The Difference Between Payday Loans & Sterling Personal Loans

Sterling Finance Company® is staffed by financial professionals dedicated to making you an informed consumer of financial services. Today, we are explaining the difference between payday loans and Sterling loans for quick cash so that you can make a smart choice.

Payday Loans

Payday Loans are high risk, short term loans based on how much you earn on your paycheck. A payday loan lender will determine how much they are willing to lend you based on how much money you earn in one paycheck and give you a cash loan. In return, you must write a check for the lender for the full loan amount plus all service fees. They hold this check until the date your next paycheck arrives. Unless you pay the full amount in cash and take your check back, or unless you make a minimum payment in cash to extend the loan, they cash your check.

Sounds straight-forward until the details, right? The details are these:

  • Because the loan term is so short (usually one or two weeks since that is how often most people receive their paychecks) the interest rate is extremely high, typically around 400% APR.
  • Many people cannot afford to borrow and pay back so much so quickly and often make only the minimum payment and let the loan roll over until the next paycheck. This starts a repayment cycle at extremely high interest rates making it more and more difficult to pay them back in


  • If for any reason the full loan amount is not in your bank account when your next paycheck clears and you do not make the minimum payment to your lender, the lender can cash the check you gave them, leading to insufficient fund fees (bounced checks) and in some states the lender can sue you for issuing them a bad check.

Because of the high risk and high interest rates combined with a one-time high payment structure, payday loans are a dangerous way to get quick cash that many consumers who need help struggle to escape.

Sterling Loans

Sterling Finance Company® is proud to offer alternative solutions to payday loans and other high risk strategies to get quick cash. We can offer up to $5,000 at competitively low interest rates. The process is fast but we take care to fully explain the loan processes and help you make an informed decision about how you borrow money and then help you plan to pay it back smoothly and efficiently without the risky tactics of payday loans.

Even if you have bad credit we can help you get you the money you need at affordable rates over a loan term that fits your needs and circumstances. We encourage you to read more about the types of loans we offer at our Loans Services Page and then contact us with questions or to start a loan application today to get quick cash when you need it!


Category: Payday loans

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