What is an installment loan?
An installment loan gives you a lump sum upfront, and you pay it back in equal scheduled payments over a fixed term. Each payment includes part principal and part interest. The APR is set at origination — it does not float. When you make the final scheduled payment, the loan is paid in full.
This is structurally different from a payday loan, where the entire principal plus fee is due in one payment, typically 14 days out. It's also different from a credit-card balance, which is open-ended revolving debt with a variable minimum payment.
The installment product covers a wide range of credit profiles. At the prime end, banks and online lenders like SoFi, LightStream, or Marcus offer 8%–25% APR to borrowers with FICO 700+. At the subprime end, lenders like OppLoans, NetCredit, Rise, and CashNetUSA quote 65%–199% APR to borrowers with FICO under 600. Quick Cash's network covers the subprime tier — for prime borrowers, we redirect to a marketplace.
Why installment beats payday when you can wait a week
The math is simple but worth working through. A $500 payday loan in Texas at $22 per $100 over 14 days costs $110 in fees. If the borrower can't repay in full (the typical case — 80% of payday loans are re-borrowed within 14 days per CFPB data), the loan rolls; fees compound. Four rollovers and the borrower has paid $440 in fees on $500 principal — still owing the principal.
A $500 installment loan at 99% APR over 4 months has an average monthly payment of about $152 and total interest of about $108. The borrower repays $608 total — done in 4 months, with the principal extinguished on schedule. On-time payments report to bureaus and build credit.
The catch: installment underwriting takes longer. Most installment lenders need 1–3 business days to fund. If your bill is due tomorrow, payday is your only fast option — and you should still strongly consider an EWA or a credit-card cash advance first.
Installment APR ranges by state
State usury caps and small-loan acts set the maximum APR for installment loans. Below is what subprime online installment lenders typically charge in the 10 highest-volume states. Caps and ranges are summarized from state regulator filings.
| State | Subprime APR range | Common loan size | Reports to bureaus? |
|---|---|---|---|
| Texas | 99%–199% (CSO model) | $500–$2,500 | Most yes |
| California | 35.99%–99% (CFL ≤$2,500: capped 36%+admin) | $500–$5,000 | Yes |
| Florida | 30%–99% (consumer finance act) | $1,000–$25,000 | Yes |
| Ohio | 28%–60% (post-2018 reform) | $500–$5,000 | Yes |
| Missouri | up to 199% | $500–$5,000 | Mixed |
| Illinois | 36% cap (PLPA 2021) | $500–$40,000 | Yes |
| Colorado | 36% cap | $500–$40,000 | Yes |
| Nevada | up to 199% | $500–$5,000 | Mixed |
| Alabama | up to 99% | $500–$3,000 | Yes |
| New York | 16% civil / 25% criminal usury cap | Mainstream only | Yes |
Subprime online installment lenders — how we rank them
Quick Cash ranks installment lenders by four criteria, in this order: (1) state license coverage, (2) transparency on APR and fees, (3) bureau reporting, (4) early-payoff treatment. We don't rank by commission to us.
| Lender | APR range | Loan size | States served | Bureau reporting |
|---|---|---|---|---|
| OppLoans | 59%–160% | $500–$4,000 | ~37 | Yes (Experian, TransUnion) |
| NetCredit | 34%–99.99% | $1,000–$10,000 | ~36 | Yes |
| Rise Credit | 50%–299% | $500–$5,000 | ~31 | Yes |
| CashNetUSA | 65%–149% | $500–$3,500 | ~24 | Yes |
| Possible Finance | ~150% (small dollar only) | $500 | ~25 | Yes |
| OneMain Financial | 18%–35.99% | $1,500–$20,000 | ~44 (incl. brick & mortar) | Yes |
Data as of May 2026. APR and state coverage change frequently; check the lender's "Rates and Terms" page before applying.
$500 installment vs $500 payday — the math in detail
Let's run a specific comparison. You need $500 today. You can repay $130–$170 a month.
| Option | APR | Term | Monthly | Total interest | Total paid |
|---|---|---|---|---|---|
| Payday (TX) — one cycle | ~568% | 14 days | — | $110 | $610 |
| Payday rolled 4× | ~568% effective | ~75 days | — | $440 | $940 |
| Installment 199% APR | 199% | 4 months | ~$170 | ~$181 | $681 |
| Installment 99% APR | 99% | 4 months | ~$152 | ~$108 | $608 |
| Installment 65% APR | 65% | 6 months | ~$100 | ~$104 | $604 |
| Installment 35% APR | 35% | 6 months | ~$92 | ~$54 | $554 |
| PAL II | 28% | 6 months | ~$90 | ~$43 | $543 |
The pattern: every installment option beats a rolled payday loan. Even at the worst subprime APR (199%), four months of installment is cheaper than a payday loan rolled four times. The PAL is the cheapest non-prime option — see our PAL explainer.
Cheaper alternatives to subprime installment
1Credit-union PAL II
28% APR cap, $200–$2,000, 1–12 months. Cheaper than any subprime installment lender. See PAL details.
2Credit-card balance with payment plan
If you have a card, even a high-APR card at 29% beats 99% installment. Some issuers offer fixed-payment installment plans on existing balances.
3Secured loan from your credit union
If you have a savings account, a share-secured loan runs 4–10% APR.
40% medical / dental payment plan
If the underlying expense is healthcare, ask the provider's billing department about 0%-interest installment options.
See all 15 alternatives ranked →
State guides for installment loans
- Texas installment loans — CSO model and APR ranges
- Florida installment loans — Consumer Finance Act rules
- Ohio installment loans — post-2018 short-term loan act
FAQ — Installment loans
How fast do installment loans fund?
Subprime online installment lenders typically fund in 1–3 business days. Some advertise same-day or next-day. The longer underwriting is the cost of the lower APR — it's a real trade-off.
Can I pay off an installment loan early?
Yes — every state-licensed installment lender in Quick Cash's network charges no prepayment penalty. Early payoff saves interest. We recommend it whenever possible.
What credit score do I need?
Subprime installment lenders typically accept FICO 500–620. Below 500, options narrow but still exist. Above 620, you'll usually qualify for cheaper mainstream lenders we don't match — check our bad credit loans guide.
Will an installment loan help my credit?
Yes — most state-licensed installment lenders report to at least two of the three major bureaus. On-time payments build credit. Missed payments hurt. This is one of installment's main advantages over payday.
Are online installment loans legal everywhere?
Installment loans are legal in all 50 states, but APR caps vary widely. In NY, IL, CO and other 36%-cap states, subprime lenders effectively don't operate — only mainstream lenders do.
What if I miss a payment?
Late fees apply (typically $25–$50). After 30 days late, most lenders report the delinquency to bureaus. After 90 days, the account usually charges off and is sold to a collection agency. Call your lender before you miss — most have hardship programs.