Installment
A part-payment at regular intervals to reduce a loan balance.
Detailed Description
Installment
What is an installment in the context of loans?
An installment is a set payment arrangement where a borrower repays a loan or purchase over a specified period through regular payments.
What are fixed installments?
Fixed installments involve equal payments made at regular intervals, with the amount remaining consistent throughout the repayment period.
How do graduated installments work?
Graduated installments start with lower payments that increase over time, which can benefit borrowers expecting their income to rise.
What is an installment agreement?
An installment agreement is a formal contract detailing the terms of repayment, including the total amount borrowed, interest rate, and payment schedule.
How can timely installment payments impact credit scores?
Timely installment payments can enhance a borrower's credit score, while missed or late payments can lead to a decrease in credit scores.