Getting a home loan or a car loan or a federal student loan all involve the money borrowed going not directly into your hands, but into a third party’s hands. The reason is simple: these types of loans, unlike cash loans, must be used for one specific purpose only, and the lender wants to make sure that’s how the money is actually spent.
But when you need cash fast or need to borrow money for personal expenses, you can’t have an intermediate party holding your cash. You need speed in obtaining the loan and flexibility in using the funds – the two major types of loans that fit the bill in such cases are payday loans and personal loans.
Payday Cash Loans VS Personal Installment Loans
Now, if you have a car, own it outright (your name alone appears on the title), you can add title loan to the major types of cash loans, but in general, it’s best not to risk what may be your only means of transportation if you can avoid it. So we’ll focus here on payday loans vs. personal loans.
What is a “payday loan?” It’s a loan that is due in full when you get your next paycheck. That means you will generally get 2 weeks or 4 weeks to repay, depending on how often you get a paycheck.
In general, you can only borrow between $100 and $1,000 with a payday loan. The interest rates are relatively high with payday loans, but not higher than many credit cards – and since the term is very short, the total dollar amount paid in interest may not be that high at all.
The conclusion is obvious: payday loans are good for very short term needs and for relatively small scale emergencies. They tide you over to the next check, and if you pay the back on time, that’s that.
What about “personal loans?” A personal loan, also called an “installment loan,” is taken out for two or more months and is paid back in regular monthly installments.
Typically, you can borrow between $1,000 and $10,000 and get anywhere from a few months to 5 years to pay it back.
Interest on personal loans tends to lower than on payday loans, though the exact rate can vary based on your credit score. (But you can get approved for most personal loans regardless of credit history.) No collateral is needed, as in title loans. Your ability to repay (proof of income) is all the collateral you’ll need.
Personal loans are best when you need more time to repay and you need to borrow a larger amount of money, as compared with payday loans.
How to Find the Best Fast-Cash Loan
When looking for the best cash loan and most trustworthy lenders, where do you turn?
You can peruse your town’s local downtown or a local paper for ideas. But your options would be severely limited by such an approach. Or, you could just do a Google search and explore different lenders’ websites one by one, but that would give you too many options. You could never find the time to fully examine them all.
But by using a powerful online search engine, like those provided free-to-use by Bonsai Finance, is a true “game changer.”
Simply search according to your desired criteria, such as lower APR, lower fees, more flexible terms, or lenders that accept bad credit. Instantaneously, hundreds or thousands of loan offers and lenders will be sorted through, yielding the most relevant results.
Then, you can continue to narrow you search as needed, ask for advice and assistance from Bonsai staff, or do in-depth research on your short list. We make locating the best cash loans fast and simple with better results!