Can a Person Get Installment Loans for Bad Credit?
Having bad credit should not be the deciding factor that determines whether or not you get a loan. After all, the loan could be what keeps you afloat until you get back to work. https://ipass.net/installment-loans-for-bad-credit/
Predatory lending should not be your only way out. You work hard, and these types of companies do not deserve your money. Installment loans, and the companies that provide them, can provide you a much better service than payday lenders you might have seen. Their APR is lower, and the repayment terms are often easier to meet.
Most of us with poor credit scores think we will never be able to get a loan, so we do not even try. But, the reality is that online and alternative lending companies are willing to look at more than just your credit score when they decide to lend or not.
Many popular lending networks, and online ones that specialize in peer-to-peer lending, currently have fewer qualifications than they did years ago. For some of these installment loan companies, qualifications are as easy as being of the minimum borrowing age (18 years), being a U.S. citizen/legal resident, and having a bank account under your name.
Some also require you to show proof of income and that you have worked at your company for a certain number of years.
If you can find a lending company that will work alongside you, you will have a much easier time paying back the loan. This way, you can stay afloat and pay whatever emergency expenses popped up without dealing with shady predatory lenders.
Which Online Payday Loan Provider Is the Best for No Credit Check?
There are a number of payday loan organizations out there, as you can see. Our roundup here includes the top five we have found while researching. Many lenders are willing to work with you if you have bad credit, but it is hard to know which of them will offer you rates that actually fit your budget.
There is no one-size-fits-all option for online lenders if you have bad credit. But, here are some things to watch out for as you shop around for an installment loan.
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- Review the reputation of the lender. Make sure you read some reviews that come from people who have actually used the service. You should also review any and all complaints that have been filed against the company. You might even consider making a post on your social media asking if anyone else has used the company, although we know that discussing financial matters is quite personal.
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- What fees are you up against? Some companies charge you to pay over the phone, while others may charge you for repaying the installment loan early. Make sure you are aware of any and all fees the company will charge. They are required to be listed in the installment loan offer, so make sure you understand them. There are also some practices that are illegal in terms of lending. You should read this article from debt.org about predatory lending practices to know what to watch out for.
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- Are the terms of the installment loan reasonable and fair? If you have bad credit, high interest comes with the territory. However, all relevant info, such as loan APR, terms, and total loan amount to be repaid, must be clearly stated to you.
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- Installment payments should apply a dollar amount to both your interest and your principal. If the initial repayments are only for paying interest, it is not a genuine installment loan, and you should look elsewhere.
Do These Payday Loan Organizations Run Credit Checks?
If you are here, you probably have poor credit. Therefore, you are hoping they do not run a credit check, because you need an installment loan and fast. So, the good news is that a number of lenders will extend their offerings to people who do not have excellent credit.
For those that need a personal installment loan but do not think they can pass a credit check, here are a few things to note.
First, your installment loan amount is going to be rather small. You might get $500 if you are lucky. Second, the interest is going to be quite high, more than that of a credit card. So, you will probably be dealing with interest rates of 35% and higher on your installment loans for bad credit.
Lastly, the terms for repayment will be just a bit longer than your usual payday loans, as you can expect three months, give or take.
Those of you with poor credit should try to do everything you can to boost your score before you get a personal installment loan. Even getting it up by 30 points can help you get a better rate.
In addition, make sure you obtain copies of your credit report. You can go to AnnualCreditReport and get it, and then you will want to look it over for inaccuracies or errors. If you notice one, you can fill out a discrepancy report with the reporting agency for entries that are not correct.
Errors on credit reports are more common than you think. CNBC reports that a third of Americans have them.
Getting those errors off your report could be the ticket to a better score, and in turn, a better rate. So, although it will take a few hours, it could save you a lot of headaches and money.
If you still insist on getting a personal payday loan that requires zero credit checks, make sure you know what you are getting into first. The networks and cards we have listed here are legitimate. But, make sure any offer you receive is reviewed carefully, and most of all, be brutally honest with yourself about whether or not you can genuinely repay it.
Final Thoughts
We hope this guide has been helpful to you. Check out any of the lending networks above if you need some money for an unexpected expense. However, make sure to read all of the terms carefully before you sign anything on your online payday loans application.
