Is a Payday Loan Installment or Revolving Credit?

Is a Payday Loan Installment or Revolving Credit?

Payday loans are neither installment loans nor revolving credit, but all three of these are funding options that you can turn to when you’re in need of money. But how do you know which option is best for you? Let’s break down the differences between the three.

What is a Payday Loan?

Payday loans are short-term loans with smaller loan amounts. These loans are especially helpful in time-sensitive situations and cases of emergencies. The biggest advantage of payday loans is they’re easy to access and typically have fewer requirements to apply. 

Despite their advantages, there is a major misconception about payday loans due to their high annual percentage rates (APRs). Payday loans are fee-based, and that greatly depends on the lender. APR really doesn’t apply. That’s why at Quick Cash 4 Less, it’s important to us that we provide customers with access to fast cash and lower fees.

What is an Installment Loan?

Installment loans are common credit products, also known as “credit loans.” Like payday loans, when someone takes out an installment loan, they receive a lump sum of money that they repay over a period of time. Once an installment loan is fully paid off, the account permanently closes. 

Unlike payday loans, installment loans can include larger loan amounts and are generally repaid in monthly installments – hints the name. This repayment period can last several months or years. Also, installment loans do not always include interest. The most common types of installment loans include mortgages, student loans, personal loans and buy-now, pay-later loans.

What is Revolving Credit?

Credit cards and lines of credit are the most common examples of revolving credit, also known as a “revolving loan.” With this type of borrowing, funds are continuously made available for use as they are repaid, whereas payday loans and installment loans are one-time sums of money. 

The main advantage of revolving credit is that it allows continuous access to funds on an ongoing basis without having to reapply for additional money. The disadvantage of revolving credit is its potential to impact one’s credit score considerably.

How to Apply for a Payday Loan

Though payday loans require an application process, at Quick Cash 4 Less, we deliver a lending experience that’s fast, easy and online! Designed to help you, our online application process makes it easy to receive a cash loan within one to two business days. Just ask one of the over 25,000 customers we’ve served! 

At Quick Cash 4 Less, we have the experience and customer service you can trust. Learn more about our online loan process and apply for a Louisiana loan today!