What exactly is an installment loan?
An installment loan occurs when you get a lump sum payment of money and consent to make equal repayments more than a term that is fixed. Repayments consist of interest (and costs in some instances) and therefore are often made once per month. Installment loans change from bank cards and personal lines of credit so you know right from the get-go when the loan will be fully repaid because they have an end date.
You will find four primary forms of installment loans:
- Mortgage: utilized to acquire home with terms often enduring 15 or three decades. It is possible to select between a set or adjustable rate of interest.
- Car loan: utilized to buy an automobile. Rates of interest because of this variety of loan generally vary between 3% and 15%. Continue reading