{"id":103,"date":"2020-04-08T18:44:38","date_gmt":"2020-04-08T18:44:38","guid":{"rendered":"https:\/\/directpaydayloans247.com\/?p=103"},"modified":"2022-09-04T19:58:19","modified_gmt":"2022-09-04T19:58:19","slug":"what-is-an-installment-loan","status":"publish","type":"post","link":"https:\/\/directpaydayloans247.com\/what-is-an-installment-loan\/","title":{"rendered":"What is an installment loan?"},"content":{"rendered":"

The term \u201cinstallment loan\u201d may not sound familiar, but you probably know about \u2014 or have even used \u2014 many types of common installment loans.<\/strong><\/em>
\nSo what exactly is an installment loan? It\u2019s a type of loan that allows you to borrow a set amount of money when you take out a loan. Unlike forms of\u00a0revolving credit, such as credit cards or a line of credit, you must decide exactly how much money you need before borrowing the funds.
\nAfter borrowing the funds, you then have to repay the installment loan over a fixed period of time, which you and the lender determine when you take out the loan. Payments are typically monthly, but schedules can vary.
\nEach payment is known as an installment, which is why it\u2019s called an installment loan.<\/p>\n

Common examples of installment loans<\/strong><\/h3>\n

Many of the most common types of loans people take out are considered installment loans. Auto loans, mortgages, personal loans and student loans are all types of installment loans.<\/p>\n

Auto loans<\/strong><\/h4>\n

Auto loans are typically repaid in monthly installments over a range of 12 to 96 months, although not all lenders issue loans with terms within that range. Loans with longer terms often come with lower monthly payments, and higher interest rates, too. This means you\u2019ll end up paying more overall to buy a car with an 84-month loan, even if your monthly payments are lower, than with a 36-month loan.<\/p>\n

Mortgages<\/strong><\/h4>\n

A mortgage is an installment loan used to borrow money to buy a house. Mortgages are typically repaid over 15-to-30-year terms with monthly payments.
\nSome mortgages come with\u00a0fixed interest rates\u00a0that typically don\u2019t change. This means the standard monthly principal and interest payments won\u2019t change, either.<\/p>\n

Personal loans<\/strong><\/h4>\n

Personal loans are a type of installment loan you can use for a variety of purposes, like consolidating debt or paying off sudden expenses like medical bills. Personal loans typically have terms between 12 and 96 months. They usually have\u00a0higher interest rates\u00a0than other kinds of loans. This may be because personal loans don\u2019t require collateral, like your car or house.<\/p>\n

Benefits of installment loans<\/strong><\/h3>\n

In most cases, installment loans will come with predictable payments. If you take out a fixed-interest-rate loan, the core components of your payment (outside of changes to loan add-ons, like insurance) will likely remain the same every month until you pay off your loan.
\nA predictable payment amount and schedule could make it easier to budget for your loan payment each month, helping you avoid missing any payments because of unexpected changes to the amount you owe.
\nWhen shopping for an installment loan, make sure the monthly payments won\u2019t stretch your budget. If they do, you might have trouble making your full payment when a\u00a0financial emergency\u00a0pops up.
\nInstallment loans also offer the comfort of knowing your debt can be paid off by a specified date. After you\u2019re done paying the number of installments required by the loan, your debt should be paid off in full. If you get a loan with the shortest payment term you can reasonably afford, you can get out of debt faster and will probably pay less interest.<\/p>\n

