Installment Loans For Bad Credit
You may be eligible for an installment loan even if your credit score is bad. An installment loan allows you to borrow a fixed amount and then repay it over time with fixed payments.
Lenders will look at your income and your current debt to determine whether you are approved for an installment loan. This is in addition to your credit score or credit history.
Let’s look at installment loans for people with bad credit.
Installment Loans: What is considered bad credit?
Credit scores can range from 300 up to 850. Your credit score will determine how responsible you are as a borrower. Here are the most common credit scores and their ratings.
Rating Credit Score
- 300-579 Very poor
- 580-669 Fair
- 670-739 Good
- 740-799 Very Good
- 800-850 Extraordinary
It may be difficult to get approved for personal loans if your credit score falls below the Fair or Very Poor ranges. Lenders will view you as a risky borrower who may never repay a loan.
Your credit score will not be a factor in your ability to get payday loans, installment loans, or title loans from Oak Park Financial. Borrowers with poor credit can apply for this option and may be approved for a loan when they most need it.
Comparing installment loans for Bad Credit
There are many installment loans online that you can choose from, regardless of your credit rating. It is important to compare all options. Pay attention to these things when you do this.
The interest rate will determine how much the loan will cost over its life. Oak Park Financial offers small-dollar installment loans to borrowers with all credit scores.
Lower monthly payments are possible with a longer loan term. A shorter loan term will save you money on interest. You can get an installment loan for between 3 and 36 months depending on your state and the amount of the loan. Lenders will work with you to ensure that the repayment plan fits within your budget.
There are some lenders that are more reliable than others. It’s worth doing some research and reading customer reviews to find out which lenders you can trust. Oak Park Financial offers installment loans for people with poor credit.
The company has received the support of many satisfied customers and an A+ rating by the Better Business Bureau. Direct lenders offer many benefits, including the ability to save money and accelerate your funding, as opposed to loan brokers or lead generators.
It may be impossible to make your payments on time. You, therefore, need to know what fees lenders might charge for late or missed payments. We offer installment loans to borrowers with different credit scores, including poor credit, bad credit, and good credit. These loans can also include flat fees or daily interest-bearing loans.
Installment Loans vs. payday loans
There are many differences between payday loans and installment loans.
- You can borrow money for a longer period of time and then repay it.
- Depending on where you live, the amount can be up to $3,000
- They will be repaid over 3 to 36-month terms via fixed monthly payments.
- These loans are short-term and can be used to cover your expenses until your next paycheck.
- Depending on where you live, the loan can be up to $1,000
- Borrowers will usually be paid back within two to four weeks.
Payday loans can be used to pay for emergencies. Installment loans can be used to finance larger expenditures such as a new appliance or a major home repair. The repayments are spread over a period that suits your needs.
Installment Loan: Pros & Cons
Like all financial products, installment loans have their advantages and disadvantages.
- Flexible Repayment Terms: You can choose between a short-term or long-term repayment term to suit your budget and preferences. The typical repayment terms are between 3 and 36 months. The loan amount can also affect the term.
- An installment loan has higher borrowing limits than other types of loans, which can only let you borrow a few hundred dollars.
- Fixed Monthly Payments: Because you will pay an installment loan back through fixed monthly payments it is easy to budget.
- There may be additional fees depending on which installment loan you choose. These fees could include late payment, origination, and prepayment. We do not charge additional fees if you pay off a loan early.
- Potentially high interest: An installment loan can have a higher interest rate than a secured loan such as a home equity loan.
What can an Installment Loan be used for?
A flexible product, an installment loan can be used to pay for many common expenses such as:
Car and Home Repairs
Home and car repairs can happen when we least expect it. A loan installment can be a great option when there is an urgent need for new tires, a leaky water heater or a need to replace your roof.
Even if your health insurance covers you, there are still times when you might be faced with a large medical bill. An installment loan can help you pay for a procedure or surgery.
Perhaps you need to pay for the funeral of a loved one or you need to pay a higher-than-expected tax bill. An installment loan, regardless of your credit rating, can help you cover unexpected expenses.
How to Apply for an Installment Loan with Bad Credit
No matter what credit score you have, an installment loan can be obtained. These are the steps to follow in order to apply for an installment loan.
1. Compare Option
Do not settle for the first installment loan that you find. Compare your options and do some research. You should choose the one that provides fast approvals, flexible credit requirements, a borrowing amount that suits your needs, a competitive rate of interest, and the best terms.
2. Prepare documents
You will need a driver’s license or other types of government ID. Also, bank details for direct deposit and your Social Security number.
3. Submit Application
While some lenders only permit you to apply online, others allow you to apply in person. To avoid any delays, make sure you fill out the application completely and accurately.
4. Get Funding
You will not be able to receive the funds until you are approved for an installment loan. You can either sign up for a direct deposit or apply at a branch near you to get the funds as soon as possible.
5. Repay the loan
You must be diligent and work hard to repay your loan every month. To ensure that you don’t miss a payment, you might want to sign up for automatic withdrawals.
How to improve your credit
Installment loans are available to consumers with either bad or good credit. However, it is a smart move to improve your credit score before you borrow money. An improvement in your credit score will allow you to borrow more money and make it easier for you to get approved for loans or lines of credit. These are some ways to improve your credit score.
You can pay your bills on time
Every month, pay your rent, mortgage, credit card, car loans, and credit cards on time. A missed payment can cause credit damage. It’s vital to pay your bills on time. Automating your payments can help you avoid missing any payments.
Keep your credit balances low
Your credit limit should not exceed 30% of your available credit. If you have a credit limit of $5,000, your balance should not exceed $1,500. This credit utilization ratio can be improved by increasing your credit limit or paying down debts. This can help you improve your credit score.
Do not apply for new accounts too often
Hard inquiries are a sign of credit reporting and can temporarily lower your score. Don’t apply for credit until you are absolutely required to.
A perfect credit score does not necessarily mean you can get an installment loan. Installment loans for people with poor credit can be a great option to help you get through any financial hurdle.