Payday Loans vs. Other Types of Loans – Which One is Better?

March 26, 2019

When you’re in need of a loan, it’s best to compare and contrast all your options in order to choose the right type of loan.

You’ll always have plenty of varied options available to you, but is a payday loan right for your current situation? MaxCash’s loan experts are about to help you find out.

Payday Loans in the World of Loans

In order to better understand whether a payday loan is the right answer for you, its important to know what makes a payday loan so unique. The traits that normally define other types of loans are all absent from a payday loan, making it an oddity. This is mostly due to the vast majority of loans all falling under one common category: installment loans.

Installment loans may not sound familiar, but they’re a category that contains most loan types—such as mortgages or college loans. The loans counted under the category may seemingly all have widely varying traits, but it’s one thing they all share that categorizes them under the same category: their repayment process.

The way the repayment process works for all these different kinds of loans is going to be the same every time.

  1. The lender makes a large payment to a borrower
  2. The borrower pays off their loan in small installments over time

As the loan features both of these traits, it’s considered an installment loan.

Unlike installment loans, the term of a payday loan isn’t going to be years and years. It’ll generally only be a handful of months at most, often being as short as just two weeks. No installment payments either – the full amount is due at the end of the loan period.

Defining the Payday Loan

So why are payday loans like this? With such a weird bundle of characteristics defining it, why would anyone ever choose a payday loan? The answer to that question lies in the way payday loans are used.

Most loans, namely the ones in the installment loan category, are used to make large purchases. Auto loans help you buy a car, home loans help you buy a house, college loans buy your entry into college, etc. But payday loans are different. Instead of viewing payday loans as a way to buy larger, unaffordable items, look at them as a way to push back currently unpayable bills.

This is where payday loans truly shine. Say there’s some sort of medical emergency you need to pay for, but don’t have the funds to cover at the time, and it’s too large an expense to use your credit card. What do you do? The answer is to get a payday loan to cover the bill, which will be repaid once your next paycheck comes in.

Inquiring for a Payday Loan

Now that we’ve gone over how a payday loan is defined, it’s time to go over how you could obtain one.

The first step in acquiring the quick funds you need is to contact MaxCash. You could call any day of the week at (833) 207-9052 or send an inquiry email to Info@MaxCash.com.

A MaxCash representative will ask you for some information, including the following:

  • Your Address – When MaxCash is trying to find you a lender, they’ll need to know where to look. The search will be narrowed by your city, state, and zip code.
  • Contact Method – Contact information will be important once a lender has been found because they will want to get in touch with you. Be sure to include your phone number and email address.
  • Income Documents – A lender will need to know how much you could afford to pay back each month. They don’t want to give you an amount that will stretch your wallet too far.

Once you’ve provided all this information, MaxCash can put it to use helping you find the payday lender you need.

Tracking Down a Payday Lender

Using your information, MaxCash will begin by going to their country-spanning list of partnered lenders. From this list, they’ll strike out any and all lenders that don’t work in your area. Once that’s done, the remaining lenders will be contacted, informed of your situation, and provided with some of your financial information.

These lenders will consider, given your situation, whether or not they’re interested in working with you. If they are interested, they’ll send initial offers in to MaxCash, who will try and negotiate with them to obtain better terms.

MaxCash will finally compare all the loan offers against your information and determine which is the best one for your current situation. If agree to the terms of the loan, MaxCash will put you in contact with the lender.

Meeting Your Payday Lender

MaxCash will put you in contact with the lender in one of two ways: phone or email.

When you’re in touch with your lender, you will discuss any final details regarding the loan. Amongst these final details will be the all-important method of exchange, which includes the following methods:

  • In-Person Exchange
  • Online Transfer
  • Mailed Check

Depending on your situation, one of these options may be the most appealing. Once you’ve set up repayment with your lender, you’ll be all set.

And that’s it! Interested in learning more about payday loans? Then check out MaxCash’s informational website about payday loans.

DISCLAIMER:
The MaxCash website does not offer or provide loans, but rather, it offers a service. It should not be construed as a lending agent or broker. The site does not endorse any lenders and does not charge visitors any fees. The website owners do not evaluate potential lenders’ applications, nor do they approve or deny credit. The MaxCash website does gather applicants’ personal information and transmits it to lenders that are part of the site’s lending network. No one is required to make use of this website, nor are they under any obligation to begin contact with site operators or to attempt to secure a loan with any of the site’s lending partners. Transmission of your financial and personal information on the website in no way obligates lenders to offer you a loan or any other kind of credit product. Be aware that cash transfer times can vary, depending on the lender and the bank you use. It may be necessary to fax information under certain circumstances. All questions about loans, and any concerns you may have should be directed to your lender. These loans are intended as short-term financial solution to satisfy borrowers’ needs for immediate monetary relief. This is not intended to be part of a long-term financial plan for individuals. These services are not offered in all states. Potential borrows may undergo credit check if lenders choose to use any of the major credit reporting bureaus, including Equifax, Trans Union and Experian. They may also use other alternative sources to check credit ratings. Your request for a loan constitutes your agreement and acknowledgement that (A) your personal data may be shared with lenders and perhaps other third-party partners, and (B) lenders can acquire credit bureau reports that detail your credit history. Reports from major credit bureaus, such as Equifax, Experian and TransUnion may be obtained and used to evaluate your reliability as a borrower.

1Loan amounts by the lenders vary based on qualifications.

2Since we do not lend money directly we cannot offer you a solicitation for a loan. In all serviced states we WILL match you with a lender based on the information you provide on this website. We will not charge you for this service and our service is not available in all states. States that are serviced by this Web Site may change from time to time and without notice. Personal Unsecured Loans are not available in all states and all areas.

3Loans such as, Auto Title Loan companies typically do not have pre-payment penalties, but we cannot guarantee that every lender meets this standard. Small Business Loans typically do have pre-payment penalties and occasionally will use your car as collateral to secure the loan. Other types of loans may have pre-payment penalties as well.

4All lenders are responsible for their own interest rates and payment terms. Max Cash has no control over these rates or payments. Use of the work competitive or reasonable does not mean affordable and borrowers should use their own discretion when working directly with the lender.

5The amount of people who applied for a loan and we helped and those who received a loan is not the same. We cannot guarantee we will find a lender who will fund you. Just because you give us information on this web site, in no way do we guarantee you will be approved for a car title loan or any other type of loan. Not all lenders can provide loan amounts you may see on this web site because loan amounts are limited by state law and/or the lender. Some lenders may require you to use a GPS locator device on your car, active all the time, in the circumstance for an auto title loan. They may or may not pay for this or charge you for this. This is up to the lender and we have no control over this policy of the lender. Typically, larger loans or higher risk loans use a GPS.

In some circumstances faxing may be required. Use of your cell phone to receive updates is optional. Please review our privacy policy.

Loans such as Car Title Loans are expensive and you may have other ways to get funding that is less expensive. These types of loans are meant to provide you with short term financing to solve immediate cash needs and should not be considered a long-term solution. Residents of some states may not be eligible for a loan. Rejections for loans are not disclosed to our firm and you may want to contact the lender directly.

Signature and personal loans are only available in Georgia and Florida. Loan amounts differ at locations. Account approval requires satisfaction of all loan eligibility requirements, including a credit inquiry, and, if applicable, motor vehicle appraisal.

Car Title Loan lenders are usually licensed by the State in which you reside. You should consult directly with these regulatory agencies to make sure your lender is licensed and in compliance. These agencies are there to protect you and we advise making sure any lender you receive money from is fully licensed.

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