Installment Loans vs Payday Loans

Reviewed by the 3BCash Compliance Team · Last reviewed 2026

Installment loans vs payday loans comes down to one core difference: how you pay the money back. A payday loan is typically due in one lump sum on your very next payday. An installment loan, like what 3BCash offers, is repaid over a series of fixed payments instead — and as our site has said since our earliest FAQ, our loans are not payday loans.

Fixed installmentsnot one lump sum

No rolloversevery payment reduces principal

$100 – $35,000loan amounts

Soft credit checkwon't affect your score

What Are Installment Loans?

What are installment loans, in plain terms? You borrow a set amount and repay it in multiple scheduled payments — installments — over time, rather than in a single payment. Each payment includes a portion that reduces your principal plus the cost of borrowing. Installment loans meaning, applied to 3BCash: payments scheduled bi-weekly or monthly to match your typical payday, in amounts from $100 up to $35,000, unsecured, with no rollovers, no hidden fees, and no prepayment penalty if you pay off early.

Personal loans definition overlaps here: most personal loans, including ours, are structured as installment loans — repaid on a fixed schedule rather than revolving like a credit card. What is installment loans, boiled down further: a loan where you know the number of payments, the amount of each one, and your payoff date from the day you're approved, instead of a single unknown lump sum.

3BCash's archived terms have historically offered 9 and 12 month options in addition to the 16 bi-weekly payment example above, so the exact number of installments depends on the amount you borrow and your state's rules.

What Is a Payday Loan?

A traditional payday loan works differently. You borrow a relatively small amount and agree to repay the full balance, plus fees, in one lump sum on your next payday, usually within two to four weeks. If you can't repay the full amount, many payday lenders allow a rollover into a new term for an additional fee, extending the debt without reducing what you originally borrowed. This is a structural feature of the payday loan model in general, not a claim about any specific lender.

However you phrase the comparison — payday loans vs. installment loans, or the difference between the two — the underlying question is the same: one payment or several?

Apply Now Soft credit check · Approval not guaranteed

Comparison Table

	3BCash Installment Loan	Typical Payday Loan
Repayment	Fixed payments spread over the loan term	Full balance due in one lump sum
Number of payments	Multiple scheduled payments (e.g., 16 bi-weekly in our example)	Typically one payment, on your next payday
Rollovers	None	Often available, extending debt for an added fee
Principal paydown	Every payment reduces principal	Principal untouched until the full lump sum is paid
Prepayment penalty	None — pay off early and save	Varies by lender
Collateral	Unsecured	Varies by lender
Credit check	Soft check first; hard check may occur before final approval	Varies by lender

For the exact cost of a 3BCash installment loan, see our fee schedule: a representative example shows a $500 loan repaid in 16 bi-weekly payments at an APR within your state's legal limit (see rates by state). Your actual rate, payment amount, and number of payments may differ; this is an example only; confirm your exact terms when you complete the application form.

Are Payday Loans Installment or Revolving?

Neither, technically. A revolving line of credit, like a credit card, lets you borrow up to a limit, repay, and borrow again without reapplying — installment loans vs revolving credit are structured differently from the start. A payday loan is a closed-end, single-payment loan: you borrow once and owe it all back on one date. Are personal loans installment or revolving? Almost always installment, same as ours. So are payday loans installment or revolving? Neither — they're their own category: single-payment, short-term loans.

"Cash advance" is often used as a catch-all, and cash advance vs payday loan depends on how a specific lender structures repayment. A cash advance apr meaning and cash advance fee definition also vary by issuer — some cash advances (like a credit card cash advance) carry a separate, often higher, cash advance apr vs purchase apr, while others are structured as installment loans, repaid in fixed payments over time like ours. Always confirm the repayment structure before you borrow from any lender.

Cash advance limit meaning and credit limit vs cash advance limit are two more terms worth untangling: a cash advance limit is typically a smaller sub-limit within your total credit limit, meant specifically for cash-equivalent transactions, and it usually carries the higher cash advance apr rather than your regular purchase rate. Earned wage access vs instant cash advance is a related but different comparison — earned wage access advances money you've already earned before payday, while a cash advance (credit card or installment) lends against money you haven't yet earned.

Which Is Right for You?

If you need a small amount and can realistically repay it in full on your very next payday, a short lump-sum loan might work, though rollovers and lump-sum stress are worth weighing carefully. If you'd rather spread repayment over several fixed, predictable payments with principal paydown along the way, an installment loan is generally the more manageable structure.

