If you’re considering taking out an online payday loan, it’s important to understand the different types of loans that are available. Here’s a quick rundown of the most common types of online payday loans.
- Single-Pay Loans
Single-pay loans are the most common type of online payday loan. With this type of loan, you’re required to repay the entire loan amount plus interest and fees in one lump sum payment on your next payday.
- Installment Loans
With this type of loan, you’re required to repay the loan in bad credit installment loans guaranteed approval, typically over a period of two to four weeks. Each installment includes a portion of the principal plus interest and fees.
- Line of Credit
A line of credit is a type of loan that allows you to borrow against a credit limit and make “draws” as needed. With a line of credit, you’re only required to make interest payments on the amount that you’ve borrowed. You can borrow against the credit limit at any time and for any amount.
- Flex Loans
Flex loans are similar to lines of credit in that they offer a revolving credit limit that you can borrow against as needed. However, flex loans typically have lower interest rates and offer more flexible repayment terms than lines of credit.
- Title Loans
Title loans are a type of loan that uses your vehicle’s title as collateral. This means that if you default on your loan, the lender can take your vehicle. Title loans are usually much smaller than traditional loans, and have shorter repayment periods. However, they also have much higher interest rates, which can make them very expensive.
- Payday Loans
Payday loans are a type of loan that is typically due on your next payday. If you have any outstanding payday loans, make sure that you pay them off before you apply for a new one. You may be required to fax documentation in order to qualify for a payday loan.
- Refund Anticipation Loans
Refund anticipation loans are a type of loan that is typically used to finance the costs of tax preparation. With this type of loan, you’re typically required to repay the loan in full plus interest and fees within a certain period of time, typically when you receive your tax refund.
There are a variety of online payday loans available, so it’s important to understand the different types before you choose one. Single-pay loans, installment loans, lines of credit, flex loans, title loans, payday loans, and refund anticipation loans are all common types of online payday loans.