installment loans
Scheduled payment borrowing
An installment loan is repaid through scheduled periodic payments over a set term, typically monthly.
Mortgages, auto loans, and student loans are common examples.
Each payment covers both principal and interest, unlike revolving credit where balances can fluctuate: She took out an installment loan to pay for the car.
Numerical measure of borrower reliability
- credit reportRecord of borrowing behavior
- credit historyRecord of past borrowing
- approvalFavorable opinion given
- credit checkExamination of payment history
creditworthiness · financial institution · credit bureau · FICO score · hard inquiry · credit utilization · debt-to-income ratio · preapproval
Yearly borrowing cost
- fixed rateUnchanging interest percentage
- variable rateAmount that fluctuates
- interest rateCost of borrowing money
- finance chargeCost of borrowing money
accrual · compound interest · prime rate · origination fee · rate lock · simple interest · usury · predatory lending
Gradual debt reduction schedule
- principalChief school administrator
- monthly paymentRecurring scheduled remittance
- payment scheduleTimetable for installments
- due dateWhen payment is required
payoff · grace period · direct debit · remittance · billing cycle · balloon payment · prepayment · early payoff
One who loans money
- borrowerOne who takes temporarily
- financingProviding capital for purchases
- fundsAvailable financial resources
- advanceMove or progress forward
capital · underwriting · creditworthiness · collateral · guarantor · cosigner · funding · liquidity
Criminal or neglectful behavior
- arrearsOverdue financial obligations
- defaultPreset standard option
- collectionGathered set of items
- repossessionCreditor seizing collateral
foreclosure · late fee · penalty · charge-off · debt collector · credit damage · wage garnishment · judgment
credit score
Numerical measure of borrower reliability
- credit reportRecord of borrowing behavior
- credit historyRecord of past borrowing
- approvalFavorable opinion given
credit check · creditworthiness · financial institution · credit bureau · FICO score · hard inquiry · credit utilization · debt-to-income ratio · preapproval
APR
Yearly borrowing cost
- fixed rateUnchanging interest percentage
- variable rateAmount that fluctuates
- interest rateCost of borrowing money
finance charge · accrual · compound interest · prime rate · origination fee · rate lock · simple interest · usury · predatory lending · subsidized
amortization
Gradual debt reduction schedule
- principalChief school administrator
- monthly paymentRecurring scheduled remittance
- payment scheduleTimetable for installments
due date · payoff · grace period · direct debit · remittance · billing cycle · balloon payment · prepayment · early payoff · repayment period
lender
One who loans money
- borrowerOne who takes temporarily
- financingProviding capital for purchases
- fundsAvailable financial resources
advance · capital · underwriting · creditworthiness · collateral · guarantor · cosigner · funding · liquidity · obligation
delinquency
Criminal or neglectful behavior
- arrearsOverdue financial obligations
- defaultPreset standard option
- collectionGathered set of items
repossession · foreclosure · late fee · penalty · charge-off · debt collector · credit damage · wage garnishment · judgment · settlement
- debtscredit card debt, medical debt, student debt, mortgage, debt
- loanslend, borrow, borrower, lender, microloan
- lendingborrower, approval, lenders, lender, lending
- Consumer Creditcredit cards, credit score, credit scores, interest rates, revolving credit
- credit termscredit limits, monthly payment, credit cards, interest rate, installments
- loan termsinterest rate, short-term, long-term, adjustable rate, fixed rate
installment loansrevolving credit
Reusable loan with limit
credit lines · lines of credit · credit cards · HELOC · overdraft protection
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