Payday Loans: What Are My Options?

by Credit Faire March 12th, 2018

Payday Loans: What Are My Options?

Payday loans have been around for some time. The need for a short term loan to make ends meet has and always will be around. That being said, while the general loan type has been around for a while; the various forms it takes have changed with time. Technology has had the single biggest impact on loan trends in the last decade. The emergence of online and mobile phone applications as increased access dramatically to these types of loans.

With this growth in loan access, we have also seen a variety of different loan options appear for consumers. We are going to break them down in this post so that you can understand what options are available before you start submitting your applications.


Different Ways to Access

Storefront Loans

Storefront loans are exactly what they sound like – loans you might obtain at a physical locations. These are extremely popular, as there are more payday lenders storefronts than McDonald’s in the United States. While storefront loans continue to be popular due to the plethora of locations available, they have become less popular with the advent on online loans.

Online Loans

Online loans have and continue to grow significantly in terms of available lenders and product types. As with anything in the last decade, access to whatever it may be from your home computer has become a must. Sophisticated application processes along with online banking means that consumers now don’t even need to leave the home to get access to the short term funding that they need.

Mobile Loans

Very similar in capacity to online loans, mobile loans are simply loans accessed from your mobile device or tablet. In many cases the same lender simply provide more ways to access them by offering both online and mobile applications. Others are dedicated mobile app only lenders.


Different Types of Loans

Short Term “Payday Loans”

These are your stereo typical payday loans. A loan that you receive and typically have to pay back within 2 weeks to 30 day – or in line with your next paycheck. This loan is typically structured so that you make one payment that is both principle plus a fee back at the end of the loan term. No regular payment structure is setup as it will just be a one time transaction unless you choose to re-borrow again.

Short Term Installment Loans

Installment loans that go on for about 3-4 months would be considered a short term installment loan. These would have you pay against the balance owed over a few months until the loan is paid in full. The loan terms will vary with type of loan. Some will be fee based like short term loans and others will be an actual interest rate paid against the balance. Note the latter is less common.

Installment Loans

Drop the “short term” and you have a regular installment loan. These can be anywhere from 6-12 months or greater. You will generally find only larger loan amounts that accommodate this timeline and it is almost always and interest based charge. An installment loan will allow for smaller payments to be maid over time, making it easier for you on a month to month basis. Note you can still find smaller loan amount lenders who offer this term; most notably Credit Fair-E.

Lines of Credit

Lines of credit are what is called revolving lines of credit. A revolving line of credit is something you can borrow against, pay back, and borrow from again. The line itself may have an expiration date from which you can no longer continue to pull from it, but generally up until that point you can repeat that process as much as you want. These types of loans are very rare when you are looking for something more associated short term payday loans and are more common in the form of credit cards.



Understand your needs and pick the right loan for you. If time is an issue hop online and get your funds. If you’re having trouble understanding a part of the process, maybe going to a storefront is better for you.

A lot of people get caught up in constantly having to re-borrow their short term payday loan because they can’t afford to pay it back plus a fee in such a short time. Unfortunately each time this occurs it ultimately increases the cost of the loan.

Always consider the end financial result when considering where and what kind of loan you decide to go with. Review the terms carefully to ensure you fully understand the obligation you have to the debt. It generally helps to be somewhat pessimistic in your assumptions to ensure that you could handle the worse case scenario.

You can learn more about installment and other loans here.

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