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How do installment loans work?

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Often touted as the preferable bad credit alternative to short term loans, what are installment loans and how do they work?

If you’re in the market for a loan you’ll come across a range of options. However, when you have bad credit, that list of loan choices starts to become shorter.

If you need financing and your credit isn’t perfect, you still have a few loan options available to you – one is an installment loan. Find out how do installment work in this our guide.

What exactly is an installment loan?

Any loan that is paid in ongoing fixed regular installments can be considered an installment loan. While these loans are often associated with bad credit, they can technically be any kind of personal loan that is repaid in installments.

OppLoans Installment Loans

OppLoans Installment Loans

Get fast funding up to $5,000 at reasonable interest rates.

  • Min. Loan Amount: $500
  • Loan Term: 9 to 36 months
  • Turnaround Time: 1 business day
  • Must be 18+ years old
  • No security deposit needed
  • Confidential and secure

    How do repayments work on an installment loan?

    Repayment terms differ depending on what type of loan you apply for and the lender you apply with. Generally, the following will apply:

    Repayment termsDescription
    Loan terms.These vary between 6 and 60 months (5 years).
    Payment method.Lenders will usually deduct payments from your bank account on the day the payments are due. Some lenders will also give you the options of repaying the loan online, via a check or through an app.
    Repayment frequency.You will usually repay the loan according to your pay dates.

    How much will it cost you to borrow?

    This will depend on the loan. When you apply for a loan and are approved, you should receive a loan contract that will outline the fees and interest rate that will apply to your loan. Here are the costs that may apply:

    • Fees. You may be charged a loan origination fee, prepayment penalties and late payment fees.
    • Interest. This is the rate of interest you are charged for borrowing, expressed as a percentage.
    • Annual percentage rate (APR). This includes all fees and interest expressed as a yearly percentage.

    Need to borrow money fast? You can get a short term loan online with serious speed

    Am I eligible for an installment loan?

    Installment loans can be applied for if you have bad credit or are on a lower income as long as you are able to afford the repayments. Generally, lenders will look at your income, credit history, employment and checking account information to determine your eligibility for a loan. Keep in mind that installment loans are not legal in all states so your residency will also have a bearing on your application for an online installment loan.

    The short term loan laws in your state

    Installment loans you can apply for

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

    Rates last updated August 20th, 2018
    Unfortunately, none of the short term loan providers currently offer loans in your state. Learn more about short term loans in your state to find an alternative.
    Name Product Product Description Max. Loan Amount Turnaround Time Requirements
    OppLoans Installment Loans
    Installment loans with competitive rates from a top-rated direct lender.
    $5,000
    1 business day
    Open to residents of AL, AK, AZ, CA, DE, FL, GA, ID, IL, IN, KS, KY, MI, MN, MO, MS, NE, NV, NM, OH, OK, OR, SC, TN, TX, UT, VA, WI and WY. Must have direct deposit and meet minimum income requirements.
    CashUSA Installment Loans
    $10,000
    As early as 1 business day
    Monthly income of $1,000+ after taxes and valid checking account.
    LendYou Payday Loans
    Apply online with this loan-connection company offering unrestricted short-term loans at high maximums — fast turnaround.
    $15,000
    1 business day
    You must be a US citizen or permanent resident, age 18+ and have a regular income.
    Slam Dunk Loans
    Potentially get approved for a short-term loan through this lender-connection service, even with poor credit history.
    $2,500
    As soon as next business day
    Must be employed, receive regular income, earn at least $800 a month, have a checking account, be 18+ yrs old and a US citizen.
    BadCreditLoans.com
    With straightforward, simple qualifications, these loans offer easy approval for people with poor credit.
    $5,000
    Varies
    Depending on lender requirements, people from all 50 states may not be eligible for a personal loan.
    CashNetUSA Loan
    Apply for a short-term loan with an easy online application and dedicated customer service.
    Varies by state
    1 business day
    You must be a US citizen or permanent resident, be at least 18 years old and have regular income and a bank account.
    Jora Installment Loans
    Installment loans with repayment terms up to 30 months, depending on your state.
    $2,600
    1–2 days
    Must have an active checking account, regular source of income and email address.
    Blue Trust Loans Installment Loans
    Get an installment loan from an online tribal lender. Perks for returning borrowers.
    $2,000
    As soon as next business day
    Must be at least 18 years old and have a verifiable source of income with direct deposit into your checking account.

    Compare up to 4 providers

    Here’s how you can apply for an installment loan

    Applying for an installment loan is simple. Compare your options and find a loan you’re eligible for and that is right for you, then click “Go to Site” button to start your application.

    Are payday loans available in my state?

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    4 Responses

    1. Default Gravatar
      Rym4UK9May 28, 2018

      Can you tell me where I can find legit installment lenders who offer fast same day cash. Need it today!

      • finder Customer Care
        joelmarceloMay 29, 2018Staff

        Hi there,

        Thanks for leaving a question on finder.

        We have a comparison of legit installment lenders in the table above. Please note that you will need to choose your state from the dropdown to get a direct comparison of lenders who can help you. Once you have decided on the suited loan for your needs, you may click on the green ‘Go to site’ button to submit your application or know more about the loan offer.

        Cheers,
        Joel

    2. Default Gravatar
      WilliamMarch 8, 2017

      Can I put a installment loan on a prepaid card

      • finder Customer Care
        HaroldJuly 18, 2017Staff

        Hi William,

        Thank you for your inquiry.

        The process may differ depending on the lender. But in general the lenders will direct deposit into your checking account.

        I hope this information has helped.

        Cheers,
        Harold

    US Payday Loans Offers

    Important Information*
    Slam Dunk Loans

    Potentially get approved for a short-term loan through this lender-connection service, even with poor credit history.

    LendUp Payday Loans

    LendUp offers $250 loans for first-time borrowers. Good credit is not required. Visit the site to see if available in your state.

    Check into Cash Payday Loan

    With 1,000 branches in 30 states, get $50 to $1,000 in days from this direct lender.

    OppLoans Installment Loans

    Installment loans with competitive rates from a top-rated direct lender.

    Go to site