Phantasm
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There are some differences between payday loans and personal loans, but they are still types of borrowing. There are these differences:
1. Amount and Payment Time: Payday loans usually amount to a few hundred dollars or less while personal loans can be any amount from five thousand to hundreds of thousands of dollars. They may last from one week to a month before the next payday arrives or sometimes more than a year.
2. Interest Rates and Charges: Payday loan interest rates are usually much higher when compared with those of personal loans. For instance, APR is often in three figures for money cashing services. On the other hand, ordinary bank loans like those that are traditionally provided by banks have lower percentage rates per annum for interests charged on borrowed funds. Additionally, payday loans attract huge charges such as loan origination fees and late payment fines.
3. Credit Check and Eligibility: Payday lenders do not necessarily carry out credit checks; thus individuals with low credits scores or no credit history may still access them. Nonetheless, evidence of an income source or employment may be required by the lenders themselves.
1. Amount and Payment Time: Payday loans usually amount to a few hundred dollars or less while personal loans can be any amount from five thousand to hundreds of thousands of dollars. They may last from one week to a month before the next payday arrives or sometimes more than a year.
2. Interest Rates and Charges: Payday loan interest rates are usually much higher when compared with those of personal loans. For instance, APR is often in three figures for money cashing services. On the other hand, ordinary bank loans like those that are traditionally provided by banks have lower percentage rates per annum for interests charged on borrowed funds. Additionally, payday loans attract huge charges such as loan origination fees and late payment fines.
3. Credit Check and Eligibility: Payday lenders do not necessarily carry out credit checks; thus individuals with low credits scores or no credit history may still access them. Nonetheless, evidence of an income source or employment may be required by the lenders themselves.
