Why You Should Choose Installment Loans vs Quick Cash Loans

Let’s face it: Payday Loans are a terrible idea. No matter how hard you need money, getting an installment loan for the same situation is a better alternative. Getting a loan is inevitable for most Americans, like it or not, so you might as well get an educated decision before you start signing on the dotted line.

1. You Pay Less in Interest

The interest rate for an installment loan is usually higher than a quick cash loan, but you will also pay a lot less in interest because you are paying off your loan for months.

A quick cash loan will demand an interest rate of over 1,000 percent annual percentage yield (APY), so to guarantee that you don’t pay thousands of dollars in extra interest, it’s essential to know how long you’ll be paying off your loan.

2. You Avoid Additional Fees

Quick cash loans are notorious for their sneaky fees. Payday loans are just as bad, and you should avoid them like the plague. You will be charged an 80 dollar loan origination fee on a 100 dollar quick cash loan. While that doesn’t seem a lot on its own, it turns into a 160 dollar loan at the end of the first month when you add on the interest.

You will also be charged a five-dollar-per-month late fee for the life of your quick cash loan. On a 1,000 dollar loan, that 60 dollar late fee is more than half of your initial loan.

3. You Are in Control of Your Loan

Late fees and over-dues fees are the main sources of income for payday loan companies. It’s in their best interest to get you to roll over your loan as soon as possible so they can charge you an outrageous fee.

An installment loan is much more likely to be a deal you can live within the long term. You will be in control of how much you borrow and how you pay off that loan. You won’t be a slave to a payday loan company for the rest of your life.

4. You’ll Be Paying Costly Sums

Payday loans are the worst type of loan available in the United States. They are outrageously expensive, and you will pay back more than four times the amount you borrowed. Even when you have a good credit score, you shouldn’t consider getting a quick cash loan.

An installment loan is a much better alternative to a payday loan. The interest rate is usually a little higher, and you will have to pay more in interest, but think about it; you will ultimately save thousands of dollars in interest payments.

5. You Have a Better Chance at Getting Approved

Payday loans are notorious for being the riskiest type of loan for lenders to approve. You will have a better chance of getting approved for an installment loan because you have more options.

For example, you could sign a loan agreement that sets a more extended period for how long you will repay your loan, or you could borrow a smaller amount.


A quick cash loan is the absolute worst type of loan you can get in the United States. It’s so expensive, and the lenders will do anything to get you to pay that money back. You should be wary of payday loans and never consider getting one.

An installment loan is a much better alternative. You will have a better chance of getting approved and saving thousands of dollars in interest payments.

If you’re looking for the best personal loans in Memphis, TN, Shelby Finance Company has you covered. We offer personal and installment loans for individuals looking for ethical lending practices and reliable personal service. You can count on us for your financial needs, including ,installment loans in Memphis, TN. Get in touch with us today and let us know how we can help!