Installment loans are so named because they are paid back in standard, equal installments over a defined period of time. Most of us have had a situation at some point in our lives where we needed money fast. If the credit bureaus have given you a high enough credit score, you could go to the bank or one of the credit unions for a personal loan if that is where you have a bank account.
There are still options if your credit score isn’t high. Payday loans can often include APRs and payment terms for loan funds that are very high. Other online lending institutions provide personal installment loans for bad credit and can help when needed. We will cover the best ones in the article below.
The Best Installment Loans are:
- Cash USA – Best for fast loan
- Lendfy App – Best for simple process
- Bad Credit Loans – Best for bad credit loans with quick funding
- Personal Loans – Best for Bad credit loans with few fees
- Avant – best for Borrowers with limited credit history.
- Best Egg – Best for Large loan amounts
- Evergreen Lends – Online installment loans
7 Best Installment Loans
Cash USA (4.7 out of 5 stars)
Key Features
CashUSA is an excellent option for your installment loan needs. This platform connects you with lenders that provide installment loans for various reasons. Whether you need a loan for debt consolidation, a personal loan, a home remodel, or any other reason, CashUSA can connect you to the best online installment loans that fit your needs. Their providers have very reasonable loan terms, low origination fees, and fast access to cash when you need it!
If approved, some lenders within the CashUSA network may even offer a line of credit instead of a loan. As these lines of credit pay interest rates on the premium you borrow rather than working as a typical installment loan, they can prove beneficial in some situations.
Application Process
Because CashUSA is a broker and not a direct lender, you will have to provide information that will go to multiple lenders within their network. There is no required credit score for a loan for bad credit through CashUSA, but you will have to provide your personal, banking, and employment verification.
They require at least $1,000 per month of proven income for their lenders to consider your installment loan approval. Once you submit the required information, CashUSA will send it to the lenders in their network. The advantage of using a broker like CashUSA is that their lenders will compete to offer you the best deal on your installment loan.
You must submit your reason for the installment loan during the application process. The following options are available in the application form:
- Wedding related cost
- Vehicle upkeep/purchase
- Business needs
- Home Renovation
- Taxes
- Debt consolidation loans
- Medical costs
>> Visit Cash USA
Pros
- Fast access to funds when needed
- Fast approval process
- Direct lenders compete to give you the best offer
- Installment loans can be for a wide variety of needs, including debt consolidation loans
Cons
- CashUSA is not a direct lender themselves
- Your information will be shared with 3rd party lenders within their network
Loan Verification Steps
Because CashUSA is a broker that works with a network of lenders, there is no single loan approval process. The broker sends your needs & information to the lenders in their network, who each consider your application. If you meet their approval threshold, you will receive various loan terms from lenders willing to make you an offer.
Reputation
Firms that provide installment loans for bad credit can sometimes have lots of angry reviews regarding their services. Often, people in financial straits turn to these lenders and can’t pay off their loans. They then become upset with the company for the terms the borrower agreed to at the beginning of the loan contract. CashUSA has surprisingly few bad reviews, which is rare in this industry.
Requirements
Bad credit installment loans may not require an excellent credit score, but they will have other requirements. For CashUSA, the criteria to be considered for an installment loan from their lenders are:
- You must earn a minimum of $1,000 each month after taxes
- Provide a current, correct email and phone number
- You must provide your current address
- You must be a citizen, or lawful resident of the US
- Loan borrowers must be 18 years or older
- You must own a functioning checking account
- You have to have been with the same employer for 90 days or more
Term Length
The benefit of working with a broker is that you may have multiple direct lenders contact you. Each of these lenders will provide repayment terms, and you can choose the best deal for your needs. While there is no single term length from CashUSA, the range for their installment loans can be from 90 days to 72 months (six years).
Fees
Like the term length, you’re shown multiple lenders and options regarding fees. While your credit score will determine the exact offer, CashUSA has very acceptable terms compared to other bad credit installment loans. The APRs through CashUSA typically range from 5.99-35.99%.
Minimum Loan Amount
$500
Maximum Loan Amount
$10,000
APR Ranges
5.99-35.99%
Lendfy App (4 out of 5 stars)
Key Features
Lendfy is another broker that doesn’t lend you installment loans for bad credit directly. Instead, it is an online lending platform that connects you with installment loan lenders. The platform and process both make it faster & easier for borrowers to find online lenders for installment loans up to $10,000 in just a few minutes.
Like other brokers, the benefit of Lendfy is that this singular online lending platform gives you access to many online lenders who will compete to offer you the best deal.
Application Process
The application process for Lendfy is fast and simple. You can complete the application in less than 5 minutes, and it only includes the needed information so other lenders can evaluate whether you fit their criteria.
Pros
- Fast access to funds if approved
- A simple, painless loan application process
- The loan amount can be up to $10,000 if approved
- Multiple other lenders compete to offer you the best deal
Cons
- Lendfy is not a direct lender
- The online lending platform will have to share your information within their network
Loan Verification Steps
Lendfy is a broker and not a direct lender. This means that the online lenders in their network will each have their own verification process. Thankfully, the application process is fast. The approval process is also quick; if approved, you can have your funds in less than 24 hours.
Reputation
Lendfy started in 2022, making it pretty new in the world of online installment loans. There aren’t many reviews for this service, but as they aren’t the direct lender, that doesn’t matter much.
The important thing is that the Lendfy platform will connect you with installment loan lenders that will provide funds when you need them. As a broker, this also means having multiple lenders competing for your business.
