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Difference Between a Bank Loan and a Payday Loan

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Payday loans are short-term loans that are perfect for those conditions where you just want to secure a few hundred dollars for just a few days until your next payday, when you can pay back the loan amount. There is usually no particular predetermined use for receiving a cash advance, therefore payday loans could be used for practically anything you like including, car repairs, paying off utility bills to avoid disconnection, grocery bill, medical bill, school fees, throwing an anniversary party for your better half, traveling expenses and so on.

Payday loans are short-term loans and are usually available for just for a few weeks, until your next payday arrives. Therefore if a person wants to have access to a small amount of cash that they are certain can be paid back fully on their next payday, a cash advance from a payday loan might be suitable. Certainly, every individual might wish to think about the benefits and drawbacks for their personal requirements.

Personal loans and mortgage loans that are usually accessible from up market banks and financial institutes are typically offered with term counting in 3 to 25 years. While, short-term payday loans are usually offered for only a few weeks. Besides, bank loans are usually offered for thousands of dollars, as opposed to the few hundred that payday lenders usually offer, they usually offer smaller amounts ranging from $100 to $1500 and can vary from one lender to another and rely on the person's repayment capacity. The repayment term is usually from 7 to 21 days until your next payday, hence the name payday loan. Another big difference between the bank loan and a payday loan is that since these are unsecured loans there is no need for collateral and lenders do not bother perform a credit check, therefore people with bad credit can as well access these loans.

Another huge difference between a bank loan and a payday loan is, with bank loans it takes days instead of few hours for the loan application process to get completed. In a similar fashion, it might be a pleasant surprise to learn that submitting an application for a payday loan might take just a few minutes with the online process. Therefore, if you have a PC with an internet connection, you are from the comfort of your home able to get a payday loan and what 's more, the cash is directly deposited to your checking account within an hour of your application is approved.

Even the application form for a short-term payday loans is simple single form with a few details like name, address, age usually, 18 or more, contact details, banking details, and employment details together with pay date and the salary amount. A few payday lenders carry out fast credit checks on the borrowers to verify their credit record and help them make a decision whether the borrower is worthy enough to pay back the loan. Even if you have a bad credit record, you might be considered, due to the short-term nature and comparatively small amount available with short-term payday loans, a few payday lenders might be ready to bet on you.


ABOUT THE AUTHOR: ROBERTA MARTIN
Roberta is an expert in the field. For more information on payday loans, and fast payday loans Please visit: http://www.advanceloan.net/

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