How much do you want to borrow?

Short Term vs Payday Loans

If you need money for emergency needs right now, you have two options: personal short-term loans and payday loans. But before you submit your application, you should know the features of these two products.

What is a payday loan?

A payday loan is a short-term, high-cost loan that must be paid back on or before your next payday, whether your income is from employment or government. Such loans are best suited to people who need cash urgently. If you applied for this type of loan, you would probably have the money in your bank account within several hours and you have a bad credit score. In fact, payday loans have many advantages: you do not need to provide safety, collateral or guarantors. Often, a payday loan is the only option for some people who need a loan the same day.

Are short-term loans the same as payday loans?

Generally, payday loans are smaller loans issued for shorter periods of time. Short-term loans, in their turn, allow people to get larger amounts of money and may be repaid within 1 year.

What is the key difference between short-term loans and payday loans?

The main difference between these types of loans is the number of repayments you need to make. You typically pay off a payday loan within 30 days in one payment. With a short-term loan, you could pay off your loan from 2 to 12 months.

Are payday loans always more expensive?

In theory, yes. But in fact, since payday loans are issued for shorter periods of time, they might actually be cheaper overall as you repay your loan early and have less time to accumulate interest. It all depends on your APR.

Overall, payday loans and short-term loans have similar interest rates. The difference will be the loan term.

How do I apply for these loans?

Applying for a payday loan and short-term loan is often the same procedure. In both cases, you will need to fill in the same personal information. The application process usually involves the following steps:

  1. Check your credit score (you can order it online from or call 1-877-322-8228);
  2. Make sure you meet basic eligibility criteria (be of legal age in your state, have a steady income and a valid bank account);
  3. Choose the loan amount and term;
  4. Use our loan matching service to apply for a loan;
  5. Get connected to the best lender for your needs;
  6. Read the loan agreement thoroughly to make sure you can comfortably afford loan repayment;
  7. If you are satisfied with the loan rates and terms, you can accept or decline the loan offer.

Which loan should I choose?

  • Payday loan – if you need a small amount of money and can definitely pay it off within several weeks, this could be the right option;
  • Short-term loan – if you think you will need a larger amount of money for a longer period, you should choose a short-term loan. This product is also the right one if you have a bad credit history.

Georgia Cities Payday Loans