What an installment loan is
An installment loan gives you a fixed amount of money once, and you repay it in equal scheduled payments until the balance reaches zero. The payment is set when you sign and never changes. The end date is known from day one.
That structure is the whole point. Revolving credit such as a card has no fixed end and a rate that can move. A payday loan is due in full in two weeks and is usually rolled over. An installment loan sits between them: more expensive than a bank loan, far more predictable than either alternative.
Our terms
| Amount | Term | Representative APR | Monthly payment | Total repayment |
|---|---|---|---|---|
| $500 | 6 months | 29.9% | $90.75 | $544.50 |
| $1,000 | 12 months | 29.9% | $97.44 | $1,169.28 |
| $2,500 | 18 months | 22.9% | $165.41 | $2,977.38 |
| $5,000 | 24 months | 22.9% | $261.62 | $6,278.88 |
Sample pricing with no origination fee, for illustration. Your rate depends on your credit profile, income, and state.
- Amounts: $200 to $5,000, within your state's limits
- Terms: 3 to 24 months of equal monthly payments
- APR: 22.9% to 35.9% fixed, set by loan size
- Fees: no origination fee, no application fee, no prepayment penalty
- Late fee: $15, only after a 10-day grace period
- Credit reporting: on-time payments reported to the major bureaus
How the payment is split
Each payment covers the interest accrued that month first, and everything left over reduces the principal. Because interest is charged on the balance you still owe, and the balance falls every month, the interest portion shrinks and the principal portion grows even though the payment itself is identical.
On a $1,500 loan over 12 months at 29.9%, the first payment is roughly $37 interest and $109 principal. The final payment is about $4 interest and $142 principal. The calculator generates the full schedule for any amount.
Shorter term, less interest
$1,500 over 6 months costs about $133 in interest. The same $1,500 over 12 months costs about $254. The monthly payment nearly halves, but the total cost nearly doubles. Choose the shortest term whose payment you can comfortably make.
The full lifecycle
- Check your rateFive minutes, soft credit inquiry, no obligation and no effect on your score.
- Review the offerAPR, monthly payment, due dates, and total repayment, all before you commit.
- Verify and signIdentity and bank account confirmed, then e-sign. A hard inquiry occurs only at this point.
- Receive fundsDirect deposit as soon as the next business day. Your first payment falls about 30 days later.
- RepayEqual payments on a due date you choose. Autopay reduces your APR by 0.25 points.
- Finish, or finish earlyNo prepayment penalty, so paying ahead genuinely cuts your total interest.
Who this suits, and who it does not
| Good fit | Poor fit |
|---|---|
| A one-off expense you can repay within two years | An ongoing monthly shortfall |
| You have regular verifiable income | Income cannot be verified |
| You want a fixed end date rather than a revolving balance | You need to draw funds repeatedly |
| You are consolidating higher-rate balances | You are borrowing to pay another loan |
| You want on-time payments to build credit history | You need more than $5,000, or a secured loan |
Eligibility
You need to be 18 or older, a resident of a state we serve, with a regular source of income from work, self-employment, or benefits, an active checking account, and a valid email and mobile number. Approval also depends on income verification and credit review. Full detail is on the eligibility page, and declined applicants receive the specific reasons in writing.
Installment loan against the alternatives
| Installment loan | Credit card | Payday loan | |
|---|---|---|---|
| Repayment | Equal monthly payments | Minimum payment, revolving | Lump sum in 2 to 4 weeks |
| End date | Fixed and known | None while a balance remains | Nominally weeks, often rolled |
| Rate | Fixed for the term | Usually variable | Fee-based, very high equivalent APR |
| Rollover | Not possible | Not applicable | Common, with new fees each time |
| Early payoff | No penalty, saves interest | No penalty | Often no saving on fees |
Questions about installment loans
How the product works, what term to pick, and how it compares with the alternatives.
How does an installment loan work?
You receive the full amount once and repay it in equal monthly payments over an agreed term. Each payment covers the interest accrued that month and the rest reduces the principal, so the balance falls every month until it reaches zero on the final payment date.
How much can I borrow?
Between $200 and $5,000, within the limits your state sets. What you qualify for depends on income, existing obligations, and credit profile. First-time borrowers are often approved for smaller amounts.
What term should I choose?
The shortest one whose monthly payment you can comfortably make. A longer term lowers the payment but increases total interest, because you hold the balance for more months. Compare both figures in the calculator before deciding.
Is an installment loan better than a credit card?
For a one-off expense you intend to clear, usually yes: the rate is fixed, the payment is fixed, and there is a defined end date. For ongoing flexible spending a card is more suitable. A card carrying a permanent balance at a variable rate is the situation an installment loan is often used to escape.
Do installment loans build credit?
They can. We report on-time payments to the major credit bureaus, and a completed installment loan adds a positive closed account with a clean payment history to your file. Missed payments are also reported, so the effect runs both ways.
Can I pay it off early?
Yes, with no prepayment penalty. Interest accrues on the outstanding balance, so paying ahead removes interest that has not yet accrued and shortens the loan.
What happens if I miss a payment?
Contact us before the due date if you know a payment will be late. A $15 late fee applies after a 10-day grace period, and missed payments may be reported to the credit bureaus. We do not roll your loan into a new one or add fees you were not shown.