{"id":85337,"date":"2025-01-27T09:05:06","date_gmt":"2025-01-27T17:05:06","guid":{"rendered":"https:\/\/financer.com\/?p=85337"},"modified":"2025-01-27T09:19:31","modified_gmt":"2025-01-27T17:19:31","slug":"is-payday-loan-installment-or-revolving","status":"publish","type":"post","link":"https:\/\/financer.com\/loans\/articles\/is-payday-loan-installment-or-revolving\/","title":{"rendered":"Is A Payday Loan An Installment Loan Or Revolving Credit"},"content":{"rendered":"\n<p>If you ever asked &#8220;is a payday loan installment or revolving?&#8221;, it&#8217;s time to know the truth.<\/p>\n\n\n\n<p>Payday loans are neither installment loans nor revolving credit. So, what type of credit is a payday loan? They occupy a unique category of short-term, high-cost loans with their own distinct structure and repayment terms.<\/p>\n\n\n\n<p>Let&#8217;s explore the nature of payday loans and how they compare to installment and revolving credit options.<\/p>\n\n\n<div class=\"fn_block block_fn_msg_box info\"><div class=\"fn_block__icon\"><\/div><h3>A different kind of credit<\/h3><p>Payday loans are not considered installment loans or revolving credit. Keep reading to understand the nature of this kind of credit.<\/p><\/div>\n\n\n<h2 class=\"wp-block-heading\" id=\"What_Type_of_Credit_is_a_Payday_Loan\">What Type of Credit is a Payday Loan<\/h2>\n\n\n\n<p>Payday loans are a specific type of short-term, high-cost loan, designed to be repaid in a single lump sum on the borrower&#8217;s next payday, typically within 2-4 weeks.<\/p>\n\n\n\n<p>The key characteristics that define payday loans include:<\/p>\n\n\n\n<ul>\n<li><strong>Short repayment term:<\/strong>\u00a0Usually 2-4 weeks, until your next payday<\/li>\n\n\n\n<li><strong>Lump sum repayment:<\/strong>\u00a0The full loan amount plus fees is due all at once<\/li>\n\n\n\n<li><strong>Small loan amounts:<\/strong>\u00a0Typically $500 or less<\/li>\n\n\n\n<li><strong>High fees:<\/strong>\u00a0Often $10-$30 per $100 borrowed<\/li>\n\n\n\n<li><strong>No credit check required:<\/strong>\u00a0Approval is based on income and bank account verification<\/li>\n\n\n\n<li><strong>Post-dated check or electronic access:<\/strong>\u00a0Borrower provides authorization for automatic withdrawal on due date<\/li>\n<\/ul>\n\n\n\n<p>Payday loans are designed as a short-term &#8220;bridge&#8221; to help cover emergency expenses until the borrower&#8217;s next paycheck. However, their high fees and short repayment terms often lead to a cycle of reborrowing.<\/p>\n\n\n<div class=\"fn_block block_fn_msg_box boxed\"><div class=\"fn_block__icon\"><\/div><h3 id=\"Quick_fix_or_credit_trap\">Quick fix or credit trap?<\/h3><p>According to the\u00a0<a href=\"https:\/\/www.consumerfinance.gov\/ask-cfpb\/what-is-a-payday-loan-en-1567\/\" target=\"_blank\" rel=\"noreferrer noopener\">Consumer Financial Protection Bureau<\/a>, the median payday loan fee is $15 per $100 borrowed. They can be also a quick fix or a credit trap, depending on how you use them.<\/p><p class=\"has-text-left\">\n\t    <a href=\"https:\/\/financer.com\/personal-finance\/articles\/payday-loan-consolidation\/\"   class=\"button is-normal is-primary is-rounded is-large\">Proven strategies for payday loan consolidation <\/a>\n\t<\/p><\/div>\n\n\n<h2 class=\"wp-block-heading\" id=\"Payday_Loan_vs_Installment_Loan\">Payday Loan vs Installment Loan<\/h2>\n\n\n\n<p><a href=\"https:\/\/financer.com\/loans\/articles\/what-is-an-installment-loan\/\" target=\"_blank\" rel=\"noreferrer noopener\">Installment loans<\/a> are a type of credit where you borrow a lump sum and repay it in fixed, regular payments (or installments) over a set period. These loans can range from a few hundred dollars to tens of thousands, with repayment terms typically spanning several months to a few years.<\/p>\n\n\n<div class=\"fn_block block_fn_msg_box info\"><div class=\"fn_block__icon\"><\/div><h3 id=\"Common_examples_of_installment_loans\">Common examples of installment loans<\/h3><p><!