What Exactly Is An Installment Loan? Installment Loans vs. Revolving Credit

What Exactly Is An Installment Loan? Installment Loans vs. Revolving Credit

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 it’s paid down, whereas an installment loan account is closed when it’s repaid. Continue reading “What Exactly Is An Installment Loan? Installment Loans vs. Revolving Credit”