Sometimes in life, there comes a time due to unforeseen circumstances when a person needs fast access to cash. According to Credit Summit, about 12 million Americans will use a payday loan each year to handle a temporary cash-flow problem. In contrast, 19.4 million U.S. adults obtain personal loans. So, if one needs extra money, it’s best to know the pros and cons of both options.
What is a Payday Loan?
This type of loan is typically received between paydays to cover a cash shortfall. It is a small unsecured loan, usually $500 or less, to be repaid within a short time. The basic idea is to pay the balance off on the next payday. Payday loan companies make their money from the fees accompanying the loan.
Pros
- Quick decisions and available 24 hours a day/ money
- Fewer criteria are needed to obtain
- No credit checks
- Unsecured loan
Cons
- High-interest APR rates
- Additional fees apply each time the loan is rolled over, increasing the loan
- Lenders can access bank account
- Payday lenders can sue for money owed
- They don’t build credit
What is a Personal Loan?
A personal loan is usually a lump sum with a fixed APR repaid in monthly installments. The terms of this loan range anywhere from two to five years. These loans can be unsecured or secured, depending on whether collateral is required. The average amount of personal loans in the USA is $7,129.
Pros
- Flexibility for many uses (medical, debt consolidation, etc.)
- Lower APR interest rates
- Higher borrowing limits
- Monthly payments over a long period
- Builds credit
Cons
- Low credit rating makes interest rate higher
- Credit Check required for approval
- It takes 1-7 days to receive money
Cash Fast Loan Centers
A personal loan isn’t for you if your credit is poor. However, a payday loan is an option. If you’re looking for payday loans in Fort Mill, SC, look no further than Cash Fast Loan Centers. They can supply you with a payday loan to care for those unexpected life problems. In addition, the Cash Fast Loan Centers‘ online process is safe and secure. If you feel more comfortable visiting a store location, our staff would be happy to serve you.
At Cash Fast Loan Centers, you have access to your money within 15 minutes once the paperwork is signed. Use our services and gain access to lower payments and faster loan payoff. This locally owned and operated business has been serving the Fort Mill, SC area since 1998 and would be happy to assist you in all your payday loan needs. Contact a center near you.