What’s The Difference Between Payday Loans And Bank Loans In Kentucky?
If you need a small loan but are not sure if you should get a bank loan or a payday loan, this article is just for you! From this post, you’ll learn the differences between these two loan types and determine which loan type you should pursue.
Payday Loans vs. Bank Loans: The 4 Main Differences
A payday loan is a short-term loan that is dependent upon your current income. In contrast, bank loans are a type of personal loan that can require long term payments, a high credit rating, and possibly offer more money, but the requirements are more extensive and difficult to meet.
There are numerous differences between payday loans and bank loans. Here are the four most important distinctions to understand between payday loans and bank loans.
The most obvious difference between payday loans and bank loans is their requirements. Bank loans often rely on your credit score, bank history, income, and a number of other factors. These requirements make bank loans less of an option for individuals with poor credit.
Payday loans, in contrast, do not depend on your credit. Instead, you will only need proof of employment and an active checking account to qualify. These requirements are much more friendly to all credit types, making payday loans a favorite among individuals who can’t get approved for regular bank loans.
2. Time Frame
Another big difference between payday loans and bank loans is their perspective time frames. Payday loans are extremely short-term loans that are typically paid back within the month. Bank loans, in contrast, can last much longer, many of which lasting years. This difference in time frame results in other differences between these loan types, which you will see below.
3. Loan Amount
Because the time frame for these loans differs, so do their loan amounts. With payday loans being paid back in such a short amount of time, their loan amounts are much smaller than bank loans. The exact amount will depend on the lender, but most lenders only offer a maximum of $500 with payday loans in Kentucky.
With bank loans, you can get much more, depending on your credit score and needs. This larger amount will be paid back for a longer period of time.
How fast you can get money is the last major difference between these two loan types. Payday loans are an option if you need money fast because these loans are flexible and can be approved and paid out on the same day. Most lenders can offer your payday loan money either the same day or the next business day after you are approved.
Bank loans are nowhere near as fast. Bank loans often take weeks to go through, sometimes longer. Hence, bank loans are rarely an option for individuals who need money fast.
Does A Payday Loan Sound Right For You?
If you find yourself in an emergency and need money fast or have a bad credit score, a payday loan might be right for you. This loan type can help you get the money you need quickly and efficiently, regardless of what your credit reports look like.
At Fast Payday Loans of Kentucky, you can get payday loans up to $500. The in-store application process can take as little as 30 minutes to complete, allowing you to get your payday loan money either the same day you are approved or the next.
In order to qualify, you will need a driver’s license or state-issued ID, your most recent pay stub, and a blank check from your active checking account. The blank check is used to deposit the money into your account and withdraw it whenever it’s time to pay back the loan.
What Does The Process Look Like?
If you decide to get a payday loan from Fast Payday Loans of Kentucky, this is what the process will look like:
- Fill out the online form.
- Wait for a representative from the closest location to call you back.
- Set up an appointment so that you can apply for a payday loan.
- At the time of the appointment, bring your required items and sit down with a representative.
- Finalize the application process by filling out some paperwork.
- If approved, you can get the money you need the same day or the next business day.
Keep in mind that the in-person process can take as little as 30 minutes to complete, which means you should be able to fit this into your busy schedule.
Get A Payday Loan Today!
Although payday loans and bank loans both get you money, there are many differences between them. Most notably, the requirements, time frame, loan amount, and expediency differ. If a payday loan sounds right for you, get started right now by filling out the Fast Payday Loans of Kentucky inquiry form.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.