People who are looking for the best loan for them meet with various offers and available amounts. Finally, choosing the right loan comes down to the basic question: payday loan or installment loan? This is especially important when large amounts of liability are involved. They limit the choice both in terms of loan availability and the costs associated with it. In the article we will present all the possibilities that a borrower seeking a loan of 5000 $ has and which one will work best.
After specifying the desired loan amount, the next step should be to determine when we can give the money back. If we decide on payday loans, choosing the right lender can be narrowed down. Why? Several factors influence this.
First of all, 5000 USD is usually the largest amount available in the offer. We will receive a loan of this amount only after the second subsequent loan. Therefore, borrowers who have never taken a payday loan in a particular company or have never taken it at all will not take advantage of it. After all, some people in this situation decide on two successive loans from the same borrower.
The first, free payday loan is contracted for a short period and immediately repaid, and the next one is taken in the desired amount. This is possible, given that the practice of most loan companies is that you can apply for each payday loan as soon as you pay back the previous one. However, this is a time-consuming solution and we prefer to use a different proposal than get involved in two loans one after the other.
After all, it is worth getting acquainted with the costs of such loans, if we ever wanted to take advantage of this option, because we have already used the free payday loan in the companies listed above.
Of course, there are also companies that offer amounts greater than $ 5,000, available from the second loan. These include Nami (up to $ 10,000), Viloan ($ 7,500), Bankate ($ 6,000) and Cashon ($ 6,000). So if we already have the first loan in this company, it may be worth choosing the next one, because they are really attractive lenders.
In addition, you can always use the services of the company that offer payday pay for 5000 $ on the first loan. There are not many of them on the market, but they are also not niche brands and therefore untrusted. Quite the opposite – they are regulars in loan rankings. This offer can be used at Fast Cash (for 6500 USD up to 65 days) or Freezl (5000 USD for a maximum of 30 days).
In the case of installment loans, it will be easier to find such a commitment, because rarely the maximum amount offered by the lender will be lower or even equal. Most installment loan amounts are in the range of $ 10,000 – 15,000. So you can enjoy your free choice or use the loan comparison service to see all possible loan options and lender requirements. It is also very important – some loan companies carefully check BIK or set a very high lower age limit.
The main motive which the borrower should follow is the repayment period. The largest selection will be among the brands that offer loans for 12 or 24 months. However, there will be no problem with using a longer repayment period, as it is becoming increasingly popular in Poland.
As you can see, in the examples above, installment loans are more expensive than payday loans and in most cases they will exceed twice the cost of payday loans. The exception is Monedo Now, where the cost of a 12-month loan will be the same as a 30-day loan, as well as Wonga – by far the cheapest option. However, people with good creditworthiness and no other arrears will get a loan in these companies.
The more expensive installment loan, however, has a great advantage over payday loans – instead of one payment, it will be divided into 12 equal installments, which will be a much smaller burden for the borrower. So it will be easier to pay it back and you won’t have to quickly accumulate funds to pay it back (which can sometimes be more embarrassing). In addition, it will not be able to credit it so much and you can make another commitment if needed.
Nevertheless, payday payday is a short-term commitment, not a long-term one. So the load will disappear very quickly and you can take advantage of the free loan. So it’s difficult to indicate which of the loans will work best – especially since you can always use payday loans for 60 or 45 days.