If you google the phrase installment loans in Cleveland, you might be overwhelmed by the number of companies that are ready to offer such financial services.
However, not loans are good for your needs. In this article, we’ll take a detailed look at installment and payday loans to analyze both options and find out which is better.
Payday Loans or Installment Loans
The wide array of loan offers can confuse almost everyone, however, you don’t need to get a degree in economics to chose what is the best for you.
Let’s take a look at the most popular financial services in the USA – payday and installment loans. Are they the same?
Not exactly. Here is what you need to know about them.
- First of all, installment loans are an umbrella term that can mean a lot. Generally, this category includes mortgages, loans for purchasing a car, and loans for other purposes.
- With the help of installment loans in Cleveland, it’s possible to get bigger sums of money, plus the loan term is usually longer.
- At the same time, these solutions often require credit examination, meaning that some people with bad credit ratings won’t be approved. However, it also depends on your choice of lender. Many direct lenders offer options with no credit check.
- Payday loans can also be considered as a sort of installment loan, but their characteristics are slightly different. You can expect shorter terms, less attractive interest rates, and extra fees.
But when it comes to payday advances, the examination of a person’s credit history is optional.
Direct Lenders and Bad Credit
When you’ve discovered the most importnat information about these types of loans, it’s time to reach a final verdict. It’s necessary to mention that your own choice will depend on your goals, so you always need to do your own research.
To demonstrate how it can look in practice, let’s imagine an ordinary situation.
Mark lives in Ohio and is going to buy a new car as his old one can’t be repaired. He went online and searched for available options. Mark doesn’t know what to pick, as he isn’t sure about his credit history.
At first sight, a payday loan might be a winning choice in his situation as the risk of receiving a declined application is really low in his situation.
Nevertheless, an installment loan still seems to be more beneficial.
Here is why:
- You can apply for more money, which can be crucial if you want to purchase a good vehicle.
- It’s possible to pay back in relatively small payments during a settled period of time. You always have a schedule, and in some cases, it can be changed without additional fees.
- You can apply for cash advances in Cleveland right from your home, and the whole journey can be completed in just a few clicks.
- The interest rates look more attractive.
As we see, when we are talking about really big purchases, the winner is obvious. If you need just a few hundred dollars, consider other solutions.
No Credit Check
Picking your perfect financial service is hard. It can be even harder when we are talking about loans. However, deciding between installment and payday loans isn’t rocket science.
Analyze your cash flow, define your goals, look through the options online, and you will be ready to make a wise decision without getting trapped into that annoying debt cycle.
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Representative Example: Loan Amount $1,000, Interest Rate 24%, Loan Term 12 Months, Fee 3%, Fee Cost $30, Repayment $94.56, APR 29.82%, Total Payments $1,134.72, Total Costs $164.72.
CashSmartOhio.com is not a lender and does not provide short term or online personal loans but refers consumers to the lenders who may provide such loans. CashSmartOhio.com is unable to supply you with an exact APR (Annual Percentage Rate) that you will be charged for a loan. APRs depend on multiple factors, including the lender’s requirements and offers, your credit worthiness, your state of residence, and the type and term of the loan you request.