If you need help covering the cost of major purchases like a home, car, or remodeling project, you may need to take out a loan. There are several different types available, but most fall into two categories: revolving credit and installment loans. Here’s a guide to the latter.

What Is an Installment Loan?

An installment loan allows the borrower to receive a set amount of money upfront, which they then pay back with monthly payments throughout the life of the loan. Unlike revolving credit, the amount doesn’t change over time, so you can’t continue to use more money as you make payments. There are different payment amounts and schedules, but many of them include set monthly payments.

What Are Some Examples?

Mortgages with fixed rates are normally paid back in set monthly installments. Auto loans also generally have set monthly payments and interest rates. You can also get personal loans that are paid back in set installments for expenses like medical bills or home projects.

What Are the Benefits?

Installment loans offer transparency and predictability upfront. As soon as you sign up, you know what the monthly payment will be and how long it will take for you to pay off the loan. This can help you easily budget going forward and create a plan for paying off the loan.

If you’re looking for installment loans to help with your expenses, Coastal Finance Company in Savannah, GA, can help. The business specializes in providing personal loans that are tailored to your needs. The team offers quick service, and can often provide a decision within an hour of a request. Unlike many large corporations, they also can provide loans for purchases like jet skis or vacations. To submit a loan application, visit their website, or call (912) 303-9979 to speak with a representative about your options.