An installment loan is a loan that is repaid over time. These payments occur in a specific amount of scheduled payments. The length of an installment loan can range from a few months to years. Believe it or not, paying off an installment loan or actively making payments on one can have benefits for your credit score.
Here are a few options on how to get installment loans:
- You can go to a bank or a credit union to ask for a small installment loan against an automobile. This vehicle needs to be one that you own and has already been paid in full. Keep in mind, you will also need to pay interest on the loan. But, you may find that the benefits to your credit score later will be worth the extra money.
- A small installment loan can be used if you are looking to purchase an automobile.
- A secured loan on installment through your bank is also an option, when you are unable to qualify for a traditional installment loan based on your current credit score.
NEVER miss an installment loan payment! Set a calendar reminder for yourself in your phone or computer to remind you to pay this on time every single month until you are paid in full. You will hurt your credit in the long-run if you miss a payment.
As with any financial decision, it is recommended that you do further research and find the options that work best for your situation. If you are concerned about credit repair or if your debt is not manageable, schedule a free consultation!