Installment Loans
vs Personal Loans
Confused by the terminology? A personal loan IS an installment loan — the best kind. Fixed payments. Fixed rate. Builds credit. No collateral. Learn the key differences.
Personal Loan Estimator
Estimate your monthly payment
Total interest: $2043 over 36 months
The Complete Installment Loan Taxonomy — Where Personal Loans Fit
Every loan with a repayment schedule is an installment loan. Here's where personal loans fit in the landscape:
| Loan Type | Secured? | Purpose | Typical APR | Builds Credit |
|---|---|---|---|---|
| Personal loan (installment) | No — unsecured | Any purpose | 5.99%–35.99% | Yes |
| Mortgage (installment) | Yes — your home | Home purchase | 6%–8% | Yes |
| Auto loan (installment) | Yes — your car | Vehicle purchase | 5%–15% | Yes |
| Student loan (installment) | No | Education | 5%–8% federal | Yes |
| Payday loan | No | Short-term cash | 200%–664% | Usually no |
| High-cost installment loan | Sometimes | Any purpose | 60%–200%+ | Sometimes |
Why Personal Installment Loans Are the Best Choice for Most Borrowers
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Unsecured — no collateral risk
Unlike auto loans or mortgages, personal loans require no collateral. Missing a payment damages your credit but cannot cost you your car or home.
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Fixed rate — no surprise increases
Personal loans have fixed APRs that never change. Your monthly payment on day 1 is identical to your payment on month 59.
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Builds credit history
Every on-time payment is reported to all 3 major bureaus (Equifax, Experian, TransUnion) and improves your credit score over time.
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General purpose — any use
Unlike an auto loan (car only) or student loan (education only), a personal loan can fund anything: debt consolidation, medical bills, home repairs, or emergencies.
No Hard Credit Pull
See Your Real Rate —
Zero Score Impact
3-minute application. Soft pull only. No obligation. Real offers from licensed lenders.
All Personal Loan Guides
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Frequently Asked Questions
Meet the Expert
Sarah Chen
“Over 10 years of experience in consumer lending and personal finance. Sarah leads the PrimeLendings editorial review process, ensuring all content is accurate, compliant, and useful for borrowers.”
Ready to Get Up to $50,000?
Rates from 5.99% APR · Bad credit OK · No hard credit pull · Same-day funding available
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