Installment Credit
Installment credit is a type of loan that is repaid over a period of time with a set number of scheduled payments. It is a form of consumer credit that allows borrowers to purchase goods or services and pay for them over time. Installment credit is typically used for large purchases such as cars, furniture, appliances, and other items that may be too expensive to pay for in one lump sum. The borrower is usually required to make a down payment and then make regular payments until the loan is paid off.
History of Installment Credit
The concept of installment credit dates back to the early 19th century when merchants began offering customers the option to purchase goods on credit. This allowed customers to purchase items they could not afford to pay for in full at the time of purchase. Over time, installment credit became more widely available and was offered by banks and other financial institutions. Today, installment credit is a common form of consumer credit and is used to finance a variety of purchases.
Comparison of Installment Credit
| Type of Credit | Interest Rate | Payment Frequency |
|---|---|---|
| Installment Credit | Fixed | Monthly |
| Revolving Credit | Variable | Monthly or as needed |
Summary
Installment credit is a type of loan that is repaid over a period of time with a set number of scheduled payments. It is a form of consumer credit that allows borrowers to purchase goods or services and pay for them over time. Installment credit is typically used for large purchases such as cars, furniture, appliances, and other items that may be too expensive to pay for in one lump sum. For more information about installment credit, visit websites such as Bankrate.com, CreditCards.com, and NerdWallet.com.
See Also
- Revolving Credit
- Credit Card
- Debt Consolidation
- Personal Loan
- Home Equity Loan
- Payday Loan
- Line of Credit
- Debt Management Plan
- Debt Settlement
- Debt Relief