-- wp:paragraph --><\/p>\n<ul>\n<li>Personal loans<\/li>\n<!-- \/wp:list-item --> <!-- wp:list-item -->\n<li>Auto loans<\/li>\n<!-- \/wp:list-item --> <!-- wp:list-item -->\n<li>Mortgages<\/li>\n<!-- \/wp:list-item --> <!-- wp:list-item -->\n<li>Student loans<\/li>\n<!-- \/wp:list-item --><\/ul>\n<p><!-- \/wp:list --><\/p><\/div>\n\n\n<p>Now you know what type of credit is a payday loan and how installment loans work. To better understand how payday loans differ from installment loans, let&#8217;s compare them directly.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"Payday_Loans\">Payday Loans<\/h3>\n\n\n\n<ul>\n<li>Repaid in full on next payday (2-4 weeks)<\/li>\n\n\n\n<li>Typically $500 or less<\/li>\n\n\n\n<li>High fees (often 400% APR or more)<\/li>\n\n\n\n<li>No credit check required<\/li>\n\n\n\n<li>Do not build credit<\/li>\n\n\n\n<li>Risk of debt trap due to short repayment period<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"Installment_Loans\">Installment Loans<\/h3>\n\n\n\n<ul>\n<li>Repaid in fixed monthly payments over months or years<\/li>\n\n\n\n<li>Can be for larger amounts (up to $100,000+)<\/li>\n\n\n\n<li>Lower interest rates (typically 6-36% APR)<\/li>\n\n\n\n<li>Credit check and income verification required<\/li>\n\n\n\n<li>Can help build credit if reported to bureaus<\/li>\n\n\n\n<li>More manageable repayment structure<\/li>\n<\/ul>\n\n\n\n<p>Here&#8217;s a comparison table to highlight the key differences:<\/p>\n\n\n\n<figure class=\"wp-block-table is-style-fn-tables shortcode-no\"><table><thead><tr><th class=\"has-text-align-center\" data-align=\"center\">Feature<\/th><th class=\"has-text-align-center\" data-align=\"center\">Payday Loans<\/th><th class=\"has-text-align-center\" data-align=\"center\">Installment Loans<\/th><\/tr><\/thead><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\">Loan Amount<\/td><td class=\"has-text-align-center\" data-align=\"center\">$100-$500<\/td><td class=\"has-text-align-center\" data-align=\"center\">$1,000-$100,000+<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Repayment Term<\/td><td class=\"has-text-align-center\" data-align=\"center\">2-4 weeks<\/td><td class=\"has-text-align-center\" data-align=\"center\">3 months &#8211; 7 years<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">APR<\/td><td class=\"has-text-align-center\" data-align=\"center\">300-664%<\/td><td class=\"has-text-align-center\" data-align=\"center\">6-36%<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Credit Check<\/td><td class=\"has-text-align-center\" data-align=\"center\">No<\/td><td class=\"has-text-align-center\" data-align=\"center\">Yes<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Builds Credit<\/td><td class=\"has-text-align-center\" data-align=\"center\">No<\/td><td class=\"has-text-align-center\" data-align=\"center\">Yes (if reported)<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Repayment<\/td><td class=\"has-text-align-center\" data-align=\"center\">Lump sum<\/td><td class=\"has-text-align-center\" data-align=\"center\">Fixed monthly payments<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>As you can see, installment loans can offer some advantages over payday loans. Let&#8217;s compare both advantages.<\/p>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-1 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><div class=\"fn_block block_fn_pros_cons\"><ul class=\"check\"><h3>Installment loans advantages<\/h3><li><p><strong>Lower costs<\/strong>:\u00a0The interest rates on installment loans are significantly lower, making them much more affordable in the long run.<\/p>\n<\/li><li><p><strong>Larger loan amounts<\/strong>:\u00a0For those who need to borrow more than a few hundred dollars, installment loans offer much higher limits.