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Installment Loans for Bad Credit
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Financial health is an important factor in any individual’s life, and with a few poor decisions, one might find themselves with a bad credit score. Credit can be a determining factor for many of the investments we make in life, such as a home, car, or other large purchases that would require approval for a loan. That being said, bad credit shouldn’t be seen as a financial death sentence, and often a loan can even help individuals strengthen their credit. An installment loan is a popular option for those with a lower credit score because it can help borrowers secure funding and pay off the loan amount over a long period. But how do installment loans for bad credit work?
In this article, we’ll explore the process of getting approved for installment loans with bad credit, some of the best installment loans for bad credit on the market, as well as what the qualification and approval process for an installment loan typically involves. With the help of SAIL Loans, borrowers can secure funding regardless of their credit score.
An installment loan is a loan in which the borrower sets a specific loan amount that they receive all at once that they repay over a fixed number of payments, or “installments”. Installment loans typically feature fixed payment amounts as well, so the payment never changes throughout the loan’s lifespan. Borrowers can avoid interest rates affecting the loan’s repayment amount over time by making timely fixed payments. An installment loan is essentially a repayment process, and borrowers seek these loans for various reasons.
Some of the most common reasons borrowers might apply for an installment loan is to secure funding for a large purchase, such as a home, vehicle, or even college education. Likewise, a person might apply for a loan due to an emergency expense such as an auto repair, medical bill, or other unexpected expense. The nature in which the loan’s repayment is spread out over a large period can be an attractive proposition for those looking to make these larger purchases that might not have the capital to do so.
The first question borrowers have when first learning about installment loans is how their credit score might impact their qualification process. Installment loans can be received by applying through a bank, credit union, or online lender such as SAIL Loans. As with other loan types, applying for an installment loan will require a hard credit check which will reveal a poor credit score as well as any outstanding debts.
Many lenders will still offer installment loans for bad credit or low credit scores, but borrowers can strengthen their application by ensuring they have secured the basic qualifying factors (which we will explore below). Many borrowers looking for personal installment loans for bad credit will work with a direct lender to access funding quickly while paying it off over time.
Now that we understand what an installment loan is and how an installment loan typically works, let’s dive into some of the best installment loans for bad credit. For borrowers seeking clarity on what they should look for when exploring their options, these are some of the most common installment loans for individuals with poor credit:
A guaranteed installment loan refers to an installment loan from a lender with a high approval rate. It’s crucial to clarify that this isn’t necessarily a 100% approval rate. Many lenders will try to claim that they offer guaranteed approval to mislead borrowers into applying only for them to learn that they are denied. Any lender will have firm qualification criteria and approval is never 100% guaranteed. That being said, direct and online lenders will typically boast a higher acceptance rate as opposed to credit unions or banks due to their non-traditional qualification process. Direct and online lenders can exercise more flexibility during the pre-qualification and application process and will refer to their loans as guaranteed installment loans.
As we’ve briefly discussed, online installment loans are commonly sought after by individuals with bad credit due to their non-traditional qualification and approval process. It’s common for those looking for immediate funding to explore online installment loan options because they can avoid hard credit checks that review credit scores, monthly purchases, and outstanding debts. Online lenders ditch these traditional credit checks and instead implement a soft credit pull, looking at minimum credit requirements and income verification.
Borrowers need to do their research when choosing an online installment loan, there are countless online lenders out there that boast quick funding while concealing astronomical interest rates that catch their borrowers off guard down the line. Especially for those looking for an installment loan with bad credit, a lower interest rate should be one of their top priorities when choosing a financial entity to borrow from. Luckily, with SAIL Loans, borrowers can feel rest assured that they’ve chosen an online installment loan provider they can trust.
As with other types of loans, installment loans come with their fair share of benefits and drawbacks. One of the main advantages of applying for an installment loan with bad credit is that it can offer an opportunity to strengthen one’s credit score if one can make timely and accurate payments. Installment loans can offer borrowers the ability to make big-ticket purchases with a predictable timeline for when the loan will be fully repaid. On the flip side of things, if a borrower with bad credit misses or doesn’t accurately make the appropriate payments they risk further lowering their credit score. This can be a huge hit to someone who already has poor credit, so they should do their proper research on interest rates and needed loan amounts before moving forward with an installment loan application.
The process of applying for an installment loan with bad credit looks very similar to those with amazing credit. Interested applicants can ensure their qualification by having proof of a consistent source of income, a valid ID, access to an active checking account, and a reliable phone number for contacting purposes. While application criteria will vary based on the lender’s state, applicants will usually need to be 18 years of age or older.
During the process of exploring the best installment loans for bad credit, borrowers might also identify cheaper alternatives to a loan. This could include a separate line of credit or low-interest credit card if they can qualify for these other options. They might also look into payday loans, which provide instant funding but can get pricey. Whatever option can secure funding while ensuring an individual’s credit isn’t negatively impacted is the best move.
Now that we’ve answered the most common questions for those learning more about installment loans, let’s dive into how to get your hands on one. The process of applying and receiving an installment loan is fairly simple. Here are the basic steps:
Having bad credit can be pretty frustrating, but should be seen as a roadblock rather than a stop sign. If you’re looking for funding for a larger purchase and need to secure funding fast, SAIL Loans might be able to help. With our simple application and qualification process and expedited funding procedures, borrowers with bad credit can find the financial help they’ve been seeking. SAIL Loans provides both online and in-person assistance to help answer any questions borrowers might have. Ready to apply for an installment loan? Learn more about SAIL Loans today!
In this article, we’ll explore the process of getting approved for installment loans with bad credit, some of the best installment loans for bad credit on the market, as well as what the qualification and approval process for an installment loan typically involves. With the help of SAIL Loans, borrowers can secure funding regardless of their credit score.
