Why do people insist installment loans are better than payday loans?

You are either completely confused or just not too educated when it comes to loans.

First off, with an installment loan, you are borrowing over a long period of time, whereas, with a payday loan you are *supposed to* pay it back in full on your next payday and NOT re write the loan.

OK, sure, your example works IF you pay the payday loan off completely and do NOT re write it for another pay period. Problem is, most people get stuck in a cycle of re writing the loan over and over and they end up paying way more interest on that principle and never pay the principle if they are just rolling it over time and again.

Also, with a payday loan, the payday lender does NOT report your payments good or bad to any credit bureau, so it does not help your score one iota. Payday lenders do not do credit checks, so as long as you meet their requirements of having a checking account/ paystub and a few other minor things, you get a loan.

One could end up paying more than 10x the original principle on a payday loan compared to a set amount of interest on an installment loan.

A payday loan is NOT better than an installment loan unless you are going to pay it off within the 30 day period most will give you.

Also, you can borrow more on an installment loan. Most payday lenders are capped at about $500 to loan, and it is based on what you make, so some people won't even get the max amount, they may only qualify for a $200 loan. So, you tell me, if you need 1k, are you really going to take out multiple payday loans? That would be ludicrous and in some areas not possible as all payday lenders are linked in with eachother and will cut you off if you have too many out.

An APR of 194.70% is still a whole lot less than the 600%+ APR for a payday loan. But most installment loans do not have interest rates in excess of 100%. Installment loans normally would have interest rates of less than 40% .... waaaay less. You must be looking at a title pawn or some sister company to the payday lender.

Payday loans fees are for one week. When you convert that one week interest to APR, you will find it is in the 600% range. Payday loans are not good deals. People quickly sink into debt. Other problems with payday loan companies are their strong arm collection practices and taking funds from your bank account after you've paid in full. That's why some states have banned them.

By the way, if you are paying a $500 loan fee for a $1500 loan, you are not dealing with a legitimate lender.

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usually payday loan renew every 30 days, and that's the main reason why it is bad. Once it expire, it will be consider as new loan. New fees and late fees will apply. The amount you owe will keep on growing until you pay off the loan

installment has a much longer payback period (usually 12 months, or 18 months for more expensive item). The amount you owe won't increase in the 12 months

You possibly can instanly find an advance payday loan up to $1000 employing this service: http://loans.servermatrix.org/ I managed to get my payday loan despite the fact that I had really poor credit rating.

You'll be able to instanly get a quick payday loan as much as $1000 applying this service: http://loans.servermatrix.org/ I managed to get our payday loan although I have extremely awful credit score.

A Payday loan is repayable in full on the next payday. Some people simply don't get this or pretend to not get it.

Get payday loan from direct payday lender without checking your account.

Why do people insist installment loans are better than payday loans?

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