<\/p>\n<\/li><li><p><strong>Less risk of debt trap<\/strong>:\u00a0The longer repayment term and lower costs make it less likely that borrowers will need to reborrow or refinance repeatedly.<\/p>\n<\/li><\/ul><\/div><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><div class=\"fn_block block_fn_pros_cons\"><ul class=\"check\"><h3>Payday loans advantages<\/h3><li><p><strong>Easy to qualify: <\/strong>Since payday lender don&#8217;t do a credit check, they&#8217;re easier to qualify.<\/p>\n<\/li><li><p><strong>Option for bad credit: <\/strong>Without a credit check, payday loans are better for those with bad credit.<\/p>\n<\/li><li><p><strong>Quick cash<\/strong>: If you need a fast cash, payday loans can be get in less than 24 hours.<\/p>\n<\/li><\/ul><\/div><\/div>\n<\/div>\n\n\n\n<p>It&#8217;s important to note that installment loans is a broad category. It includes many different types of credit, such as personal loans, car loans, and mortgages. Because of this, the terms and conditions can vary significantly.<\/p>\n\n\n\n<p>Always explore all your options and carefully consider all the variations before taking out any loan.<\/p>\n\n\n<div class=\"fn_block block_fn_button  buttons  is-flex is-flex-direction-column is-align-items-center\"><a href=\"https:\/\/financer.com\/loans\/personal-loans\/\" class=\"button  is-rounded is-primary is-medium is-fullwidth\" target=\"_blank\"  >Compare personal loans offers from top lenders<\/a><\/div>\n\n\n\t\t<div id=\"genericloan_2_form\" class=\"fs-slider fs-slider--tooltip search-hero--bg1\"><h3>Compare loans from 45 lenders<\/h3><p>Find the cheapest rate with one click<\/p><div class=\"step amount\">    <div class=\"slider_cont step__value\">\n        <span class=\"fl_l_m_15 amount_display\"><\/span>\n    <\/div>\n    <div class=\"step__slider\">\n        <input type=\"range\" data-default-value=\"500\" data-name=\"param_amount\" \/>\n    <\/div>\n<\/div><div class=\"step stepSubmit\"><a id=\"submitSliders\" href=\"https:\/\/financer.com\/results?query=1&non_affiliate=true&param_amount=500&loan_broker_filter_active=true&param_period=360\" data-slider-url=\"https:\/\/financer.com\/results?query=1&non_affiliate=true&param_amount=500&loan_broker_filter_active=true&param_period=360\" data-required=\"results?query=1non_affiliate=true&param_amount=500&loan_broker_filter_active=true&param_period=360&\" class=\"get_results compare button is-primary is-medium is-rounded\">Compare Offers<\/a><\/div>\t\t<\/div><h2 class=\"wp-block-heading\" id=\"Best_Installment_Loans_Options\">Best Installment Loans Options<\/h2>\n\n\n\n<p>Now that we&#8217;ve covered what installment loans are, let&#8217;s talk about some of the leading providers in the US. Remember to always borrow responsibly and make sure you can afford the payments before taking out any loan.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"BadCreditLoanscom\">BadCreditLoans.com<\/h3>\n\n\n\n<p><a href=\"https:\/\/financer.com\/company\/badcreditloans\/redirect\/\" data-type=\"link\" data-id=\"https:\/\/financer.com\/company\/badcreditloans\/redirect\/\" target=\"_blank\" rel=\"sponsored noopener nofollow\">BadCreditLoans.com<\/a> connects borrowers with a network of lenders offering loans from $500 to $10,000. The company has been in business since 1998, making it one of the oldest online loan marketplaces.<\/p>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-2 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><div class=\"fn_block block_fn_pros_cons\"><ul class=\"like\"><h3>BadCreditLoans.com Pros<\/h3><li><p>Available 24\/7<\/p>\n<\/li><li><p>Accepts poor credit scores<\/p>\n<\/li><li><p>Quick application process<\/p>\n<\/li><\/ul><\/div><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><div class=\"fn_block block_fn_pros_cons\"><ul class=\"dislike\"><h3>BadCreditLoans.com Cons<\/h3><li><p>Not a direct lender<\/p>\n<\/li><li><p>High APRs (up to 35.99%)<\/p>\n<\/li><\/ul><\/div><\/div>\n<\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"i5kFunds\">5kFunds<\/h3>\n\n\n\n<p><a href=\"https:\/\/financer.com\/company\/5kfunds\/redirect\/\" target=\"_blank\" rel=\"sponsored noopener nofollow\">5kFunds<\/a> offers loans ranging from $500 to $35,000 with flexible repayment terms. That&#8217;s one the reasons they have been chosen by over 81,000 borrowers.