What is an Installment Loan?
An installment loan is a loan in which the borrower sets a specific loan amount that they receive all at once that they repay over a fixed number of payments, or “installments”. Installment loans typically feature fixed payment amounts as well, so the payment never changes throughout the loan’s lifespan. Borrowers can avoid interest rates affecting the loan’s repayment amount over time by making timely fixed payments. An installment loan is essentially a repayment process, and borrowers seek these loans for various reasons. Some of the most common reasons borrowers might apply for an installment loan is to secure funding for a large purchase, such as a home, vehicle, or even college education. Likewise, a person might apply for a loan due to an emergency expense such as an auto repair, medical bill, or other unexpected expense. The nature in which the loan’s repayment is spread out over a large period can be an attractive proposition for those looking to make these larger purchases that might not have the capital to do so.
Installment Loans for Bad Credit
The first question borrowers have when first learning about installment loans is how their credit score might impact their qualification process. Installment loans can be received by applying through a bank, credit union, or online lender such as SAIL Loans. As with other loan types, applying for an installment loan will require a hard credit check which will reveal a poor credit score as well as any outstanding debts. Many lenders will still offer installment loans for bad credit or low credit scores, but borrowers can strengthen their application by ensuring they have secured the basic qualifying factors (which we will explore below). Many borrowers looking for personal installment loans for bad credit will work with a direct lender to access funding quickly while paying it off over time.
Best Installment Loans for Bad Credit
Now that we understand what an installment loan is and how an installment loan typically works, let’s dive into some of the best installment loans for bad credit. For borrowers seeking clarity on what they should look for when exploring their options, these are some of the most common installment loans for individuals with poor credit:
Guaranteed Installment Loans for Bad Credit
A guaranteed installment loan refers to an installment loan from a lender with a high approval rate. It’s crucial to clarify that this isn’t necessarily a 100% approval rate. Many lenders will try to claim that they offer guaranteed approval to mislead borrowers into applying only for them to learn that they are denied. Any lender will have firm qualification criteria and approval is never 100% guaranteed. That being said, direct and online lenders will typically boast a higher acceptance rate as opposed to credit unions or banks due to their non-traditional qualification process. Direct and online lenders can exercise more flexibility during the pre-qualification and application process and will refer to their loans as guaranteed installment loans.
Online Installment Loans for Bad Credit
As we’ve briefly discussed, online installment loans are commonly sought after by individuals with bad credit due to their non-traditional qualification and approval process. It’s common for those looking for immediate funding to explore online installment loan options because they can avoid hard credit checks that review credit scores, monthly purchases, and outstanding debts. Online lenders ditch these traditional credit checks and instead implement a soft credit pull, looking at minimum credit requirements and income verification. Borrowers need to do their research when choosing an online installment loan, there are countless online lenders out there that boast quick funding while concealing astronomical interest rates that catch their borrowers off guard down the line. Especially for those looking for an installment loan with bad credit, a lower interest rate should be one of their top priorities when choosing a financial entity to borrow from. Luckily, with SAIL Loans, borrowers can feel rest assured that they’ve chosen an online installment loan provider they can trust.
Installment Loans for Bad Credit: Common Questions Answered
Now that we’ve reviewed some of the best installment loans for bad credit, let’s go over a few of the most common questions from borrowers first learning about installment loans that might have poor credit.
What are the Pros and Cons of Applying for an Installment Loan with Bad Credit?
As with other types of loans, installment loans come with their fair share of benefits and drawbacks. One of the main advantages of applying for an installment loan with bad credit is that it can offer an opportunity to strengthen one’s credit score if one can make timely and accurate payments. Installment loans can offer borrowers the ability to make big-ticket purchases with a predictable timeline for when the loan will be fully repaid. On the flip side of things, if a borrower with bad credit misses or doesn’t accurately make the appropriate payments they risk further lowering their credit score. This can be a huge hit to someone who already has poor credit, so they should do their proper research on interest rates and needed loan amounts before moving forward with an installment loan application.
What Do I Need to Apply for an Installment Loan with Bad Credit?
The process of applying for an installment loan with bad credit looks very similar to those with amazing credit. Interested applicants can ensure their qualification by having proof of a consistent source of income, a valid ID, access to an active checking account, and a reliable phone number for contacting purposes. While application criteria will vary based on the lender’s state, applicants will usually need to be 18 years of age or older.
What Other Options are Available to Those with Bad Credit?
During the process of exploring the best installment loans for bad credit, borrowers might also identify cheaper alternatives to a loan. This could include a separate line of credit or low-interest credit card if they can qualify for these other options. They might also look into payday loans, which provide instant funding but can get pricey. Whatever option can secure funding while ensuring an individual’s credit isn’t negatively impacted is the best move.
How to Get an Installment Loan with Bad Credit
Now that we’ve answered the most common questions for those learning more about installment loans, let’s dive into how to get your hands on one. The process of applying and receiving an installment loan is fairly simple. Here are the basic steps:
- Shop the Market: A bad credit score shouldn’t thwart an individual’s ability to make important investments, but those looking for an installment loan with bad credit should choose their lender wisely to get the best interest rate and offer.
- Begin the Qualification Process: Pre-qualification is when borrowers identify and review interest rates and payment terms that would impact credit the least. It’s important to consider the borrower’s monthly budget to choose the appropriate terms. This is also the point at which borrowers might consider offering collateral for a lower interest rate to optimize their loan application.
- Apply: As we stated, installment loans are available through banks, online lenders, or credit unions. SAIL Loans proudly offers a quick and expedited application and qualification process for those with a low or poor credit score looking for up to $4000 in funding.