completing all of the steps in less than a half hour. You can get approved for a payday loan today to help you afford your urgent costs in just a few easy steps.

The following is the payday loan approval process:

1. Use the online form to contact Fast Payday Loans, Inc. You’ll need to submit basic information like your name, number, and ZIP code to receive a callback soon after.
2. Wait for the callback from a helpful representative. They’ll tell you everything you need to know about the loan and set an appointment to meet them in person at the nearest Florida store location to you.
3. Bring the required items to your meeting, as discussed. The representative will verify your paperwork and help you complete the process.
4. If all goes well and you’re approved, you could receive the money as early as the same day or by the next business day.

FAQs

Which loan is better for bad credit?

If you have a poor credit score, getting a payday loan will be a better option. No credit check is required, and you can get payday loans for bad credit.

Can I get a payday loan if I’m unemployed?

Payday loan borrowers must have income to get approved. You must have proof of income to verify that you make money consistently. Otherwise, we cannot verify your ability to repay the loan.

Are there hidden fees with payday loans?

Payday loans have interest rates, meaning the cost of repayment will increase the longer it takes. You may also incur a late fee if you fail to repay the loan on time.

Get A Payday Loan In Florida Today – Borrow Up To $1,000!

Part of financial literacy is learning how to compare your loan options carefully. That way, you can make the best decision to meet your needs and preferences. If you decide that a payday loan is what you want, get in touch with Fast Payday Loans, Inc. anytime! Remember, the online form is available on this website 24/7. Use it to submit your information, then wait for a call!

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.