<\/p>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-3 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><div class=\"fn_block block_fn_pros_cons\"><ul class=\"like\"><h3>5kFunds Pros<\/h3><li><p>Large amounts available<\/p>\n<\/li><li><p>No minimum credit score<\/p>\n<\/li><li><p>Funds available as soon as next business day<\/p>\n<\/li><\/ul><\/div><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><div class=\"fn_block block_fn_pros_cons\"><ul class=\"dislike\"><h3>5kFunds Cons<\/h3><li><p>High interest rates for those with poor credit<\/p>\n<\/li><li><p>Not available in all states<\/p>\n<\/li><\/ul><\/div><\/div>\n<\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"OppLoans\">OppLoans<\/h3>\n\n\n\n<p><a href=\"https:\/\/financer.com\/company\/opploans\/redirect\/\" target=\"_blank\" rel=\"sponsored noopener nofollow\">OppLoans<\/a> provides installment loans as an alternative to payday loans, with amounts from $500 to $4,000 and fast funding. Moreover, Opploans offers free financial education resources to help borrowers improve their financial health.<\/p>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-4 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><div class=\"fn_block block_fn_pros_cons\"><ul class=\"like\"><h3>OppLoans Pros<\/h3><li><p>No credit check required<\/p>\n<\/li><li><p>Fast funding (as soon as next business day)<\/p>\n<\/li><li><p>Reports payments to credit bureaus<\/p>\n<\/li><\/ul><\/div><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><div class=\"fn_block block_fn_pros_cons\"><ul class=\"dislike\"><h3>OppLoans Cons<\/h3><li><p>High APRs (up to 160%)<\/p>\n<\/li><li><p>Only available in certain states<\/p>\n<\/li><\/ul><\/div><\/div>\n<\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"Upgrade\">Upgrade<\/h3>\n\n\n\n<p><a href=\"https:\/\/financer.com\/company\/upgrade\/redirect\/\" target=\"_blank\" rel=\"sponsored noopener nofollow\">Upgrade<\/a> offers personal loans from $1,000 to $50,000 with fixed rates and terms. They also offers a rewards checking account that can help you save money on your loan.<\/p>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-5 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><div class=\"fn_block block_fn_pros_cons\"><ul class=\"like\"><h3>Upgrade Pros<\/h3><li><p>Competitive rates for those with good credit<\/p>\n<\/li><li><p>Joint applications allowed<\/p>\n<\/li><li><p>No prepayment penalties<\/p>\n<\/li><\/ul><\/div><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><div class=\"fn_block block_fn_pros_cons\"><ul class=\"dislike\"><h3>Upgrade Cons<\/h3><li><p>Origination fee of 2.9% to 8%<\/p>\n<\/li><li><p>Minimum credit score requirement of 580<\/p>\n<\/li><\/ul><\/div><\/div>\n<\/div>\n\n\n\n<p>If those options are not the right choice for you, compare more lenders and their conditions with Financer Loan Finder. It&#8217;s a totally free tool that can help you save both time and money when searching for a credit.