Installment loans

Are you considering getting a personal, auto, or student loan? Well, you can acquire different forms of loans, but that depends on how you plan to repay the loan. With installment loans, you can pay the amount in fixed installments. 

This article discusses all you need to know about installment loans and some of the forms of installments loan.

What is an installment loan?

The term installment refers to a fixed amount of money you can repay over a specified period instead of paying the whole amount at once.

An installment loan is a general term used collectively to refer to all the loans the borrower is set to pay regularly over a specified time with an interest rate. Some of the most common installment loans include; student loans, personal loans, and mortgage loans.  

What is a personal installment loan?

A personal installment loan is the amount of money you can borrow for different purposes and pay it back regularly in fixed amounts called installments over a specified period. Personal loans are always very easy to acquire; since they are not secured, they are the most efficient loan type you can acquire. Installment loans for bad credit is possible.

It is easy to acquire personal installment loans even with bad credit because most personal loan providers are online lenders who do not have to go through your credit score to give you the loan.

Is a payday loan an installment or revolving?

To answer this, we first have to evaluate what a payday loan is. A payday loan is a small-amount, short-term, high-cost interest loan due to be paid the next payday. It could be a month or less.

A revolving loan is a type of credit that does not offer fixed installment payments, and you can still borrow even while repaying the loan. It accommodates flexibility in re-borrowing 

A payday loan is neither installment nor a revolving loan. This is because you pay it all at once on the repayment terms that are agreed upon. Online installment loans are possible due to our comparison tool.

Is an auto loan an installment loan?

Absolutely yes; auto loans, otherwise known as car loans, are another type of installment loan. The lender will require you to make a down payment for the loan and then pay a fixed amount plus the interest rate. The fixed amount you must pay over a specified time makes it an installment loan. 

An auto loan is a big sum of money for acquiring a vehicle; therefore, most lenders prefer to do a credit check before giving out the loan. Opting for a no-credit-check lender is also possible but might increase the interest rates. Installment loans no credit check it is possible if you use a service online like Finpanda.

Is an installment loan a good idea?

Yes! Opting for an installment loan is a good idea when you have a fixed permanent income and are sure you can meet the fixed amount agreed upon at every interval. Paying your installment loan is a good way to create a good credit score and become eligible for more loans in the future.

Conclusion

In summary, there are different installment loans, that is, loans that you can pay in a fixed amount over a specified period. A good example is an auto loan that requires you to pay the first amount and the rest in fixed installments plus the interest incurred. With installment loans, creating a good credit score is very easy as long as you pay the installments amounts as specified.