What Are Installment Payday Loans?

Have you heard of installment payday loans before? What are they, and how are they different from your usual payday loans? These are just like the usual cash advance loans, but there is a slight change here, and this is related to the payment schedule.

How Are Installment Pay Day Loans Different?

In a pay day loan, the money is advanced to you against your salary or wage. You are expected to pay back the borrowed money, interest and the fees in full, once you have received your wage or salary of the next month. So the loan is always issued for the short term. Usually it is for less than 1 month. However the short-term nature of the loan can create a problem for many people, particularly when the borrowed money is quite large. It may so happen that almost the entire pay check goes in repaying the debt, and once the repayment is made, the person is hardly left with any money in the bank. Obviously this will create another financial emergency, and he/she might have to taken another loan. The person may fall into a debt trap easily.

In installment payday loans however, there is no need to pay back the entire amount on receiving the wage. The borrower will actually pay the debt off in installments. These installment payments are timed with the wage or salary. Though you may feel comfortable because you don’t have to pay off the entire debt in one month, but do remember that the installment plan will increase the total amount you have to repay.

Good Option for People with a Poor Credit History

The fact is, installment payday loans are good for those who have a poor credit history. That’s because, their appeal for a loan on the usual terms are likely to be rejected because of the poor score. This may be the only term under which their loan can be approved.

It is assumed that those who have good credit can easily get a loan or even draw money using their credit card. The lender would thus assume that since the person is applying for a pay day loan, he or she doesn’t really have any other option left. Such loans are thus viewed as a last resort.

But the good news is that, the loan can be issued very quickly. So if you need the money urgently, you can be sure that it will reach your account really fast. Just ask for 1 hour payday loans, and it could even reach the account in less than an hour.