Exactly about Advantages and dangers of an installment loan Advantages An installment loan has repayment that is predictable. You’ll know beforehand when principal and interest repayments are due and simply how much. Consequently, you’ll be in a position to prepare and budget consequently. It is possible to build credit rating when your loan provider reports re re payments to your credit agencies. You should be rewarded if you’re making on-time payments with your installment loan. Be certain your loan provider is reporting your on-time payments towards the three many credit that is common: Experian, TransUnion, and Equifax.