How do the two compare at a glance?
| Payday loan | Installment (personal) loan | |
|---|---|---|
| Typical amount | $100 to $1,500 | $500 to $35,000 or more |
| Term | Up to 62 days | Several months to several years |
| Maximum cost | $14 per $100 borrowed | 35% APR (criminal interest rate) |
| Repayment | One payment on payday; instalments in Alberta | Fixed regular payments |
| Credit check | Varies by lender | Usually yes |
| Effect on credit history | Often not reported unless it goes to collections | Often reported, so on-time payments can help |
| Regulated by | Provincial payday-loan law | Federal Criminal Code; some provinces license high-cost lenders |
Which costs less?
Per dollar per day, the installment loan — by a wide margin. Borrow $1,000 for two weeks on a payday loan and the fee is $140. Borrow $1,000 at 35% APR over six months and total interest is roughly $105, spread across six payments. A long term can still add up, so check the total cost, not only the payment.
When does each one fit?
- Payday loan: a small, one-off gap you can clear in full on your next pay.
- Installment loan: a larger expense, or consolidating several debts into one payment you can sustain.
Can I request a personal loan through this site?
Yes. Our Get Started form passes a personal-loan request to our lending partner, and you finish the application on their secure form. We are not the lender, and an offer is not guaranteed.
Quick answers
Is an installment loan easier to repay than a payday loan?
The payments are smaller because they are spread out, which many people find easier to manage. The loan lasts longer, though, so the commitment does too.
What is the highest rate an installment loan can charge?
35% APR, the criminal interest rate in force across Canada since January 1, 2025.