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Installment loans for bad credit

Do you have bad credit and need a loan? Find out if you’re eligible for an installment loan that gives you time to pay back what you owe.

Getting a loan from a bank can be a challenge if you have bad credit, but there are many loan providers who specialize in installment loans for people who don’t have the best credit history. Most lenders who provide installment loans focus on your ability to repay rather than your traditional credit score.

With an installment loan, you repay your borrowed funds over a period of time, usually in six months. This is a better option for people who know they can’t make a payment by their next check but still need emergency financing.

Compare installment loans for bad credit

Check the websites of any providers you’re interested in to confirm they operate in your state.

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Name Product Filter Values Loan amount Turnaround time Requirements
$500 to $10,000
As soon as next business day
Depends on lender requirements, poor credit borrowers may still be able to qualify for a loan. Must live in an eligible state.
With straightforward, simple qualifications, these loans offer easy approval for people with poor credit.
OppLoans Installment Loans
$500 to $4,000
1 business day
Direct deposit, Meet minimum income requirements, Live in eligible state
Comes with the option to change your due date so you won’t fall behind on repayments.
Fast5kLoans Short-term Loans Connection Service
$100 to $35,000
As soon as the next business day
Regular source of income, Verifiable bank account, US citizen, Ages 18+
Get connected with multiple lenders you might qualify with — even if you have bad credit.
LendYou Short-term Loans
$100 to $2,500
Same business day to 1 business day
$1,000+ monthly income, direct deposit, US citizen or permanent resident, ages 18+
Get offers from potential lenders in minutes by filling out just one online form.
Monevo Installment Loans
$500 to $100,000
Varies by lender
Credit score of 500+, legal US resident, ages 18+
Quickly compare multiple online lenders with competitive rates depending on your credit.
Fig Loans Installment Loans
$200 to $800, varies by state
As soon as the same business day
3 months of direct deposits, $1400 per month income, positive bank account balance
Get an affordable installment loan that comes with no fees, flexible terms and predictable monthly repayments.

Compare up to 4 providers

Will lenders approve me for an installment loan if I have bad credit?

The most important factor for most loans is a good credit score, but not everyone has this. If you’ve struggled with money issues, there are lenders who might approve you despite your credit score.

What matters most is your ability to repay. If you have a steady income and a valid bank account, a bad credit installment loan lender will see you as less risky than a traditional bank or credit card company.

When you apply to one of these lenders, make sure you meet all the requirements listed on their page. There’s no guarantee that you’ll be approved, but making sure you are eligible before applying will increase your chances.

Different lenders have different criteria for who they give loans to so compare providers and only apply for as much money as you need. This saves you in the long run and makes you appear as less of a risk to your lender.

How does the process work?

Most bad credit installment loans work in the same way. You start the process by submitting your application.

In most cases, you can find out if you’ve been approved within a few minutes. Following approval, you can receive your loan within the hour if you apply in person or as soon as next business day if you apply online.

Rather than repaying the borrowed money in one lump sum on your payday, the payments are spread out over a period of months. The exact amount depends on how much you borrowed, your state laws and your loan contract. Failure to do so may result in late charges and non-sufficient funds (NSF) fees.

If your loan goes into collection due to multiple missed payments, your credit might be negatively affected. As with all short-term loans, be sure you can repay both the principal and accrued interest before signing the contract.

How do installment loans work?

How to compare bad credit installment loans

If you’re considering applying for an installment loan with a direct lender or with a loan-matching service, here are some features you might be interested in:

  • Loan amount. The maximum amount you can borrow depends on state regulations. Borrow more with an installment loan than with a short-term loan. Your existing financial situation determines how much you can borrow, and some lenders require that you work up a tiered application system before you can borrow the maximum amount.
  • Loan terms. Depending on the state you live in, loan terms between six to 24 months are available. The longer the repayment term, the more you’ll end up paying in interest and fees.
  • Processing times. Some lenders take longer than others to process your application and make your funds available. If you need money quickly, opt for a lender who can get your funds to you as soon as possible.
  • Fees and charges. State regulations govern how much lenders can charge in interest and fees. Keep in mind that some lenders charge lower interest and fees compared to others.

Do bad credit payday loans work the same way?

