It’s no secret that at some stage of our lives most of us have been financially unstable, or even broke. Now, It’s nothing to be ashamed of. Because, at some point, we all needed that help to get on our feet again just to get going. In such situations, our best hopes are to secure Installment Loans For Bad Credit. However, many think it’s impossible to get a loan when your credit scores aren’t looking very good… But, bad credit loans guaranteed approval isn’t impossible if you just look for the right lender.
What is an Installment Loan?
An installment loan is a financial product that allows you to borrow a fixed amount of money. And repay it over time. These loans have the benefits of fixed interest rates and fixed monthly payments. So that you know exactly how much you owe each month until the final payment is due.
Finding and securing installment loans for bad credit isn’t that easy. Many give up after making many appointments with personal bank officers. But the problem isn’t with the lender, it’s just you haven’t contacted the right one!
We wanted to help you compare the best financing options available in your query. So, we’ve looked at more than a dozen of potential loan opportunities. The 7 chosen installment loans of the lenders listed below were selected based on some important factors. Such as the amount of minimum credit required, APR, and term length.
|Lender||Loan Amount||APR||Term Length||Minimum Credit Score||Learn More|
|$1,000-$50,000||5.94%-35.97%||Either 3 years or 5 years||620, Below 600 (with co-signers)||Proceed to Upgrade|
|$2,000-$25,000||15.49 % – 35.49%||2 years – 4 years||600||Proceed to LendingPoint|
|$1,000 – $50,000||6.46% – 35.99%||Either 3 years or 5 years||580||Proceed to Upstart|
|$2,000-$35,000||9.95% – 35.99%||2 years – 5 years||550||Proceed to Avant|
|$1,500 – $20,000||18.00% – 35.99%||2 years – 5 years||600 – 650||Proceed to OneMain Financial|
|$1,000 – $50,000||8.93% – 35.93%||2 years – 5 years||580||Proceed to Universal Credit|
|$300 – $10,000||19.90% – 35.99%||7 – 35 months||None||Proceed to Oportun|
Disclaimer: These credit details are updated at the time of publication. But, you can always browse the lender’s website for the most up-to-date information and proceed.
Enter your Loan Amount, Term Length and find out the Repayments and Total cost here.
What values fall under bad credit scores?
The FICO Score is one of the most common credit ratings used by lenders. On this scale, credit score starts from 300 and goes all the way up to 850. Most lenders consider the bad credit scores are the values below 670. The following table provides more details on where the scores fall.
|Your Credit Score||Credit Score Rating|
Benefits of Installment Loans in General
One of the most attractive features of installment loans is their versatility. You can get them to pay for bigger purchases like a car or a home. Anyone can use an installment loan to get ahead financially or buy something instantly. Otherwise, it’s about than saving money for months if not years. This is also true for Installment Loans For Bad Credit as well.
In most cases, people use installment loans when they need to cover unexpected costs. E.g: Car repairs or hospital bills etc. Or they need extra money for a particular event, such as a down payment on a car. Others use installment loans to pay credit card balances or consolidate debts. Instead of relying on high-interest credit cards or depleted savings accounts, many people choose to pay with an installment loan for repairs and improvements to their homes.
Whether you are financing a large purchase or consolidating other debts, an installment loan offers a fixed repayment plan that fits into your monthly budget.
And as a side note, we must point out that the bad credit loans online offers are on the rise. If you need to read our full article about recommended online lenders, head over HERE.
For many people, installment loans are a great way to borrow money to begin building a better future. However, these loans are intended as a short-term, occasional solution and not as a response to current assistance.
Installment loan rates including the rates for installment loans for bad credit have better terms than other potential financing options, such as payday loans. But by using these options you may be subject to higher fees and higher interest rates.
What can you buy/do with installment loans for bad credit?
- You could possibly consolidate your debt.
- You will probably buy a better car.
- Build your dream home.
- Have your wedding majestically.
- Remodel your home.
- For any Emergency expenses.
A mortgage loan is a secured loan used for the sole purpose of buying a property (usually a house) and repaid over a long time period which can be 30 years or more. But, installment loans for bad credit are repaid over two to five years, a lot shorter than with mortgages. As pointed above, these loans can be used in myriad ways, from consolidating debt to financing construction projects. And for the things like paying for a wedding, covering emergency costs, and much more.
Things to look out for when securing Installment loans with poor credit scores
Usually, one needs to do his or her due diligence for bad credit loans guaranteed approval. But luckily we have done the research already and have listed the best available lenders at the moment. Choosing the one that suits you between these 7 options and securing your loan is your choice to make.
