Installment Loans for Bad Credit

Installment Loans for Bad Credit: Alternatives to Payday Loans

Installment Loans for Bad Credit

What is Installment Loans for Bad Credits?

As per the Fair Isaac Corporation (FICO) score when the borrower has a credit score below 670 is called a bad credit score. The lenders generally use to check the credit score before providing any installment loan to the borrower. The borrower should be allowed to be repaid in installment loans for bad credit an amount of money in a scheduled period by some installments. The borrower with a bad credit score can be able found some genuine lenders who use to give installment loans for bad credits. As the borrower has a bad credit score, just this reason can force the borrower to face the higher interest rate, though there are different better and alternative options with interesting terms than an installment loan for bad credits like a payday loan.

Common Features Of Installment Loans For Bad Credits

Installment loans for bad credit can be a bit risky and but more affordable than payday loans. Though few servicers provide installment loans without a credit check to the bad credit holders and offer more reasonable terms. Therefore the borrow should make a market survey first to get the best choice. An installment loan is one type of loan that the borrower can avail of all at once and can be repaid in monthly payment terms or installments.

If the borrower has an imperfect credit score basically below 670 or 630 (some lenders offer), the lender will definitely gather other relevant information such as the debt amount, monthly transactions, and the remaining account balance to understand the financial behavior of the borrower and will help him to qualify for the loan.

But in the case of payday loan approving the lenders usually don’t check the credit score or the financial history of the borrower. Apart from having uncertainty payday loans come with a high rate of interest and short-term payment. Therefore the borrower should avoid this kind of loan if he can.

Summary of Installment Loans for Bad Credit: Alternatives to Payday Loans

The list below will provide all the information about the lenders who provide installment loans for bad credit in the US. Most of them will check the credit score of the borrower, while some of them would not.

Lender’s Name NerdWallet Rating APR (Annual Percentage Rate) Required Minimum Credit Score

 

Upgrade *5.0/ 5

(Best for installment loans for bad credit)

6.94 – 35.97% 580
Upstart *4.5/ 5

(Best for installment loans for bad credit)

6.16-35.99%

 

580
Lending Point *3.5/ 5

(Best for installment loans for bad credit)

15.49-35.49% 585
One Main Financial *4.0/ 5

(Best for  installment loans for bad credit)

18-35.99% None
Avant *4.0/ 5

(Best for installment loans for bad credit)

9.95-35.99% 550
Oportun *3.0/ 5

(Best for  installment loans for bad credit, no credit check)

19.90-35.99% None

How to choose an installment loan

• All the rates of different lenders should be compared. The most borrower-friendly installment loan comes with a 6-36% of the interest rate.
• The borrower should understand the fees as some lenders charge an origination fee (generally between 1-6% of the loan amount) and other charges related to repaying the installments. The borrower should not be agreed upon before the lender discloses all the charges.
• The borrower must choose the easiest to handle payment terms. The longer-term will force the borrower to pay more interest. Therefore the borrower should make a genuine comparison of all the lenders in the market.

Minakshi Manna

Minakshi Manna is a contributor to Love Finance Web. She is a professional content writer with 6-year of experience in SEO-content and digital marketing field.

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