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 a online payday loans new jersey line that is revolving of, that you have with a charge card, that lets you borrow cash every time you create a purchase.
Types of installment loans
Here’s a short summary of typical kinds of installment loans:
Signature loans: These loans are available by banks, online loan providers and credit unions, and certainly will be utilized for almost any function, usually to combine financial obligation.
Unsecured loans are paid back in monthly payments. Interest levels generally vary from 6% to 36per cent, with terms from two to 5 years. Because prices, terms and loan features vary among loan providers, it is better to compare signature loans from numerous lenders.