Plenty of people use loans to help them make purchases they'd struggle to pay for with cash. The loan term could vary from short term loans to long term loans. Some people even resort to credit cards rather than a loan.
Either way, though, some people find they can't get the credit they need from standard lenders. Some sources have stricter criteria to fulfill than others, which means you may find you cannot source credit from a raft of famous names.
If that sounds familiar, you should stick around for a while to learn more about how to get an installment loan with bad credit.
If you've heard it's impossible to get credit with a poor credit score, you might be surprised at what you're about to learn.
Loanza has extensive experience and know-how in this field. If you're looking for a line of credit and you think your bad credit might stall your progress, we may be able to help.
Let's pick this apart so we can see what's involved. It's easy enough to understand though. Lenders offer installment loans on the basis that you repay them over agreed repayment terms.
This might be over a year, two years, five years, or longer. You pay a set amount for the loan each month, gradually reducing the credit you borrowed until you pay it off in full.
The bad credit part of the description refers to loans intended for people who have a bad credit history rather than a good credit score.
We have seen that all installment loans are much the same. However, you may not find the same deals as someone else who has good credit. It's the same scenario you'd get if you looked at a credit card.
If your credit history is peppered with a few late payments on a loan, for example, you may not get credit loan offers from the same lenders as someone with an outstanding credit history who has never missed a payment.
However, it's often better not to compare your situation with that of someone else. An installment loan with bad credit score could incur a high interest rate when compared to those aimed at people with an excellent credit score. That's why shopping around for assorted credit possibilities is a great idea.
If you're short on time and you feel that all the information is overwhelming, you can always turn to a service provider such as Loanza. You can submit a loan request, and we could connect you to one of our many lending partners.
Before we answer that, let's look at how these two loan types work:
There are some other differences between these loans too, so let's look at them more closely. These terms could relate to all kinds of loan amounts, although unsecured credit loans are usually offered for smaller sums than the secured kind of credit loan.
Secured installment loan amounts often have a lower interest rate. This makes sense as lenders may drop the interest rate in exchange for the security you're offering to receive your credit.
Of course, it does mean you need a source of security to be considered for these loan or credit offers.
If you want to buy a car, for example, the lender may use the car as security against the credit they might give you. Some people can receive credit against their property, but of course, that means they must own the property (at least in part, i.e., to have some equity in it).
Lenders are still going to want to see credit reports for secured loans, to confirm that you're a decent risk to meet your monthly payments for the loan over the course of the credit repayment term.
Unsecured installment loans are not secured on anything. Your credit scores become even more important in this case. Since you're not offering anything of value to support these loans, most lenders need to see reasonable credit scores before they'll supply these personal loans.
Payday loans are a good example of unsecured personal loans. Payday loans are intended for the extreme short term, but you could get bigger loan amounts from another kind of unsecured personal loan.
The loan term could range from months to years, so think about how that might affect your monthly payments on the loan, the amount you pay in full, and the interest on those monthly payments.
Regardless of the loan type you choose, rates and terms for loans may vary. Don't assume all unsecured loans are identical, or that all secured installment loans are, as that isn't going to be the case.
Loans may have all kinds of terms, so you should always read through them carefully before considering any loan.
They often are, yes. A credit card is useful to have, but it is more likely to be exposed to high interest rates compared with various installment loans on the market today. A credit card is better to use when you clear the monthly balance and return it to zero each time.
That way, you're not affected by high interest. However, there are times when that simply isn't possible. And you may not even have a credit card to consider to start with.
In cases where it doesn't make sense or simply isn't practical to use a credit card, an installment loan certainly bears thinking about.
Even if you know you'll need to look at installment loans for bad credit, because your credit score needs a little work (or even a lot), there are usually installment loans out there for most would-be customers, offering a sensible repayment term too.
You can see how important it is to be aware of interest rates, too, and how they may affect your installment loan repayments.
You'll pay interest each month, so it makes sense to hunt around for a competitive interest rate you could get on installment loans today.
We've included further information about interest on installment loans for bad credit further down this page. Stick with us and you could find more competitive offers for installment loans and more appealing interest rates, too.
You'll certainly learn a lot more about interest rates, especially based on your credit reports, and having that knowledge could help you reduce your monthly payments on your next installment loan.
