Installment loans
Installment loans are generally taken to larger purchases such as buying a car or get a student loan. installment loans are taken for a specific amount, and there is a pay period established when you know the advance what your monthly payments will be and how long the entire loan will be to pay
There are two types of installment loans -.. secured and unsecured A loan guaranteed temperament is based on certain guarantees, like a house or a car that the bank can take if you do not make your payments. unsecured installment loans often carry higher interest rates because they are based solely on your good credit, so they are much riskier for the bank.
revolving loans
These loans are more flexible and open. An example of a revolving loan is a credit card or line of credit, which set the amount of money you can borrow - a credit limit. As you repay what you have spent, your credit limit turn to its original amount.
Revolving loans are popular because they are quick and easy to get approved for if you have good credit. At present, some of the top credit cards offer 0% APR for over a year, with excellent cash back and travel rewards to boot. This means that you not only spend money without paying interest, but you'll be making money while you spend. Such a card is the Chase Freedom card, which offers 0% APR for the first 15 months, no annual fee, and rewards you with $ 200 cash back after spending $ 500 over the first three months, 5% cash back on different categories and 1% cash back on everything else.
Check your credit report for errors
Now that you know the difference between payments and revolving loans, it is important to review your credit report and make sure it there are no errors. These errors can be drag your credit score and may be the product of a simple desktop error, or worse, identity theft. Get your full 3-bureau credit report and credit scores instantly by signing up for a free trial with some of the top credit report monitoring services.