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Definitions from WordNet

Definitions from the Web

Installment Credit

Description

Installment credit refers to a type of loan or credit arrangement where a borrower receives a specific amount of money from a lender and agrees to repay it in regular, fixed installments over a set period of time. It allows individuals to make large purchases or cover expenses by spreading the payments over a longer duration.

Senses and Usages

Sense 1: Type of Loan

In this sense, installment credit is commonly used to finance major purchases such as homes, cars, or appliances. Borrowers agree to repay the loan amount along with interest charges in equal installments over a predefined term, usually ranging from a few months to several years.

Example sentence: He took out an installment credit to buy his dream car, paying $500 per month for five years.

Related products: Car Loans, Mortgages

Sense 2: Store Financing Options

Installment credit can also refer to financing options offered by retailers or stores to facilitate purchases. Buyers can pay for the items they want over time, usually with no interest or deferred interest if paid in full within a specified promotional period.

Example sentence: The electronics store provides installment credit for customers interested in buying the latest gadgets.

Related products: Store Credit Cards, Buy Now, Pay Later

Sense 3: Personal Loans

Installment credit can be in the form of a personal loan obtained from financial institutions or online lenders. These loans are usually unsecured and have fixed monthly payments that include interest over a specific repayment period.

Example sentence: She used installment credit to cover unexpected medical expenses, repaying the loan over the course of two years.

Related products: Personal Loans, Online Lenders