An installment loan is a more traditional type of loan where the borrower applies for and then takes the total amount they need at one time. The borrower pays back that amount over a set period of time in equal payments (installments) until the loan is paid in full. If more money is needed, the borrower must reapply for another loan. Typical examples of installment loans are auto or mortgage loans.
A line of credit offers consumers a more flexible borrowing solution and, generally, is more suitable for those who have borrowing needs that vary. Once approved, the borrower can access any portion of that credit line, up to the maximum amount approved, at any time (provided the account is in good standing). Lines of credit are intended to be borrowed from multiple times without having to reapply. Interest and/or fees are assessed only on the amount borrowed/outstanding. Any available, but unused, credit does not incur any interest or fees.
When you complete and submit an application for a Line of Credit from Echo Credit, we access the credit report of most applicants. Multiple credit inquiries in a short period of time may have an impact on your overall credit score.