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A payday loan is like a personal loan, but has some important differences. Installment Loans - An installment loan is one where you receive the loan amount in one lump sum and then make regular, set payments until the loan is paid off. Revolving Credit - A credit card is different than an installment loan because you can borrow less than your approved amount at first and then more later. Also, you always have the option to borrow more money as long as there is room available in your credit line. A credit card is considered a revolving line of credit. Payday loans are neither installment nor revolving loans. A payday loan is one that is paid off in one lump sum. Payday loans are fast cash. With a payday loan, the approval process is quick and easy. But, the loan is more like an installment loan, not a revolving line of credit. Payday loans are usually for amounts from $500 - $1000 and personal loans are usually for amounts of $1000 - $10,000. Payday Loans are Fast Cash - Personal Loans are Long Term - With personal loans, you usually do not receive the cash fast, you usually have to go through a normal loan process, which can take anywhere from 1-2 weeks or more until you actually receive your loan amount. The loan payments are extended for 1-5 years. With a payday loan, the entire loan amount is due within 1-4 weeks.
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