Grace Enfield, Content Writer
@grace_enfield
An example of an installment loan is a personal loan. Personal loans are typically unsecured, which means you won’t have to put up anything as collateral to get the loan, and they can be used for almost anything, such as debt consolidation, home improvements and big purchases.
With a personal loan, the lender will give you a lump sum of money that you will need to repay, plus interest, over 12 - 84 months. On-time payments will help improve your credit score since the lender will report positive information to the credit bureaus.
There are other types of installment loans that you should know about, too. You can see more examples below.
6 Installment Loan Examples
- Personal loans
- Mortgages
- Auto loans
- Credit-builder loans
- Home equity loans
- Student loans
If you think a personal loan is right for you, check out WalletHub’s picks for the best personal loans. Then, you can use our free pre-qualification tool to estimate your potential rates.
People also ask
What is considered an installment payment?
An installment payment is a payment on a loan that is paid back over time rather than in a single lump sum. Most installment loans require a payment every month, and the payment is typically for the same amount each time. Any time you make a payment on a personal loan, mortgage, car loan or student loan, for example, you are making an installment payment.
This contrasts with small, short-term loans like payday loans,...
read full answerIs a student loan an installment loan?
Yes, a student loan is an installment loan. An installment loan is any loan that is paid off in multiple payments over time, with payments most typically paid on a monthly basis, so student loans qualify. However, student loans are different from many other types of installment loans in that you typically do not have to start repaying the loan right away. Instead, your installment payments start when you graduate or leave full-time enrollment.
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