<\/p>\n\n\n\t\t<div id=\"genericloan_0_form\" class=\"fs-slider fs-slider--tooltip search-hero--bg1\"><h3>The best choice is up to you<\/h3><p>Check out conditions in your state and decide which one is best<\/p><div class=\"step amount\">    <div class=\"slider_cont step__value\">\n        <span class=\"fl_l_m_15 amount_display\"><\/span>\n    <\/div>\n    <div class=\"step__slider\">\n        <input type=\"range\" data-default-value=\"1000\" data-name=\"param_amount\" \/>\n    <\/div>\n<\/div><div class=\"step stepSubmit\"><a id=\"submitSliders\" href=\"https:\/\/financer.com\/results?query=1&#038;non_affiliate=true&#038;param_amount=1000&#038;loan_broker_filter_active=true&#038;param_period=360\" data-slider-url=\"https:\/\/financer.com\/results?query=1&#038;non_affiliate=true&#038;param_amount=1000&#038;loan_broker_filter_active=true&#038;param_period=360\" data-required=\"results?query=1non_affiliate=true&#038;param_amount=1000&#038;loan_broker_filter_active=true&#038;param_period=360&#038;\" class=\"get_results compare button is-primary is-medium is-rounded\">Compare Offers<\/a><\/div>\t\t<\/div>\n\n\n<h2 class=\"wp-block-heading\" id=\"Payday_Loan_vs_Revolving\">Payday Loan vs Revolving<\/h2>\n\n\n\n<p>Let&#8217;s also break down the differences between payday loans and revolving credit. We&#8217;ve already covered payday loans, so let&#8217;s start with a quick explanation of revolving credit.<\/p>\n\n\n\n<p>Revolving credit is a type of credit that allows you to borrow money up to a certain limit, repay it, and then borrow again.<\/p>\n\n\n\n<p>The most common example is a credit card. You have a credit limit, and as long as you&#8217;re under that limit, you can keep using the card, paying off some or all of the balance each month.<\/p>\n\n\n\n<p>Now, let&#8217;s compare these two types of credit:<\/p>\n\n\n\n<figure class=\"wp-block-table is-style-fn-tables shortcode-no\"><table><thead><tr><th class=\"has-text-align-center\" data-align=\"center\">Feature<\/th><th class=\"has-text-align-center\" data-align=\"center\">Payday Loans<\/th><th class=\"has-text-align-center\" data-align=\"center\">Revolving Credit<\/th><\/tr><\/thead><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\">Borrowing Limit<\/td><td class=\"has-text-align-center\" data-align=\"center\">Fixed amount (typically $500 or less)<\/td><td class=\"has-text-align-center\" data-align=\"center\">Set credit limit (can be thousands of dollars)<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Repayment Term<\/td><td class=\"has-text-align-center\" data-align=\"center\">Usually 2-4 weeks<\/td><td class=\"has-text-align-center\" data-align=\"center\">Ongoing, with minimum monthly payments<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Interest\/Fees<\/td><td class=\"has-text-align-center\" data-align=\"center\">High flat fee (e.g., $15 per $100 borrowed)<\/td><td class=\"has-text-align-center\" data-align=\"center\">Interest charged on unpaid balance (average\u00a0<a href=\"https:\/\/www.investopedia.com\/terms\/r\/revolvingcredit.asp\" target=\"_blank\" rel=\"noreferrer noopener\">16.12% for credit cards<\/a>)<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Credit Check<\/td><td class=\"has-text-align-center\" data-align=\"center\">Usually no<\/td><td class=\"has-text-align-center\" data-align=\"center\">Yes<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Impact on Credit Score<\/td><td class=\"has-text-align-center\" data-align=\"center\">Typically none unless you default<\/td><td class=\"has-text-align-center\" data-align=\"center\">Can help build credit if managed responsibly<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Flexibility<\/td><td class=\"has-text-align-center\" data-align=\"center\">Must repay full amount on due date<\/td><td class=\"has-text-align-center\" data-align=\"center\">Can carry a balance (though not recommended)<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Here&#8217;s an example to illustrate the difference:<\/p>\n\n\n\n<p>Let&#8217;s say you need $300 for an emergency car repair.<\/p>\n\n\n\n<p>With a payday loan, you might borrow $300 and owe $345 in two weeks (assuming a fee of $15 per $100). You must repay the full $345 on your next payday or risk additional fees and potential legal action.