How long do installment loans stay on your credit report? | finder.com
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Installment loans and your credit report

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Before you take out an installment loan, find out how it can affect your credit.

Taking out any type of loan can have a positive or negative impact on your credit report. Make all of your repayments on time and an installment loan can strengthen your credit rating. But late or missed repayments show up on your credit report for years, making it difficult to qualify for other types of financing.

If you’re applying for an installment loan, you might want to check your credit report first even if you haven’t ever missed a payment. Sometimes lenders make mistakes that can be easily fixed.

What is an installment loan?

An installment loan is type of financing where you borrow a lump sum of money and pay it back in installments over a period of time, usually between six and 60 months. Lenders typically charge both interest and fees on an installment loan, unlike the fixed fees that come with a payday loan. This type of loan is meant to help finance large purchases, such as buying a car.

OppLoans Installment Loans

OppLoans Installment Loans
  • Easy online application
  • Quick approval
  • Fast funding
  • Long repayment terms

OppLoans Installment Loans

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

  • Minimum loan amount: $500
  • Maximum loan amount: $5,000
  • Turnaround time: 1 business day
  • Loan term: 9 to 36 months
  • Must have direct deposit and meet minimum income requirements.
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How long does an installment loan appear on my credit report?

How long an installment loan appears on your credit report depends on whether you currently have an installment loan and have been on time making payments.

  • If you had an installment loan and it’s been paid in full. The account will remain on your file for up to 10 years from the date of last activity (DLA).
  • If you currently have an installment loan and have made late payments. Late payment history will generally remain on your file for up to 7 years.
  • If you have an overdue installment loan. Accounts considered “not paid” generally remain on your file for up to 7 years.
  • If you had an installment loan that went to a collection agency. Accounts that go to collection agencies are generally listed on your file for up to 7 years from the date the account file became past due.

Compare online installment loans

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

Rates last updated December 10th, 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
Must have direct deposit and meet minimum income requirements.
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.
CashUSA Installment Loans
A connection service for quick cash loans up to $10,000.
$10,000
As early as 1 business day
Must have a monthly income of $1,000+ after taxes and valid checking account.
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.
LendYou Short-term 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.
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.
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.

Compare up to 4 providers

How can an installment loan help my credit?

An installment loan can help your credit score by allowing you to build a positive credit history. All you need to do is make your repayments on time.

A positive credit history shows that you’ve paid off debts on time in the past, making you appear more trustworthy to lenders in the future. It can boost your credit score in a few ways:

  • It can be proof of on-time repayments. Making repayments on time counts for 35% of your FICO credit score and is the most important factor in your credit score.
  • It can add to your credit history. How long you’ve been paying off debt makes up 15% of your FICO score. Some lenders also have requirements for your length of credit history, which they can find by looking at your credit report.
  • It can diversify your credit types. How many different types of debt you’ve repaid can also boost your credit score — it counts for 10%. Just having an installment loan on your report might give you a few extra points.

How can an installment loan hurt my credit?

There are a couple ways having an installment loan can hurt your credit:

  • It can be proof of missed payments. Missing a payment after your lender’s grace period not only tacks on fees, it also shows future lenders that you’re not always reliable.
  • It shows up as a credit inquiry. Every time you apply for credit, be it a loan or credit, it shows up as a credit inquiry on your report and counts for 10% of your credits core. Even if you don’t get approved. This knocks your credit score down a few points, which you can make up with on-time repayments.
A missed or late repayment will follow you around for years. That’s why it’s important to make sure you can comfortably afford the loan amount, terms and interest rate before you apply for an installment loan. You can use our monthly repayments calculator to find out how much you’ll pay on a loan.

4 tips for paying back an installment loan

  1. Stick to a budget. Setting aside funds each month for your repayments can help ensure you make repayments on time to boost your credit score.
  2. Sign up for autopay. This can help you avoid accidentally miss a repayment just because you forgot. Some lenders also offer a discount.
  3. Consider repaying early. You can save on interest by paying back your loan early as long as your lender doesn’t charge a prepayment penalty.
  4. Reach out if you need help. Think you might miss a repayment? Talk to your lender as soon as possible. Some might be able to work with you to avoid that negative mark on your credit report by adjusting your loan term.

