Payday Loans vs Installment Loans
Understand the key differences, risks, and when to choose one over the other.
| Feature | Payday Loan | Installment Loan |
|---|---|---|
| Repayment Term | Usually 2–4 weeks | Several months to years |
| APR Range | 300%–700% | 20%–99% |
| Payment Frequency | Single lump sum | Monthly installments |
| Risk of Rollovers | High | Low–Moderate |
When to Choose Each
If you need funds fast and will repay within a few weeks, payday loans may be an option — but beware of rollover risks. Installment loans are better for larger amounts or longer terms with predictable payments.
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