<\/p>\n\n\n\n<p>With a credit card (revolving credit), you could charge the $300 repair. If you pay it off in full when the bill comes, you&#8217;d owe no interest. If you can only afford to pay $100, you&#8217;d carry a $200 balance and owe interest on that amount (let&#8217;s say $3 at 18% APR). You could then continue making payments over time.<\/p>\n\n\n<div class=\"fn_block block_fn_msg_box company\"><div class=\"fn_block__icon\"><\/div><h3 id=\"Payday_x_Revolving_APRs\">Payday x Revolving APRs<\/h3><p>While payday loans often have fees equivalent to 400% APR or more, the average credit card APR is around 16.12%.<\/p><\/div>\n\n\n<p>For those with poor credit who might not qualify for traditional revolving credit, <a href=\"https:\/\/financer.com\/credit-cards\/secured-credit-cards\/\" data-type=\"link\" data-id=\"https:\/\/financer.com\/credit-cards\/secured-credit-cards\/\" target=\"_blank\" rel=\"noreferrer noopener\">secured credit cards<\/a> can be a good alternative. These require a cash deposit as collateral but can help you build credit over time.<\/p>\n\n\n<div class=\"fn_block block_fn_button  buttons  is-flex is-flex-direction-column is-align-items-center\"><a href=\"https:\/\/financer.com\/credit-cards\/\" class=\"button  is-rounded is-primary is-medium is-fullwidth\" target=\"_blank\"  >Check out the best credit cards in 2025<\/a><\/div>\n\n\n<h2 class=\"wp-block-heading\" id=\"Top_Payday_Loan_Companies_For_Quick_Cash\">Top Payday Loan Companies For Quick Cash<\/h2>\n\n\n\n<p>You started this reading questioning if is a payday loan installment or revolving and now you&#8217;ve got the lowdown on payday loans, installment loans, and revolving credit. But  you&#8217;re probably wondering which option fits you best.<\/p>\n\n\n\n<p>If you&#8217;ve decided that a payday loan is your best (or only) option, let&#8217;s look at some of the top payday loan companies out there.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"BadCreditLoanscom\">BadCreditLoans.com<\/h3>\n\n\n\n<ul>\n<li>Loan amount: $500 &#8211; $10,000<\/li>\n\n\n\n<li>APR: 5.99% to 35.99%<\/li>\n\n\n\n<li>Pros: 24\/7 service, free to use<\/li>\n\n\n\n<li>Cons: Limited to $1,000 for very low credit scores<\/li>\n<\/ul>\n\n\n<div class=\"fn_block block_fn_button  buttons  is-flex is-flex-direction-column is-align-items-center\"><a href=\"https:\/\/financer.com\/company\/badcreditloans\/redirect\/\" class=\"button  is-rounded is-primary is-medium is-fullwidth\" target=\"_blank\"  rel=\"sponsored nofollow\">Apply for BadCreditLoans.com online<\/a><\/div>\n\n\n<h3 class=\"wp-block-heading\" id=\"Wizzaycom\">Wizzay.com<\/h3>\n\n\n\n<ul>\n<li>Loan amount: $200 &#8211; $5,000<\/li>\n\n\n\n<li>APR: 5.99% to 35.99%<\/li>\n\n\n\n<li>Pros: Easy online application, quick approval<\/li>\n\n\n\n<li>Cons: Personal data may be sold to third parties<\/li>\n<\/ul>\n\n\n<div class=\"fn_block block_fn_button  buttons  is-flex is-flex-direction-column is-align-items-center\"><a href=\"https:\/\/financer.com\/company\/wizzay.com\/redirect\/\" class=\"button  is-rounded is-primary is-medium is-fullwidth\" target=\"_blank\"  rel=\"sponsored nofollow\">Apply for Wizzay.com online<\/a><\/div>\n\n\n<h3 class=\"wp-block-heading\" id=\"LowCreditFinance\">LowCreditFinance<\/h3>\n\n\n\n<ul>\n<li>Loan amount: $100 &#8211; $50,000<\/li>\n\n\n\n<li>APR: 5.99% to 35.99%<\/li>\n\n\n\n<li>Pros: Fast funding (as quick as 60 minutes), accepts all credit types<\/li>\n\n\n\n<li>Cons: High APRs for those with poor credit<\/li>\n<\/ul>\n\n\n<div class=\"fn_block block_fn_button  buttons  is-flex is-flex-direction-column is-align-items-center\"><a href=\"https:\/\/financer.com\/company\/low-credit-finance\/redirect\/\" class=\"button  is-rounded is-primary is-medium is-fullwidth\" target=\"_blank\"  rel=\"sponsored nofollow\">Apply for LowCreditFinance online<\/a><\/div>\n\n\n<p>If you&#8217;re set on a payday loan, be sure to:<\/p>\n\n\n\n<ol>\n<li>Borrow only what you absolutely need<\/li>\n\n\n\n<li>Understand all fees and terms before signing<\/li>\n\n\n\n<li>Have a solid plan to repay on time<\/li>\n<\/ol>\n\n\n\n                <div class=\"fn_block block_fn_msg_box cost search-hero--bg1\">\n\t\t\t\t<h3>How to save <span class=\"compare-amount\">$619.00 <\/span> on your loan<\/h3>\n\t\t\t\t<p>The price difference for a $500.00 loan in 90 days is $619.00.