If you have bad credit, it will not be the easiest thing to get a loan for your financial requirement. Nevertheless, there are several banks, online lenders, and other financial bodies who are willing to support you. Such lenders give installment loans for bad credit, considering your ability to pay in the future rather than your credit score.
So yes, you have the possibility to settle an emergency financial need using an installment loan.
Why should you consider taking an installment loan for bad credit in a financial need?
An installment loan lends a fixed amount of money you borrow from a lender, agreeing to pay on a set timeline. The payments happen on an installment basis over an agreed timeline.
Installment loans come under personal loans and mortgages, and auto loans also do in the same line. Installment loans are not very hard to get if you have a strong credit score.
When you have a poor credit score that is quite difficult and expensive to get one.
However, we advise you to borrow small installment loans until you improve your credit score. That is because installment loans for bad credit come with considerably high interest rates.
When you consider short-term loans like payday loans, installment loans, and auto title loans, installment loans are the best option to consider.
An installment loan with clear terms on APR and repayment is worthy of fulfilling your money requirement.
Payday loans seem very similar to installment loans, but they are not. Do not mix up the two. If you take a payday loan, you need to pay back a large lump sum on your next payday. And their interest rates are too high, close to 400% or more in some cases.
Installment loans allow you to pay fixed monthly installments and have a lesser APR. For an installment loan for bad credit, APR is typically around 36%. It is still a high APR, yet much better than payday loan rates.
| Credit score | usual APR |
| Credit check – excellent | 7% |
| Credit check – Poor | 36% |
| No credit check | 400% |
Payday loans are much easy to get when your credit history is not very healthy, but be mindful. These loans can drag you into a debt cycle, which will make your credit much worse.
Therefore do not go for the easy option. Does your research, compare the pros and cons of short-term loans, get professional advice, and proceed.
Types and features of Installment loans for bad credit
There are mainly two types of installment loans for borrowers having bad credit.
- Secured installment loans require you to have collateral to get the loan approved.
- Unsecured installment loans do not require collateral but very unlikely to get when you are under bad credit.
If you have no option other than to go for an unsecured loan, a credit-worthy cosigner is your best chance. Even if you are getting a secured loan, having a cosigner allows you to get a better interest rate.
No matter what, the installment loans have higher interest rates when the credit score is challenged. Bad credit installment loan features are as below. Apart from the higher interest rates, it goes similar to a typical installment loan.
- The loan amount can vary between a few hundred dollars to quite a few thousand dollars
- The repayment schedule is done on an installment basis over an agreed, fixed time plan. This can be several months or several years depending on the terms
- Interest rates can be fixed, or variable – bad credit installment loans have higher interest rates and vary from lender to lender
- Fees can be more or higher – Bad credit loans charge more or higher fees for administrative purposes
- Lender do a hard credit inquiry or a soft credit inquiry about your credit history
Can there be guaranteed installment loans for bad credit?
Depending on your financial situation, you will seek a guaranteed solution. And, installment loans for bad credit may have the “guaranteed” wording to catch your attention.
Conversely, according to FTC, a legitimate lender is not likely to guarantee a loan before you apply. When you have bad credit, this guarantee is even more uncertain.
The possibility of getting a loan is always there, but there are requirements to fulfill. Even though some lenders have no hard credit checks on their borrowers, that does not imply you are 100% sure of getting it.
While it is not possible to guarantee the approval, there are lenders capable of giving an almost guaranteed approval. Online lenders have a fast approval process.
Some do not check your credit score, and some have very minimal eligibility requirements for bad credit borrowers. All such offers come at a certain price, especially with sky-high rates. Therefore make sure to go through their terms and conditions thoroughly.
Best online installment loans for bad credit
Below mentioned are some of the best online installment providers for bad credit. These are installment loans for bad credit with a credit check. Compare the options to select what is best for you.
Upgrade – One of the most efficient options for installment loans for bad credit
Upgrade consider your cash flow and needs it to be a strong one to get qualified
| Min. credit Score: 600 | |
| Est. APR – 6.98% – 35.89% | |
| Loan Amount – $1,000 – $50,000 | |
| Origination fee – 1.5% – 6% | |
| Term lengths – 3 – 5 years | |
| Minimum annual income – None (but most applicants approved have more than $30,000) |
Pros
- They offer credit tools and hardship plans
- They directly pay the creditors for debt consolidation loans
Cons
- They charge late fees and origination fees.
For more information, log into upgrade.com.
LendingPoint– One of the most popular options for installment loans for bad credit
LendingPoint, with its flexible payment plans, is one of the best lenders to borrow an online installment loan when your credit score is not very attractive. They offer monthly and biweekly installment options.
| Min. credit Score: 585 |
| Est. APR – 9.99% – 35.99% |
| Loan Amount – $2,000 – $25,000 |
| Origination fee – 0% – 6% |
| Term lengths – 2-4 years |
| Minimum annual income – $20,000 (many applicants approved earn nearly $85,000) |
Pros
- Can change your payment date
- Payments by check without additional fees
- Quick lending after approval
- No prepayment charges
- Soft credit check
Cons
- Not easy to get if your credit score is inferior
- Do not offer co-signed or secured loan options
- Charge an origination fee
Find out more at lendingpoint.com
OneMain Financial
OneMain Financial is preferred online for its in-person customer service when it comes to installment loans for bad credit. They offer unsecured personal loans and many other loan types for poor credit scores.
