Long Term Payday Loans Saves Money Over Using a Short Term Payday Loan

| July 22, 2013
Long Term Payday Loans

Long Term Payday Loans

If you are every need of immediate cash and your credit is less than perfect, then you should consider a long term payday loan. It’s a great way to get the money you need for those unexpected things that life throws at you. It’s also a smarter way to borrow money because you can pay the loan back overtime in installments.

Long Term vs Short Term Payday Loans

Long term payday loans are different from short term payday loans. A long term payday loan allows you to repay the money in installments. Usually the duration of these installments range from 3 months to 12 months depending on how much money is borrowed. Long term payday loans could also have lower interest rates or one-time CAB fees as opposed to short term payday loans.

Short term payday loans require the borrower to pay back the loan in two weeks and no more than thirty days. The interest rates and fees are higher, and a borrower may need to borrow the same money again immediately after their initial repayment. This leads to additional CAB fee for the new loan.

A Long Term Payday Loan Is The Smart Choice

People that take out payday loans are usually needing the money for more than two weeks. That’s the advantage of having a long term payday loan. You can use the money to catch up on bills, handle emergencies, make that car repair and anything else where you might need some fast cash. Then, you will be able to pay the money back over time in small monthly or semi-monthly installments.

Some people take advantage of the convenience of a long term payday loan when they want to take care of expenses immediately and know that they will have the funds to pay for it later. For example, getting paid for overtime or earning extra income from a second job could take weeks until you are paid. However, knowing that you will eventually get the money means that you can take out a loan to pay for things now.

Some long terms payday loan lenders do check your credit before giving you a loan. If your credit is not perfect, but it’s not bad either, then you can enjoy some of the benefits associated with a long term payday loan. These include, lower CAB fees, lower interest rates and extended time for repayment. This means your monthly installment will be less, and you can save hundreds of dollars over using a short term payday loan.

Reestablish Your Credit

Long term and short term payday loans are a great way of getting the money you need fast. Even a person with good credit will take out a payday loan for this reason. However, most people that take out payday loans don’t have perfect credit. Getting a long term payday loan can help reestablish your credit history. Long term payday lenders will report to the major credit bureaus, and paying back installment loans look great on your credit report. Short term payday loans usually don’t report to the credit bureaus unless it is for late or non-payment.

Long Term Payday Loans Saves Money Over Using a Short Term Payday Loan

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