Are you looking to obtain not only one, but multiple payday loans? Well, in order to get the process started, consider working with MaxCash, and their team of payday loan experts.
To that end, MaxCash is prepared to help you discover what payday loans and how you could go about obtaining one, or several, for yourself.
Payday Loans vs. Other Loan Varieties
Within the lending world, payday loans are rather unique, wholly due to the atypical attributes that they have. Due to their odd nature, they’re usually not the most common types of loans. That award goes to installment loans, which are familiar to more people.
Have you ever used a mortgage? Or perhaps you’ve obtained an auto loan? Or maybe even a student loan? If you’ve used any of these types of loans before, you have experience with installment loans. But how is it that all of these unrelated loans have relation to one another?
Installment loans aren’t actually a specific loan, but rather a category within which numerous different types of loans are housed. And all of the loans in that category have a set process that defines them: repayment.
That tying thread always features the same three steps, which are:
- Receiving the Initial Loan – The first step featured in every type of loan is the initial receiving. In this step, the client applies to a lender for the loan, is approved, and then receives their funds, all in one lump sum.
- Putting the Loan to Use – The next step here is for the client in question to use the funds they’ve received. Usually, these funds are only allowed to be used for specified expenses, as agreed upon in the loan’s contract.
- Repayment – By far the most defining step, the borrower will repay the sum of the loan through several monthly payments. This process usually begins around a month after the initial receipt of the loan. Repayment is broken up into numerous smaller chunks, usually paid monthly, and often lasts multiple years all said.
So long as your loan features all of the traits above, it’s considered an installment loan. So why cover the definition of an installment loan here? Because it’s important to understand just how unique payday loans are amongst their peers. As you’ll soon find out, payday loans differ greatly from installment loans.
The Traits of Payday Loans
So, now that we’ve defined installment loans, let’s take a look at some of the traits payday loans have. On a surface level, some things might seem the same. There’s still an initial loan, still a usage step, and still a method of repayment. But within those three steps, there’s all kinds of differences and unique aspects that make it different.
For starters, let’s take a look at the initial lending. With a payday loan, borrowers receive smaller loan amounts than with an installment loan, as most cap out at $1,000. Your usage will also be different, as payday loans don’t have strict rules on what the money can be used for. Finally, and most importantly, their repayment is different. The full loan amount is due at the end of the loan period, which is often under two months.
Payday loans are great for situations that require immediate financial relief as you’ll soon find out.
Where to Use Payday Loans
Consider the following situation: your car breaks down, and you need it repaired ASAP to get to work. However, your funds are too thin to pay out of pocket, and your credit cards are full up. Now what?
As you’ve no doubt guessed, the answer is clear: payday loans. Payday loans are specialized to deal with one thing: emergencies. Instead of seeing a payday loan as a way to make a large upcoming purchase, the better way to view the concept is as a way to delay inconvenient payments.
Payday loans allow people to temporarily regain their financial stability while they take care of any emergencies. They are meant as a quick solution for unexpected problems.
As you can see, payday loans are a great, specialized type of loan that could help you cover all kinds of unexpected occurrences. Even if you have multiple emergencies happening at once, you can get individual payday loans for each.
Want to learn more about payday loans, or loans in general? Check out the MaxCash website to read some informational articles.