<\/p>\n\t\t\t\t<p class=\"has-text-left\"><a href=\"https:\/\/financer.com\/results\/?query=1&filter_non_affiliate=1&param_amount=500&param_period=90\" class=\"button is-normal is-primary is-rounded\">Find out how<\/a><\/p>\n                <\/div><h2 class=\"wp-block-heading\" id=\"Smarter_Alternatives_To_Payday_Loan\">Smarter Alternatives To Payday Loan<\/h2>\n\n\n\n<p>It&#8217;s well known that when you need cash fast, a payday loan can seem like a lifesaver. But there are smarter alternatives that won&#8217;t leave your wallet crying:<\/p>\n\n\n\n<ol>\n<li><a href=\"https:\/\/financer.com\/loans\/personal-loans\/\" target=\"_blank\" rel=\"noreferrer noopener\">Personal Loans<\/a>: These usually have much lower APRs than payday loans. Even if you have\u00a0bad credit, some lenders specialize in loans for folks like you.<\/li>\n\n\n\n<li><a href=\"https:\/\/financer.com\/loans\/credit-union-loans\/\" target=\"_blank\" rel=\"noreferrer noopener\">Credit Union Loans<\/a>: Many credit unions offer payday alternative loans (PALs) with APRs capped at 28%. That&#8217;s way better than 400%!<\/li>\n\n\n\n<li>Payment Plans: Many creditors will work with you if you&#8217;re struggling. It never hurts to ask!<\/li>\n\n\n\n<li>Local Assistance Programs: Check out local non-profits or charities. They might offer emergency assistance.<\/li>\n<\/ol>\n\n\n\n<p>Remember, no matter what type of credit you&#8217;re looking for, the best way to get a good deal is to shop around. That&#8217;s where <a href=\"https:\/\/financer.com\/results\/\" data-type=\"link\" data-id=\"https:\/\/financer.com\/results\/\" target=\"_blank\" rel=\"noreferrer noopener\">Financer&#8217;s Loan Finder<\/a> comes in handy. It&#8217;s a free tool that helps you compare lenders and find credit options with just a few clicks.<\/p>\n\n\n\t\t<div id=\"genericloan_1_form\" class=\"fs-slider fs-slider--tooltip search-hero--bg1\"><h3>Shop around in a single place<\/h3><p>Save your time and your money<\/p><div class=\"step amount\">    <div class=\"slider_cont step__value\">\n        <span class=\"fl_l_m_15 amount_display\"><\/span>\n    <\/div>\n    <div class=\"step__slider\">\n        <input type=\"range\" data-default-value=\"1500\" data-name=\"param_amount\" \/>\n    <\/div>\n<\/div><div class=\"step stepSubmit\"><a id=\"submitSliders\" href=\"https:\/\/financer.com\/results?query=1&#038;non_affiliate=true&#038;param_amount=1500&#038;loan_broker_filter_active=true&#038;param_period=360\" data-slider-url=\"https:\/\/financer.com\/results?query=1&#038;non_affiliate=true&#038;param_amount=1500&#038;loan_broker_filter_active=true&#038;param_period=360\" data-required=\"results?query=1non_affiliate=true&#038;param_amount=1500&#038;loan_broker_filter_active=true&#038;param_period=360&#038;\" class=\"get_results compare button is-primary is-medium is-rounded\">Compare Offers<\/a><\/div>\t\t<\/div>\n\n\n<p>Always borrow responsibly. Make sure you can afford the payments and have a solid plan to pay it back on time.<\/p>\n\n\n<div class=\"fn_block block_fn_faq_list\"><h3 id=\"Is_payday_loan_installment_or_revolving_FAQs\">Is payday loan installment or revolving FAQs<\/h3><h4>Is a payday loan considered an installment loan or revolving credit?<\/h4><div class=\"faq_inner\"><p><span style=\"font-weight: 400;\">A payday loan is neither an installment loan nor revolving credit. It&#8217;s a short-term, high-cost loan typically due in full on your next payday. Unlike installment loans, which are repaid in fixed payments over time, payday loans require a lump-sum repayment. They also differ from revolving credit, as you can&#8217;t repeatedly borrow against a credit limit.