Yes, An instalment loan and a payday loan can be borrowed at the same time as long as the borrower can manage his/her financials well. Instalment loans come in the form of credit-based loans. This is because, your outstanding debts, credit score, and other credit factors influence your chances of getting the loan and also the loan rates, terms offered. A payday loan application usually does not involve a credit check. Here are some of the facts to note before applying for an instalment loan and payday loan:
- Instalment loans generally require high credit scores to qualify for them. The loan’s tenure and the amount will entirely depend on the applicant’s credit score and credit history. Higher the score, lower the interest rate and vice versa.
- Borrowers who have a low credit score or do not have a credit record may find it a difficult time to get an instalment loan. Alternatively, they can look for lenders who specialize in providing loans to borrowers with no credit history.
- Some instalment loans may have a prepayment penalty that is applicable if a borrower repays the loan before the loan tenure ends.
- In most case, payday loans do not involve a credit check. Some of the requirements of payday loan qualification are:
- Applicant must be at least 18 years old.
- Applicant must provide valid identification along with proof of income.
- Applicant must have an active bank account.
Borrowers use instalment loans when they want to meet long-term financial requirements and larger loan amounts. On the other hand, payday loans mostly cater to instant cash needs. Therefore, it is possible to use both the loans at one time as long as the borrower can repay both.