 TITLE: Can an Installment Loan Help Improve Your Credit Score? CONTENT: What Is an Installment Loan?\n----------------------------\nAn installment loan is a type of credit that's paid off in fixed payments, usually on a monthly basis, over a set repayment term. Typically, unless you've received an intro 0% APR financing deal, you'll pay interest to the lender in exchange for paying off the loan over time. The loan can be either secured—that is, it's backed by a piece of collateral that the lender can take away if you don't pay—or unsecured. Common installment loans include mortgages, student loans, personal loans and car loans.\nInstallment loans are different from credit cards, which are a type of revolving credit. Unlike installment credit, a revolving credit account lets you repeatedly borrow money and pay it back over a period of time.\nWhereas you might take out an installment loan for $10,000 and pay it back over five years, a credit card would provide you with a credit limit or credit line (for comparison's sake, say $10,000), which you could charge up to as you wish. You'll typically accrue interest on any balances you carry from one billing period to the next. END