3BCash offers installment loans from $100 to $35,000 with a soft credit check to start and funds generally deposited as soon as the next business day after approval — never same day. If you want to compare a specific type of short-term product first, see our short-term loans page, or learn what a cash advance vs payday loan looks like structured as an installment on our cash advance page.

Why Borrowers Choose 3BCash

A direct installment lender since 2007 — clear terms, no surprises.

Direct lender since 2007

Three B Financial, LLC — registered by the Utah Department of Financial Institutions.

A+ BBB rating

We take customer satisfaction seriously.

Soft credit check

See if you qualify without affecting your credit score.

Fixed payments

A set schedule matched to your payday — every payment reduces principal.

No collateral

Unsecured loans from $100 to $35,000.

No rollovers, no prepayment penalty

Pay off early and save — no hidden fees.

Same-day decision

If your application is verified by 7:00 PM EST.

Next business day funds

If approved, money is deposited to your bank account.

Apply Now Approval not guaranteed · Loans are not available in all states

Related Loan Options

Loans are not available in all states. Questions about an existing application go to questions & complaints.

Fixed payments, no rollovers

Soft credit check · Unsecured · Approval not guaranteed

Apply Now

Frequently Asked Questions

What is an installment loan?

An installment loan is money you borrow and repay in a series of fixed payments over a set schedule, such as bi-weekly or monthly, rather than all at once. Each payment reduces the principal you owe. 3BCash installment loans range from $100 to $35,000, unsecured, with no rollovers.

Is a payday loan an installment loan?

No. A traditional payday loan is typically due in one lump sum on your next payday, not repaid in a series of fixed payments. As our site has said since our earliest FAQ: our loans are not payday loans — they're repaid in installments instead.

Which is cheaper?

It depends on the amount, term, and your state's laws. What matters most is the total cost and structure: installment loans spread cost over fixed payments with principal paydown, while payday loans concentrate the full balance into one due date, sometimes with rollover fees added if you can't pay in full.

Can I roll over an installment loan?

No, and that's by design. 3BCash installment loans have no rollovers — every payment you make reduces your principal on a fixed schedule. There's also no prepayment penalty, so paying off early can save you money.

Representative examples. A $500 loan repaid in 16 bi-weekly payments at 36% APR has payments of $35.05 and a total of payments of $560.87 (finance charge $60.87). The same $500 loan at 145% APR has payments of $48.05 and a total of payments of $768.78 (finance charge $268.78). A $1,000 loan repaid in 16 bi-weekly payments at 36% APR has payments of $70.11 and a total of payments of $1,121.74 (finance charge $121.74). These are examples only — your APR, payment amount and number of payments depend on the law of your state, the loan amount and your application; confirm your exact terms when you complete the application form. See rates by state.

Rates and availability. Loans from $100 to $35,000 with terms from 7 days to 12 months. Rates and fees are standard and stay within the limits set by the law of the state where the loan is made. Loans are not available in all states. Approval is not guaranteed; the amount you qualify for depends on your income and application.

Credit check. We start with a soft credit inquiry that does not affect your credit score; a hard credit inquiry may be made before final approval. 3BCash does not report your payments to credit bureaus.

Funding. If your application is received and verified by 7:00 PM EST on a business day and approved, funds are generally deposited into your bank account the next business day. Availability of funds may depend on your bank.

Repayment. Loans are repaid in fixed installments with part of every payment going to principal. No rollovers and no prepayment penalty. Late or returned payments may result in fees permitted by your state's law and collection activity — contact us before a payment is due if you expect difficulty paying.

Right to cancel. You may cancel your loan without any finance charge by sending written notice by fax or email by 5:00 PM Mountain Standard Time on the next business day after your loan is made.

Responsible borrowing. Installment loans can be an expensive form of credit and are meant for short-term financial needs, not as a long-term financial solution. Borrow only what you can repay.

Military borrowers. We comply with the Military Lending Act. Federal law provides important protections to members of the Armed Forces and their dependents; in general, the cost of consumer credit to a covered borrower may not exceed a 36% Military Annual Percentage Rate. See Licenses & Disclosures.

Equal Credit Opportunity. The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age (provided the applicant has the capacity to enter into a binding contract); because all or part of the applicant's income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act.

Questions or complaints. Call 866-337-9947 or email [email protected]. Utah residents may contact the Utah Department of Financial Institutions at 801-538-8830. You may also submit a complaint to the Consumer Financial Protection Bureau at consumerfinance.gov.

Three B Financial, LLC (3BCash) · 1108 E South Union Ave, Midvale, UT 84047 · Mailing: PO Box 154, Culpeper, VA 22701.

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