• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Working Mom Blog | Outside the Box Mom

making life easier for working moms

  • Home
  • Home Life
    • Cleaning
    • Decor
    • Home Improvement
    • Laundry
    • Organizing
    • Save Money at Home
  • Meals
    • Cooking Shortcuts
    • Grocery Shopping
    • Health
    • Meal Planning
    • Recipes
    • Save Money on Meals
  • Work
    • Blogging
    • Entrepreneur Mom
    • New Working Mom
    • Unemployment
    • Work at Home
    • Work / Life Balance
  • Mom
    • Beauty, Style, and Fashion
    • Faith
    • Health
    • Me Time
    • Productivity
  • Family
    • Childcare
    • Digital Life
    • Education
    • Family Time
    • Hobbies
    • Holidays
    • Marriage
      • Marriage Advice
    • Parenting
    • Travel
  • Finances
  • About
    • About Raki Wright
    • Disclosure Policy
    • My Communities:
    • Outside The Box Mom Resources
    • Parties I Link To
    • Privacy Policy | Privacy Notice
  • Contact
  • Shop

What Is an Installment Loan?

This post may contain affiliate links. Read full disclosure.

by RAKI WRIGHT

Installment loans are personal loans where the balance is paid back in fixed installments which cover the interest and part of the principal.

Some common examples are online payday loans, car loans, and home mortgages. A good rule to remember when looking for financing is that the more you need, the longer you will be paying it off and the faster you need the funds, the higher the interest rate will be.

Fast Loan Options

When people think of fast loans, payday lenders are usually at the top of the list. These loans are usually applied for online and approved in hours, with high interest rates and fees associated with them. Most payday loans do not require a credit check, just proof of employment, and are designed to be paid back with the next paycheck. There are other, more modern, forms of payday financing which are referred to simply as installment loans. This type offers the quick cash with a longer repayment period and lower interest rates. Where payday loans can have an annual percentage rate between 300% and 500%, you can find a fast, online installment loan, or pret rapide en ligne, with half the APR and which can be paid back over a three to five month term.

Short-Term Loan Options

Short-term loan options can include fast loans, but usually refer to loans which have repayment terms no longer than five or seven years. When your loan is secured with collateral, such as a car loan, those assets are a guarantee to the lender because your car can be repossessed and sold to recover some losses if you default. The amount of these loans is dependent on the value of the collateral and your approval depends on your credit. Unsecured loans, those without collateral, are based on your credit history and are more of a risk to the lender. The interest rates are usually a bit higher than secured loans and lines of credit can fall into this category.

Long-Term Loan Options

Long-term lending is usually designed for large purchases that need decades to pay off, such as residential and commercial properties. These have lower interest rates and are harder to get than other types of installment loans. Long-term loans are usually secured by the assets they are used to purchase, such as a house or retail property, and you may be required to submit more documentation to apply for them.

Finding the right installment loan means determining how quickly you need the funds, how long you want to be paying it off and how much you need. The more financing you need, the longer the term will be and the lower the interest rate is.

Answers to More Questions About Loans

5 Meaningful Uses For a Personal Loan

5 Sure Fire Ways to Know Your Loan Was Foolish

How to Get a Short-Term Loan

  • Author
  • Recent Posts
RAKI WRIGHT
RAKI WRIGHT
Raki's Google Profile
RAKI WRIGHT
Latest posts by RAKI WRIGHT (see all)
  • How many life insurance policies can I have? -
  • When the Wine Stops Working: How Christian Moms Are Quietly Finding Their Way Back to Sober Living -
  • The Hidden Truth Behind America’s Recovery Crisis -

Sharing is caring!

  • Share
  • Tweet

Filed Under: Finances

Previous Post: « Top 3 Tips for Dealing With Moving Stress
Next Post: 5 Trending Bags to Look Out for This Summer »

Reader Interactions

Trackbacks

  1. How to Get a Personal Loan Online - Working Mom Blog | Outside the Box Mom says:
    at

    […] What Is an Installment Loan? […]

Primary Sidebar

Welcome! I'm Raki. I am a working mom of 2 (22-year old son and 15-year old daughter). I share tips to balance work, family, and make time for you. More...

  • Facebook
  • Instagram
  • Pinterest
  • RSS
  • Twitter

Footer

What are you looking for?

ENTER YOUR EMAIL ADDRESS TO GET THE BEST TIME-SAVING TIPS AND SOLUTIONS FOR BUSY, WORKING MOMS IN YOUR INBOX.

    Copyright © 2025 · Foodie Pro Theme by Shay Bocks · Built on the Genesis Framework · Powered by WordPress

    We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.Ok