Are Payday Loans and Installment Loans the Same?

All the loans that have a maximum repayment period of one year can be classified as short-term loans. It does not make them necessarily the same. Payday loans as well as installment loans (small cash loans), both come in the category of short-term financing. Low-income households depend on these financial products regularly to address cash shortage. They both are easy to avail. Some people even consider that a payday loan is an installment loan. Is it correct? Do you think they are same or a payday advance is different than an installment loan? Let us compare them both to give you a clear understanding.

Payday Loan

  • A payday loan is a collateral-free loan, often used to get cash between $-100 to $1,000.
  • Most lenders like EZPaydayCash do not run a traditional credit check process for such debts.
  • A borrower while taking out the payroll loan agrees to pay back the principal along with interest and fees when he gets the paycheck- that day gets scheduled.
  • In most cases, nowadays, especially the online direct lenders automatically recover this amount from the bank account.
  • The payment due is strictly the salary day, and the payment should be done in one transaction. If the borrower is not able to do that, s/he must ask for a rollover well before the due.
  • A payday loan usually does not have any severe impact on the credit status.
  • Due to such conveniences, payday loans have become the immediate solution to cash crisis for millions of debtors.

Installment Loan

  • Installment loans can be short-term cash loans as well as long-term mortgage loans; anything between $100 and a several thousand dollars. The cash loans are a bit similar to the payday loans and may not need collateral, yet not the same. For a mortgage, one needs collateral.
  • Lenders like CashTodayAmerica do not check credit scores for cash loans. When it comes to a mortgage or auto loans, one needs to have good credit, though.
  • With an installment loan, debtors get to repay the loan in multiple scheduled payments. For example, if the term for a cash loan is 3 months, the borrower makes 3 monthly or 6 biweekly scheduled payments.
  • It gives more time to repay and the interest rate is less than payday advances.
  • Might have a long impact- both positively and negatively- depending on if the borrower makes the payments on time.

As you can see, the two financial products are quite different from each other. Therefore, a payday loan is not an installment loan.
The interesting and a beneficial thing for the borrowers is that, CashTodayAmerica offers payday loans -without credit check- that can be paid in installments! In a way combining positives of both loans to help you in cash emergency! Apply now to avail quick cash.

Join Our 50,000+ Customers Who Get Money Right When They Need!


Reviews are the independent opinions of our users, and we do not hold any of them to be representative of all CashTodayAmerica borrowers’ experience.

A trusted single lending source for your cash crunch. Apply now!
Get Started

Applying Does NOT Affect Your FICO® Credit Score

We are registered with Utah’s Department of Financial Institution to provide Consumer Credit. If you submit this application via the internet to us, we will receive and process it the same as if you submitted it to us in person thereby making Utah the place of negotiation, execution and performance of all applications and/or agreement. If we approve your application, the funds will be disbursed from our account in Utah. Utah law governing consumer loan agreements may differ from the laws of the state where you reside. Applicant is responsible for complying with all statutory obligations regarding obtaining loans by internet that may exist in their state of residence. This service may or may not be available in your particular state.

CashTodayAmerica does not perform any credit checks through the three major credit bureaus Experian, Equifax or TransUnion. We collect required information regarding debtors’ creditworthiness from a third party source.

Approval time depends on the authenticity and verifiability of your documents. You might be requested to provide further information if required. Note that we do not approve all the loan requests. On the basis of state laws and your repayment ability, the terms and rates may vary. Any loan requested on Friday after 6:00 PM EST will be processed on the next business day which is usually Monday- unless it is a holiday.

Should you have any doubts, please call our customer support at (855) 840-5688, Monday-Friday: 8:00 AM to 7:00 PM (EST) or email to support@cashamericatoday.com.

* I have read and understand the Terms and Conditions & Privacy Policy of this loan. All loans financed by CashTodayAmerica