It can be difficult to find installment loans when you have bad credit. That’s why we’ve compiled a list of the five best installment loans for bad credit to help you find the right loan.
What is an Installment Loan?
An installment loan is a type of loan that is repaid over time with a set number of scheduled payments. Installment loans are typically used for larger purchases like cars or home renovations.
You may ask -What are the benefits of an installment loan? The main benefit of an installment loan is that it allows you to spread the cost of the loan over an extended period. This convenience can make it more affordable than a lump sum loan. Plus, as the monthly installment is fixed, it’s easier to plan your expenses around installments. Installment loans may or may not require collateral.
How to Get an Installment Loan for Bad Credit?
Bad credit is when your credit score lies below 579 on a scale of 300-800, and low credit scores make it difficult to secure loans with reasonable interest rates and repayment terms.
There are a few things you can do to improve your chances of getting installment loans for bad credit from WeLoans:
- Check your credit report and score.
- Shop around for lenders that offer loans for bad credit.
- Compare interest rates and terms.
- Read the fine print before you apply.
- Use a co-signer if you can.
You have understood everything about installment loans for bad credit. Now, let’s check the five best options for you to consider:
WeLoans
WeLoans is an online lending platform that offers personal loans ranging from $500 to $50,000. Loan terms are between 3 and 36 months. WeLoans offers direct deposit of funds into your bank account as soon as the next business day.
They check repayment ability instead of credit score, making it easier for applicants with bad credit to secure a loan. Share requisite details by filling up a form to get quotes from lenders. Now, you can shop for favorable repayment terms and schedule and sign an agreement with the chosen lender. After the formalities, get your installment loan for bad credit approved.
Pros
- They offer competitive interest rates.
- They provide fast approvals.
- You can search for credit unions in your state and check their ratings.
Cons:
- Applicants must carefully review the payment terms as they vary with different lenders.
- Some lenders may charge prepayment penalties.
CocoLoan
CocoLoan is an online lender that offers personal loans ranging from $300 to $5,000. Loan terms are between 3 and 36 months. CocoLoan offers direct deposit of funds into your bank account as soon as the next business day.
Once you fill up a simple form and receive quotes from partner lenders, you can decide what loan terms are comfortable for you to repay. The loan amount will be based on your repayment ability and not your credit score.
Pros
- You can avail of multiple installment loans with CocoLoans.
- They have straightforward processing and zero hidden fees
- They offer high acceptance rates
- They offer 24*7 service, eliminating any delays
Cons
- Installment loans for bad credit come with high-interest rates
- You cannot receive additional funding on the same loan
US Bad Credit Loans
US Bad Credit Loans is an online lender specializing in personal loans for people with bad credit. Loans range from $100 to $5,000, and terms are between 3 and 36 months. In addition, US Bad Credit Loans offers direct deposit of funds into your bank account as soon as the next business day.
As bad credit loans require lenders to verify your repayment ability, many lenders require you to have a certain level of income and credible stable employment history.
Pros
- Co-applicants allowed
- Confidential and Secure processing similar to banks
- You can also get fast approvals within the same business day
Cons
- You need an active bank account to secure a bad credit loan
- Certain threshold income is required for approval
HonestLoans
HonestLoans is an online lender that offers personal loans ranging from $500 to $5,000. Loan terms are between 3 and 60 months. The APR for installment loans varies from 6.63 to 225%.
You must remember that APR varies with the loan type, repayment tenure, and lender’s policies. HonestLoans offers direct deposit of funds into your bank account as soon as the next business day once you sign an agreement.
Pros
- No penalty for prepayments
- Instant approval of loans
- The online platform removes all the hassle
Cons
- The minimum age limit is 20 years for loan applicants.
- There’s an origination fee.
US Installment Loans
US Installment Loans is an online lender that offers personal loans ranging from $5000 to $35,000. Loan terms are between 6 and 60 months. Lenders check employment history, debt-to-income ratio, and the like to determine eligibility for bad credit loans. You can avail of installment loans to finance car repair,
Pros
- They offer a wide network of lenders with favorable terms and interest rates.
- The applicant’s data is protected using industry-leading security measures.
- Apply 24*7 with high approval rates.
Cons
- Early repayment charges are applicable.
Conclusion
In conclusion, these are five of the best installment loans for bad credit in October 2022. We hope this list will help you find the right broker to look for the right loan. While WeLoans is our top choice due to its simplicity, adaptability, and fair lender eligibility requirements, it’s also important to note that CocoLoan, US Bad Credit Loans, HonestLoans, and US Installment Loans are also worthwhile considerations.
