An installment loan is a loan where a lender agrees to loan a borrower a specified sum over an agreed period. The borrower gets the pay back the loan in installments. There are several types of installment loans, and each type has its function. This article will discuss statistics on the usage of some installment loan types.
Top Statistics On The Usage Of Installment Loans in the USA During 2021-22
- Personal Loans: In the United States, personal loans are among the most common installment loans. Bad credit personal loans guaranteed approval can be taken and used for almost every reason.
- Buy Now, Pay Later: The buy now, pay later payment option is becoming extremely popular in the United States. Statistics show that in 2021, buy now, pay later, gross merchant value in the United States was more than $4.9 billion.
- Emergency Expenses: Installment loans are also used for emergency expenses. In the case of an accident or personal injury, an installment loan can be secured to pay for repairs and medical bills.
- Mortgages: Mortgages are mostly used for purchasing houses. It is a loan given to pay off the cost of a house. The loan is then paid in installments over fifteen to thirty years.
- Tribal Loans: Tribal loans are installment loans that work like payday loans. In fact, they are an alternative to payday loans. Tribal loans are provided to bridge the gap between paychecks.
- Student Loans: Student loans are another popular installment loan available. They are used to pay for university and college fees. They can also be used for paying for supplies and accommodation.
- Credit-building: Credit-building loans are installment loans typically used to build a credit score and credit history. This helps to improve a bad credit score restricting a borrower from financial products.
- Debt Consolidation: Installment loans are sometimes used for consolidating multiple debts into a single payment plan. This is one of the uses of installment loans in the United States.
- One-off Events: One-off loans are installment loans used to cover the expenses of expensive events. In the United States, they are mostly used for covering the cost of events like big anniversaries and weddings. This type of installment loan is usually costly.
- Home Improvements: A home improvement loan is another installment loan used for renovation purposes. It is usually a cost-effective loan. Most homeowners in the United States rely on home improvement loans for most of their renovation projects.
These stats show different types of installment loans and their uses in the United States.