Bad Credit Personal Loans Vs Payday Loan

When deciding whether to apply for a Personal Loan with America’s Loan Company versus getting a Payday Loan with other vendors, take into account several factors.  Do some investigating to figure out factors such as number of payments that you will have to pay the debt, the total in fees that will be paid, and whether or not it can lead you to a cycle of having to re-borrow over and over.

Personal Loans

America’s Loan Company’s Personal Loans are intended to be affordable and not lead to a cycle of debt.  Our terms are 6 months to 5 years.  Our fees are typically lower than most competitors.  For instance we may do $1,500.00 loans with terms of 24 months and biweekly payments of about $40.00 and an A.P.R. close to 34%.  Total fees over 2 years would close to $580.00.

Payday Loans

As a comparison, the typical Payday Loan is not intended to be affordable and can get you into a cycle of having to borrow and re-borrow.  The one thing that a Payday Loan may do that we can’t is give you a $1,500.00 in less than an hour.  The typical payday lender is counting on the applicants’ lack of patience.

Terms for Payday Loans are usually 2 weeks compared to our personal loans that can have 6 months to 5 years.  Total in fees that will be paid with a Payday Loan will also be typically higher if you get into the habit of having to pay the loan and then have to take another loan.  For example, according to Check Into Cash’s website, their fees for a $1,500.00 Payday loan are $392.97.  That’s total fees of $392.97 in just 2 weeks with an A.P.R. of 683.02%.  Do the math to see the amount in fees that will be paid if you need to pay and then immediately have to re-borrow that $1,500.00 over another 2 weeks.

In short, if you have bad credit and need a Personal Loan, pay attention to the fees that you will pay between say our Personal Loans for people with bad credit and a Payday Loan.  We may not able to approve your Personal Loan in 20 minutes like some higher priced competitors can do with the Payday loan.  But, in the end a little patience may save you a lot in fees.  Not to mention saving you from a cycle of debt.