The greatest installment loans for bad credit come with a wider range of loan amounts, more flexible credit score restrictions, and relatively extended repayment durations. Some lenders will also consider applications that include a co-signer or co-borrower. This article contains the list of the best personal and online installment loans for bad credit. We also added a list of the best installment loans for bad credit from direct lenders. Let’s dive in!
What Is an Installment Loan?
Installment loans are a type of credit that allows borrowers to take out a loan for a predetermined amount and pay it back over a set period of time. Since the interest rates and monthly payments on these loans, which also include personal loans, are frequently fixed, you always know how much you owe each month and when your last payment is due.
Types of Installment Loans
The following are the types of installment loans:
Personal loan: The typical repayment period for a personal loan is between one and seven years. It’s often an unsecured loan, and the proceeds can be put on everything from debt consolidation to house repairs to a wedding to unexpected medical bills.
Mortgage: A mortgage is a specific type of secured loan that can only be used to acquire real estate, typically a residence. Payments on the loan are spread out over a long period of time (often 15 or 30 years) with the residence serving as collateral.
Auto loan: Auto loans are secured loans used to purchase automobiles with the car itself as security. Normally, it takes two to seven years to repay the debt in full. Learn what your potential monthly payment might be with a car loan calculator.
Student loan: A student loan is a form of unsecured financing specifically designed to cover educational costs like tuition, fees, and living expenses. These range from five to twenty years for repayment and can be obtained either from the federal government or from private lenders.
Installment Loans for Bad Credit
The greatest installment loans for bad credit come with a wider range of loan amounts, more flexible credit score restrictions, and relatively extended repayment durations. Some lenders will also consider applications that include a co-signer or co-borrower. Keep in mind that the greatest bad credit loans will still likely have higher interest rates than a loan for someone with excellent credit. The following are the installment loans for bad credit:
#1. Upgrade
Borrowers with credit scores as low as 580 can use Upgrade to secure loans of $1,000 to $50,000. If authorized, you might receive the funds the next business day after completing the required verifications, and the repayment period could last anywhere from two to seven years. You can apply for Upgrade with a partner to boost your chances of approval and possibly receive a higher rate than if you applied individually. Consolidating debt using a portion of your loan and enrolling in automatic payments could get you a better interest rate. However, until you create an account, Upgrade will not reveal the potential savings from this rate reduction.
It’s important to remember that Upgrade has fees associated with making a loan, including an origination fee and fines for late and rejected payments.
Pros
- Fast funding.
- Permits joint applicants.
- No prepayment penalty.
Cons
- Charges an origination fee.
- Charges fees for late and returned payments.
- Doesn’t disclose information about rate discounts unless you have a registered account.
#2. LendingClub
When you borrow money through LendingClub, you don’t deal with a bank, but rather a network of individual investors. LendingClub offers loans for a wide variety of reasons, including debt reduction and home improvement. The lender has faster funding and lower origination fees than most P2P lenders.
Pros
- Online prequalification
- Optional joint applications
- Flexible loan amounts
Cons
- Few loan terms to choose from
- High APR caps
- No discount for automatic payments
#3. LendingPoint
LendingPoint is a viable choice for those in a time crunch because they can receive an acceptance decision on their loan application within seconds. If you are authorized for a loan through LendingPoint, you can expect to receive the money the following business day.
A credit score as low as 600 may be sufficient for approval with LendingPoint loans ranging from $2,000 to $36,500 and with periods of two to six years. Keep in mind that LendingPoint has a minimum income threshold of $35,000 and doesn’t allow co-signers or joint applications. Furthermore, its loans are not offered in the states of Nevada and West Virginia and come with an origination fee.
Pros
- Quick approval decisions.
- Fast funding.
- No prepayment penalty.
Cons
- Charges an origination fee.
- Minimum income requirement of $35,000.
- Not available in all states.
#4. Upstart
Loan solutions from Upstart, an online installment loan provider, are competitive and available to customers with good or even acceptable credit. The money from your loan application might be deposited into your bank account as soon as the following working day. There is no required credit score for Upstart. You may still be able to get a good interest rate even if you don’t have perfect credit because the lender looks at things like your major or employment history.
Pros
- No prepayment penalty
- Custom payment dates
- Alternative scoring used for approval
Cons
- Origination fee
- Limited repayment terms
- No discount for autopay
#5. Oportun
Oportun is the only lender on this list recognized as a CDFI (Community Development Financial Institution) by the U.S. Department of the Treasury, thus it may be a viable option if you require a small loan amount. An unsecured loan might get you anywhere from $3,000 to $12,000 (but the exact amount you can borrow is subject to change from state to state). In certain circumstances, co-signers are accepted by this lender.
