The concept of payday loans is completely different from that of the traditional loans. They are generally meant for short-term cash needs that include medical expenses, car repair expenses, school fee, credit bills, grocery bills, etc. In most of the cases, the sum doesn’t exceed $1000 unlike the traditional loans that are meant for larger sums and purposes like buying a house or a car.
Payday loans are offered at considerably higher rates than the traditional loans. The term is very short and can extend to a maximum of 3 months. Hence payday loans can be considered as something like an advance paycheck or a means of working from one paycheck to another.
One significant difference between payday loans and traditional loans is that in the former case, you do not need to produce your credit history while in the latter case, the credit history becomes an important aspect in determining the interest rate that is offered for the sum. Hence, a person with a poor credit history can apply for a payday loan without having to worry about his application being declined altogether or worry about being charged high-risk premiums as in the case of traditional loans.
Hence it is pretty evident that payday loans and traditional loans have been designed on two completely different lines on the basis of different needs and different conditions altogether. Since payday loans online serve short-term needs, their application procedure is also simple and easy- without any hassles. Also, you get your required amount within a matter of a few hours while in the case of traditional loans, you have to go through a lot of running around till you get your sum which may even take you a few months in some cases.
Payday loans are offered at considerably higher rates than the traditional loans. The term is very short and can extend to a maximum of 3 months. Hence payday loans can be considered as something like an advance paycheck or a means of working from one paycheck to another.
One significant difference between payday loans and traditional loans is that in the former case, you do not need to produce your credit history while in the latter case, the credit history becomes an important aspect in determining the interest rate that is offered for the sum. Hence, a person with a poor credit history can apply for a payday loan without having to worry about his application being declined altogether or worry about being charged high-risk premiums as in the case of traditional loans.
Hence it is pretty evident that payday loans and traditional loans have been designed on two completely different lines on the basis of different needs and different conditions altogether. Since payday loans online serve short-term needs, their application procedure is also simple and easy- without any hassles. Also, you get your required amount within a matter of a few hours while in the case of traditional loans, you have to go through a lot of running around till you get your sum which may even take you a few months in some cases.
