For those with a low credit score, getting approved for loans can be challenging. There are many lenders out there offering loans for bad credit fortunately. Installment loans for bad credit can be a wise choice.
Installment loans offer reasonable fixed interest rates and structured monthly payments based on loan terms, loan amount and APR. A regular monthly installment will avoid stressful balloon payments associated with other types of loans such as short-term payday loans.
The terms and conditions of installment loans also tend to be more flexible, making them a more accessible option for a customer with bad credit.
Installment loans for bad credit are generally more short-term than similarly structured personal loans. The duration of installment loans can be as short as 90 days or can last up to 7 years. Amounts ranging from $2,000 up to as much as $40,000 can be borrowed, depending on the lender. Monthly payments include both principal and interest, allowing you to chip away at the principal sum from day 1.
Why you should choose an Installment Loan over a Payday Loan
On this site we’ll explain why you should choose an installment loan for bad credit over a payday loan, and we’ll show you the lenders whom we consider to be the best in the industry.
Installment Loan for bad credit advantages compared to Payday loans
- Higher loan amounts, common amounts range from $2,000 to $5,000 or higher
- Longer repayment plans – Easier to repay
- Lower monthly payments (if you choose a longer loan term)
In 2021 the popularity of online installment loans for bad credit increased, and now more and more lenders are moving away from payday loans and are instead offering installment loans to customers. Installment loans are simply easier to repay. Unlike payday loans where you have one huge balloon payment due by your next paycheck, installment loans offer you the choice to have longer loan terms so you can have smaller monthly payments. For many Americans, this is a much safer option than having to pay one huge lump sum by their next paycheck.
Two options for Bad Credit Loans
The number of available loans is almost endless, so we’ve created two lists: one list for borrowers with bad or good credit score that needs an installment loan, and the other for borrowers that are looking for a short payday loan. For borrowers with low credit score, the requirements are few and easy to meet, but the interest rates are higher compared to loans offered to those with better credit. Borrowers with good credit will have more requirements to meet (some of which are difficult to obtain), but, consequently, will have better interest rates and will save more money in the long run.
Guaranteed Installment Loans for Bad Credit?
Unfortunately, there are no “guaranteed installment loans for bad credit, with no credit check and instant approval,” BUT different lenders do have different requirements. This means that, even if one lender says no to your loan application, there is always a chance another lender will say yes.