If you Google “I need a loan,” you will find millions of sites, and they’ll generally be labeled “personal loans” or “instant payday loans.” You can get personal loans online, so what makes them different from payday loans online?
Personal Loans
The personal loan can be used for any reason. You can pay off your student loans, put a down payment on a car, attend a destination wedding, or catch up on bills. The difference is the personal loan is set at a fixed amount with a fixed interest rate. You pay the loan back via a fixed payment amount each month. Repayment may take from two to five years.
Payday Loans
The instant payday loan is usually obtained if you are in a panic. Your car broke down and you need to repair it. You received an unexpected bill for medical services, and consequently, you can’t pay your rent for the month. Payday loans are for a short period of time – usually two weeks or until the next paycheck. The loan amounts aren’t very large, and the interest rates are variable.
Requirements
Personal loans and payday loans online require the same things, such as a valid driver’s license or ID, proof of employment, and a few pay stubs. Most banks draw on your credit report, but providers of instant payday loans in Des Plaines, Ill, don’t. All they need to see is that you have the wherewithal to repay the loan. You generally will have your money within hours to the end of business that day.
Online
Back in the day, you had to drive to the loan establishment in order to apply. No more. Now, you simply fill out online forms, upload your information, and check back to see if the money is in your account.
