When you need financial relief, it helps to understand your options. Two common forms of cash advances come in the form of payday loans and consumer loans. Master Finance, an experienced, trusted provider of affordable consumer loans in San Marcos, TX, notes that it’s important to understand the differences. Here, these financial experts explain these two popular personal loan options.

Payday Loans

Payday loans are a quick loan option when you need a significant amount of cash to cover expenses, such as mortgage payments, unexpected bills, or health emergencies. To get a payday loan, present a previous check stub to a loan company, and they will give you the money with the expectation that you pay it back with your next paycheck.

While payday loans are quick, require no collateral, and are generally easy to get, it’s important to understand that they do come with a high-interest fee and should be paid back in a relatively short amount of time. It can also be easy to get behind on your financial responsibilities with a payday loan, especially if you still require your next paycheck for life’s expenses.

Consumer Loans

Consumer loans, also known as installment loans, work a differently than payday loans. Instead of paying it back in full with your next paycheck, you receive a lump sum and repay it over a fixed period of time with minimum payments. These are generally considered more advantageous than payday loans, as they offer more flexibility in your repayment schedule and typically come with lower interest rates.

In some cases, these personal loans do require collateral, but not as much as you may need for a larger loan. It’s also important to ensure you make all payments on schedule, as many loan companies have late fees associated with them.

To explore your personal loan options in San Marcos, contact the qualified staff at Master Finance. Easily apply for a loan online or call (512) 392-6102 to find out more about their available consumer loans.