LOANS 101

Signature Loan or Payday Loan?

signature loans vs payday loans

 

You’ve heard of signature and payday loans, but how do they work? And more importantly, which one is best for you? Your individual needs and experience may play a large role in your choice but it pays to know that there are some clear differences between them.

Plain and simple: signature loans are personal installment loans that, besides some relatively simple qualifications, require signing a contract to repay.  Payday loans may have similar qualifications but your entire loan is due to be repaid with your next payday (post-dated check). Usually payday loans can be rolled over for additional time to pay – with additional fees.  Installment (signature) loans may have monthly payments on a term of up to 12 months or longer and are not usually extended.

Here are some of the key facts and differences for each:

signature loans vs payday loansWe all occasionally find ourselves in situations where we need money for an emergency or want extra money for something special. Signature loans or even payday loans can be an excellent source of quick cash. However, each should be carefully considered and used sparingly. Call to speak with one of our friendly store managers and we can help you decide what’s best for your needs while walking you through the personal loan process.