What Are Installment Loans for Bad Credit?
Installment loans are unsecured, short-term loans borrowed as a lump sum and are to be repaid in fixed monthly payments over a period. These fixed monthly payments are known as installments. Installment loans for bad credit are installment loan packages designed especially for people with bad credit.
You belong to the bad credit category if you have a FICO score that is less than 579. Since people with bad credit are seen as a lending risk, banks and traditional lending institutions hardly consider them for poor credit. But blenders can and would as long as you can prove it is a debt you can afford.
Can I Get Instant Installment Loans for Bad Credit?
Upon listening to tales of loan rejections from people with similar scores, many people with poor credit scores give up on applying for loans before even getting started. It’s thought that their chances of getting a loan are less than 5%. But that’s not true.
A loan can be your saving grace if you have little to no savings, and your history of late payments shouldn’t stifle your chances of getting one. Online lenders focus on the future more than the past. Rather than dwell on your history of defaulting on payments, they look at your income history to see if you can afford more credit.
With many lenders, all you need to do to get a loan to meet the basic eligibility requirements, like being a US citizen, being at least 18 years old, and having a monthly income of at least $800.
Installment loans have more flexible repayment terms and lower interest rates than alternatives like payday loans and other short-term loans. Thus, it’s a good credit option for people with bad credit.
Who Should Need an Installment Loan for Bad Credit?
A long-term solution to making yourself creditworthy once again is building your credit score. You can do this by taking out an installment loan for bad credit and paying early. Early payments are reported to the major credit bureau and are an excellent way to build credit. Therefore, you should consider an installment loan for bad credit if you need money to cover emergency expenses and want to build your credit while at it.
People who need to make expensive home repairs, make down payments for a vehicle, are struggling to settle some emergency medical bills, or want to consolidate multiple credit card debts may also consider getting an installment loan for bad credit.
If, after reviewing alternatives, you find out that installment loans are the best loan packages for your needs, apply for one, but only via a reliable lender. If you struggle to get such a lender, we recommend using a loan broker.
How to Apply for Bad-Credit Installment Loans?
You can apply for a bad credit installment loan online through iPaydayLoans We do not charge any origination fees for connecting you to a lender, and neither do we charge monthly subscription fees as cash advance apps do. The application is pretty easy and free.
Here’s how to apply for a loan on iPaydayLoans:
Apply for a loan from iPaydayLoans portal by filling out the application form with relevant personal, contact, and financial information. Submit the form, and in no time, we will send out your form to the 100+ lenders in our network. These lenders will assess your application and approve you for a loan if their assessment results show you can afford it.
You should get an offer if approved for a loan. You are not obligated to accept the offer immediately. Review the offers from different lenders and act only on the offer that best suits you. Sign it to make it binding and proof of a contractual agreement.
That’s all. You should receive a deposit soon. Our partner lenders process the loan quickly, and you should get a deposit as soon as the same day, or sometimes, the following business day. They can get you anything between 50 and 5000 dollars.
Things to Watch Out for When Shopping for an Installment Loan for Bad Credit
Check out the reviews and ratings of the lender
Check out the lender’s reviews and ratings on trusted sites like Better Business Bureau (BBB). Read up what their one-off and repeat customers have to say about them. A few negative comments are nothing to worry about. You are good to go if there are significantly more upvotes than downvotes for the lender.
Watch out for any hidden fees
If unspecified in the loan offer, ask the lender if there are any fees you should know about beforehand. Make specific inquiries about origination and default payment fees. Does the lender or loan broker service charge an origination fee? What’s the rate? Are there any default payment fees? How many days after the deadline will you be charged this fee?
How fair and reasonable are the loan’s terms compared to alternatives?
Of course, the loan’s terms and conditions are very important parts of the offer to pay attention to. How short or long is the loan term? Conditions like debt collection methods to be used and the fixed monthly payments to be made should be clearly stated.
Alternatives to Installment Loans for Bad Credit
Approach religious organizations, non-profits, and charities
If loans fail, and you belong to any religious organization, you may consider letting the welfare unit in on how you have been faring. They just might help. Charities and local nonprofits are also known to provide loans to people who desperately need them.
Cash or paycheck advance apps that help you cover short-term costs between paydays
Paycheck advance loan apps like Dave can give you access to a percentage of your income before your next paycheck deposit comes in. These loan apps charge no interest rates on their paycheck advances. However, you may need to make monthly subscriptions and leave a tip. The borrowed sum is usually automatically deducted from your next paycheck.
Consider getting a side hustle
Do you live from paycheck to paycheck and find it difficult to settle pending debts? You can consider landing side gigs or working overtime. Working night shifts can get you some money to save up and pay your debts. You can also try platforms like Task Rabbit, Upwork, and Fiverr. You can get a handful of freelancing and unskilled labor gigs from them for extra cash.
Small personal loans for bad credit
Bad credit lenders have small personal loan offers for people with less-than-perfect credit scores. Small personal loans are a perfect opportunity to improve your credit score. Early payments are reported to the major credit bureaus, and the loan term is considerably long enough to complete payment.
Auto title loans for bad credit
If you have bad credit but have significant equity in a car or are its outright owner, you have just enough to get a car title loan. You only have to submit your car title. You can still drive your car around for as long as the loan term is yet to lapse. However, you risk losing your car to the lender if you default on payment.
FAQs:
Are installment loans any different from payday loans?
Yes, they are. To begin with, installment loans have longer payment terms than payday loans. While payday loans are due between two to four weeks, installment loans can have loan terms as long as two to five years. Also, payday loans have higher annual percentage rates (APRs) than installment loans.
What are the eligibility requirements for installment loans for bad credit?
To qualify for an installment loan for bad credit, you must a citizen of the US, be over 18 years old, have a checking account to receive deposits, have a steady monthly income of at least $800 and have a valid phone number and email address to verify your loan.
Do you grant installment loans with no credit checks?
Not exactly. Firstly, we are a loan broker service, so we connect you with lenders who give these loans. We do not directly let out loans. Also, the term “no credit checks” isn’t implied literally. If what you fear is checks affecting your credit score, relax. You have nothing to worry about. We connect you with lenders who run soft credit checks. These checks do not affect your credit ratings.
Is it possible to get “Guaranteed” loans for bad credit?
To keep it plain and simple, there are no guaranteed loans for bad credit. You won’t be able to get a loan if results from the lender’s assessment suggest you can’t afford extra credit. Your chances of approval are however very high if you meet the basic eligibility requirements and have proof of income.
I can get Installment loans near me, yes?
Yes, you can. But you don’t have to visit physical spaces to get one. You can apply for an installment loan from the comfort of your home. Choose iPaydayLoans if you are struggling to locate lenders near you or do not want to risk reaching out to too many lenders. We will connect you to the best-fit lender for your loan needs.
Can I make more than one monthly payment?
You may make one lump sum payment a month or remit your monthly payments in tranches. It all depends on your agreement with the lender. The offer will usually contain the loan term, repayment term, and deadline date for each payment.
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