Installment credit
Encyclopedia
Installment credit is a type of credit
that has a fixed number of payments, in contrast to revolving credit
.
Credit (finance)
Credit is the trust which allows one party to provide resources to another party where that second party does not reimburse the first party immediately , but instead arranges either to repay or return those resources at a later date. The resources provided may be financial Credit is the trust...
that has a fixed number of payments, in contrast to revolving credit
Revolving credit
Revolving credit is a type of credit that does not have a fixed number of payments, in contrast to installment credit. Examples of revolving credits used by consumers include credit cards. Corporate revolving credit facilities are typically used to provide liquidity for a company's day-to-day...
.
Examples
- Land loan
- Home construction loan
- Home mortgageMortgage loanA mortgage loan is a loan secured by real property through the use of a mortgage note which evidences the existence of the loan and the encumbrance of that realty through the granting of a mortgage which secures the loan...
- Some equity loanEquity loanAn equity loan is a mortgage loan in which the borrower receives cash. Typically the loan is secured by real estate already owned outright.For example, if a person owns a home worth $100,000, but does not currently have a mortgage on it, they may take an equity loan at 80% loan to value or $80,000...
s - Home improvement loan
- Automobile loan
- Boat loans or RV loans specialty finance
- Student loanStudent loanA student loan is designed to help students pay for university tuition, books, and living expenses. It may differ from other types of loans in that the interest rate may be substantially lower and the repayment schedule may be deferred while the student is still in education...
- Personal loan
- Vacation loan