Drawbacks of installment loans<\/strong><\/h3>\n

Unfortunately, installment loans can have their downsides.
\nFor instance, once you take out the loan, you can\u2019t add to the amount you need to borrow, like you can with a credit card or line of credit. Instead, you\u2019ll have to take out a new loan to borrow more money. When shopping for an installment loan, make sure you know exactly how much you need to borrow.
\nAnother potential drawback of installment loans is that your interest rate and other loan terms are largely based on your credit. If you\u2019ve struggled with credit in the past and have less-than-stellar credit scores, chances are you\u2019ll have to pay a higher interest rate than borrowers with strong credit histories.
\nHigher interest rates result in larger monthly payments and a higher total cost of borrowing. If possible, work to\u00a0improve your credit health\u00a0before applying for an installment loan.
\nBesides interest, installment loans can come with other fees and penalties. Some lenders require you to pay application fees (often called origination fees) and credit check fees, which increase your total cost up-front. They also sometimes charge\u00a0prepayment penalties,\u00a0which require you to pay a fee when paying the loan off early.<\/p>\n

Bottom line<\/strong><\/h3>\n

If you\u2019re considering an installment loan, make sure you understand the terms and conditions of the loan you\u2019re agreeing to. If you understand what\u2019s being offered, you can thoughtfully shop around for the best installment loan for your particular situation.
\n\"\"<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The term \u201cinstallment loan\u201d may not sound familiar, but you probably know about \u2014 or have even used \u2014 many types of common installment loans. So what exactly is an installment loan? It\u2019s a type of loan that allows you to borrow a set amount of money when you take out a loan. Unlike forms …<\/p>\n