People seek out this form of credit for lots of reasons. Very often, it doesn't matter whether you have good or bad credit in this scenario. People need money for all kinds of reasons.
We've given a few here for you, so you can see how this may relate to your situation if you need a lump sum to work with.
It's scary how high a medical bill can get. Sure, there could be ways to reduce it rather than paying a set amount for treatment.
However, even if you query the amount and you've got coverage for medical costs, you could still find yourself landed with a hefty bill to pay.
Bad credit installment loan lenders are worth thinking about in this instance. An installment loan could cancel out the debt and leave you with a more affordable loan amount to pay off each month.
Just make sure you focus on achieving on-time payments each month.
One commonly used source of credit is, of course, a credit card. Many people use them as an alternative to a regular loan. However, credit cards can incur a heftier interest rate. They're fine if you intend to pay off the entire balance when it falls due.
However, if you don't, you could find the charges are far higher than you thought. It's a nasty shock if you use this as a source of credit.
That's why many people look for personal loans to help them clear outstanding debt on one or more of these cards. You could get a loan amount to cover those debts, clearing them in one hit and leaving you with one loan amount to manage instead.
No matter how well you plan, life can trigger all kinds of events that require an injection of cash. That's fine if you have some cash stashed away, but if you don't, you could think about personal loans instead.
If you have good credit scores, you can compare many competitive offers to give you credit. But as we have already learned, if you have a bad credit score, all is not lost.
You've still got the opportunity to consider installment loans for bad credit, even if this is the situation you're now in.
Where unexpected bills are concerned, it becomes even more important to source the credit as quickly as you can.
It's often possible to receive a loan on the next business day, depending on when you request it and, of course, your credit scores.
Loanza could help connect you to a lender today.
Lots of people want to know whether lenders might offer this type of personal loan without a credit check.
It's a reasonable question, but the only way a lender can determine whether to grant you an installment loan is to check your previous credit history.
This applies to payday loans, short term loans, and all other loan amounts and types. Truth is, a check on your credit score is the only way they can see if you're an ideal customer for them.
Of course, as we've seen, you could get an installment loan designed for those with a poor credit score, so it's not out of the realm of possibility.
It doesn't matter what level your credit score is at, lenders for a payday loan or other loan type will check it. There are a couple checks they could perform, though, so let's cover those now.
It's vital that you know the difference between them - the soft credit search and the hard credit search.
Many people assume all credit checks are the same. They're not. A soft inquiry is made at an earlier stage in the process than a hard inquiry.
This allows a lender to see what kind of credit risk you might pose to them.
Someone with bad credit won't necessarily be out of the running for a loan, but they may not have the same loan possibilities as someone with good credit.
Fortunately, the soft credit search won't impact your score. It merely gives lenders a chance to see whether they may choose to lend to you.
Conversely, you might call the hard inquiry the 'official' check. This is the one other people are going to see on your history in future.
For example, if you put in a formal loan request today, and you then made another one in a month's time, that first request would show up to whomever you requested your loan from the first time.
A credit check is going to give the lender conducting that check more information on your credit history. So, can you improve your credit score to give you a good credit record rather than a bad one?
You can, but it takes a while to achieve it. So, think about your situation and whether you could make some improvements to your score where you can before making that loan request.
Looking for installment loans for bad credit online could turn up plenty of results. However, you should be sure you only consider a loan online from reputable and trustworthy lenders.
All US-based lenders must abide by strict rules. You may not know this, but while there are many reputable lenders, there are some pretty smart scammers who try to use real, trusted lender names and similar-looking domains, trying to get you to "apply for an installment loan". Be careful and always double check you are on a real lender's website.
When you google "apply for an installment loan", just be certain that the results you click on are not ads ran by fake sites, for instance. It's worth knowing a little about the track record of any lenders you're looking at in your search for an online installment loan or further info about it. You can keep an eye open for the OLA (online lenders alliance) sticker. You can also call them to verify if a lender is legit.
Fortunately, when you come to Loanza, you can use our free service to make life easier for you when hunting for loan offers, even when they're designed for those with poor credit.
We only have trusted, legit, reputable lending partners who are fully licensed and registered. We could connect you to a payday loan, a personal loan or a short-term installment loan offer in minutes.
Plenty of lenders have these loans, although as we have seen, they don't all offer them to those with bad credit. A lot depends on how low your credit score is though.
