What Is a Personal Installment Loan?

How a personal installment loan works

1. You apply for a specific amount — $1,000 to $50,000 is the common range.
2. The lender approves a fixed APR based on your credit, income, and DTI.
3. The full amount is deposited to your bank, usually within 1–3 business days.
4. You repay in equal monthly installments. Each payment is part principal, part interest (amortized).
5. The loan closes when the final payment posts. No balance carries forward.

Where it fits vs. other credit

• vs. payday loan: 5–10× cheaper for any balance you can't repay in two weeks.
• vs. credit card: Lower APR for fair/bad credit, plus a hard payoff date that stops the revolving-debt cycle.
• vs. title loan: Unsecured — you don't risk losing your car.
• vs. HELOC: Faster and unsecured, but smaller amounts and higher APR than home-equity products.

When a personal installment loan is the right call

• Consolidating two or more credit-card or payday balances at a lower APR.
• Funding a one-time expense — medical bill, car repair, move, appliance — you'll repay over 6–24 months.
• Building credit when revolving accounts have hurt your utilization score.

Estimate the payment first

Use the installment loan calculator to see the full amortization, then the APR calculator to compare offers from multiple lenders on equal footing.