In order to choose the best Installment Loan offer for bad credit, you must pre-qualify, compare annual interest rates and understand fees.
Bad Credit Installment Loans
Each of us faces financial difficulties from time to time, such as paying an unexpected bill, urgent purchase, car repairs, medical treatment, and so on. Thus, even trustworthy borrowers with good credit may miss payments from time to time due to financial difficulties they are facing. However, can you get an Installment Loan if you have a bad credit history and have previously missed payments? Can you get a favorable loan offer? Keep reading to find out the details.
What Should I Know About Installment Loan
First of all, you should know that an Installment Loan is a type of financing that is paid out in regular monthly installments or over a certain period of time. This loan may be either secured or unsecured depending on the type of Installment Loan.
The most common types of Installment Loans include Mortgage, Student Loan, Personal Loan and Auto Loan, each of which is designed to meet the needs of the borrower.
Installment Loan Rates, Terms And Amounts
At the moment, the Installment Loan is the easiest way to get a large enough amount of money to cover any of your needs. The most common installment lender offers between $1,000 and $100,000, which is often enough to cover the costs.
Repayment terms can also vary from a few months to 30 years, depending on the type of loan, loan amount, and other factors. Interest rates can vary significantly depending on the lender you choose and the laws of the state where you live. Most often, installment lenders have interest rates ranging from 5.94% to 35.99%.
Bad Credit Installment Loan
Even if you have a bad credit history, you should not worry, because installment lenders have long been offering loans to people with different types of credit. So, even if you have had problems paying off your debts in the past, you can still apply and get a Bad Credit Installment Loan now.
However, it is important to understand that a credit score shows the lender the creditworthiness of the borrower. Thus, the worse your credit history, the less favorable interest rates you will receive.
5 Easy Steps To Get Bad Credit Installment Loans
Getting a Bad Credit Installment Loan has become as easy as it gets as more and more lenders now offer online financing. Thus, you can choose which of the options suits you best – online or offline. Learn a few simple steps to help you get money for your needs:
| Compare different loan offers | In order to get the best loan, you should pay attention to the large number of loan offers in the state where you live. Paying attention to interest rates and loan terms, you will be able to find a lender who will offer you the best loan. |
| Use prequalification procedure | Now more and more installment lenders are offering you a pre-qualification that will show you if you can be approved. Also, thanks to pre-qualification, you will be able to find out what potential interest rates and lending conditions you can get. Do not worry, as this procedure will not damage your credit score. |
| Fill in application form online or offline | By visiting the lender’s website or its nearest location, you will need to fill out a simple application that will not take more than 10-15 minutes. Provide the required information about yourself, such as name, residential address, income, contact information, and more. |
| Wait for approval | If you have reviewed your chosen lender’s eligibility criteria and state laws in advance, your application will be approved within one to two days. And once you receive an answer, the lender will contact you in order to discuss the terms of the loan and debt repayment. |
| Get money for your needs | After you sign the contract, you will be able to get paid. Depending on how you applied, you will be able to receive funding online or offline. |
Can I Improve My Credit With Installment Loan?
You should be aware that installment payments can either improve or worsen your credit. Let’s see why.
First of all, you should understand that more often than not, an Installment Loan requires a hard credit check, which can temporarily worsen your credit score. However, if you repay the loan in regular monthly installments, your credit history will improve. This happens because installment lenders report your payment details to at least one of the three credit bureaus. Therefore, an Installment Loan can help you improve your credit.
However, you should also be aware that late or missed payments can negatively affect your credit history. Therefore, before you apply, you must ensure that you can actually repay the Installment Loan with Interest on time.
How To Choose The Best Installment Loan For Bad Credit?
Even if you have a bad credit history, most likely you want to find the best loan offer in order not to overpay a large amount in interest. Below you can explore a few things to look out for when choosing an Installment Loan for Bad Credit:
- Compare annual interest rates. As already mentioned, installment lenders may offer different interest rates, so you should compare different offers in order to choose the cheapest and most favorable one.
- Learn fees and commissions. While some lenders may not charge any fees at all, others have an origination fee, an early repayment fee, and others. Thus, it is better for you to choose the lender with the minimum number of commissions.
- Use prequalification. This option does not affect your credit and helps you understand what potential interest rates and loan terms you can get.