Editor's choice: OppLoans Installment Loans
- Easy online application
- Quick approval
- Long repayment terms
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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.
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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.
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.
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:
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.
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.
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