Payday loans are predatory loans with steep APRs averaging 400% and short repayment terms -- full payment and interest are typically due back in a couple or weeks, or by your next payday. If you can't repay the loan in full, you'll typically receive even higher penalty fees.
While a payday loan is structured like an installment loan, there are some significant differences. First, installment loans typically give you more time to repay your loan, even if you borrowed a few hundred dollars. Installment loans also have much lower interest rates than payday loans -- even if you have a low credit score, installment loan APRs typically are not higher than 36%. Payday loan APRs can be even higher.