Borrow only what you can repay.
Credit is a tool, not a fix for a budget that doesn't balance. Here's how to use an installment loan safely — and where to get free help if you're stretched.
Before you borrow
An installment loan can be the right call for a real, one-time need you can repay on schedule — a car repair, a deposit, a medical bill. It is the wrong tool for covering ongoing shortfalls, because adding a monthly payment to a budget that's already short makes next month harder, not easier.
A quick gut check before applying
- Can the monthly payment fit your budget without skipping essentials?
- Is this a one-time need, not a recurring gap?
- Have you compared the total cost (not just the payment) on our Rates & Fees page?
- Have you checked lower-cost alternatives first (below)?
Warning signs of over-borrowing
- Taking a new loan to pay an existing one
- Borrowing to cover everyday bills month after month
- Not knowing your loan's APR or payoff date
- Skipping essentials (food, rent, utilities) to make a payment
If any of these sound familiar, pause before borrowing and talk to a free nonprofit counselor (resources below).
Lower-cost alternatives to consider first
- Paycheck advance from your employer or an earned-wage-access app
- Credit-union PAL (Payday Alternative Loan) — capped rates, small amounts
- Payment plan directly with the biller (utility, medical, landlord)
- Local assistance for rent, food and utilities via 211
- 0% intro APR credit card, if you qualify and can pay within the promo period
You don't have to figure it out alone.
NFCC
National Foundation for Credit Counseling — free and low-cost nonprofit credit counseling. nfcc.org
Dial 211
Free, confidential referrals to local help with rent, food, utilities and bills. 211.org
Dial 988
If money stress has you in crisis, the Suicide & Crisis Lifeline is free, 24/7. 988lifeline.org
If you do borrow, borrow with a plan.
See the full cost up front — APR, payment and payoff date — before you commit.