A recent survey shows that only two in five Americans (about 41%) can cover a major unexpected expense with their savings. You're not alone if you find yourself needing to borrow money for an emergency and are considering installment loans or payday loans to meet that need.
While many types of loans are available, installment loans and payday loans are the most commonly discussed options for urgent cash. However, which one is best for you? In this guide from Cash Cow in Louisiana, we'll explain each loan to help you decide which one works best for your financial situation.
Payday Loans Vs Installment Loans: Everything You Need To Know
When you need emergency funds but want to avoid using collateral, payday loans and signature installment loans are two of your best unsecured loan options. You can borrow money within 24 hours without a long list of requirements.
Discover the definitions of installment loans and payday loans below:
What Are Installment Loans?
As the name suggests, installment loans are types of loans that are repaid over a predetermined period of time, usually every month (i.e., in "installments"). By providing your signature, you agree to this repayment schedule and will adhere to it for a few months until your loan is repaid.
Depending on the specific type of installment loan you receive, you may be able to borrow substantial sums of money to cover life's major expenses. However, the flexibility with which you can utilize the funds varies based on the loan type and agreement.
What Are Payday Loans?
Payday loans, also called cash advances and payday advances, are small, short-term loans that let you borrow money by proving your income. They are meant to help cover unexpected expenses or bills that come up between paychecks that you didn't plan for. After paying for your emergency needs, you can repay the money you borrowed with your next paycheck.
Comparing Installment Loans And Payday Loans
Although both of these loans are great for those who need quick cash, each fits certain situations. The loan amounts, requirements, and other details separate these loans and will determine which one is best for you. Learn more below about the differences between installment loans and payday loans to better make your decision.
Here are some key differences between installment loans and payday loans:
1. Borrowing Amounts
With installment loans, you can generally borrow up to thousands of dollars to cover major expenses. With payday loans, you can only borrow small amounts. Naturally, specific amounts vary depending on the lender, but at Cash Cow in Louisiana, you can borrow between $100 and $300 with a payday loan to cover minor emergencies, such as overdue rent, travel costs, or veterinary fees.
Installment loans are more likely to help with more expensive emergencies like auto repairs and medical bills.
2. Credit Checks
The long-term nature of installment loans typically means your credit score will be quite high. The higher your credit score, the better your chances of getting approved and borrowing a larger amount. It’s clear that this can cause many issues for those with a poor credit score.
Enter payday loans — while you might not be able to borrow as much money with a payday loan, you don't need a good credit score to qualify. We approve individuals from all financial backgrounds, providing you with access to funds when you need them most.
3. Repayment Schedules
If you take out an installment loan, you will need to make the monthly or weekly payments for the agreed length of time until you've paid off the loan in full. However, you don't need to worry about the long-term impact of payday loans. Instead, you'll repay the entire amount on your next paycheck, getting your financial life back on track in no time.
For those who feel they need more time to repay their loan, the long-term repayment schedule of an installment loan may work better. However, remember that you will accrue interest the longer it takes to repay the loan. Those who want to clear their debt quickly might consider a cash advance.
4. Requirements
Installment loans requirements depend on the loan lender you work with. Some lenders may not require a ton of documents (or to prove you have good credit), while others have more strict requirements. You won’t have to worry about that with payday loans at Cash Cow in Louisiana.
You only need the following required items for a cash advance in Louisiana:
- Identification — Most of our clients choose to use their driver's license as their form of ID. However, we accept all primary forms of government-issued identification, including your passport, student ID, and military service member's ID. Whatever you choose to act as your identification, please ensure it contains your legal name, date of birth, and photograph. You must be at least 18 years of age to get a payday loan in Louisiana.
- Pay stub — This must be your most recent pay stub. It allows us to get an accurate picture of your current financial state, helping determine whether we think you can afford to repay the loan on your next payday.
- Blank check — The blank check must come from an active checking account open in your name.
Your information must match across all your documents. If it doesn't, we won't be able to process your request.
5. Approval Process
The approval process for a signature installment loan can differ depending on your lender. While sometimes it’s quick, other lenders have many steps you need to complete to get approved. Payday loans usually have a shorter process, as you can get approved the same day you apply with Cash Cow in Louisiana.
The process for acquiring a Louisiana payday advance is as follows:
- Provide your basic information through our online form
- Speak to a loan representative about payday loan terms over the phone
- Visit the nearest Louisiana store location with your required items
- Have your requirements verified
- If approved, sign the loan documents to complete the process
- Receive your payday loan funds later that day or by the next business day
The Benefits Of Payday Loans
A cash advance is a great option when you need cash fast for an urgent financial emergency. At Cash Cow in Louisiana, we allow borrowers to get approved in less than 30 minutes.
Quick approval is just one of the many benefits of payday loans:
- Repayment is fast
- You can borrow up to $700 today
- The approval process takes less than a day
- All credit scores are accepted
- No collateral is required
If you feel a payday advance can fit your situation, you can apply for one online with us today. After providing a few basic details, we will call you and explain how you can get approved in person at one of our Louisiana stores the same day you apply!
Get Payday Loans From Cash Cow In Louisiana – Borrow Up To $700 Today!
Payday loans are a convenient emergency financing option due to their quick processing times, simple requirements, and straightforward process. If you're facing a financial emergency, don't hesitate to reach out. We'll guide you through the payday loan process to help you get funds as fast and smoothly as possible.
Ready to get started? Apply now by completing our online form. Finish the process in less than 30 minutes in person, and you can receive fast financial relief within one business day!
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.
