An online installment loan is a form of loan that is reimbursed in a few payments, called installments, occurring at regular intervals. As an example, you would have to pay $100 every month for one year if you borrowed a sum of money plus interest that equaled $1,200, with a loan length of one year, and a repayment interval that was monthly.
Whats the real difference between an online installment loan and credit cards?
Borrowers want to make regular repayments, often each month, on their online installment loans, similar to bank cards. But, there are 2 major distinctions:
- Available Credit
- Interest Rate
Available Credit: When you will get an installment loan, you receive a fixed, lump sum payment of cash. Credit cards offers you a credit line that one can draw in since you need it.
Rate of interest: Interest rates of installment loans tend to be fixed through the duration of the loan.