Personal Loans vs. Payday Loans

August 6, 2020 | Emma Frost

Many of us, regardless of our financial situation, have experienced times where we find ourselves in need of quick extra cash. These situations, while different from person to person, are often stressful and they send us scrambling to figure out what options are available. In your research, you've likely stumbled upon some suggestions, such as selling some of your belongings or getting a second (or third) job, but this isn't very helpful when you need fast cash.

If you're familiar with this situation, you're probably aware of the different options, such as payday loans and personal loans, that are available in most places. But what's the difference between the two and how do you know which loan type is best for you? While there are pros and cons to both options, payday loans can offer you quicker access to emergency funds than personal loans. Don't believe me? Keep reading to find out more!

Personal Loans

A personal loan is a diverse loan option that commonly comes from a bank, credit union, or online lender. Most personal loans are unsecured, which means they're not backed by collateral, but this isn't the case for all of them. These types of loans are often associated with a small interest rate and are meant to be repaid over a long period. Once you take a personal loan out, you're stuck with it for a while!

Personal loans are often more difficult to obtain than payday loans as they tend to have a lengthy application process. This is followed by a long deliberation process, which isn't helpful when you need cash quickly. Your credit score is the main consideration for whether or not you'll be approved. Poor credit could hinder your ability to be approved. While personal loans can usually offer a large amount of money, this won't help you if you find yourself searching for fast loan options.

Personal Loans - The Breakdown

  • They take time to acquire – if you need money quickly, personal loans can take a while to get you the money.
  • You won’t need to offer anything as collateral.
  • They're meant to be paid back over a long period of time.
  • Your credit score is taken into consideration.

Payday Loans

Payday loans, as opposed to personal loans, are a short-term loan option type that specializes in providing fast financial relief. Whereas personal loans will take time to process, meaning you won’t get funds deposited into your bank account for a few days even if you are approved, payday loans are instant – once you're approved, you'll receive funds on the same day. The entire process can take as little as 30 minutes.

Payday loans are a hassle-free option that won't look at your credit score to determine whether or not you're approved. Regardless of your financial history, you can apply for and be approved for your payday loan, making it one of the easiest loans to obtain when you need money quickly. These loans are also unsecured and, as long as you can prove that you have money coming into your account through the use of a paystub, you'll be approved and taken care of.

Payday Loans – The Breakdown

  • You can get money on the same day you apply on.
  • You won’t need to offer up anything for collateral.
  • Your credit score won’t be checked.
  • You can start this process from home using your computer.

How Fast Payday Loans, Inc. Can Help You

Serving several locations throughout the state of Kentucky, Fast Payday Loans, Inc. makes it easy to access fast loans in a pinch. You can begin your application online after which a representative from your nearest store location will contact you to schedule a meeting at the time of your choice. During the meeting, you'll be required to provide a few pieces of information, which include:

  • Your driver’s license or state-issued I.D.
  • Your most recent pay stub
  • A blank check from the active checking account that is in your name

Once you supply this information, the loan representative will give you a chance to ask any questions you might have about the process or payday loans. When you feel comfortable with the situation, they'll inform you of how much money you'll receive, which will be anywhere from $100 to $500. Don't waste time waiting for a personal loan. Head over to the Fast Payday Loans, Inc. website, and start your payday loan application to get the money you need today.