If you live in Arizona, California, Florida, New Jersey, or Texas and have a qualifying vehicle, you may be able to borrow up to $18,500 (amounts may vary by state) by pledging your car’s title as collateral for a loan, but you must remember that you stand to lose your car if you fall behind on payments.
The minimum credit score required by Oportun is just a valid ID, proof of income, and evidence of residency, which is lower than the requirements of most of the other lenders on this list. This implies you might get in even if you have poor credit or none at all. However, you should know that the annual percentage rates (APRs) offered by this lender may be greater than those offered by other lenders. Loans from Oportun are not offered in the states of Colorado, Connecticut, Maine, Maryland, Massachusetts, Nevada, New York, West Virginia, or Washington, DC and the company imposes origination fees and fines for late and returned payments.
Pros
- Can borrow as little as $300.
- No specific minimum credit score.
- Fast funding.
Cons
- Charges an origination fee as well as fees for late and returned payments.
- Could lose your car if you don’t keep up with secured loan payments.
- Not available in all states.
#6. LightStream
The interest rates on LightStream’s installment loans are among the lowest available to people with great credit. Online applications are processed quickly, and approval typically occurs the same business day. This lender allows you to borrow up to $100,000, which is a significant increase from the lending limits of their competitors. To make payments more reasonable, Lightstream provides repayment terms of up to seven years.
Pros
- Fast approval and funding
- No fees
- Low minimum APR
Cons
- No prequalification for a soft credit check
- You can’t change your payment date
- You need good to excellent credit
#7. Avant
In contrast to the limited hours offered by many lenders, Avant’s support staff is available Monday through Friday, 7 a.m. to 10 p.m. Central Standard Time (CST), and Saturday and Sunday, 7 a.m. to 8 p.m. CST. You can reach Avant in a number of ways, including via email, phone, mobile app, and a web-based control panel. This will make it simpler to seek help when it’s convenient for you.
Avant offers personal loans with amounts between $2,000 and $35,000 and periods between one and five years. Your credit score needs to be at least 580 to apply for an Avant loan; however, the average borrower has a score of between 600 and 700. You may receive the funds as soon as the following working day if your application is granted.
Remember that this particular lender does not accept joint applications or co-signers and is not obtainable in the states of Massachusetts, Michigan, Montana, Vermont, Virginia, or West Virginia. Along with late and dishonored payment penalties, Avant also levies an origination fee.
Pros
- Accessible customer support.
- Fast funding.
- No prepayment penalty.
Cons
- Charges an origination fee.
- Charges fees for late and dishonored payments.
- Not available in all states.
#8. OneMain Financial
OneMain Financial offers over 1,400 brick-and-mortar facilities nationally, which is more than most of the lenders on this list. If you would rather apply for and handle your loan in person, this may be a viable option for you.
OneMain Financial offers personal loans with amounts between $1,500 and $20,000 for terms between two and five years. This financial institution approves joint applications and loans to borrowers with credit scores as low as 560.
If you take out a loan for a significant sum of money, you should be aware that you may have to put up some sort of collateral in case you default on your payments. Not only does OneMain Financial charge late and NSF penalties, but they also charge an origination cost. Borrowers in states where such charges are legal may have to pay registration or title transfer taxes on vehicle-backed loans.
Pros
- Provides in-person locations.
- No prepayment penalty.
- Permits joint applications.
Cons
- Charges an origination fee.
- Charges late payment fees, insufficient funds fees, and governmental fees.
- Risk of losing your collateral if you don’t make payments on a secured loan.
Personal Installment Loans for Bad Credit
Consider applying for personal installment loans for bad credit if you need a large sum of money to make a purchase or pay off existing debt. With these loans, you can borrow a certain sum for a certain time period and then pay back that sum in equal monthly installments. Personal Installment Loans are sometimes referred to simply as “personal loans.” The following are personal installment loans for bad credit:
#1. Happy Money Payoff Loan
The Payoff loan from Happy Money is an alternative for those looking to consolidate credit card debt. Happy Money allows you to prequalify for a loan by entering your income, credit, and savings information and then displays a range of loan offers with varying interest rates, monthly payments, and repayment terms.
Consolidating debt is made easier by the option to have payments routed straight to credit card companies. It may take up to seven business days to receive approval, and then another three to six business days for the cash to become available in your account. (There may be a hold on your funds while you wait to withdraw them from the bank.) Disbursement times may increase if you opt to have funds sent directly to credit card companies.
