{"id":21771,"date":"2021-09-08T04:23:11","date_gmt":"2021-09-08T11:23:11","guid":{"rendered":"https:\/\/financer.com\/?post_type=wiki&p=21771"},"modified":"2024-07-08T12:12:45","modified_gmt":"2024-07-08T19:12:45","slug":"payday-loan-vs-installment-loan","status":"publish","type":"wiki","link":"https:\/\/financer.com\/loans\/articles\/payday-loan-vs-installment-loan\/","title":{"rendered":"Payday Loan vs Installment Loan"},"content":{"rendered":"\n

Instant payday loans and\u00a0installment loans\u00a0are two of the most popular types of loans available. The two are quite different and there are several factors to consider when deciding on the best option for your situation.<\/p>\n\n\n\n

When it comes to a payday loan vs installment loan, here are a few of the main differences between payday and installment loans:<\/p>\n\n\n\n

Payday Loans<\/th>Installment Loans<\/th><\/tr><\/thead>
Usually small amounts<\/td>Can be large amounts<\/td><\/tr>
Very high APR<\/td>APR depends on the loan type<\/td><\/tr>
Minimal requirements<\/td>More requirements like credit score<\/td><\/tr>
Can be rolled over for an additional fee<\/td>Payback is over a set period<\/td><\/tr>
Borrowers often become dependent on these loans to make ends meet<\/td>Not designed to depend on them indefinitely<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

What is an Installment Loan?<\/h2>\n\n\n\n

Installment loans are money that you borrow and repay over a specific time period with fixed monthly payments. Installment loans often have lower interest rates<\/a> and no penalties for early repayment. <\/p>\n\n\n\n

A big benefit is that you know exactly how much you owe upfront and can plan for the repayments accordingly.<\/p>\n\n\n\n

Examples of installment loans include personal loans<\/a>, auto loans<\/a>, mortgages<\/a>, and student loans<\/a>. Here are a few popular installment loan providers:<\/p>\n\n\n

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\n \n \n \n \n\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t
Company<\/th>\n Overall Rating<\/th>\n\t\t\t\t\t\t\tTimes Chosen<\/th>\n <\/th>\n <\/tr>\n <\/thead>\n\t\t\t\t\t
\n\t\t\t\t\t\t\t\t5KFunds\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\"\"\n\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t<\/td>\n\t\t\t\t\t\t\t4.2<\/span><\/td>\n\t\t\t\t\t\t\t80,526<\/td>\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\tView Company \"\"\n \t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t<\/td>\n\t\t\t\t\t\t<\/tr>\n\t\t\t\t\t\t\t\t\t\t\t
\n\t\t\t\t\t\t\t\tSecureSpeedyLoans\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\"\"\n\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t<\/td>\n\t\t\t\t\t\t\t2.9<\/span><\/td>\n\t\t\t\t\t\t\t5,542<\/td>\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\tView Company \"\"\n \t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t<\/td>\n\t\t\t\t\t\t<\/tr>\n\t\t\t\t\t\t\t\t\t\t\t
\n\t\t\t\t\t\t\t\tUpgrade\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\"\"\n\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t<\/td>\n\t\t\t\t\t\t\t3.6<\/span><\/td>\n\t\t\t\t\t\t\t2,285<\/td>\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\tView Company \"\"\n \t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t<\/td>\n\t\t\t\t\t\t<\/tr>\n\t\t\t\t\t <\/tbody>\n <\/table>\n <\/div>\n\t\t<\/div>\n\n\t<\/div>\n\n\n

What is a Payday Loan?<\/h2>\n\n\n\n

Payday loans<\/a> are short-term<\/strong>, small-dollar loans that you repay with your next paycheck. The repayment terms on payday loans are usually two to four weeks and it’s a good option if you need quick cash until your next payday. <\/p>\n\n\n\n

Payday loans generally have quick approvals<\/strong>, which could even be the same day.<\/p>\n\n\n\n

Here are a few popular online payday lenders:<\/p>\n\n\n

\t\t
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\n \n \n \n \n\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t
Company<\/th>\n Overall Rating<\/th>\n\t\t\t\t\t\t\tTimes Chosen<\/th>\n <\/th>\n <\/tr>\n <\/thead>\n\t\t\t\t\t
\n\t\t\t\t\t\t\t\tBadCreditLoans.com\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\"\"\n\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t<\/td>\n\t\t\t\t\t\t\t3.8<\/span><\/td>\n\t\t\t\t\t\t\t92,652<\/td>\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\tView Company \"\"\n \t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t<\/td>\n\t\t\t\t\t\t<\/tr>\n\t\t\t\t\t\t\t\t\t\t\t
\n\t\t\t\t\t\t\t\tCash Advance\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\"\"\n\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t<\/td>\n\t\t\t\t\t\t\t4.8<\/span><\/td>\n\t\t\t\t\t\t\t7,434<\/td>\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\tView Company \"\"\n \t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t<\/td>\n\t\t\t\t\t\t<\/tr>\n\t\t\t\t\t\t\t\t\t\t\t
\n\t\t\t\t\t\t\t\tMoneyKey\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\"\"\n\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t<\/td>\n\t\t\t\t\t\t\t3.9<\/span><\/td>\n\t\t\t\t\t\t\t32,550<\/td>\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\tView Company \"\"\n \t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t<\/td>\n\t\t\t\t\t\t<\/tr>\n\t\t\t\t\t\t\t\t\t\t\t
\n\t\t\t\t\t\t\t\tOppLoans\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\"\"\n\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t<\/td>\n\t\t\t\t\t\t\t4.3<\/span><\/td>\n\t\t\t\t\t\t\t12,314<\/td>\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\tView Company \"\"\n \t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t<\/td>\n\t\t\t\t\t\t<\/tr>\n\t\t\t\t\t <\/tbody>\n <\/table>\n <\/div>\n\t\t<\/div>\n\n\t<\/div>\n\n\n\t\t

Compare loans from 79 lenders<\/h3>

Find the cheapest rate with one click<\/p>

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Compare Offers<\/a><\/div>\t\t<\/div>

Payday Loan vs Installment Loan<\/h2>\n\n\n\n

There are several differences between installment loans and payday loans, including:<\/p>\n\n\n\n