Finance 101

What is an Installment Loan and How Does it Work?

March 20, 2024

Nearly everyone experiences a time in their lives when they run a little short on cash and could use some financial assistance. The reasons can run the gamut — from being hit with unexpected car repairs to a washer on the fritz or from healthcare bills to educational expenses.

No matter the reason, there are a number of solutions for getting the help you need to get out of your financial jam and into a better situation. One of the best ways to get the funds you need quickly and easily is to apply for an installment loan with Check `n Go.

If you find yourself asking, “what is a personal installment loan,” read on to discover more about an installment loan and how it works.

What is an Installment Loan?

Installment loans are a type of loan in which you borrow a set amount of money all at once. Then, you repay the loan over a number of agreed-upon payments over time. These payments are referred to as installments.

Installment loans are nothing new; in fact, you have probably paid for something already using an installment loan, like when you make car payments or mortgage payments on a house. You've worked with the bank or another financier to decide on the installment loan amount and then the period of time in which you'll be making installment loan payments (for example, over 30 years for a mortgage or 5 years for a car).

How does an Installment Loan Work?

Often, the installment payments will be the same for everyone you owe, which means the amount you owe for each installment cycle won't change. This is good news for many people who rely on creating a budget to manage their finances, as their monthly installment loan payment amount can be factored into a budget more dependably.

Installment loans work differently from loans that offer revolving credit, like a credit card or a line of credit. These types of financial loans are variable and depend on how much you use the line of credit offered to you. For every amount you spend on your line of credit, you'll be expected to pay it back in monthly increments, in the form of the minimum payment or more if you like, for however long it takes to pay it off or until you use more of your line of credit, indefinitely.

Installment Loans and Check `n Go

At Check `n Go, you can apply for an installment loan online or in-store.* Online installment loans can be funded as soon as the next business day. If you've applied in-store for an installment loan at one of our store locations, your loan can be funded as soon as the same day.

You can start spending the money loaned to you as soon as you receive it. However, once the installment loan is deposited into your bank account, that also signals the start of your loan repayment period. 

You'll be required to make payments on the loan (sometimes with interest) every month for the agreed-upon amount and at the agreed-upon due date provided in your contract. Once you've made all of the payments on your installment loan, the loan account is closed.

Any late payments or missed installment loan payments can result in penalties or fees. (If you have any questions about your loan or when your payment is due, please check your Pocket360 account.)

What are the Different Types of Installment Loans?

 Common types of installment loans include:

  • Personal loans
  • Mortgages
  • Auto loans
  • Student loans

Tips for Applying for an Installment Loan

  • Before e-signing for an installment loan online or signing any paperwork at a retail location, be sure to read up on installment loans and how it works as well as your specific installment loan's fine print. Know what your total payoff amount will be, your rates, specific disclosures in your state, your terms, and any penalties you could receive for late or missing payments. Know what is expected of you before securing an installment loan. 
  • Have important documents at the ready. When you apply for an installment loan, you'll need to have a valid government ID, proof of income information, your Social Security number, and your checkbook or your checking account routing and account numbers. 
  • Research installment loans beforehand and be sure to ask any questions you may still have before applying for a loan. 

How to Apply for an Installment Loan?

It's simple – click here to begin the application

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The information contained in our blog posts are the author’s own opinions, not those of Check `n Go or any other company. Any pros and cons are developed by our editorial team based on independent research. Some of the products, services, and offers on this page may not be available from Check `n Go. In Texas only: Check `n Go does not act as a credit services organization in providing this content.