An installment loan is an approach to borrow cash, typically for an individual big purchase such as a car, household or college education. 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 example bank cards, which offer a line of credit to constantly borrow from as opposed to an amount that is single repay. Revolving credit enables the amount of money to be borrowed once more when itвЂ™s paid down, whereas an installment loan account is closed when itвЂ™s repaid. Continue reading “What Exactly Is An Installment Loan? Installment Loans vs. Revolving Credit”