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The Curious Bag
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An installment loan is a type of short-term loan that the user pays back with a fixed number of equal-sized payments. The person who received the loan is put on a schedule to pay back the loan.
When Used
This type of loan is usually used in the case of a financial emergency because it allows money to be transferred very quickly.
Schedule
People are typically put on a monthly schedule to pay back the loan. They will pay back the loan on a certain day of each month and they are required to stick to the plan. Weekly payments can also be set up.
Advantages
Installment loans typically don't require any complex paperwork, faxing, or waiting in lines. Once qualified, you can obtain your money immediately.
Disadvantages
These loans require the user to pay back the loan exactly on schedule, no matter what happens. If the person's financial situation changes and they are unable to stick to the schedule, they may be forced to lose personal assets, or be forced to make the whole payment all at once.
How to Qualify
Online approval is the easiest way to obtain this type of loan. People must have average to good credit, which is considered to be a score of about 700 or better.
Source:
InvestorWords.com: Installment Loan
PersonalMoneyStore.com: Installment Loans
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