Loan guide
Personal installment loans, explained
Personal installment borrowing through our lender network. Understand the repayment schedule and review the lender's terms before deciding.
Want the numbers instead of the theory?
APR, payment amounts and total repayment are set by the lender and shown in your loan agreement.
No fee to submit. No obligation. Lender credit-check policies are set by the lender and shown in your loan agreement.
Definition
What a personal installment loan is
$500 to $5,000 personal installment loans through our lender network have terms from 61 days to 72 months. The lender determines the repayment schedule and discloses it before you accept an offer.
It is designed for a one-off gap: a car repair that gets you back to work, a utility disconnection, a deposit that cannot wait. It is a poor tool for a shortfall that repeats every month.
Mechanics
How they work
Step 1
You apply
Amount, identity, income and a checking account. Decisions are usually fast, often within minutes.
Step 2
You see the terms
A lender must show you the APR, the finance charge, the amount financed and the total of payments before you sign.
Step 3
The money is deposited
Funding methods and timing are set by the lender and shown in your loan agreement.
Step 4
You repay on a set schedule
Personal installment loans are repaid according to the schedule disclosed by the lender.
Types
The main kinds
Payday loans
One lump-sum repayment on your next payday, usually two to four weeks out. Small amounts. The failure mode is the rollover: paying a fee to push the due date rather than clearing the balance.
Personal installment loans
Repaid in scheduled installments over the term agreed with the lender. Review the payment amount, dates and total repayment before accepting.
Line of credit / cash advance
A revolving limit you draw against, with interest and often a per-draw fee. Easy to keep dipping into, which is exactly the risk.
Pawn and title loans
Secured against property or your vehicle. Missing payments means losing the item, with a title loan, potentially the car you need to get to work.
Trade-offs
Pros and cons
What they do well
- Decision and funding timing are set by the lender and shown in your loan agreement.
- Available to people with thin or damaged credit files.
- Small amounts, which mainstream lenders rarely bother with.
- Fixed-installment versions have a definite end date.
What goes wrong
- The lender determines your APR and fees and discloses them before you accept an offer.
- Automatic debits can trigger overdraft fees from your own bank when timing slips.
- Rollovers and renewals can multiply the cost of the same principal.
- Repeat borrowing is common, and each loan makes the next month tighter.
Judgement
When it makes sense, and when it doesn't
It can make sense when
- The expense is one-off and unavoidable.
- Not paying it costs more than the loan does, a lost job, a disconnection fee, a towed car.
- You can see, on paper, where every scheduled payment comes from.
- Cheaper options have actually been tried, not just assumed unavailable.
It rarely makes sense when
- The shortfall is monthly rather than one-off.
- You would be repaying an existing short-term loan with it.
- The payment only works if nothing else goes wrong.
- It is for something that can wait.
Risks
What to watch for
Rollovers
Paying a fee to extend the due date leaves the principal untouched and stacks cost on cost.
Automatic renewals
Some agreements re-draw a new loan by default. Read what happens at the end of the term.
APR and total repayment
Review the lender's APR, fees, repayment schedule and total repayment together.
Unlicensed lenders
Check who the lender is and that its licensing information is published.
Before you borrow
Cheaper places to look first
We are paid when a request is accepted, so take this list as seriously as it is meant.
A payment plan with the biller
Utilities, hospitals, mechanics and landlords often split a bill over weeks at no interest. It costs a phone call and it is almost always cheaper than borrowing.
A credit union loan or PAL
Ask a credit union about its personal loan options, eligibility requirements and total repayment before deciding.
An employer advance or earned-wage access
Many employers will advance part of a paycheck, or offer earned-wage access through a payroll provider, for little or nothing.
Nonprofit credit counseling
If the gap repeats every month, borrowing is treating the symptom. A nonprofit counselor at nfcc.org will review the whole picture, usually free.
MeteorLoans
How the referral works
We share your request with our lender-network partner for review by participating lenders.
Lender terms
Loan amounts, APR, fees, repayment schedules and renewal policies are set by the lender and shown in your loan agreement.
Your decision
Loans available through our network are typically offered in amounts ranging from $1,000 to $5,000, depending on eligibility. Short-term or small-dollar loans are not intended to be long-term financial solutions and should be used responsibly.
You are under no obligation to accept an offer.
Questions
Common questions
If a personal installment loan fits your plans
Review the terms set by the lender and shown in your loan agreement before accepting.
No fee to submit. No obligation. Lender credit-check policies are set by the lender and shown in your loan agreement.