- Installlment loans for bad credit are available throughout the U.S. But you don’t have to go out of your home seeking an installment loan for bad credit.
- Consider a lender for bad credit that allows you to apply online, get approved and funded much faster than a traditional bank.
- You can borrow money with bad credit by using an online direct lender that looks at more than your credit score. Bad credit does not have to be a barrier to getting approved for an installment.
People needing installment loans for bad credit may not be aware of reputable online lenders. These are not payday lenders. You can get instant approval for an online installment loan for bad credit that offers repayment terms up to 4 years.
How installment loans for bad credit work
First, you can expect interest rates to be higher with installment loans for bad credit. The way to get around paying high interest over the full term of the loan is to pay the loan in full as soon as possible. Most online loans have no prepayment penalties or fees.
Online lenders offer a fast, convenient and secure option to get installment loans for bad credit deposited directly into your account. There’s no need to visit the lender, all paperwork can be completed online.
Get a quick decision
As soon as you complete the online loan application, you’ll get an instant decision on your eligibility. Loans can be funded as soon as the next business day, once you approve the loan terms. Online lenders offer real personal loans, just like a traditional bank, that can be repaid up to 48 months.
When you borrow money with bad credit, there is an opportunity to build a positive credit history with on-time payments. Get back on track with your finances by wisely using an online installment loan for bad credit. Payments are reported to the major credit bureaus.
There are NO additional fees, such as application, origination, prepayment, or late fees. You will only pay back the loan principal and finance charge (cost of borrowing money). Source of income can come from employment, self-employment, retirement benefits, social security and with some lenders, unemployment benefits.
Direct Lenders for Installment Loans Bad Credit
1. OppLoans is a direct online lender offering loans up to $4,000 for people with bad credit. OppLoans does not require a minimum credit score to apply. OppLoans is likely your best option when your credit scores are low.
What’s good about OppLoans
This is a very easy loan to qualify for with no minimum required credit score. OppLoans considers more than your credit score and makes the application process simple and fast. You get an immediate response. If approved, loan funds are deposited in your account the next business day.
What OppLoans Requires
Borrowers should have a regular income that is direct deposited into a traditional bank account.
- Loan amounts range from $1,000 to $4,000
- No prepayment penalties
- Loan terms up to 36 months
- 350 minimum score required
- Payments reported to credit bureaus
2. Upgrade is a direct online lender offering loans up to $50,000 for people with poor to average credit. Upgrade helps borrowers with a wide range of credit scores.
What’s good about Upgrade
Borrowers with poor to good credit have a good chance to qualify. Upstart is flexible with its eligibility criteria while offering competitive loan rates.
What Upgrade Requires
Borrowers with a credit history should have a minimum credit score of 620. Borrowers can choose from flexible loan options that allow you to customize your loan amount and term. Take control over the borrowing process by shaping your loan to fit your needs and monthly budget.
Upgrade Loan Details
- Loan amounts range from $1,000 – $50,000.
- Repay monthly, over 3 to 5 years.
- Loan origination fee of 1.5% to 6% of the loan amount which is deducted directly from your loan funds.
- Applicants should have a minimum annual income of $30,000 or higher.
- Payment activity is reported to Transunion credit bureau.
- No prepayment fee.
- Consumers who experience a hardship may qualify for a temporary reduction of their monthly payment or a permanent loan modification.
3. Check Into Cash is a direct online lender offering loans up to $3,000 for people with poor credit. Repay bi-weekly or monthly over a term of a few weeks to a few months.
What’s good about Check Into Cash
Check Into Cash is an alternative lending source for borrowers with poor credit. As you know it can be a real struggle for those who don’t have good credit to find an installment loan for bad credit – Check Into Cash can help.
What Check Into Cash Requires
You don’t need a good credit history but you do need a source of income. There’s no minimum credit score required. Repayment terms range from 6 to 12 months, but there are no prepayment penalties so borrowers can pay them off early without additional fees.
Check Into Cash Installment Loan Details
- Loan amounts range from $100 – $3,000.
- Repay monthly up to 12 months.
- Must have a source of income from employment, self-employment, retirement, Social Security or some other benefits.
- Funds are deposited directly to your checking account as soon as the next business day.
- No prepayment fee.
How are installment loans different
Installment loans have a specific length of time you’ll be making payments and a set amount you pay each month. This is more commonly referred to as “loan terms.” You’re probably already familiar with installment loans if you’ve taken out a long term loan like a mortgage, car, or student loan.
Installment loans for bad credit can be short term or long term and are typically more easily managed than a high-interest payday loan. Installment loans are not backed by any collateral (like a house or car). Unlike a mortgage or car loan, a lender cannot directly seize your assets if you fail to pay back an installment loan.
Installment loans for bad credit can help improve credit scores with timely payments reported to the major credit bureaus.
While payday loans offer a quick turnaround for cash, many people get stuck in a cycle of repeated indebtedness.
According to the Center for Responsible Lending:
The long-term debt is the typical borrower experience and the core of the business model. With each loan flip or new loan, borrowers are unable to both repay the lender and have enough money left until the next payday arrives. Payday loans are a debt trap by design and lead to cascade of other financial consequences such as increased overdraft fees and even bankruptcy.
On average, payday loans carry a 391% APR (annual percentage rate). Installment loans for bad credit are a much better option for borrowers seeking quick cash.
What is the loan process?
Online lenders typically only “soft pull” your credit report to see if you qualify. If you do not qualify, there is no impact to your credit score. If you qualify, a “hard pull” credit check is done which may impact your credit score but only by a few points. To further understand, soft credit pulls do not impact your credit score while hard credit pulls typically take five points or less from your credit scores.
Once approved, you can receive your funds in as little as one business day. All loan documents can be e-signed, so there is no need to fax or physically visit the lender. You will then have anywhere from 12 to 48 months to repay your loan, depending on the terms of the loan agreement. The APR for personal loans depends on your credit history and other factors.
Installment loans can help your credit scores
On-time payments can help build a positive credit history and improve credit scores over time. Payments are reported to the major credit bureaus. If an installment loan is used to consolidate high-interest credit card debt this can improve your credit scores because you lower the amount of credit you are utilizing.
Early payoff will save you money
Installment loans for bad credit will have higher interest rates. But this can be remedied if you pay your loan off early. There is no prepayment penalty. When you pay off your loan sooner than expected, your lender doesn’t earn as much interest and you save money.