What is an installment loan?<\/span> Read More »<\/a><\/p>\n","protected":false},"author":2,"featured_media":2844,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"default","ast-global-header-display":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":""},"categories":[25],"tags":[],"yoast_head":"\nWhat is an installment loan? | Direct Pay Day Loans 247<\/title>\n<meta name=\"description\" content=\"What is an installment loan? A mortgage is an installment loan used to borrow money to buy a house. Learn more about personal loans online.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/directpaydayloans247.com\/what-is-an-installment-loan\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What is an installment loan? | Direct Pay Day Loans 247\" \/>\n<meta property=\"og:description\" content=\"What is an installment loan? A mortgage is an installment loan used to borrow money to buy a house. Learn more about personal loans online.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/directpaydayloans247.com\/what-is-an-installment-loan\/\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Directpaydayloans247\" \/>\n<meta property=\"article:published_time\" content=\"2020-04-08T18:44:38+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-09-04T19:58:19+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/directpaydayloans247.com\/wp-content\/uploads\/2020\/04\/Vintage-Circle-Chicken-Farm-Logo-220-\u00d7-220-px-250-\u00d7-250-px-8.png\" \/>\n\t<meta property=\"og:image:width\" content=\"250\" \/>\n\t<meta property=\"og:image:height\" content=\"250\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Pay Day Loans\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Pay Day Loans\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/directpaydayloans247.com\/what-is-an-installment-loan\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/directpaydayloans247.com\/what-is-an-installment-loan\/\"},\"author\":{\"name\":\"Pay Day Loans\",\"@id\":\"https:\/\/directpaydayloans247.com\/#\/schema\/person\/de67e0b417fa725e3e05ffd6f46c8f67\"},\"headline\":\"What is an installment loan?\",\"datePublished\":\"2020-04-08T18:44:38+00:00\",\"dateModified\":\"2022-09-04T19:58:19+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/directpaydayloans247.com\/what-is-an-installment-loan\/\"},\"wordCount\":787,\"commentCount\":1,\"publisher\":{\"@id\":\"https:\/\/directpaydayloans247.com\/#organization\"},\"articleSection\":[\"Personal Loans\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/directpaydayloans247.com\/what-is-an-installment-loan\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/directpaydayloans247.com\/what-is-an-installment-loan\/\",\"url\":\"https:\/\/directpaydayloans247.com\/what-is-an-installment-loan\/\",\"name\":\"What is an installment loan? | Direct Pay Day Loans 247\",\"isPartOf\":{\"@id\":\"https:\/\/directpaydayloans247.com\/#website\"},\"datePublished\":\"2020-04-08T18:44:38+00:00\",\"dateModified\":\"2022-09-04T19:58:19+00:00\",\"description\":\"What is an installment loan? A mortgage is an installment loan used to borrow money to buy a house. Learn more about personal loans online.\",\"breadcrumb\":{\"@id\":\"https:\/\/directpaydayloans247.com\/what-is-an-installment-loan\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/directpaydayloans247.com\/what-is-an-installment-loan\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/directpaydayloans247.com\/what-is-an-installment-loan\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/directpaydayloans247.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"What is an installment loan?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/directpaydayloans247.com\/#website\",\"url\":\"https:\/\/directpaydayloans247.com\/\",\"name\":\"\",\"description\":\"Direct Pay Day Loans 24\/7\",\"publisher\":{\"@id\":\"https:\/\/directpaydayloans247.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/directpaydayloans247.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/directpaydayloans247.com\/#organization\",\"name\":\"Direct Pay Day Loans 247\",\"url\":\"https:\/\/directpaydayloans247.com\/\",\"sameAs\":[\"https:\/\/www.instagram.com\/directpaydayloans247\/\",\"https:\/\/www.pinterest.com\/DirectPaydayloans247\/_saved\/\",\"https:\/\/www.facebook.com\/Directpaydayloans247\"],\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/directpaydayloans247.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/directpaydayloans247.com\/wp-content\/uploads\/2022\/08\/Vintage-Circle-Chicken-Farm-Logo-2.png\",\"contentUrl\":\"https:\/\/directpaydayloans247.com\/wp-content\/uploads\/2022\/08\/Vintage-Circle-Chicken-Farm-Logo-2.png\",\"width\":220,\"height\":80,\"caption\":\"Direct Pay Day Loans 247\"},\"image\":{\"@id\":\"https:\/\/directpaydayloans247.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/directpaydayloans247.com\/#\/schema\/person\/de67e0b417fa725e3e05ffd6f46c8f67\",\"name\":\"Pay Day Loans\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/directpaydayloans247.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/a9c289dc671a5fa515dcb2f6a3a8498b?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/a9c289dc671a5fa515dcb2f6a3a8498b?s=96&d=mm&r=g\",\"caption\":\"Pay Day Loans\"},\"sameAs\":[\"https:\/\/directpaydayloans247.com\/\"]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"What is an installment loan? | Direct Pay Day Loans 247","description":"What is an installment loan? A mortgage is an installment loan used to borrow money to buy a house. Learn more about personal loans online.