Either bad credit installment loans or payday loans for bad credit are loans that can be obtained even with poor credit history. However, there are still many differences between these two types of loans. For example, their loan terms, amounts, and interest rates are different from each other.
Installment Loans vs. Payday Loans
The differences between the two kinds of loans are summed up in the table below:
| Loan Types | Bad Credit Installment Loans | Payday Loans for Bad Credit |
| Description
& Loan Terms |
Installment Loans are long-term loans taken out for a period that spans 6 months to 7 years. The repayments are made each month in a set amount. | Payday Loans are taken out for a short amount of time and are paid off in full upon the arrival of your next payday or in a set number of days, usually ranging around 30 to 62 days. |
| Loan Limits | The amounts can go up to $35,000 if you take out a personal loan. | The limit usually ranges from around $100 to $5,000. |
| Annual Percentage Rates | Around 18% to 47%. | This can vary but the number is generally around %300. |
| Acquirement Times | Within 2 business days. | As soon as one business day. |
| Requirements | Most require minimum eligibility criteria. | Bad credit is widely accepted. |
| Benefits | Higher loan amounts and periodic repayments. | Fast cash acquisition and lenient requirements. |
| Availability | Some states place a cap on the cost of installment loans. | Some states have laws to prohibit payday loans or set interest rate limits. |
Since both two loans are available even if you have bad credit, it is recommended you take out the bad credit installment loans. But if you need a bad credit loan for emergencies, payday loans may be a good option. You can get these two loans through WeLoans by filling out a simple online form.