You can turn to Omni Financial for reliable loans and financial services when you need cash fast. Our installment loans may be available in as little as 24 hours. Given this speed, installment loans are often confused with payday loans, which can provide requested funding the very same day.
But that’s more or less where the similarities between payday loans and installment loans stops. Understanding their many differences can help you decide which short term loan product serves as the right long term financial solution.
What is the difference between a payday loan vs installment loan?
From repayment terms to loan terms to the manner in which the balance is paid off, these two types of loans have less in common than you’d originally think. Installment loans have you repay the loan in regularly occurring intervals, usually in monthly payments. Credit checks may be conducted for installment loan applicants, but bad credit or a less-than-perfect credit score is not disqualifying. Each borrower is different, so every approval process is specific to the situation.
Payday loans don’t require a sterling credit history or a credit check either, but their terms and conditions are much more stringent. Instead of paying the balance off over several months, the loan amount may be due in a lump sum the next time you’re paid by your employer (hence the term “payday”) rather than over time using monthly installments. Not only that, they often come with interest rates that is much higher than many common credit cards.
In short, the interest rate and timeline for payday loans make it a financial product that contains a risk and may not be a healthy choice for a future of good financial stability.
How do I decide between a payday loan vs installment loan?
Another complicating component of payday loans and how they compare to installment loans is how much you can borrow at any given time. For the former, the most that this type of loan providers will offer is $1,500. Given the high costs of living, this amount may be insufficient for common expenses and debt, such as paying off credit cards, mortgage or student loans.
Thus, if you need a sizable sum of money, a payday loan may not cut it. Speed doesn’t matter when the amount isn’t enough. Omni Financial offers personal loans in quantities small and large, from as little as $500 to as much as $10,000, at Omni loan specialists will work with a borrower to create a financing plan that best meets their goals and budget, with a focus to get them back on track and on your way to a more secure financial future.
Depending on where you live, the payday loan vs installment loan decision may be made for you by law. Because laws are always subject to change, the rules on payday loans can vary in any given year or region.
The timeline for when you’re required to pay back the amount borrowed can also influence your selection. The balance for payday loans may not always be due on the same day you cash your paycheck, but uniformly, the period is far shorter than it is with installment loans. These can be paid back over a much longer term depending on the amount borrowed and any accompanying terms and conditions.
How can you find a good lender of installment loans?
Installment loans are great for a host of reasons, one of which is the variety of loans available, including personal loans, military loans and student loans. They also come in several different amounts and the eligibility process is straightforward.
What may not be as clear cut is how to find the right lender. Consider these suggestions when making your decision:
Look for transparency
Installment lenders should be like an open book, with clearly identifiable specifics as to interest rates, how much you can borrow, the qualification process and when you can expect to receive the funds. Understand that each applicant is different, so the process may vary slightly, but they should provide some basic guidelines that can help you determine how it all works on their website.
Check the Better Business Bureau – The Better Business Bureau maintains an ongoing database of millions of businesses and their credibility, issuing letter grades based on various factors like customer satisfaction, complaint history and whether problems were resolved. Do your research on their website. In short, if they’re accredited with the BBB, that’s an excellent sign.
Ask friends and family – Just about everyone has been in a situation in which they needed money quickly. Talk to people you know to see what lenders they’ve used and what their experience was like, especially how they were treated throughout the process. Speaking to people you trust can make a huge difference.
Why Omni Financial is a responsible lender
At Omni Financial, we’re all of these things – transparent, credible and approachable. In addition to being accredited by the BBB, we come highly recommended by our clients, many of whom are repeat customers. We’re open and straightforward about the application process and approval timelines, and we offer competitive interest rates on installment loans.
We have a 100% satisfaction guarantee policy. We’re your financial helping hand when you need a boost. Apply today!