While there are undoubtedly times in your life when you need a loan, you might be unsure of what type to choose. Many people aren’t sure whether to select payday or consumer loans when the going gets tough. To help you better understand your options, the professionals at First Check Cash Advance in Chillicothe, OH, have explained the differences between the two.

Payday

When taking out a payday loan, the lender provides you with the amount you request and sets your next paycheck as security. When your paycheck arrives, you must pay off the loan in one lump sum. This option is typically ideal for someone who needs cash but can’t obtain a loan through any other means. Anyone with a stable job can usually apply for and receive this loan. As a fast, convenient option, this can help you through most financial hardships. However, they do tend to have higher interest rates and should be used in an emergency.

Consumer

Loans used by individuals and families to purchase big-ticket items are commonly referred to as consumer loans and are typically repaid in monthly installments. For instance, you might borrow this money from a lender to purchase a new vehicle. While great for large purchases, you should be careful not to miss any payments or ignore your debt. With most auto loans, for example, the car purchased is used as collateral and might be repossessed if you don’t make your payments. 

When you need help getting through difficult times or want to take out a small loan, contact First Check Cash Advance in Chillicothe. With their quick and easy approval process, you can avoid the hassle of getting the cash you need. To speak with a friendly representative and get the approval process started on a payday or consumer loan, give them a call at (740) 779-9093. You can also check out their website for more information on their services.