Do you need a payday loan or a bank loan?

Loans have become such an integral part of our day to day lives that we plan our monthly budgets around them. Loans come in all shapes and sizes, and you can get a loan for pretty much anything these days. The real question is, what kind of loan do you require? The answer to this depends upon the loan amount you require, the loan repayment period, and what you require the loan for.

The only thing a bank loan and a payday loan have in common is the fact that they are sources of credit. Apart from this, their eligibility criteria, processing times, loan amounts and repayment periods are vastly different from each other.

A bank may take up to a week to process your loan application, and relies heavily on your credit rating to determine whether you should be approved for a loan. A payday lender on the other hand provides you with cash within a day, and you can apply for a payday loan even if your credit history is not exactly perfect.

Bank loans involve large amounts of money, so you may have to fill several forms in order to get your application through. A payday cash advance is a relatively small amount, and does not require any paperwork at all, since the entire application process is online.

A bank loan is a huge financial responsibility, and can be used to buy vehicles, property, or invest in a business venture. A payday loan can be used to cover any emergency expense that may occur during the course of the month, such as a car breakdown, birthday celebrations, or unexpected visits to the doctor’s office. A bank loan may take a couple of years to repay, while a payday loan can be repaid once you receive your next pay cheque.

So you can opt for a payday loan when you need some urgent cash, but use a bank loan for a long-term financial commitment.