Payday Loan vs Traditional Bank Loan

Got into situation where you need more money? The obvious choice would to borrow money either from friends, relative, bank or even payday instant loan. The last two options comes handy if earlier doesn’t work.

Traditional bank loan and Payday instant loan are basically two different type of lending loan. Below we briefly discuss both of them:-

Traditional Bank Loan:

Lend loan from bank can be hectic sometimes due the long processing time and filling of numerous forms. After application approval if further takes week (even months) to transfer money. Hence, if you are looking for quick money then bank loan is not your answer.

Second most important thing to consider is your Credit Score, you should have good credit score in order to obtain bank loan. If you credit history is bad then simply forget about bank loan. Along with good credit score you also need to provide evidence that you have strong job and steady monthly income.

After credit score you need to consider the amount you want to borrow. Bank usually used to lend loan of larger amounts and you get ample time to return back the loan money. Based on your application & borrowed amount, bank may extend your returning period upto years.

Payday instant loan:

Payday also involves filling of forms and other data, but these are relatively simpler than processing a bank application. Once you application is approved then you receive loan amount instantly which is transferred to your bank account.

You don’t need credit score – yes this is the interesting part. You don’t need any credit score, all you need to provide the evidence that you got good job and steady monthly income, that it. Payday loan companies are more interesting if you can pay loan back rather than you credit score.

Unlike banks, you cannot borrow larger amount. Payday loans works only for small or medium amount start from few hundred to thousands only. Basically amount should be short enough which you can easily repay on your next pay day.

So Payday Instant and traditional bank loan both have their own pros and cons. But again only acquire loans if you really need it.