GET CASH
Loans
Payday loans
installment loans
personal loans
title loans
Services
check cashing
netspend cards
tax services
Money transfers
additional Services
Cash Academy
Blogs
Cash academy blog
loans 101
personal finance
taxes 101
get involved
Featured Articles
what is a tax refund advance?
what is a payday loan?
what is an installment loan?
what is a personal loan?
what is a title loan?
beginner's guide to filing taxes
States
Store Locations
utah
Nevada
Online States
Alabama
Alaska
California
Idaho
Kansas
Louisiana
mississippi
Missouri
Nevada
Ohio
Texas
utah
Wisconsin
Wyoming
All States
Why check city?
About
about check city
Contact Us
reviews
careers
Members faq
Community
community outreach
Check City scholarship
Warm Hearts Coat Drive
Three Square Food Drive
Souper Bowl of Caring
Shade Tree fundraiser
Login
Apply now
Get cash
Loans
Payday loans
installment loans
personal loans
title loans
Services
check cashing
netspend cards
tax services
Money Transfers
additional services
Cash Academy
Blogs
cash academy blog
loans 101
personal finance
taxes 101
get involved
Featured Articles
what is a payday loan?
What is an installment loan?
What is a personal loan?
what is a title loan?
beginner's guide to filing taxes
what is a tax refund advance?
States
All States
Store Locations
Utah
Nevada
Online States
Alabama
Alaska
California
Idaho
Kansas
Louisiana
Mississippi
Missouri
Nevada
Ohio
Texas
Utah
Wisconsin
Wyoming
why check city?
About
About Check City
Contact Us
Reviews
careers
members faq
Community
Community Outreach
Check City Scholarship
Warm Hearts coat Drive
Shade Tree Fundraiser
Apply now
Login

Payday Loans vs Personal Loans

written By
Kimber Severance
Reviewed by
Cort Walker
November 6, 2024

Learn the difference between payday loans vs personal loans so you can better understand the loan options available to you.

There is a lot to consider when reviewing your borrowing options for loans, like the difference between payday loans vs personal loans and their different benefits and features.

Both types of loans offer quick access to the funds you need when you need money most, but both loans come with different amounts, terms, and conditions. Let’s go over what the differences between these two types of loans are so you can feel better about making your borrowing choices.


Apply for a Check City Loan


Applying for a Personal Loan vs a Payday Loan

A personal loan is a type of loan that can be used for various personal expenses and is usually based on creditworthiness and income.

If you’re applying for this type of loan, it might be because you need money for any number of personal reasons with a manageable payment schedule.

A payday loan is a type of loan that can be used to help borrowers get financial help between paychecks.

If you’re applying for this type of loan, it might be because you need money from your next paycheck now instead of later for emergency or unexpected expenses.

How Personal Loans vs Payday Loans Work

A personal loan works by a borrower filling out an application, the application is reviewed, and if approved, the applicant receives their money. Then, the borrower usually repays the loan in several payments over the course of a few weeks or months, depending on the loan term.

  1. Fill out a loan application. 
  2. If approved, receive your loan money.
  3. Repay your loan in a few payments.

A payday loan works by a borrower filling out an application, the application is reviewed, and if approved, the applicant receives their money. Then, the borrower usually repays the loan in one lump sum on the date of their next payday. 

  1. Fill out a loan application. 
  2. If approved, receive your loan money.
  3. Repay your loan in full on your next payday.

Benefits of a Personal Loan

There are many benefits of personal loans to consider when weighing your borrowing options. You want to consider things like your financial situation and what kind of debt you comfortably have the ability to repay. You also want to think about the repayment term, annual percentage rates (APR), and any other terms and conditions so you can make the best choice for you.

One of the benefits of a personal loan is that it offers flexible funds. This money can be used for various personal reasons. It’s a great option when other loans that come with a specific purpose don’t apply to your financial situation.

Another benefit is that they require no collateral. This makes them a little more accessible to more borrowers since you don’t have to put up a physical asset like your car title to qualify.

All in all, this loan type is a fast and flexible option when you need money. They’re available to a wide range of borrowers, the application process and underwriting is usually very quick, and the repayment terms and payments are usually fixed and clearly set out. There is also a repayment plan you’ll need to plan for.

Benefits of a Payday Loan

There are many benefits of payday loans to consider when weighing your borrowing options. You want to think about things like the financial institution, whether you can pay back the loan, the interest rates, and even the number of business days it takes for applications to process.

One of the benefits of a payday loan is that it offers fast funds when you need money now. The application and approval process is usually very simple and quick, so you can get money for unexpected or emergency expenses as quickly as possible. Some lenders even offer loan approval and deposits on the same business day.

Also, these short-term loans don’t require collateral, so you don’t have to put up loan requirements like a title to get approved. Overall, this is a convenient, fast, and simple option when you need money in a pinch.

