Financial

Are you wondering can you use student loans for rent? If yes, you should check out our guide here on everything you need to know.

Unexpected events happen in life all the time and many of these situations require cash. 

Your refrigerator stops running and you have a costly bill to pay. Your electric bill is twice as high as usual and the list goes on and on. When things like this occur, you might run short on cash.

So, what can you do when this happens?

You could turn to a lender who offers installment loans and payday loans. Learning the differences with an installment loan vs payday loan is a vital step to take before you choose one, though.

If you need cash and are interested in these options, here are some essential details that will help you understand the similarities of these and the differences.

The Similarities Between an Installment Loan vs Payday Loan

To begin understanding the differences between installment loans and payday loans, you should know what the similarities are. Here are three ways these loans are similar.

1. They Are Loans

Both of these products are loans. If you need money, you can access cash through either type and end up with the same result – cash in your hand.

2. They Have Fees

A second similarity is that both of these have fees. There are many types of loans you can apply for and almost every option has costs.

While some loan types might have more substantial or costly fees, others might have fewer or lower charges. All loans have costs of some kind, though.

3. They Offer Fast Cash

The third similarity is that both options provide a way to get cash fast. You can use either loan type to acquire money quickly.

The Differences Between an Installment Loan vs Payday Loan

You can see that there are a few things these loans have in common. There is more, however, that is different about both of them as well! Here are six traits that make installment loans distinct from payday loans.

1. The Way You Repay Them

The first difference is the way you must repay each type. With a payday loan, you borrow the money and repay it all at once. When you repay it, you pay the balance in full, including any fees you still owe.

An installment loan is something you repay with payments. When you borrow the money, you receive all of it. You must then make equal payments on the debt until you pay it off in full.

You must repay the full balance you borrowed, plus any extra charges, but you do not pay it all at once.

2. The Amount of Time You Have to Repay Them

Next, there is a difference in the duration of each loan. A payday loan typically has a shorter due date. When you receive the proceeds, you must usually repay it within two to four weeks.

The lender might base the due date on your paycheck schedule or you might get a set amount of time from the loan date to pay off the balance. You will have a specific date, though, that tells you when you must pay off the balance.

If you cannot pay off a payday loan by its due date, you can ask for an extension on it. It’s rare for lenders to extend installment loans, but it’s common for them to extend payday loans.

3. The Dollar Amount

Another primary difference is the amount of money you can borrow through each option. Payday loans, in general, offer smaller amounts than installment loans.

If you need to borrow over $1,000, you might be better off applying for an installment loan. If you need less than this amount, a payday loan is ideal.

Additionally, the way people use the proceeds can vary. People generally seek payday loans to get by for a few weeks. Typically, this occurs when people have unexpected expenses pop up out of nowhere.

People who take installment loans generally have a specific purpose for the proceeds. They might use it to buy something expensive or to pay off other debts.

4. The Interest Rate

Interest rates vary a lot, but it is more typical to find higher rates on payday loans compared to installment loans!

5. The Conditions for Approval

It’s also vital to know that there are distinctions with the conditions you must meet to qualify.

When you apply for a payday loan, it’s unusual for a lender to run your credit. Lenders that offer payday loans do not use credit scores in the approval process. People who use take payday loans often choose them for this reason.

You will likely need good credit to qualify for an installment loan, though. Lenders that offer these run credit checks and screen applicants in other ways, too.

6. The Requirement for Collateral

There is one last difference to learn and this one involves collateral. Collateral describes offering an asset to a lender in exchange for a loan. The asset might be a car, jewelry, or electronics.

For a payday loan, you will never need collateral. You may, however, need it for an installment loan. There are installment loans that require collateral, as well as those that don’t.

Where You Can Turn When You Need Cash Fast

Understanding the difference between an installment loan vs payday loan can help you know which option to pursue when you need to borrow money.

Here at Captain Cash, we offer short-term loans to help you get through tough financial situations.

If you are interested in applying for one, you can fill out an online application or give us a call. 

When’s the last time you took a look at your credit report? If it’s been a while, are you avoiding it because your credit is not as good as you would like?

