Payday loans and fast money loans are two different types of financing, but still, have some similarities. These are small loans that are repayable in the short term but have higher interest rates than conventional financing methods.
To benefit from one of these two modes of financing, one needs a regular and stable income, a bank account as well as a valid permanent address. These are also quick ways to get a cash advance while waiting for the next payday or to make an urgent purchase.
Where to get an online loan with bad credit?
The payday loan is called this because it has to be paid back with the next payday. This is a very short-term loan since it must be repaid after a maximum of two weeks, using the next payday. An online loan with bad credit is available at PaydayChampion. In addition, it can not exceed $ 1,500, since it is the salary that serves as a guarantee, in a way.
Because the maturity is extremely short, interest rates are particularly high. In some cases, these fees are equivalent to an annual rate of more than 500% over the sum lent. In addition, there are additional costs if the borrower is unable to repay the loan amount on time. Proportionately, these late fees are also very high. Therefore, the longer the repayment is delayed, the more difficult it is to get rid of this initially low debt, especially since the loan is not renewable.
In other words, the payday loan is a very expensive form of credit. You have to be very careful when you come to this type of agreement and, as a general rule, it’s better to simply avoid this funding solution.
The advantages of fast lending
Although it is also considered a last resort financing solution, the fast online loan is still less risky for the borrower. In fact, interest charges remain high when compared to conventional loans and credits. However, they are significantly lower than payday loans.
On the other hand, the fast money loan usually offers a repayment method a little longer, that is to say, spread over several weeks. In some cases, payments may even be spread over three or four months. This element depends on the income and frequency of the borrower’s payroll.
Some companies even offer to renew a loan if necessary. This is a loan that is easier to repay because repayment terms are much more flexible than payday loans.
In sum, although payday loans and fast money loans are two similar forms of borrowing on several points, it can be said that the second option is more advantageous than the first. This is mainly due to differences in fees, as well as the ease of repaying the loan.