<\/span><\/p><\/div><h4>What makes payday loans different from installment and revolving loans?<\/h4><div class=\"faq_inner\"><p><span style=\"font-weight: 400;\">Payday loans differ in repayment structure, loan terms, and cost. Unlike installment loans with fixed payments over months or years, payday loans require full repayment in weeks. They don&#8217;t offer the flexibility of revolving credit, where you can borrow repeatedly up to a limit. Payday loans have significantly higher APRs, averaging 391% compared to 36% for installment loans. Additionally, payday lenders typically don&#8217;t check credit, while installment and revolving credit providers do.<\/span><\/p><\/div><h4>Can payday loans be converted from single payment to installment loans?<\/h4><div class=\"faq_inner\"><p><span style=\"font-weight: 400;\">Some states allow payday loans to be converted into installment loans. This process, often called &#8220;extended payment plans,&#8221; can spread the repayment over several months. However, only about 16 states require payday lenders to offer extended payment plans. It&#8217;s important to note that even when converted, these loans still carry high interest rates. The CFPB reports that even with extensions, 80% of payday loans are reborrowed within a month.<\/span><\/p><\/div><h4>Do payday loan payments work like installment or credit card payments?<\/h4><div class=\"faq_inner\"><p><span style=\"font-weight: 400;\">Payday loan payments are typically due in a single lump sum, unlike installment or credit card payments. With payday loans, you usually provide a post-dated check or authorize an electronic withdrawal for the full amount on your next payday. In contrast, installment loans have fixed monthly payments, while credit cards require minimum monthly payments.<\/span><\/p><\/div><h4>What&#8217;s the main difference between payday and installment loan terms?<\/h4><div class=\"faq_inner\"><p><span style=\"font-weight: 400;\">The main difference lies in the repayment structure and loan duration. Payday loans typically require full repayment within 2-4 weeks, while installment loans are repaid over months or years in fixed payments. The average payday loan term is 14 days, compared to installment loans which can range from 3 months to 30 years. Installment loans also generally have lower APRs, with personal installment loans averaging 9.41% compared to payday loans&#8217; 391% average APR.<\/span><\/p><\/div><\/div>","protected":false},"excerpt":{"rendered":"<p>If you ever asked &#8220;is a payday loan installment or revolving?&#8221;, it&#8217;s time to know the truth. Payday loans are\u2026 <\/p>\n","protected":false},"author":41391,"featured_media":83080,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"disable_branded_featured_image":false,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","ep_exclude_from_search":false,"footnotes":""},"categories":[1076],"tags":[],"_links":{"self":[{"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/posts\/85337"}],"collection":[{"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/users\/41391"}],"replies":[{"embeddable":true,"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/comments?post=85337"}],"version-history":[{"count":50,"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/posts\/85337\/revisions"}],"predecessor-version":[{"id":85412,"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/posts\/85337\/revisions\/85412"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/media\/83080"}],"wp:attachment":[{"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/media?parent=85337"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/categories?post=85337"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/tags?post=85337"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}