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/directpaydayloans247.com\/what-is-an-installment-loan\/","og_locale":"en_US","og_type":"article","og_title":"What is an installment loan? | Direct Pay Day Loans 247","og_description":"What is an installment loan? A mortgage is an installment loan used to borrow money to buy a house. Learn more about personal loans online.","og_url":"https:\/\/directpaydayloans247.com\/what-is-an-installment-loan\/","article_publisher":"https:\/\/www.facebook.com\/Directpaydayloans247","article_published_time":"2020-04-08T18:44:38+00:00","article_modified_time":"2022-09-04T19:58:19+00:00","og_image":[{"width":250,"height":250,"url":"https:\/\/directpaydayloans247.com\/wp-content\/uploads\/2020\/04\/Vintage-Circle-Chicken-Farm-Logo-220-\u00d7-220-px-250-\u00d7-250-px-8.png","type":"image\/png"}],"author":"Pay Day Loans","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Pay Day Loans","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/directpaydayloans247.com\/what-is-an-installment-loan\/#article","isPartOf":{"@id":"https:\/\/directpaydayloans247.com\/what-is-an-installment-loan\/"},"author":{"name":"Pay Day Loans","@id":"https:\/\/directpaydayloans247.com\/#\/schema\/person\/de67e0b417fa725e3e05ffd6f46c8f67"},"headline":"What is an installment loan?","datePublished":"2020-04-08T18:44:38+00:00","dateModified":"2022-09-04T19:58:19+00:00","mainEntityOfPage":{"@id":"https:\/\/directpaydayloans247.com\/what-is-an-installment-loan\/"},"wordCount":787,"commentCount":1,"publisher":{"@id":"https:\/\/directpaydayloans247.com\/#organization"},"articleSection":["Personal Loans"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/directpaydayloans247.com\/what-is-an-installment-loan\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/directpaydayloans247.com\/what-is-an-installment-loan\/","url":"https:\/\/directpaydayloans247.com\/what-is-an-installment-loan\/","name":"What is an installment loan? | Direct Pay Day Loans 247","isPartOf":{"@id":"https:\/\/directpaydayloans247.com\/#website"},"datePublished":"2020-04-08T18:44:38+00:00","dateModified":"2022-09-04T19:58:19+00:00","description":"What is an installment loan? A mortgage is an installment loan used to borrow money to buy a house. Learn more about personal loans online.","breadcrumb":{"@id":"https:\/\/directpaydayloans247.com\/what-is-an-installment-loan\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/directpaydayloans247.com\/what-is-an-installment-loan\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/directpaydayloans247.com\/what-is-an-installment-loan\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/directpaydayloans247.com\/"},{"@type":"ListItem","position":2,"name":"What is an installment loan?"}]},{"@type":"WebSite","@id":"https:\/\/directpaydayloans247.com\/#website","url":"https:\/\/directpaydayloans247.com\/","name":"","description":"Direct Pay Day Loans 24\/7","publisher":{"@id":"https:\/\/directpaydayloans247.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/directpaydayloans247.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/directpaydayloans247.com\/#organization","name":"Direct Pay Day Loans 247","url":"https:\/\/directpaydayloans247.com\/","sameAs":["https:\/\/www.instagram.com\/directpaydayloans247\/","https:\/\/www.pinterest.com\/DirectPaydayloans247\/_saved\/","https:\/\/www.facebook.com\/Directpaydayloans247"],"logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/directpaydayloans247.com\/#\/schema\/logo\/image\/","url":"https:\/\/directpaydayloans247.com\/wp-content\/uploads\/2022\/08\/Vintage-Circle-Chicken-Farm-Logo-2.png","contentUrl":"https:\/\/directpaydayloans247.com\/wp-content\/uploads\/2022\/08\/Vintage-Circle-Chicken-Farm-Logo-2.png","width":220,"height":80,"caption":"Direct Pay Day Loans 247"},"image":{"@id":"https:\/\/directpaydayloans247.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/directpaydayloans247.com\/#\/schema\/person\/de67e0b417fa725e3e05ffd6f46c8f67","name":"Pay Day Loans","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/directpaydayloans247.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/a9c289dc671a5fa515dcb2f6a3a8498b?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/a9c289dc671a5fa515dcb2f6a3a8498b?s=96&d=mm&r=g","caption":"Pay Day Loans"},"sameAs":["https:\/\/directpaydayloans247.com\/"]}]}},"_links":{"self":[{"href":"https:\/\/directpaydayloans247.com\/wp-json\/wp\/v2\/posts\/103"}],"collection":[{"href":"https:\/\/directpaydayloans247.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/directpaydayloans247.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/directpaydayloans247.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/directpaydayloans247.com\/wp-json\/wp\/v2\/comments?post=103"}],"version-history":[{"count":6,"href":"https:\/\/directpaydayloans247.com\/wp-json\/wp\/v2\/posts\/103\/revisions"}],"predecessor-version":[{"id":2845,"href":"https:\/\/directpaydayloans247.com\/wp-json\/wp\/v2\/posts\/103\/revisions\/2845"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/directpaydayloans247.com\/wp-json\/wp\/v2\/media\/2844"}],"wp:attachment":[{"href":"https:\/\/directpaydayloans247.com\/wp-json\/wp\/v2\/media?parent=103"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/directpaydayloans247.com\/wp-json\/wp\/v2\/categories?post=103"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/directpaydayloans247.com\/wp-json\/wp\/v2\/tags?post=103"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}