An installment loan is cash you borrow and pay off with fixed payments — or installments — over a length of the time, or term. It varies from the revolving personal credit line, that you have with a charge card, that lets you borrow cash each time you create a purchase.
Kinds of installment loans
Here’s a summary that is brief of kinds of installment loans:
Unsecured loans: These loans could be offered by banks, online loan providers and credit unions, and will be properly used for pretty much any function, oftentimes to combine financial obligation.
Unsecured loans are paid back in monthly payments. Rates of interest generally start around 6% to 36per cent, with terms from two to 5 years. Because prices, terms and loan features differ among lenders, it is better to compare loans that are personal numerous loan providers. Continue reading