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Payday loan vs. installment loan: What's the difference? When it comes to payday loans, there is a lot of confusion about whether they are secured or unsecured loans. In reality, payday loans are both. A payday loan is a type of secured loan, but the security is not the typical kind that is used for other types of secured loans. With a payday loan, the security is the borrower’s next paycheck. This means that if the borrower does not repay the loan on time, payday lenders can take the money out of the borrower’s paycheck. Read more here https://paydayloan-us.com/payday-loan-vs-installment-loan/