- Installment loans are repaid in fixed payments over months, not one lump sum.
- Bad-credit installment loans often carry triple-digit APRs; compare total cost, not just the payment.
- Repaying early can save a lot. Check there is no prepayment penalty.
What is a payday installment loan?
A payday installment loan works like a payday loan in who it serves and how fast it funds, but you repay in installments, usually every two weeks or monthly, over a few months to about 18 months. Amounts are typically larger, from a few hundred dollars to several thousand, depending on your state.
Payday loan vs. installment loan
| Payday loan | Installment loan | |
|---|---|---|
| Repayment | One payment on your next payday | Several payments over months |
| Typical amount | $100–$1,000 | $300–$5,000 |
| Price | Fee per $100 (often $10–$30) | APR, often triple digits for bad credit |
| Main risk | Rolling over and paying repeat fees | Paying interest for a long time |
Need $100–$1,000 before payday?
- One free request, many lenders
- Bad credit and benefit income considered by many lenders
- See the APR and total cost before you sign
PaydayEase is not a lender. Requests go to lenders in our network; approval, rates and terms are set by the lender. Rates & fees
The cost of a long term
Say you borrow $1,000 at 160% APR. Repaid over 6 months, you pay roughly $500 in interest. Stretched to 12 months, interest is closer to $1,000, about the same as the amount you borrowed. Shorter terms and early repayment keep the total down.
Approximate figures for an amortizing loan with equal monthly payments; your lender’s Truth in Lending disclosure gives exact numbers.
“No credit check” installment loans
As with payday loans, “no credit check” usually means no hard pull from the major bureaus. Lenders still check specialty databases and your income. Some installment lenders do report your payments to the major bureaus, which can help rebuild credit if you pay on time. Ask before you apply.
Before you sign
- Compare the total of payments on the disclosure, not just the payment size.
- Confirm there is no prepayment penalty, then repay early if you can.
- Check the lender is licensed in your state or, for bank-partner loans, who the lending bank is.
- Consider a credit union PAL first: up to $2,000 over 1–12 months at no more than 28% APR.
Need cash before payday?Send one free request to our lender network. We are not a lender; offers and rates come from lenders.
Request a loanFrequently asked questions
Are installment loans better than payday loans?
They can be easier to repay because the cost is spread out, but a high APR over a long term can cost more in total. Compare the total of payments.
Can I get an installment loan with bad credit?
Yes, many lenders offer installment loans to borrowers with poor credit, usually at high APRs. Credit union PALs are a cheaper alternative if you can join one.
Do installment loans build credit?
Some lenders report on-time payments to the major credit bureaus, which can help. Ask the lender before you apply.