Having credit that is less than perfect may not be what you want, but it is a common trait with many adults today.

The good news is that you can change your credit. You can improve it and increase your score, and you might be able to do this by using a credit card.

Are you interested in learning how to use a credit card to build credit? If so, here is a guide that will tell you everything you need to know to get started using a credit card as a way to build your credit.

Learn the Basics of What Makes Up a Credit Score

To use a credit card for building credit, you would benefit by learning what makes up a credit score. If you can recognize this, you’ll likely have an easier time making the right decisions with your credit card.

Here is a breakdown of the factors that make up a credit score:

• 30% – Amount you owe
• 35% – Your payment history
• 10% – The credit mix you have
• 10% – The mixture of credit you have
• 15% – The length of your credit history

A credit card can affect all of these things, and that’s why using one is an excellent way to build your credit.

Start With a Secured Card

One challenge you might face is getting approved for a regular credit card if you have bad credit. To make this easier, you should start by applying for a secured card.

A secured card is an excellent choice for people with bad credit or no credit, and it is terrific for young people who are just starting.

To get a secured card, you’ll have to apply for one and agree to put down a deposit. The credit card company will keep your deposit until you prove that you are creditworthy. In exchange, you’ll get a credit card with a low credit line.

Getting a secured card builds credit by offering a way to boost your credit mix. When you add any new credit, you build the 10% credit mix. The result may be an increase in your score.

Use the Card Every Month

After receiving the card, you’ll need to activate it. Once you complete this step, you can start using the card for purchases. To build your credit with it, you should use it every month for regular purchases.

You should not use the entire credit line, though. It would be best if you stuck with using only 30% or less.

For example, if the card has a credit line of $500, you should never charge more than $150 for a month.

Using the card each month helps you build a positive payment history. This factor of your score makes up 35% of it, so it’s a smart idea to use the card every month.

Using only a portion of the available credit allows you to build credit without affecting you negatively. If you use the full credit line, it impacts your credit utilization rate.

When this rate gets too high, it affects the factor of how much you owe, which makes up 30% of your score.

Set Up Automatic Payments

When you get the card, you will likely have the option of setting up an app on your phone or an account on your computer. You should complete this step, and while you’re doing it, set up your account to make automatic payments.

Setting up automatic payments offers two benefits for you. First, you’ll never miss a payment, so you’ll protect your credit. Two, you’ll always pay off the full balance you owe.

When you set this up, you’ll have the choice to pay the minimum balance, the full balance, or a different amount. Always choose to pay the total balance.

You’ll never end up carrying over a balance to the next month by choosing this option. You’ll also avoid paying interest charges, too.

Paying each month also keeps your total amount owed balance low as you build a positive payment history.

Ask a Loved One to Add You As an Authorized User

Using a secured card will build your credit over time, but did you know that there is an instant way of improving your credit?

If you want to see a massive increase in your credit score instantly, find someone close to you that is willing to add you to their credit card account.

Anyone can add your name as a registered user to an existing account, but you’ll want to select a person with excellent credit.

When the person makes this request, the credit card company will not run a credit check on you. They will, however, add that person’s credit history for that particular card to your credit report.

If the person’s credit is perfect for that card, you could see a substantial increase in your score as soon as the posting hits your report.

Having good credit is helpful for so many things in life, and it’s worthwhile for you to take the right steps to achieve it.

Another Tip to Learn How to Use a Credit Card to Build Credit

If you ever find yourself in a bind and cannot pay off the balance of your credit card by its due date, don’t skip the payment.

Instead, you could consider taking a payday loan. Payday loans are fast and straightforward, and getting one would provide you with instant cash. You could use this cash to pay off your credit card, and this would protect the credit you’re working hard to build.

Are you interested in learning more about how to use a credit card to build credit? Check out our site for more information on this subject or to apply for a cash advance. 

Even with the hustle and bustle of everyday life, there are always things that nag at you in the back of your mind. Those debts that you keep accruing are constantly reminding you of previous purchases and setting you back.

Not any more! It’s time to take back control of your financial situation and put aside all selfish desires to pay off that debt.

Fortunately, there are several tips and tricks that you can use in order to pay it off quicker.

