When you run out of cash, you immediately withdraw money from your bank. But if your salary is still not due or when you cannot touch your emergency fund, you will make a cash advance on your credit card. But if your credit card has reached its limit, you normally borrow money from a friend, family member or colleague. While these people will surely help you financially, it is not all the time that they will do. Or even if they do, what if their money on hand is also not enough or they are simply out of town? Online trusted lenders are available 24 hours to offer cash loans and other types of loans such as payday, auto, and housing.
Of course, of these loans, the logical types of loan to get are either payday or cash loans. But you may ask, “What is the difference between cash loan and payday loan?” Before discussing their differences, it is best to know their similarities.
Good or Bad Credit
Both loans are instant cash. Both too can be secured or unsecured. When you opt for secured, this means you have good credit and anytime, you can borrow money from the bank, lending company, or credit union. Your interest rate is also different because based on your impressive credit report, you can pay on time and you almost never default in payment. But if you have a bad credit, you cannot easily find a creditor who is willing to lend you money.
Unsecured loans on the other hand, require no credit check. You can qualify if you have their requirements such as checking account, secured job, proof of identification, and being at least 18 years of age. Cash loans or payday loans for bad credit are applied online, and once you have completed the form and the requirements, the processing, approval and release will be done on the same day. The amount approved for your loan is then deposited to your checking account.
Difference between Payday and Cash Loans
Payday loans are approved based on your monthly salary. The loan is designed with a payment that correspond to a particular date—your salary date. How many times you need to make payments in order to be fully paid is at the discretion of the lender. Sometimes it is one, sometimes it is multiple.
On the other hand, cash loans are sometimes mistaken to be a payday loan because cash loans are patterned similarly after the payday. However, with cash loans, the term of payment is generally after a month or 30 days.