Great Online Installment Loans for Bad Credit
Online installment loans for individuals with a bad credit score are often more affordable than payday loans. Also, they are less risky for borrowers and lenders than payday loans are.
There are online lenders that are willing to offer installment loans to borrowers with no credit histories or bad credit, i.e. a FICO score below 630.
Online installment loans for bad credit are handled in minutes, and you may even have the funds available in your bank account as soon as within a business day.
When someone applies online, they are first prequalified using a “soft” credit check which doesn’t harm their credit score. If the borrower meets the prequalification, the lender will send a loan offer. If the borrower wants the loan, they usually need to provide more personal information. Then the lender does a “hard” credit check which does temporarily (months) affect their credit score.
To determine if someone qualifies for a personal installment loan, lenders require information about you, such as your income, your monthly transactions, and how much debt you have.
What Are Installment Loans?
With an installment loan, you borrow money and then repay it in fixed monthly installments, or payments, over a number of months or even years.
A three-year loan that has to be paid back in 36 monthly payments is an example of an installment loan.
Unsecured Installment loans are normally short term loans but for higher loan amounts these may be structured as a long-term loan.
Unsecured installment loans are often popular as they are quick to get and don’t have usage restrictions. An online installment loan’s proceeds can be used for any business or personal related expense, including debt consolidation which could improve your credit score.
There may be times when you need a long-term installment loan, but you’re not sure if you will be granted an installment loan due to your poor credit. Irrespective of the type of installment loan you want, whether it’s long-term or short-term, we can help.
You can get online installment loans for bad credit for any of the following purposes:
- Debt consolidation to lower overall monthly payment amounts.
- Unexpected expenses such as car repairs.
- Home improvements
- Vacations or unplanned travel expenses.
- Emergency Medical Bills
- Any type of personal expenses
Fast Online Installment Loans for Bad Credit
- Loan amounts between $500 and $35,000
- Approved loans funded in just one business day
- Funds deposited directly into your checking or savings account.
- All types of credit welcome
- Improve your credit score to get lower interest rates in the future.
An Installment Loan versus A Personal Loan
A loan that is given based on personal credit is a personal loan, while any loan that has to be paid back via multiple payments over time is an installment loan.
An installment is in essence a type of personal loan. Personal loans can be structured as a long-term loan, short-term loan, or as a single payment loan. When it’s structured so that it must be paid back in numerous payments over a defined period, it can be referred to as a personal installment loan.
Online Loans versus Traditional Installment
Online installment loans are excellent alternatives to traditional (bank) installment loans for various reasons, which we’ll discuss here.
The first big difference is that traditional loans may require your credit to be excellent. A bank may, for example, decline an installment loan application due to bad credit if the borrower’s credit score is lower than 680.
As online installment loan lenders don’t have as many lending restrictions as traditional lenders do, they are able to offer loans for all borrowers. So, bad credit borrowers can get the loans they need.
As installment loan lenders online are structured differently, they have the flexibility that traditional conservative lending Institutions aren’t able to offer. Online installment loan providers can therefore implement different qualification criteria that don’t follow the strict guidelines traditional institutions have to adhere to.
Online installment loan requests are typically processed very quickly, and you could receive a response within minutes. You would typically have to wait days or even weeks before a traditional lender will respond.
A request for an online installment loan can be made from anywhere, be it while you’re on the road on your mobile devices, or in the comfort of your home.
Online installment lenders mainly look at a borrower’s ability to repay the loan amount plus fees and interest. If you require a loan and will be able to repay it timeously, complete the request form and we’ll immediately start working to connect you to our network.
At QuickLoanFree.com, we don’t charge fees when a loan request is being made. Submitting a request also does not obligate you to accept any offers the network lenders may make.
We use the newest technologies to connect lenders with potential borrowers. Once you have completed the request form we’ll place your request on the network immediately where lenders are connected with borrowers. Our forms are straightforward and secure. Get started today.
Installment Loan Credit Requirements
Some lenders in the network use flexible guidelines that don’t need perfect credit histories and focus on alternate factors like income and employment in the approval process. This means borrowers that don’t have a perfect credit history may be approved.
Installment loans are normally for 90 days or longer. Borrowers that are offered loans may review the terms of the lender’s final offer before accepting the offer. We recommend you always read and understand the terms completely before accepting an offer. If you are unsure about any of the terms, contact the lender directly and ask them to clarify.