This type of loan has a very short repayment term where you generally pay back the loan in one payment on your next payday. This can be a convenient way to get money and repay it back quickly, but should be considered carefully when making a financial decision.

Payday Loans vs Personal Loans

There are a few key similarities between payday loans vs personal loans. For example, they are both a type of loan that allows borrowers to get the money they need, they are both small loans with shorter loan terms, and they both don’t require any extra collateral.

There are also a few key differences between payday loans vs personal loans. For example, they are different in that personal loans offer larger loan amounts with longer loan terms compared to payday loans. Likewise, payday loans offer smaller loan amounts with shorter loan terms compared to personal loans.

Another main difference between personal loans vs payday loans is that payday loans are usually paid back in one lump sum in a one-time payment, usually on the borrower’s next payday, while personal loans often have more than one payment over a few weeks or months.

payday loans vs personal loans chart

The bottom line is that payday loans are paid back in one lump sum, usually in a 1 to 2 week term, with fast funding, no collateral required, shorter loan terms, and higher interest rates. This makes this loan a great option when you need to a small loan amount to help tide you over until your next payday.

Likewise, the bottom line of personal loans is that they are paid back in a few payments, usually in a 5 to 6 month term, with flexible funding, no collateral required, longer loan terms, and higher interest rates. This makes this loan option better if you need to borrow a larger amount and want to make payments over a longer period of time to possibly keep your payment amounts a bit smaller.

‍

Related Products:

Utah Personal Loans

Utah Payday Loans

‍Nevada Payday Loans‍

California Payday Loans‍

Alabama Payday Loans‍

Alaska Payday Loans‍

Mississippi Payday Loans‍

Kansas Payday Loans‍

Wyoming Payday Loans

‍

Keep Learning

Guide to Utah Payday Loan Laws
What Do You Need for a Payday Loan?
Do Payday Loans Affect Your Credit?

Article sources

Subscribe to the Cash Academy Blog.

Start your Application
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
in this article
Customer Service:
(800) 404-0254
Quick Links
Online Payday Loans
Personal Loans
Title Loans
Cash Advances
Additional Services
Installment Loans
Rates & Fees
Sitemap
Blog
Company
Why Check City?
Responsible Lending Statement
State Licensed Lender
Terms of Use
Wireless Policy
Privacy Policy
Privacy Notice
Careers
Contact Us
Locations
Nevada
Utah
States
Alabama
Alaska
California
Idaho
Kansas
Louisiana
Mississippi
Missouri
Nevada
Ohio
Texas
Utah
Wisconsin
Wyoming

Payday Loans are also commonly referred to as Cash Advances, Payday Advances, Payday Advance Loans, and Fast Cash Loans. Check City may, at its discretion, verify application information by using national consumer loan underwriting databases that may include information relating to previous cash advance transactions that Check City may take into consideration in the approval process. Approval, products, and loan terms may vary based on applicant qualifications and applicable state or federal law. See Rates and Fees for specific information and requirements. Some customers applying for payday loans or installment loans may be required to submit additional documentation due to state law and qualification criteria. CheckCity.com provides loan services in: Alabama, Alaska, California, Idaho, Kansas, Mississippi, Missouri, Nevada, Ohio, Utah, Wisconsin, and Wyoming. In Texas, CheckCity.com acts as a credit services organization/credit access business (CSO/CAB) and will not be the lender for loans obtained through this site; CheckCity.com will instead attempt to arrange a loan between you and an unaffiliated third-party lender.
‍
Customer Notice: A single payday advance is typically for two to four weeks. However, borrowers often use these loans over a period of months, which can be expensive. Payday advances are not recommended as long-term financial solutions. Loan proceeds issued through our website are generally deposited via ACH for next business day delivery if approved by 8pm CT Mon. – Fri.
‍
This is an invitation to send a loan application, not an offer to make a short-term loan. This service does not constitute an offer or solicitation for payday loans in Arizona, Arkansas, Colorado, Georgia, Maryland, Massachusetts, New York, Pennsylvania, or West Virginia. The maximum funded amount for payday loans or installment loans depends on qualification criteria and state law. See Rates and Terms for details. Utah Customers: For consumer questions or complaints regarding payday loans and/or title loans you may contact our Customer Service Department toll-free at (866) 258-4672. You may also contact our regulator, The Utah Department of Financial Institutions at (801) 538-8830. In California, CheckCity.com is licensed by the California Department of Financial Protection and Innovation pursuant to the California Deferred Deposit Transaction Law, Cal. Fin. Code D. 10.
‍
Please see Rates and Terms to check the availability of online loans in your state. Check City does not provide loan services in all states.

© 2004-2023 Check City Online. All rights reserved