How online installment loans work

Where can I check my credit report?

Details Features
myFICO
myFICO
Get quarterly access to your most widely used FICO® Scores and a 3-bureau credit report
  • Get quarterly access to your most widely used FICO® Scores
  • Credit report change alerts
  • FICO® Score analysis
Go to site More info
Experian Credit Report
Experian Credit Report
Get your credit report and FICO score for just $1 with enrollment in Experian CreditWorks credit monitoring. Cancel anytime.
  • 3 credit reports
  • Track your FICO® score
  • Easy to use dashboard
Go to site More info
TransUnionCredit Report
TransUnionCredit Report
TransUnion credit score, monitoring and identity theft insurance.
  • Unlimited updates to your TransUnion credit score
  • Up to $1,000,000 in identity theft insurance
  • Personalized debt analysis
Go to site More info
Equifax Business Credit Monitor
Equifax Business Credit Monitor
Monitor your key business relationships to protect your company from losses.
  • Bankruptcy Alert
  • Derogatory Alerts
  • New Inquiry Alert
Go to site
GoFreeCredit.com
GoFreeCredit.com
$1 for a seven-day trial to get access to your credit score and credit report from TransUnion.
  • Credit reports from all 3 bureaus
  • Email alerts when your credit report changes
  • Up to $1,000,000 in identity theft insurance
Go to site More info
Details Features
Self Lender — Credit Builder Account
Self Lender — Credit Builder Account
Savings account that helps you build credit.
  • No hard credit inquiry
  • Available in all 50 states
  • It typically takes 60 days for new accounts to appear on credit reports
Go to site More info
The Credit People
The Credit People
Professionals work with you to clean up your credit and raise your credit scores. Cancel anytime.
  • 7-day trial for $19
  • Get access to your credit reports
  • Most customers see results within 2 months
Go to site More info
CreditRepair.com
CreditRepair.com
Online credit repair service.
  • Credit report repair
  • 24/7 credit monitoring and alerts
  • Score tracker and analysis
Go to site More info
CuraDebt: Tax Debt Relief Free Consultation
CuraDebt: Tax Debt Relief Free Consultation
Debt relief professionals helping individuals and small businesses nationwide.
  • Free consultation and 100% confidential
  • 15+ years experience
  • Debt relief help for credit cards, medical bills and taxes
Go to site
The Credit Pros: Legal Credit Repair
The Credit Pros: Legal Credit Repair
Online credit repair service that gives free consultations.
  • Delete inaccurate information on your credit report
  • Practical, honest credit advice from professionals
  • Get help setting realistic, reachable credit goals
Go to site More info
Lexington Law Credit Repair
Lexington Law Credit Repair
Law firm that specializes in credit repair.
  • Remove incorrect listings from your credit file
  • Get free access to your credit report
  • Personalized credit repair services
Go to site More info
CreditFirm.net
CreditFirm.net
Professional credit repair service that can help you create a step by step action plan. Cancel anytime.
  • Free credit consultation
  • Over 15 years of credit repair experience
  • Get help optimizing your credit file
Go to site

There’s an error on my credit report. What can I do?

If you find an error on your credit report, make sure that it’s showing up on all of your credit reports — not all bureaus are in contact with each other. Gather information showing that the report is incorrect before reaching out to your lenders.

Typically, lenders ask you to send documentation to prove there was an error. If they accept your claim, they’ll reach out to the credit bureau to correct the error.

How to fix a mistake on your credit report

Bottom line

Applying for an installment loan always has an impact on your credit report. Whether it helps or hurts your credit rating depends on how you repay your loan. Pay it back on time and it can boost your score for up to 10 years.

But even missing a repayment by a few days can follow you around for up to seven years. You can learn more about how it all work by checking out our guide to short-term loans.

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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