Unexpected expenses crop up from time to time. It might be medical bills, car repair, or a bill you forgot to budget for. No matter the reason for the expense, you still need money to cover it. If you cannot wait until payday, pay the expense with a credit card, short term loans, or borrow from friends or family, then you have limited options for how you will pay the bill. Every option has its own advantages.

You can always pay the bill late and have it go against your credit history and scores. If the company will let you it is possible to make a smaller payment, if you have even that much. Before looking for any other alternative you should consider how you can solve the expense without incurring more debt. If at the end of exploring ideas for the unexpected expense you have no alternative payday loans might be the ideal option.


Installment loans are a smart alternative to the methods mentioned above. These are short term loans for a set interest rate and repayment schedule. These short term loans do not come from a bank and can be instantaneous in their approval.

To understand if installment/ short term loans are right for you, you should know the advantages and dis advantages:

Short Term Loans Advantages

• The application is usually processed within minutes, for the fastest possible approval time.
• Most installment loan companies do not look at your credit, though proof of employment and your bank account information is necessary.
• These loans can be obtained entirely online, or by phone.
• Installment loans are the fastest and easiest way for you to get approved for money you need now.
• Bank loans take up to six months to process even after an approval, thus quick cash is an advantage.
• The money is direct deposited into your account.
• You make a schedule for your installment payments, and agree to the interest rates, before you sign for the loan.

Short Term Loans Disadvantages

• Installment/ short term loans cost more than a bank loan. The convenience of money in your account so quickly is cause for higher rates than the banks.
• Installment loans are not as regulated as banks, which is why they can charge high interest rates. It is also why they can be more responsive to their clients needs.
• Installment lenders do not report to major credit agencies, so the loans have no impact on your credit score, positive or negative. They are not an effective way to build credit.