The starting rate is high compared to other loans, but there are other benefits to consider. There is no given minimum credit score.
| Min. credit Score: none (but the average is 600-650) – credit check loan |
| Est. APR – 18.00% – 35.99% |
| Loan Amount – $1,500 – $20,000 |
| Origination fee – varies according to the state form 1%-10% |
| Term lengths – 2-5 years |
| Minimum annual income – none (Many applicants approved earn nearly $49,000) |
Pros
- Range of repayment options are available
- In-person customer service
- Fixed interest rate
- Quick funding (same-day funding available)
- Secured and co-sign loan options
Cons
- High starting APR
- In-person customer service may need offline engagement
- Origination fee
Log into onemainfinancial.com and find out more.
Avant
Avant is the best online bank for quick loan approval. They are suitable for borrowers with poor credit and low income. They offer quite a low interest rate compared to the competitors. However, you are more likely to get approved if yours is nearly 600.
| Min. credit Score: 580 |
| Est. APR – 9.95% – 35.99% |
| Loan Amount – $2,000 – $35,000 |
| Term lengths – 2-5 years |
| Minimum annual income – a minimum of $20,000) |
Pros
- Low-interest rate
- Low minimum credit score and low-income requirement
- Refinancing possibilities
- Customer service available on different channels like email, phone, and chat
- Fixed-rate loans available
Cons
- Secured loans and co-sign loans are not available
- Limited to selected states
- Origination charges
Find out more about this at avant.com
LendingClub
LendingClub has a good reputation as an online loan lender with quite a history. They offer installment loans for bad credit and do not disclose a minimum credit requirement. Though that is the case, their interest rates for poor credit holding credit are quite high.
| Min. credit Score: none (but they do a credit check) |
| Est. APR – 35.89 % |
| Loan Amount – starts from $1,000 |
| Term lengths – 3-5 years |
| Origination fee- 1% – 6% |
Pros
- Reasonable repayment schedules
- Fixed interest rate throughout the repayment duration
- Smaller loans as $1000
- Good company reputation
Cons
- High-interest rate
- Origination fee
For more information, log into lendingclub.com
Below two online lenders do not consider your credit history when lending installment loans for bad credit. As benefit comes with a price, their interest rates are quite high but way better than payday loans. These loans also allow you to pay back on an installment basis, which is convenient than a payday loan. We advise you to go for this only if you are truly unable to get a credit-check installment loan.
OPOTRUN
This online lender provides installment loans for bad credit without considering the credit score of the borrower. They are quite easy and fast to get. APR is very high compared to credit check installment loans. Good to borrow small amounts.
| Min. credit score: None |
| Est. APR – 20% – 67% |
| Loan Amount – $300 – $9,000 |
| Term lengths – 6-46 months |
| Origination fee- none |
Pros
- No credit check
- A bank account is not required
- Smaller loans as $300 are available
- Fast funding
- No origination fee
Cons
- Very high-interest rate
- Limited to a selected number of states
For more information here, oportun.com
Opploans
Opploans are available for inferior credit holders when they have emergency financial needs. They offer fast funding, and small loan amounts are available. As for non-credit check installment loans, Opploans have very high APRs. You need a bank account if you are applying for a loan from Opploans.
| Min. credit score: None |
| Est. APR – 59% – 199% |
| Loan Amount – $ 500- $3,000 |
| Term lengths – 0- 2 years |
| Origination fee- none |
| Minimum monthly gross income- $1,000 (must be employed or have benefits, cannot be self-employed) |
Pros
- No credit check
- Smaller loans as $500 are available
- Fast funding
- No origination fee
- Flexible repayment plans
Cons
- Very high-interest rate
- Short repayment terms
Find out more at opploans.com
Try your local bank and credit unions too
Local banks and credit unions, too, may have installment loans for bad credit. Just go and have a chat with an official. When you have a regularly updating bank account in your local bank, you have a chance of getting a loan from them.
As your monetary transactions are visible to them, they may consider your loan request.
Nothing to lose for the asking, right?
Even if they do not offer you a matching option, the loan officer will give you some advice on possible alternatives. So, it is worth stopping by your local bank.
Credit unions may offer your Payday alternative loans, which will provide you with better interest and a more extended repayment plan. This may be a better option than payday loans and non-credit check online installment loans, which have sky-high interest rates. So it is a worth considering option if your credit score is very much weak.
Pros
- The loan officers will advise you in person on your financial status
- Professional advice will guide you to avoid fraud lenders and marketing tricks
- Loan officers review can be very beneficial in the application process
Cons
- Have to spend much time on the process
- The application process can be complex
- Credit union membership is necessary to borrow from a local credit union
In summary
Financial requirements can be unavoidable and unforeseen as life goes by. In such situations, you may need to look for a personal loan to fund your requirements.
Personal loans usually check on your credit score when approving a loan. In the face of a bad credit situation, still, some lenders are prepared to support you.
There are quick and easy loan options like payday loans, but those are very risky to take. Such loans can tangle you in the debt webs tightly.
Therefore, beware! Installment loans for bad credit come with high interest rates compared to loans given for good credit holders. But that is a much better and secure option than a quick and easy option like payday loans. They offer lesser rates than payday loans and longer repayment options. However, put your effort to improve your credit score as it positively affects your financial health very much.