#2. SoFi
A personal loan from SoFi can range from $5,000 to $100,000. Other lenders frequently have a ceiling on their loans between $40,000 and $50,000, in contrast. Loan proceeds may be disbursed to borrowers on the same business day they are approved. (However, the specific timing is determined by your bank.) Automatic payments from a SoFi checking or savings account qualify you for a 0.25% interest rate reduction. Although SoFi does not provide extremely explicit qualifying requirements on their website, they do indicate that you will need a high monthly income and excellent credit.
#3. LendingClub
The whole application process is conducted online and can be completed from any computer or mobile device. You can check off the items you’ve contributed from a to-do list and see if there’s anything else you need to add. The application has a thorough help section that walks users through the process. You can submit an application with a partner if you like. You might be able to qualify for a larger loan or a lower interest rate if you apply for a joint loan with someone who has superior credit. The loan periods might range from 24 to 60 months.
10 Steps to Getting Personal Installment Loans for Bad Credit
- Check your credit score and financial standing with the major reporting agencies.
- Calculate the sum you will need to borrow and the monthly payment you will be able to make.
- Learn about, and evaluate, your many installment loan choices, both in terms of lenders and loan conditions.
- Accumulate the required paperwork, including evidence of financial stability, job, and residency.
- Fill out a loan application and hand it in or submit it online.
- You’ll need to hang tight as the lender checks your credit and decides whether to approve your application.
- Before agreeing to the terms of a loan, you should give them great consideration.
- Put your signature on the loan contract and give any other information that may be required.
- Your bank account will be credited with the loan proceeds.
- Until the debt is paid off in full, make prompt monthly installments as per the agreed-upon timetable.
Installment Loans for Bad Credit Direct Lenders
Thinking of the best installment loans for bad credit from direct lenders? Here are some of the installment loans for bad credit from direct lenders:
#1. 100Lenders
Having served more than 700,000 customers so far, 100Lenders is a loan aggregator that links borrowers with low credit scores with a network of reliable lenders. 100Lenders offers loans between $100 and $40,000. For those who are familiar with the ins and outs of the industry, you’ll know that a company’s reputation can rise or fall based on the quality of its customer service and the integrity of its business practices. The greater the transparency, the deeper the faith. A loan request application must be submitted using the 100Lenders web portal in order to apply for a loan through the service. The minimum number of lenders who will consider you for a loan is three, and you can expect to submit information such as your monthly income, the sort of bank account you use, and other qualifying requirements. The next step is to choose one and finalize the loan’s paperwork.
#2. FundsJoy
With the help of the FundsJoy website, borrowers can make contact with a group of bad credit direct lenders that are willing to give them up to $5,000. They offer convenient and trustworthy online personal loans for things like emergency medical care, home repairs, and consolidation of credit card debt.
The fact that FundsJoy can accommodate borrowers looking for both unsecured and secured personal loans is one of its best features. No minimum credit score is needed for a loan with an APR between 5.99% and 35.99%, payback durations between 1 and 60 months, and origination fees of up to 5%. It also places an emphasis on expediency by only requiring two minutes to fill out the application and then providing a selection of legitimate lenders to choose from.
It provides access to a variety of lending products, including bad credit installment loans, cash advances, and installment loans, each with its own set of terms, fees, and interest rates. Personal loans have an APR range from 4.90% to 450%, cash advances from 0.10% to 1386%, and installment loans from 6.633% to 225%. To apply for a loan through FundsJoy, you must first submit an online application. After deciding how much of a loan you want, fill in the required fields (such as interest rate, repayment term, and monthly income). Before signing for a loan, you will be connected with a number of cooperating lenders.
#3. LendingPoint
Atlanta-based LendingPoint is a well-liked online marketplace where borrowers may compare loan offers from multiple lenders side-by-side. LendingPoint’s full menu of options includes rates from 7.99% to 35.99%, payback lengths from 24 months to 72 months and zero prepayment fees. Their origination fees of up to 8% are competitive with those of FundsJoy and Upstart, two other good-to-fair credit lending platforms.
LendingPoint is a great option for obtaining an installment loan from a direct lender because of the company’s specialized mobile app for managing loans, monitoring credit ratings, and making timely payments. It is missing from every other online marketplace we’ve looked at. You can apply for a loan from LendingPoint by filling out their online application and responding to some basic questions about yourself, including the loan amount you’re seeking, its intended use, and your income and expenses.
