An installment loan is a method to borrow cash, typically for just one purchase that is large as an automobile, household or college training. The borrower receives a lump sum and repays the loan over a set term in monthly payments, or installments after getting approved by a lender.
Installment loans work differently than revolving credit, such as for instance bank cards, which offer a personal line of credit to constantly borrow from instead of an amount that is single repay. Revolving credit permits the amount of money to again be borrowed as soon as it’s paid, whereas an installment loan account is closed as soon as it’s repaid. Continue reading “What exactly is An Installment Loan?. Kinds of Installment Loans”