Benefits and drawbacks

  • Choose from multiple lenders. There are plenty of options when it comes to installment lenders. Compare your options online and find the right one for you.
  • Take time to repay the loan. You don’t have to worry about repaying your loan by your next payday as you do with short term loans. Repay your loan in installments as per the repayment plan set out in your loan contract.
  • Bad credit is OK. Lenders don’t rely solely on your credit rating when it comes to approving your application. As long as you can demonstrate an ability to repay you’re able to apply for an installment loan.
  • Get money quickly. If you apply in-store, you could get your money soon after your application is approved. With an online loan, your loan will be transferred directly to your account as soon as the next business day.
  • High interest. Installment loans typically have higher interest rates when compared to loans from a bank or conventional lender.
  • More long-term budgeting is required. You’ll need to budget carefully to ensure you can repay your loan in the long term. You’ll also need to account for unexpected expenses in your budget.
  • Disreputable lenders. There are many disreputable lenders operating online who prey on people with bad credit so evaluate the lender before applying.
  • Direct debit. While direct debit can be a positive if you have the money to repay a large loan in the account you provide your lender, it can prove costly if your account becomes overdrawn by your lender automatically withdrawing owed funds.

Cautions to watch out for when borrowing with bad credit

If you have bad credit and need a loan, an installment loan can be a good idea if you have a repayment plan in place and know where the repayments will come from.

If you think you may have trouble making your repayments or that the repayments might put a strain on your budget, you should reconsider applying. If you fail to make your repayments on time, you may have to pay additional fees and it can negatively affect your credit score.

Before you accept any loan contract, go through the terms and conditions carefully so you have a clear picture of how much you may have to pay in fees and charges.

Will a late payment on a loan affect my credit?

While not all lenders report to the big three credit agencies that handle credit, some might choose to report late or missing payments. This is at the discretion of the lender.

If you know your payment will be late, the best solution is to contact the lender and inform them. Usually, they will be willing to extend the payment deadline and find ways to help you through difficult financial times.

Bottom line

There are still options to borrow money if you have bad credit. An installment loan gives you the ability to repay over time. It means more budgeting, but bad credit installment loans can be paid off over time, leaving you less likely to default than a normal payday loan.

Frequently asked questions

What is an installment loan?

An installment loan is a type of short-term loan which is paid over a period of months. They usually offer more money than a payday loan, have better APR and are available to those with bad credit histories. Read more here.

How much time does it take to apply for a typical installment loan?

If you have the required information on hand, you can complete a typical application in minutes.

What eligibility criteria do I have to meet to apply?

You must have a regular source of income, you must be a US citizen or a permanent resident and you must meet your state’s minimum age requirement.

How long will it take for me to receive approved funds?

Funds are usually deposited into your bank account on the next business day, though it may take longer depending on your bank.

Are payday loans available in my state?

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6 Responses

  1. Default Gravatar
    DanielleJune 26, 2019

    The only reason I want a loan is to pay off my credit cards and just pay off the loan. Do you think it’s a good idea?

    • Default Gravatar
      nikkiangcoJune 27, 2019

      Hey Danielle,

      Thanks for your question!

      It’s always a good idea to pay off your credit card debts as this will help you save in terms of the interest charges you are paying which is often what keeps people stuck in a never-ending debt repayment cycle.

      If you have multiple credit card debts, you can consolidate them by applying for a personal loan. If you have bad credit, there are debt consolidation loans for people with bad credit that you can consider applying for.

      As a friendly reminder, review the eligibility criteria of the loan before applying to increase your chances of approval. Read up on the terms and conditions to see whether it is right for you.

      Hope this helps! For any further questions, feel free to reach out to us again, we’re here to help.


  2. Default Gravatar
    TiffanyMay 7, 2018

    I have a really low credit score and yes working with some one to help out my credit. I am in need of just $1000 so that I can get out of this runt. I was sick fail behind on some bills that needs to be paid ASAP. Can you help me find someone that will consider?

    • Avatarfinder Customer Care
      JoshuaMay 7, 2018Staff

      Hi Tiffany,

      Thanks for getting in touch with finder. I hope all is well for you.

      I’m sorry to hear about your situation. We do have a list of lenders who offer a $1000-loan. Please click that link and you should be redirected to a page where you will see a table that allows you to conveniently compare your options. Once you find the right one for you, click on the “Go to site” button to learn more or initiate your application.

      Just in case, you may want to read our guide on how to get out of debt. This should help you discover the best options to put your debt behind you.

      I hope this helps. Should you have further questions, please don’t hesitate to reach out again.

      Have a wonderful day!


  3. Default Gravatar
    RoseannApril 23, 2017

    Looking for a installment loan I have really bad credit installment have applied everywhere and turned down need 10,000 where can I turn to.

    • Avatarfinder Customer Care
      AnndyJune 29, 2017Staff

      Hi Roseann,

      Thanks for your question.

      The lenders above may consider you for a loan, but subject to eligibility criteria.

      You may want to try contacting these lenders to discuss your eligibility.


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