You can assume that your installment loans will have a higher interest rate and higher loan fees. These fees can include fees such as inception fees. Keep in mind that this isn’t always the case and can vastly differ with the lender. And the amount of your loan can affect the amount of credit, the interest rate, and the maturity for which you qualify. Lenders have different eligibility requirements, so better to check what your best options are. They will collect information about you, such as Your debts, your monthly transactions, and your income.
Below is the list of 7 online lenders that provide installment loans for bad credit ratings with a detailed description.
Without any doubt, Upgrade is one of the best options for those who have bad credit scores. Here at debt relief matters, we definitely recommend this lender as the best option that you can go with a poor credit score.
Upgrade provides personal loans to borrowers with a credit rating (FICO) of 620 and no minimum annual income. This lender considers candidates with poor credit ratings by assessing their free cash flow and current debt-to-income ratio. If your credit score is below the minimum requirement of 600, the upgrade will accept co-signers.
Upgrade offers unsecured loans and personal loans for a fixed credit rate, personal loans for debt consolidation and, personal loans for credit card refinancing. Again this lender is one of our best choices for people looking for installment loans for bad credit.
Upgrade bad credit loan summery
Interest Rate: 5.94%-35.97%
Term Length: Either 3 years or 5 years
Loan amount: $1,000-$50,000
Minimum Credit Score: 620, Below 600 (with co-signers)
Sample Loan: For a $15,000 loan with an APR of 12.66% for the terms of 3 years, the monthly payment is approximately $449.50 US dollars.
LendingPoint is an online lending institution that provides personal loans of up to $25,000. They guarantee the availability of online loan applications at all times. And they also make sure to deposit approved funds into your account on the next business day. To be eligible you must have a minimum credit rating (FICO) of 585 and a minimum annual salary of $25,000. So if you are looking for bad credit loans online definitely LendingPoint is a place worth checking.
If you need to find out about bad credit loans online read this post right HERE.
LendingPoint bad credit loan summery
Interest Rate (APR): 15.49% – 35.49%
Term Length: 2 years to 4 years
Loan amounts: $2,000-$25,000
Minimum Credit Score: 600
For consumers with imperfect loans, the interest rate is high at Upstart, with a cap of 35.99 percent. The initial fees can be up to 8 percent of the loan amount.
First of all, you need to know that Upstart is an online lending agency. So if you are looking for bad credit loans online, do check out this famous lender. Their terms vary from state to state, and residents of Iowa or West Virginia cannot obtain loans. Upstart considers various factors, other than just your credit rating to approve you for a personal loan. These factors can be related to your professional careers, such as your occupation and employer. Or they can be related to your academic journey such as your degree, your field of study and, the school or university you attended/attend.
Upstart was founded by a former Google employee. It uses artificial intelligence and machine learning algorithms to automate your credit process. Generally speaking, Upstart will provide loans to people with “satisfactory credit ratings” while considering other factors mentioned above. However, Interest rates might be higher for those looking for installment loans for bad credit.
All Upstart personal loans have a fixed interest rate. The initial interest rate is higher than the interest rates offered by other lenders. Upstart stated on its website that the average annual interest rate for a three-year loan is 24.53%. You can choose from three to five years. However, there is no early repayment penalty, so you can repay the loan early for free. If you want a shorter loan period, you need to look elsewhere.
Upstart bad credit loan summery
Interest Rate: 6.46% – 35.99%
Term Length: either 3 years or 5 years
Loan amounts: $1,000 – $50,000
Minimum Credit Score: 580
Avant is another popular online lending company that offers bad credit loans.
At Avant, Annual interest rates start at 9.95% and range up to 35.99. But it is possible to get a more reasonable rate by saving money for debt consolidation or other lending purposes. Loans with lower APR are aimed at consumers with good credit. Therefore, you need a credit score of at least 680 to get a low annual interest.
But the good news is that Avant focuses on clients who are looking for installment loans for bad credit. Most importantly, Avant allows you to pre-qualify without a hard check of your credit report. Avant also serves a wider range of loans than many other lenders do..
Avant does not have a hard minimum credit score, but most of its customers fall within the range of 600-700.
You must also watch out for handling fees, and late fees.
For the consumers with low credit rates, interest rates can be high, peaking at 35.99 percent. This can be true with many other lenders who are willing to offer installment loans for bad credit.
Avant bad credit loan summery
Interest Rate: 9.95% – 35.99%
Term Length: 24 to 60 months
Loan amounts: $2,000-$35,000
Minimum Credit Score: 550
OneMain Financial is an excellent, large lender that provides personal installment loans for bad credit. Their loans have a fixed interest rate and a term length of 24 to 60 months. You can get the loan on the same day that when your loan is approved. To be eligible, you need to meet up with a credit expert at your local branch to complete the loan application process. You must bring the necessary documents to verify your identity.