Some lenders might consider those with a slightly lower than average credit score, whereas others may not do.
Fortunately, with our guide to information on loans for bad credit, you can get a better idea of whether you might need to look for regular installment loans or installment loans for bad credit.
Here are a few potential sources of installment loans for those with a poor credit score.
Payday lenders offer short term loans to individuals who just need a little money to reach payday. That's why they got that name.
They're not actually installment loans in the strictest sense, though, because there is only one installment to pay.
However, we're including them here because we know that many people are only looking for a small loan amount when they come to us. That personal loan amount could be for $100 or maybe a little more, for example.
Sometimes, it may not make sense to source a personal loan, in which case payday loans might provide an alternative.
With payday loans, you don't need to worry about monthly payments. You just need to be certain you can repay the total cash advance on or before your next payday. Loans like this tend to have interest rates that reflect their extreme short term focus.
For example, if you borrow, say $100, you may need to pay back $110 when you get paid. That works out more than you'd get with other installment loans,
It's easy to get credit unions mixed up with credit bureaus, so we'll set that straight right here. Credit bureaus hold financial information about you that helps form your credit score.
There are a handful of bureaus around in the US today, and each one might hold a slightly different credit score for you.
Meanwhile, a credit union is merely another kind of lender. As such, they may offer a loan amount to people looking for a personal loan, whether they have bad credit or not. They may offer this over a short term or long term, as with many other lenders.
You may already belong to a bank - that's where you're likely to have a checking account. A bank could offer you the loan amount you're looking for and may be able to let you have it in your bank account on the next business day following your loan request.
It's worth remembering that most loans could be deposited in your bank account if you are granted the loan amount you'd like to get.
However, while it might seem easy to ask your bank for their installment loan availability, you're only seeing a tiny portion of the market if you do this. The chances of finding a low rate for your installment loan are long here.
You can see there are several sources of installment loans mentioned here. You can also see that depending on the loan amount you're after, an installment loan might not be the ideal scenario for you.
However, if you've realized that an installment loan is ideal, you can look for a source of credit online today. This is far easier to do than going around physical lenders who may be spread out around your local area.
You should always make sure you get a competitive rate on any installment loan you find. You know by now that you're likely to get a higher interest rate on an installment loan amount because you have a bad credit score.
However, that doesn't automatically mean it's going to be super high. It's still possible to search around and find installment loans for bad credit that you can afford to pay back.
Sure, the better your credit score, the more likely it is you'll be able to source better interest rates. However, you can always search for the most competitive rates you possibly can for installment loans for bad credit.
Keep that in mind during your search - it could help you enormously.
Ah, yes... there are lots of words and phrases tied up with the average loan, so we'll cover some of the ones you might see right here.
Some lenders charge an origination fee for setting up the loan for you. You may pay the origination fee when you get approved, or you may have the origination fee added to the lump sum you receive in credit from the lender. The terms and conditions should tell you which is the case.
Loan terms can vary hugely in length, but in each case, this is the length of time the loan is going to last for.
The repayment terms are slightly different from loan terms. In this case, the terms you follow to repay the loan include the time you make the repayments each month and how much you make each time.
A direct lender is another name for a bank, credit union, or even payday lender.
Many people think this is sensible because they can approach a lender for credit without going through a third party. However, Loanza is a terrific example of how useful a third party source of loans could be. We have connections with dozens of lenders.
We bet there are some you won't have heard of either. Looking via an unaffiliated third party means you can get a realistic idea of loan potential.
Now, consider how this affects you when you're looking for a loan. If you go it alone, you are going to go to a lender you know and perhaps to ones you find online. These could vary by state, too.
However, it takes time to go through all those options. If you see a loan you think looks fine for you, you could choose those loan terms, even when other lenders may have a better offer.
Loanza is designed to, based on your submitted information, connect you to one of the many lenders we work with, quickly and efficiently. Could your loan approval be just around the corner?
Your loan may be closer than you think. Loanza offers superb customer service, making it simpler for you to compare one loan with another using our free website. We understand that when you need a loan, you need to know more about that loan as quickly as you can.
We could find you a competitive personal loan deal online today. Many of our lending partners could offer you a cash advance into your active checking account on the next business day.
You could get approved faster than you think. We strive to provide you with a convenient service you can trust. Try Loanza today to connect with loans based on your credit score and history.