Cash Advance Vs Installment Loans: What's The Difference?

Cash advances and installment loans are popular loans that can help you get approved for emergency cash without collateral. However, there are differences that separate these emergency loans that make each more appealing for certain financial emergencies.

In this guide from Carolina Payday Loans, Inc., we'll cover everything you need to know about both loan types, highlighting the similarities and differences as we proceed. Learn how to get approved for both to afford your emergency expenses today.

Cash Advances And Installment Loans Defined

Before diving into the differences between cash advances and installment loans, it’s important to get a broad understanding of how these loans work. Neither requires collateral, and you can get approved for both with minimum requirements.

Learn more about cash advances and installment loans below:

1. What Is A Cash Advance?

Otherwise known as a payday loan, a cash advance is a small-dollar loan that allows you to access funds quickly during an emergency. Here at Carolina Payday Loans, Inc., you can borrow between $100 and $550 to cover the costs of minor emergencies like car breakdowns, home repairs, medical bills, or veterinary fees.

Loan approval is based on your income level: you must prove you have a job, and how much you can borrow depends on how much you make. They're aptly named, as they're due to be repaid in full on your next payday — although, you should always confirm your repayment schedule with your local branch!

Here are the required items for a cash advance:

• A state-issued photo ID that displays your full name and age
• Your most recent pay stub to verify your income
• A blank check from an active checking account in your name

2. What Are Installment Loans?

Installment loans, on the other hand, tend to have longer terms and come in higher dollar amounts. Unlike payday loans, they'll cap out in the thousands, rather than the hundreds. 

As the name suggests, you have to repay these loans in fixed monthly installment payments. This can take months, but it may be better for those who cannot afford immediate repayment. Getting approved for an installment loan usually requires you to prove your income and checking account.

The Similarities Between Cash Advances And Installment Loans

Cash advances and installment loans have similarities that make them appealing to people in financial distress. If you need a fast loan option, both can help you get the money you need ASAP.

Here are some of the similarities between installment loans and payday loans:

• No collateral required – Payday loans are unsecured, meaning you don't need to use an asset as collateral. While some installment loans are secured, others don’t require you to provide collateral. These unsecured loans let you borrow money without worrying about losing a valuable asset.
• Quick access to cash – Both of these loan types allow you to borrow money within 24 hours. The simple requirements and approval process for both let you start the process and get approved on the same day. You can receive your funds within one business day to handle your emergency expenses quickly.
• Emergency use only – You should only get these loans to handle urgent financial emergencies. They both have interest rates associated with them, so borrowing frivolously can cost you in the long run. You should only get these loans for emergencies like medical bills, overdue rent, home repairs, etc.

The Differences Between Cash Advances And Installment Loans

While there are some similarities between these loan types, there are more differences that set them apart. These differences can dictate which is best for your financial situation, as the differences in loan amounts, repayment, etc., can change which is best for you.

Learn more about the differences between cash advances and installment loans below:

• Borrowing amounts – Payday loans are small-dollar loans, while installment loans tend to be larger. Our payday loan lending limit is between $100 and $550, but installment loan lender limits can run into the thousands. While this gives you access to larger sums of money, it also means you'll repay the loan for a longer period, making a more substantial impact on your financial life.
• Credit requirements – You don’t need a good credit score to get approved for a payday advance. We use your ability to repay to determine if you can get approved, not your credit score. However, that is not the case for installment loans. Lenders will likely run a hard credit check when you apply to uncover any problems with late payments, default, bankruptcy, or delinquency. If they find any negative feedback, and your credit score has taken a hit, you'll have a harder time qualifying for the loan.
• Repayment - Installment loans allow you to repay the amount in installments (hence the name), meaning you'll repay them over months or years, depending on the type of installment loan and amount. With payday loans, you usually have to repay them on your next payday. However, as previously mentioned, specific loan terms vary from branch to branch and case by case, so always speak to your local branch to confirm your terms and conditions. 

Installment loans are more suitable for long-term, high-value emergencies like medical bills. If your emergency is over $1,000, you may have to opt for an installment loan. However, an installment cash advance for emergencies in SC can help when you are faced with smaller costs, such as overdue bills, travel costs, etc.

How To Get Approved For A Cash Advance In SC

If you decide to get an SC cash advance, you’ll be glad to find that the approval process is simple. It only requires you to complete a few steps, which you can do on the day you begin. Same-day approval for payday loans is available as long as you prepare properly and meet the requirements. You can begin online and get approved in person in less than 30 minutes.

Here's how to get a payday loan from us at Carolina Payday Loans Inc.:

1. Submit our quick cash online form with the necessary information. At this stage, we just need basic details, so it should only take about five minutes. You will need to provide your name, zip code, email address, and phone number.
2. One of our representatives will give you a call to discuss the process, go over the requirements, and answer any questions you may have.
3. Head to your nearest South Carolina store location with the required items at the agreed time. When you arrive, we will evaluate your documents to figure out the amount of cash you can qualify for. This will take less than half an hour.
4. Provided you are happy with the amount, we will show you how to complete the simple paperwork. It involves signing a couple of documents to confirm your agreement with the loan terms and conditions.
5. Finally, you will get the money you qualified for later the same day or by the next business day. You can now handle your urgent costs and plan for repaying your loan with your next paycheck.

Get An Instant Cash Advance For Emergencies In SC – Borrow Up To $550 Today!

Need quick emergency cash today? A cash advance from Carolina Payday Loans, Inc. can provide fast emergency funding. Borrow against a future paycheck today without needing to show your credit score or offer collateral. Simply fill out our online payday loan form, and we'll guide you through the approval process at one of our stores in less than 30 minutes! Apply online for a cash advance now!

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.