Bad credit installment loans are for bad credit borrowers. These personal installment loans can be unsecured or secured loans depending on the lender’s requirements. They are perfect for debt consolidation, to manage multiple debts into one monthly payment. Bad credit installment loans from direct lenders can be obtained through credit unions, online installment loans and even instant funding installment loans.

Features

• Flexible Loan Amounts. Bad credit installment loans offer different loan amounts to suit different financial needs. Whether for debt consolidation loans or medical bills. Borrowers can find a loan that fits their requirements.

• For Poor Credit Scores. These loans are for people with poor credit scores or bad credit scores. With a low minimum credit score requirement. Personal installment loans are for those who have been turned down by traditional lenders.

• Fixed Monthly Payments. Installment loans for bad credit have fixed monthly payments, making it easier for bad credit borrowers to manage their budget. This predictability helps in planning monthly income and expenses without surprises.

• No-Credit-Check Loan Options. Some bad credit direct lenders offer no-credit-check loans or guaranteed installment loans. This means the borrower’s credit history and credit check is not heavily scrutinized, so you can get approved even with poor credit.

Pros and Cons

Pros

1. For Poor Credit Scores. Bad credit installment loans are for people with poor credit score or low credit score. So it’s an option for those who can’t qualify for personal loans from major credit bureaus or banks.

2. Debt Consolidation. These loans can be used for debt consolidation, like credit card debt consolidation, to manage multiple debts into one monthly payment.

3. Fixed Monthly Payments. With bad credit installment loans you get fixed monthly payments, so budgeting is easier and more predictable, so you can manage your monthly income and expenses.

Cons

1. Higher Interest Rate. Bad credit installment loans have higher interest rates than loans for good credit, so overall cost of the loan is higher.

2. Fees. Some lenders may charge high processing fees or late payment fees which will add to the borrower’s financial burden.

3. Credit Score Impact. Missing payments on bad credit installment loans will further negatively impact the borrower’s credit score as late payments are reported to major credit reporting bureaus.

How to Apply for Bad Credit Installment Loan?

1. Choose A Lender. Select a reputable lender, whether online or physical location, that complies with state laws and federal regulations.

2. Prepare Documents. Gather required documents such as pay stub, social security number, bank account information and proof of income.

3. Apply. Fill out the loan application form with personal details, employment information and loan amount. Submit online or in person.

4. Review Loan Agreement. Review the loan agreement carefully, interest rate, fees, repayment terms and due date.

5. Get Loan Proceeds. Once approved, get the loan proceeds deposited into your bank account or prepaid card account, usually on the same business day.

Requirements

According to the U.S. government’s Consumer Financial Protection Bureau (CFPB), to qualify for a loan most payday lenders require:

1. Age. Applicants must be at least the age of majority, which is 18 in most states, some states require 19 or 21 years old.

2. Active Checking Account. A valid and active bank account for deposit of loan proceeds and for the lender to withdraw repayments.

3. Proof Of Income. Borrowers need to show proof of regular income, like pay stubs, to show they can repay the loan.

4. Valid ID. Borrowers must present valid ID, which is usually social security number, to verify their identity.

How to Get the Money

1. Direct Deposit. The most common is direct deposit into your bank account. Once your payday loan application is approved, the payday lender will deposit the loan proceeds into your active checking account, usually on the same business day.

2. Prepaid Debit Card. Some payday lenders offer to load the borrowed amount onto a prepaid card account. Good for those who don’t want to use their bank account.

3. Cash. In some cases, especially with in-person payday lenders, you can get the borrowed amount in cash. But this is less common than direct deposit or prepaid card.

4. Check. A few payday lenders may give you a check for the loan amount which you can cash or deposit into your bank account.

Payday Loan Rates

Payday loan rates typically range from $10 to $30 per $100 borrowed depending on state laws and borrowing limits. A typical fee is $15 per $100 borrowed which translates to an annual percentage rate (APR) of around 400% for a 2 week loan. For example if you borrow $300 you would need to repay around $345 by next payday. These rates are much higher than other types of loans like personal loans or secured personal loans.

Payday lending is allowed in 37 states, 11 states, including Connecticut, Maryland and New York have strict regulations or interest rate caps that limit or prohibit payday lending. Some states like Arkansas and North Carolina have repealed their payday lending laws and others like the District of Columbia have banned it altogether.

18 states and the District of Columbia have usury rate caps, often 36% APR, to curb high cost payday lending. States like Nebraska, Hawaii, Illinois and New Mexico have recently enacted such caps, it’s a growing trend to regulate payday loan rates.

The highest payday loan rates are in states like Texas (662%), Missouri (652%) and Delaware (639%). The lowest are in Oregon (140%), Maine (228%) and Iowa (247%). Some states like Washington and Virginia have additional regulations to limit the number of payday loans or extend repayment terms to prevent debt traps.

Installment Loans for Bad Credit. Apply Online