OneMain Financial offers unsecured and secured personal loans. If you are reading this post to look for the best Secured Loans with bad credit scores, we definitely suggest you go with OneMain Financial. It offers secured loans to people with poor credit ratings, who use cars, apartment buildings, or motorcycles as collateral. When you go for the secured loans, you will have to purchase insurance to cover the damage guarantee. (If you haven’t already).
Furthermore, you can apply individually or together with a joint applicant. Proceed to OneMain Financial equipped with this knowledge, then you will find out that bad credit loans guaranteed approval is not that hard.
However, note that there’s an account opening fee. This fee is a fixed percentage of the loan amount which can range from 1% to 10%.
OneMain Financial bad credit loan summery
Interest Rate: 18.00% – 35.99%
Account Opening fee: A percentage of the loan amount (1% to 10%).
Term Length: 24 to 60 months
Loan amount: $1,500 to $20,000
Minimum Credit Score: 600 – 650
Example loan: USD 15,000 loan with an annual interest rate of 19% for the terms of 5 years, the monthly payment is approximately $380 US dollars. But, note that this is an estimate and you need to discuss with the banker the exact amounts.
06. Universal Credit
Universal Credit is an internet lender operated via Upgrade Inc. (Upgrade Inc is one of the best options at the moment for people looking for installment loans for bad credit.) Universal Credit can be considered as the online counter partner of “Upgrade” for people looking for bad credit loans online. According to Universal Credit, its main goal is to “offer their clients credit when they need it most!” The lender offers private loan amounts from $1,000 to $25,000. Universal Credit does ask for an origination fee which will be taken out from your loan amount. But they do not have any prepayment penalties.
if you want a rate discount with Universal Credit there are two approaches you can take. First, you can register for automatic repayment. If you do so your monthly payment will be automatically withdrawn from your bank account, which they call “auto pay”. And the second approach is to use at least half of the loan amount to repay your credit card. Or to pay another loan you might have taken in past. Hence, if you want to consolidate debt, Universal Credit is very well worth it.
However, Universal Credit isn’t available in Iowa, West Virginia, and Washington, D.C.
Universal Credit bad credit loan summery
Interest Rate: 8.93% – 35.93%
Term Length: 24 to 60 months
Loan amounts: $1,000 – $50,000
Minimum Credit Score: 580
Let’s imagine that your credit score is really worse than you can ever imagine. And you just want a loan of up to $10,000. Then Oportun might be your best available option at the moment. Oportun is a California-based lender that offers its personal loans as an alternative to expensive payday loans and title loans. The company provides secured and unsecured loans to individuals ranging from as little as $300 to US$10,000. (Keep in mind that higher loan amounts are preferably offered to Oportun’s returning customers.)
Oportun also considers other information than your credit score when offering personal installment loans for bad credit. These can be your income and other personal recommendations.
But the best part is that with Oportun you may apply for a loan even if you have filed bankruptcy in the past. . Hence, with Oportun, bad credit loans guaranteed approval is something you don’t have to worry about.
You can get your Oportun loan online, in person, or over the phone. And you can get that cash quickly upon approval within the same day. You can use all these methods to request a loan in most states that offer Oportun loans. But if you live in Idaho, Missouri, or Wisconsin, you may only apply online.
Oportun is a good alternative to high-quality payday loans and title loans. But the average maximum personal loan interest rate can be relatively high. And it’s quite difficult to ask for a loan bigger than $10,000 from this lender.
Oportun bad credit loan summery
Interest Rate: 19.90% – 35.99%
Term Length: 7 to 35 months
Loan amounts: $300 – $10,000
Minimum Credit Score: None
Effects of Installment loans on your credit
Now, It’s always a good practice to boost your credit scores. So you can go for a better loan with a much lesser APR next time.
Punctual payments can boost your credit rating. If you achieve at least 35 percent of your score on time with your monthly payments, it can help your credit.
On the other hand, late payments or missed payments can have a negative impact on your score. Getting installment loans for bad credit repaid on time and in full can boost your score. Moreover, repaying the loan in full will improve your overall credit rating. It will remain on your credit report for 10 years. Once your loan is repaid, it is considered a closed account. Such a closed account with a good credit rating is good for you, as it will stay on your credit card file for at least 10 years and possibly longer.
Contrary to popular belief there’s always a chance for you to get installment loans for bad credit. And some lenders don’t even have a minimum credit score when offering a loan. But, they have other criteria to consider. For bad credit loans guaranteed approval, you must exactly know how to proceed with these lenders. Moreover, you gotta be careful about what you want and how much you want, and about the means of repayment. The 7 lenders mentioned in this article are some of the best lenders that you can have high hopes for. Go and compare what they offer and go for the absolute best option that suits your situation. And last but not least, you must repay in time to boost your damaged credit scores. Because It’s not acceptable to do the same mistake twice!