Let me begin by explaining what installment loans are. An installment loan is a loan repaid with a fixed number of equal payments.
Typically, the payments occur monthly, which cover principal and interest, and are a set amount over the life of the loan. The loan balance, typically, will not be increased. The terms of the loan can vary, but installment loans have a fixed number of payments. The following is an incomplete list of installment loans:
• Personal Loan
• Student Loan
• Automobile Loan
• Home Mortgage Loan
• Some Equity Loans
• Land Loan
• Boat Loan
• Vacation Loan
• Home Construction Loan
Revolving credit
An installment loan is in contrast to a open-ended, revolving-balance account. Revolving consumer credit is a line of credit that customers may use at their convenience and that primarily consists of credit extended through the issuance of credit cards.
According to a report by the Federal Reserve, revolving consumer credit has risen both as a share of total consumer credit and relative to income over the past four decades. About 71 percent of families held general-purpose credit card accounts issued by banks in 2004, up from about 16 percent in 1970.
I hope this information helps you Find. Learn & Save.
Best,
Bill
www.bills.com/
March 12, 2010
March 12, 2010
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