Can I get an Installment Loan with Bad Credit?
Do you need money but have bad credit? If so, you may be wondering if you can get an installment loan online with your less-than-perfect credit score. The short answer would be yes. However, as with any type of loan and credit rating, there are many factors to take into consideration before you decide to apply.
In a nutshell, when you apply for a personal loan online, you are going to be applying for an installment loan. These types of loans allow borrowers to ask a lender for a specific amount of money. The amount you borrow plus interest will be repaid to the lender in equal payments monthly. There are many lenders that market loans to borrowers who don’t have perfect credit ratings. Most of these lenders offer terms for their loans that surpass what borrowers would get taking out a payday loan or a cash advance.
Installment Loan Options
Whenever you borrow a fixed amount and repay monthly or weekly on a set schedule, it is an installment loan. These types of loans are common and can be seen with mortgages, auto loans and personal loans. While having a good credit rating gets borrowers the best interest rates, borrowers who have bad credit can still get an affordable loan from the right lender.
When you are looking to get qualified for an online installment loan with affordable terms and conditions, it is important to compare lenders and options. Never sign for a loan quote until you have taken the time to read through the small print. This will help you be sure there are no hidden fees or costs associated with the loan you are applying for.
What Exactly Are Bad Credit Installment Loans?
Bad credit installment loans are a type of online personal loan that borrowers may apply for. They are designed to help people with imperfect, low or no credit histories get the money they need for a financial emergency or debt management. Some banks and credit unions offer bad credit installment loans. However, shopping for a loan online will allow borrowers to compare numerous loan options to get the best deal available to them.
Many borrowers with bad credit will need to put up collateral in order to secure an installment loan. If an online loan does not require collateral put up, the loan is referred to as an unsecured loan. For borrowers who are credit-challenged, loans will often come with higher interest rates for both unsecured and secured loans than with borrowers who have good credit.
Common Features Of Installment Loans With Bad Credit
Installment loans for borrowers with bad credit function similarly to those borrowed by consumers with great credit. Some of the common features include:
- Loan Sum- The amount you can borrow will range from a couple hundred to several thousand.
- Repayment Terms- The schedules for repaying your installment loan will be pre-set and come with equal payments. The repayment period can range from a few months to many years.
- Variable or Fixed Interest Rates- Fixed rates are the best type of rate to get because the amount you pay in interest will remain the same over the course of the loan term. Variable interest rates can be changed by the lender and can fluctuate over time. Variable rates get tied to financial indexes.
Eligibility Requirements For Bad Credit Installment Loans
The eligibility requirements for bad credit installment loans will vary between lenders. However, all lenders will require the same basic information from their customers, including:
- The full legal name of the borrower
- Proof of identity and age
- Income and employment information
- Social Security number
Lenders of bad credit personal loans may allow their customers to check their eligibility for a loan with them without the need of a hard inquiry to the credit report. When you are comparison shopping loans and lenders, look for the companies that allow you to provide enough information to get soft inquiries only. Too many inquiries in a specific time period can affect your score.