Here are several tips and creative ways to pay off debt. Keep reading and you’ll be able to start changing your life today! 

1. Start a Budget (and Stick to It)

Maybe the desire for you to become debt-free has always secretly been there, but you never knew how to get to that point.

Perhaps you’re the biggest struggle isn’t the amount of money that you get paid, it’s the way you spend that money that needs to change.

In order to still live your life and pay off debt simultaneously, you’ll need to create a budget that prioritizes doing so.

Start off with the essentials that you’ll need to pay each month such as rent, energy, phone, etc. Then set specific amounts for the things you need, but should limit to a certain weekly amount such as groceries, gas, entertainment, etc.

From there, take whatever you have left and prioritize it towards the debts you’re trying to pay off.

2. Get Quick Cash

The biggest thing about the debt that you’re piling up is making sure you can pay back the company you’re in debt to as quickly as possible.

Because of that, it might be advantageous to look at ways you can take the debt out of the hands of companies that are going to try and take your assets from you as collateral.

Receiving a quick cash offer can be a tremendous way to take back control of the debt you’ve piled up. 

Maybe you’re not in a place where you can pay off the debt yet, but you will be soon. If so, then the quick cash can help you make the debtors happy until you get the finances to pay back your quick cash provider.

3. Use the Snowball Method

The snowball method is a debt payment method that many people have found success with over the years. 

It refers to the process of paying the minimum amounts to all of your debts but paying additional money to the debt with the lowest amount left to be paid off.

That way, you’ll be knocking off debts and loans off your list quicker without neglecting any of the debts to do so.

In time, you’ll notice that the debt accounts are disappearing right in front of your very eyes. It will get you more and more encouraged to continue to pay off your loans until there isn’t any more left to pay.

While you may gain some interest in some of the larger debts on your list, it will be well worth it to have fewer payments to make each month after a while.

4. Toss the Credit Card

Granted, this should be prefaced by saying that credit cards aren’t the root of the problem for all situations.

Some of you might be very smart with your credit cards but just have had a rough go of it lately with other debts accruing for other reasons.

However, generally speaking, credit cards won’t help you with trying to pay off debt. It can compromise you spending more money than what you had budgeted for on something like entertainment or travel.

For that reason, it’s better to put a pause on your credit card, no matter how many reward points they offer you. Once your debt is gone, you can bring the credit cards back, if you so choose.

5. Use Coupons, Pay Debts

For those of you that don’t have enough extra income to use the previously mentioned snowball method, this method might be more advantageous!

Everyone knows that becoming a bit more frugal about using coupons can help you save substantial amounts on things like groceries, gas, and entertainment.

You should capitalize on that and pay more off your debts in the process. Use the money you saved on the coupon to pay off a loan.

For example, say you find four $5 off coupons for your local grocery store. You’re only allowed to use one per week, so you use one for each of the next four weeks. Each week, you take the $5 you saved and place it towards one of your debts.

At the end of those four weeks, you’ve placed $20 towards your debt based using the money you saved at the grocery store alone!

6. Incentivize Yourself with a Reward

Remember those old cartoons that would place a carrot on a string in front of the bunny on the treadmill? Maybe they were on to something…

You should reward yourself for putting time and effort into paying off your debts. Every time you pay off one debt, you should reward yourself.

Maybe you can check out a ballgame, see a movie, go get dinner at your favorite restaurant. Something significant, yet not sizeable enough to set you back.

Integrate These Creative Ways to Pay Off Debt Today!

It’s time to stop making excuses. Stop delaying the inevitable. Use these creative ways to pay off debt to your advantage.

Be sure to read this article for information on whether it’s smarter to invest or pay off debt.

For more inquiries, feel free to start by claiming your cash and we’ll be happy to assist you further!

Learn about the zero based budgeting advantages and disadvantages to see if it’s right for you and finally take control of your finances.

f you’re sick and tired of paying debt payments every single month, you may be considering other options. Should you sell your stocks or investments to pay off debt?

Small businesses power the Canadian economy, with the majority of employers falling into this category. If you’ve ever dreamed of owning your own business, you can take heart that Canada supports more than a million small businesses.