Most installment loans have fixed monthly payments, terms and APRs. This is advantageous for borrowers since they’ll know exactly when their loan will be paid off. This type of debt can also help improve your credit score as long as you pay on time.
However, installment loans may come with fees. For instance, some personal loan lenders charge an origination fee. On top of that, installment loans are funded with a fixed lump sum — if you need to borrow more money, you’ll need to take out another loan.