Installment Loans for Bad Credit History
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Are you short on cash? Do you need money to pay for unexpected car repairs, cover your tuition bill, or deal with a medical emergency? Installment loans for bad credit offer simple, short-term solutions to people who might not qualify for other types of lending products, such as second mortgages, lines of credit, and personal loans through traditional banks and financial institutions.
Bad Credit Installment Loans from Slick Cash Loan
If you need cash right away and your credit score is less than perfect, you have a few options. You could try to borrow money from your friends or family members, but that can lead to uncomfortable questions and unwelcome opinions about the state of your financial affairs. You might also consider pawning valuable items like electronics, jewelry or collectibles, but most pawn shops pay only pennies on the dollar and dealing with them can be a frustrating experience.
The good news is that there's a better way to access the cash you need when you need it. Bad credit installment loans with easy approval are designed to give you access to the money you require, even if you've had trouble with your finances in the past. The interest rates on bad credit loans are usually lower than the interest charged on payday loans and some credit cards.
Benefits Over Other Types of Bank Loans
When most people need to borrow money, they go to their local bank and deal with the stress of filling out a loan application, consenting to a full credit check, and waiting days or weeks for an answer. The reality is that banks have exceptionally tight lending criteria. It seems like only people with spotless credit records and hefty full-time incomes can get a personal loan from a bank.
Bad credit installment loans are designed for all those folks who don't meet the tough lending criteria that are used by most big banks, including people who have less than perfect credit score or no credit history at all. Bad credit loans are very different from bank loans because they are available for people who simply don't meet the credit score and income requirements of a traditional lender.
Another significant difference between installment loans for bad credit and bank loans is the fact that applications for installment loans can often be completed online in a matter of minutes, which means you don't have to take time out of your busy day to meet with a bank loans officer.
Unlike many types of bank loans that require you to put up your house, car or other property as collateral, bad credit loans are unsecured. That means you won't have to leverage the assets you already own in order to borrow money.
Who Qualifies for Bad Credit Installment Loans?
Each lender has its own criteria for applicants. In general, borrowers need to:
- be at least 18 years old
- verify their identity with at least two valid government-issued documents, such as a driver's license, social security card or ID card
- have a U.S. checking or savings account
- hold a credit or debit card
- have proof of employment (either part-time or full-time) or another verifiable, legal source of income, such as disability insurance, alimony payments or welfare payments
- be able to show proof of income for the last three months
- consent to a credit check (in some cases)
- be capable of meeting the loan repayment schedule
How Bad Credit Installment Loans Work
Most bad credit loan applications can be completed online. You can fill in an online application form quickly, easily and securely.
Once you submit your application, one or more lenders will review it and respond with a loan offer that includes:
- the total amount you can borrow
- the interest rate
- the details of any additional fees that may be charged
After you and your lender agree to the terms of a loan, you can expect to receive the cash within one business day. The lender deposits the money into your U.S. bank account, and you are then free to use that cash.
You'll be given a repayment schedule that usually lasts for between 12 and 36 months although this term could be shorter, depending on the lender. Although you'll pay less interest overall if you repay the loan quickly, it's important to choose a repayment amount that you can afford.
Your payments may be due weekly, bi-weekly, or monthly. Each payment will be a "blended payment" that consists of a portion of the loan principal and the interest that has been accrued to date.
Frequently Asked Questions About Installment Loans for Bad Credit
Do you have questions about installment loans for people with poor credit scores? You'll find all the answers you need right here.
Will the Lender Check My Credit Score?
That depends on the lender and the amount of money you want to borrow. In many cases, lenders only perform a "soft pull" on your credit rating. This type of credit inquiry won't negatively impact your overall credit score.
In other cases, lenders may offer no credit check bad credit installment loans. That means the lender makes a decision on your loan application based only on the information you've provided, and you'll usually have an answer within just a few minutes.
Why Are the Interest Rates on Installment Loans for Bad Credit High?
Although the interest rates on bad credit loans are higher than those on traditional bank loans, they are lower than the rates of interest on most payday loans and some credit cards.
Borrowers who have bad credit scores are considered to be high-risk in the financial world. These borrowers have a history of missing payments, defaulting on loans, or have filed for bankruptcy. These are all factors that can increase the chances that they won't meet their loan obligations in the future.
Lenders charge premium interest rates on bad credit installment loans because there's a good chance they might not recover the money they've loaned. By charging a high interest rate, they make sure that they won't lose money overall, even if some of their borrowers fail to repay their bad credit loans.
What Should I Do if I Can't Make My Payments?
If you're worried that you might not be able to make the next payment on an installment loan for bad credit you've taken out, the first thing you need to do is contact your lender right away. While the terms of most bad credit installment loans are strict, you may be able to renegotiate the payment schedule if you are honest about your situation.
Remember that you're ultimately responsible for paying back the money you borrowed, and your lender isn't obligated to accommodate any special requests to keep you from defaulting.
I've Heard That Fees for Bad Credit Loans Can Add Up. Is That True?
While installment loans for bad credit do cost more than many other loans simply because the interest rates are higher, you shouldn't have to worry about extra fees and surcharges if you meet your loan payments on time. On your payment due date, your lender will either need an in-person payment, or the amount owed will be withdrawn automatically from your bank account.
If you don't have enough money in your account to make the payment (including the interest), you can expect to be charged a non-sufficient funds (NSF) fee by your bank. Your lender will probably try to withdraw the money you owe a few more times, and each attempt will incur another NSF charge from your bank — all those bank fees can add up quickly.
How Much Money Can I Borrow?
The amount of money you can borrow with an installment loan generally ranges from $100 to $5,000. The loan amount offered can vary from lender to lender, based on your application. Some lenders cap their bad credit loans at a maximum of $1,500, while others will only give first-time borrowers up to $500.
Once a borrower has proved that they are responsible and able to meet the terms of the loan, the lender will often increase their credit limit. Therefore, it can be a good idea to accept a loan offer that is lower than the total amount you'd like to borrow. Once you've repaid that loan in full, the lender may be willing to extend you more credit for a larger amount.
How Do Bad Credit Installment Loans Impact My Credit Score?
Taking out an installment loan and paying it back on time can help improve your overall credit rating. There are several factors that make up your credit score, and one of the most important is your repayment history. Perhaps your current credit score is lower than you'd like it to be because you missed a few payments on your utility bills, had trouble with your mortgage due to medical issues, or got caught up in a bad relationship that ruined your credit rating.
Taking out an installment loan for bad credit and repaying it in full can help you repair your credit rating by demonstrating to lenders that you are willing and able to be a responsible borrower.