Is a Line of Credit the Same as a Payday Loan?

At LendNation, we work to help you find the right short-term cash solution for your specific needs. We offer a variety of loan solutions, which can vary by state, to help make money available when you need it the most. We understand that everyone can run into a cash crunch from time to time. Emergencies happen and you can’t always predict when you’ll need money for an unexpected home or car repair or medical bill.

If you find yourself in a situation where it would be nice to get cash fast to help out, you should consider applying for a line of credit with LendNation. A line of credit is a little different than a payday loan, but we’re here to help you understand all your options when you’re looking for a loan. 

Regardless of what kind of loan you’re looking for today, click below to get started!

How a Personal Line of Credit Loan Makes for a Great Payday Loan Alternative

In some states, a personal line of credit often gives you quick and easy access to cash when you need it without having to apply over and over again.

If you have the option of applying for a line of credit in your state, there are several reasons why this could be a better fit for your needs than a payday loan. We’re here to break it down for you.

What Is a Personal Line of Credit?

Think of a personal line of credit loan as an extra stash of cash that you can access any time you need it. The amount you are approved for is a fixed amount that does not typically change.

Once you are approved, that line of credit stays open and you can borrow up to that amount at any given time.

How Does a Line of Credit Work?

The way a line of credit works is very simple. You can use some or all the amount you are approved for whenever you need it. And if you don’t need it, you don’t have to use any of the money at all. But you can rest easy knowing it’s there if and when you need it.

Some borrowers keep an open line of credit just in case of an emergency. With a line of credit, how much you use and how often you borrow is completely up to you.

How Is A Line of Credit Different From a Payday Loan?

While both options can usually get you cash fast, it’s important to know the difference between your options. Many people enjoy the flexibility of a line of credit for a few basic reasons:

  1. You only have to apply one time. Once you are approved, you do not have to reapply every time you need to borrow money. With a payday loan, you have to reapply each time you need to borrow cash. A line of credit can make it easier and quicker to access money when you need it the most.
  2. You can typically borrow more money with a line of credit than with a payday loan. Every loan is different, but in most cases, you can borrow more money at once with a line of credit loan. Payday loans are typically paid back within 1-2 pay periods, so the amount you can borrow is usually less than a line of credit.
  3. There is often a longer time for you to repay your loan when you have a line of credit rather than a payday loan. With a line of credit, you normally can make monthly payments, stretching out the time you have to repay your loan. This can make it easier to pay back what you owe, instead of paying the full amount of a payday loan all at once.
  4. There is a quick application process for a line of credit. At LendNation, we make it simple and quick to apply for any kind of short-term loan or line of credit solution we offer. Loan options may vary by state, but our fast and easy approach to lending is consistent, no matter which LendNation location you work with.
  5. A Line of Credit option can help you build credit. Unlike payday loans, personal lines of credit can often help improve your credit score. If you are trying to raise your credit score, keeping a healthy line of credit can help you do that.

How Do I Apply For A Line of Credit Loan?

The first step in applying for any type of LendNation loan is finding out what your options are in your state. If you are ready to talk with us about the best kind of loan for your needs, contact us today to find out if we can help you out.

If a line of credit is available in your state and you decide to apply for a line of credit with LendNation, here is what you will need to get started:

  • Current US-issued photo ID 
  • Proof of income
  • Bank statement from within last 30 days 
  • An active checking account 
  • Current phone number & email address (online)

Not Quite What You Were Looking For?

LendNation offers a variety of products and services to get you the cash you need fast, easy and all in one place. You can choose from a range of simple, flexible money solutions – available both in-store and online – including payday loans, title loans, and installment loans.
With over 350 locations across the United States, LendNation is committed to serving its customers and helping them achieve financial stability.

Get a line of credit loan today – Apply online or in-store

Why LendNation? 

LendNation is committed to providing its customers with fast and reliable financial assistance. The company’s team of experts is available to help customers understand the details of each loan and to assist them throughout the loan process. With a variety of loan options and other financial services available, LendNation is a trusted provider of financial solutions for thousands of individuals across the United States.