The interest rates on installment loans normally range between 5.99% and 35.99% but could be much higher, especially for bad credit borrowers. There are loans where the interest rate could be as high as 400% or more for payday loans and emergency loans.
The interest rate is calculated based on several factors, including the state of residence, loan amount, income, credit history, etc. If you have received a loan offer, you will be able to review the offer’s interest rate before accepting it.
Online Installment Loans Provide Funds Quickly
If you have an opportunity to invest in or buy something or need immediate access to cash to pay urgent expenses, you need money fast.
We understand this urgency and have therefore tried to make our process as easy as possible by using straightforward, secure forms. Once you have completed the loan request form, your request will be placed on the network immediately. You won’t need to visit multiple offices, do cumbersome paperwork, or suffer through lengthy appointments. With QuickLoanFree.com our whole process is managed electronically.
Personal Online Installment Loans for Bad Credit
If your credit history is less than perfect and you are worried about being able to qualify for an installment loan, we may be able to help you. We have a big network of lenders that want to lend you money. Lenders will immediately prequalify your loan request and make loan offers.
Choosing An Installment Loan
Understand the fees. Lenders sometimes charge late fees, or an origination fee, which is normally between 1% and 10% of the loan amount. Don’t agree to the loan terms before the lender has fully disclosed all fees.
Check annual percentage rates. Loans’ costs are often expressed as annual percentage rates (APR), which are made up of any fees plus the interest rate. Try to find the lowest APR you can— the most economical personal loans’ rates are lower than 36%.
Pre-qualify. Pre-qualification is a simple way to determine if you will qualify for a bad credit installment loan. To do this, you’ll have to complete a short application with information regarding the loan you want and your income. Although the lender will do a soft credit check, your credit score won’t be affected. You’ll then be told what loan amounts, terms, and rates you may qualify for.
Monthly installments. Monthly payment amounts are calculated based on the term length selected. Longer loan terms will result in having to pay more interest. The ideal balance is finding a repayment term long enough to ensure you can manage the payments but short enough to prevent overpaying on interest.
Payday Loans Versus Bad-Credit Installment Loans
Installment loans’ defining characteristic of making multiple payments normally does not apply to payday loans. This also means they are safer than payday loans as borrowers are able to manage smaller payments better over time rather than having to repay a lump sum all at once. The differences between payday and installment loans are summarized below:
|Payday Loan||Personal Installment Loans for Bad Credit|
|Repaid in full within one or two weeks, normally on the next payday.||Repaid over a period of weeks or months.|
|APR can be as high as 400%||APR ideally lower than 36% but can increase due to bad credit scores.|
|Lenders withdraw money from your bank account.||Normally paid back online, by check, or over the phone.|
|Does not need credit checks.||Needs credit check to assess the ability to repay.|
|Does not report on-time payments to credit bureaus to help borrowers build credit.||Reports on-time payments to credit bureaus to help borrowers build a better credit history.|
High-Interest Installment Loans
Although you’ll ideally be able to qualify for an installment loan with a rate of lower than 36%, there are lenders that offer installment loans with APRs higher than 36%. However, these loans are still much more affordable than payday loans.
Lenders that offer installment loans with high interest rates might not check your credit, meaning they’re taking a bigger risk. For you, this translates to a higher APR, sometimes as much as between 150% and 200%.
Many bad credit lenders don’t check credit scores via the 3 major credit bureaus, but rather use the reports from your bank account and alternative credit reporting services before deciding whether to lend you money or not. Their APRs are typically higher than that of other lenders relying on traditional credit information.
Although these loans must be repaid in installments, most borrowers can still not afford them. However, they are still better than a payday loan.
How Your Credit Is Affected by Installment Loans
Loans can hurt or help your credit, depending on how they are used. As many lenders submit reports to the 3 major credit bureaus, an installment loan may be an opportunity for you to show financial responsibility by making payments on time and therefore improving your credit.
If you however fail to repay the loan or miss a payment, your credit score will suffer.
Setting up autopay is a way to ensure your payments are always made on time. Many lenders will offer a small APR discount, normally only a fraction of a percentage point, for borrowers prepared to use autopay.
Installment Loans for Bad Credit By Credit Unions
Apart from online lenders, credit unions also offer installment loans for individuals with bad credit. Federal credit unions typically offer lower rates, and they also offer payday loans specifically for borrowers with bad credit.
You have to be a union member before you can qualify for a credit union loan. Credit unions normally do a hard credit pull to check if you qualify, and this will knock a few points off your score temporarily.