#4. NextDayPersonalLoans
Another online lender connecting borrowers with a network of lenders offering personal loans of $100-$40,000 is NextDayPersonalLoans, situated in Kansas. You might receive money in your bank account the very next business day if you apply for a loan in two minutes or less. You can expect origination fees and prepayment penalties, and the APR can go as high as 35.99% with several bad credit installment loan companies. Repayment lengths might range from 60 days to a year. In most cases, you won’t need collateral or a high credit score to qualify for one of these loans. There will be additional charges for late payments and inadequate money. You can only apply for a loan from NextDayPersonalLoans by filling out a loan application on the NextDayPersonalLoans website. Loan amounts, monthly income, and employment status are the three most common pieces of information needed to match applicants with lenders.
Online Installment Loans for Bad Credit
There are some online installment loans for bad credit that can lend you money easily. Here are some of the online installment loans for bad credit:
#1. MoneyMutual
MoneyMutual is a lender marketplace that needs you to have a steady source of income of at least $800 per month to qualify for a loan. The application process for a loan of up to $2,500 can be completed in a matter of minutes. Loan requests submitted through MoneyMutual are distributed to their network of lenders, where you may receive an invitation to apply for a loan.
The loan’s interest rate and duration will be decided by the lender. In order to receive a loan, you must have a checking account where the money can be deposited by the lending institution. More than 2 million people have used MoneyMutual’s loan matching service since its debut, making it one of the largest of its kind. This loan service is not available to residents of the state of New York.
#2. CashAdvance.com
CashAdvance.com mandates that their borrowers have a monthly income of $1,000 or more after taxes. You’ll need a checking account, an email address, and to be at least 18 years old to join. There is an option for a longer installment loan if you need it, but the service’s main focus is on short-term loans that are repaid on your next payday.
CashAdvance.com’s network of lenders offers short-term loans from $100 to $999 at interest rates determined by each individual lender. If authorized, the money from your loan can be paid into your bank account the following working day.
#3. CashUSA.com
You can get a loan of $500 or more with the assistance of CashUSA.com. You can get approved even if you have bad credit as long as you meet the following requirements: you’re at least 18 years old, a citizen or permanent resident of the United States, make at least $1,000 per month after taxes, and have a checking account. Loan applications can be submitted in under one hour.
If you submit a loan request to CashUSA.com, it will be sent to its network of lenders, where a direct lender will get in touch with you. Loan durations typically last between three and seven years, with interest rates between 5.99% and 35.99%. A direct lender will make a swift decision on your loan application and deposit the funds directly into your bank account if you are authorized.
#4. CreditLoan.com
CreditLoan is a matching service that connects borrowers with lenders that are willing to lend them anything from $250 to $5,000 notwithstanding their credit history. Since its inception in 1998, this online lending business has helped more than 750,000 people find lenders to meet their financial needs. You must have a bank account in which to deposit loan payments.
Examine potential monthly payments with the help of the CreditLoan online calculator. When you apply through CreditLoan, a lender who meets your criteria will review it and contact you with loan details, including the amount you can borrow, your interest rate, and when payments are due. After approval, the money will be deposited into your account without delay.
Will Anyone Lend Me Money with Bad Credit?
Loans for people with bad credit are available from a number of financial institutions, including banks, credit unions, and online lenders; nevertheless, the criteria for what constitutes a “creditworthy borrower” vary widely. It is vital to compare lending institutions with different standards in order to get the most suitable one.
Who Qualifies for a Quick Loan?
Quick loans are loans that are granted quickly and are frequently subject to less stringent screening/approval procedures. Bad credit borrowers and those in urgent need of funds are typical recipients of these types of loans.
Final Thoughts
When applying for an installment loan with bad credit, the approval process can be different from one lender to the next. However, the majority of loan providers insist on seeing documents such as government-issued IDs, pay stubs, insurance policies, and evidence of income. Lenders need this paperwork to ensure they will get their money back from borrowers who take out installment loans. Lenders often accept the loan amount, repayment terms (including the length of time the borrower has to pay back the principal and interest), and the annual percentage rate (APR) after receiving this information.
Related Articles
- BEST PERSONAL LOANS FOR FAIR CREDIT IN 2023
- What Are Installment Loans? Best Installment Loan Providers In 2023
- GROSS ANNUAL INCOME: Definition & How To Calculate It
- BEST CREDIT INSTALLMENT LOANS OF 2023
- INSTALLMENT LOAN: Best Installment Loans in 2023
References
