What is an installment loan?

An installment loan is a type of credit that's disbursed in a lump sum and repaid over a fixed repayment term. Most types of debt are a form of installment credit. As with other credit accounts, how you manage your installment loans can impact your credit scores.

What is installment credit & how does it work?

Installment credit (aka an installment loan) is a loan you make fixed payments on over a set period until the loan is paid off. Installment loans come with an interest rate (fixed or variable), applicable fees (late fees or origination fees) and a repayment plan that schedules your monthly payments (aka installments).

What are the different types of installment credit?

The most common types of installment credit are mortgage loans, auto loans, personal loans and student loans. That said, even some credit cards, which are a form of revolving credit, offer installment plans for certain purchases. Let us know what type of loan you’re looking for from a list of options.