Requirements
The requirements listed on the Lendfy website for borrowers to meet the criteria for their loan lenders include the following:
- You must be 18 years or older
- Have a valid Social Security number
- Be a U.S. citizen or permanent resident
- Have a steady source of income (e.g., employment, SSI, etc.)
- Have a valid bank account for deposits and repayment
- Have a valid telephone number and email address
- Meet minimum income requirements
Term Length
As a broker, you will receive multiple offers if your application is approved. While there is no single term length, the online lenders on Lendfy tend to offer repayment terms between 12 to 60 months (5 years).
Fees
Lendfy does not charge you any fees, as they are paid by the lender who wins your business. Lendfy does not disclose any potential fees on their website, but they are right up front that there is no obligation to accept any repayment terms offered. Once you receive the offers from the other lenders on the Lendfy platform, you can accept or deny them if you don’t like the terms.
Minimum Loan Amount
None listed.
Maximum Loan Amount
$10,000
APR Ranges
Because Lendfy is not a direct lender, they do not disclose the APR ranges potentially offered.
Bad Credit Loans (4.5 out of 5 stars)
Key Features
Bad Credit Loans is a lending network built exclusively for borrowers with bad credit. As this network focuses on providing bad credit installment loans, we’ve found that they tend to have some of the industry’s best repayment terms and monthly payments.
As a bonus, some lenders in the Bad Credit Loans network also provide credit cards, which can be one of the best ways to help build your credit score if used responsibly. Another benefit of Bad Credit Loans is that some of the online lenders in the network consider social security and disability checks as income, which can often help retired or senior citizens to get approved for an installment loan.
This network started by bringing together traditional banks, Peer-to-Peer (P2P) lending groups, and tribal lending firms onto one platform. This means they have a very high approval rate for potential borrowers, but you must read the fine print to decide which lender is the best for your needs.
Application Process
The application process for Bad Credit Loans is fast & simple. Like other online installment loans made through a network, once your application is complete, you will receive offers from many different lenders who approve you for their installment loans.
Part of the application process for Bad Credit Loans includes disclosing why you need the loan. The acceptable loans for this network are:
- Personal loans
- Credit Cards
- Business loans
- Student loans
- Auto loans
- Home loans
- Mortgage loans
Pros
- A lending network that focuses on loans for bad credit
- No minimum credit score requirement from the credit bureaus
- Credit cards offered
- Installment personal loans through the Bad Credit Loans network are far better than payday loans
- Installment loans can be made for various needs
- This platform may be easier for someone self-employed to be approved for an installment loan, as solopreneurs don’t often have a great credit report
Cons
- Depending on your credit score and income, some repayment terms on installment loans for bad credit can have high monthly payments
Loan Verification Steps
Bad Credit Loans is a lending network, so each online lender within the network will have their own loans for bad credit and verification steps. Once you submit your personal, banking, and employment or income verification, Bad Credit Loans will send that information to the lenders within their network. Once approved, you will receive the best installment loans from each lender that approves you.
Because these lenders focus on borrowers with poor credit history, pay close attention to the fixed monthly payments and any origination fee. Some loan terms may be similar to a payday loan from some lenders and mixed in with others with low monthly installment payments.
Reputation
Bad Credit Loans has been in the business for quite some time and was the first platform to bring together many different types of lenders and lending arrangements. This has earned them a good reputation, as they often earn more offers for their borrowers. That means you have a wider selection of options!
Requirements
There is no minimum credit score or monthly income requirement for the Bad Credit Loans network. Still, there are a few requirements to be considered by their installment loan lenders for an unsecured loan for bad credit:
- Be at least 18 years old
- Provide proof of citizenship, such as a Social Security number or legal residency
- Have a regular income, either from full-time employment, self-employment, disability or Social Security benefits
- Have a checking account in your name
- Provide work and home telephone numbers
- Provide a valid email address
Term Length
90 days (three months) to 72 months (six years)
Fees
Because Bad Credit Loans is paid by the online lender who wins you as a customer, the platform does not charge you any fees. The lender may or may not charge you an origination fee, but Bad Credit Loans does not.
Minimum Loan Amount
$500
Maximum Loan Amount
$10,000
APR Ranges
5.99-35.99%
Personal Loans (4.5 out of 5 stars)
Key Features
PersonalLoans.com is unique within the online installment loans industry for several reasons. Firstly, if you need to borrow more than $10,000, this platform offers the best installment loans for bad credit up to $35,000. They have a few requirements compared to other platforms that focus on loans for bad credit. If you fit their criteria and need more than $10,000, this may be your best option.
The loans for bad credit on this platform get divided between Peer-to-Peer (P2P) loans or traditional installment loans. The P2P loans for bad credit will typically have lower interest rates and higher acceptance rates than traditional lenders since your loan agreement may come from actual people rather than financial institutions.
Another unique aspect of this lending network is that it is available in all 50 states, while many online installment loans or payday loans for bad credit are not. This platform has been in the online installment loan business since 2001, so they’ve had over two decades to get it right!
Application Process
Unsecured personal loans are what this platform specializes in, and they don’t only cater to those with bad credit. Because your personal installment loan may come from an actual person rather than a financial institution, PersonalLoans.com tends to require more personal information than other online installment loans do.
To get started with the loan process, you can select the “get started” button on every page or enter the loan amount you are looking for along with your email address on the home page. Once taken to the online installment loan application, you must enter the following information:
- Loan purpose and amount
- Estimated credit score
- Name and date of birth
- Phone number
- Home address and how long you have resided there
- Whether you rent or own your home
- Employment information
- Gross monthly income
- Driver’s license or state ID
Some people may feel uncomfortable providing so much information. If you’ve ever applied for a home loan, you know this is far less than traditional banks and lending institutions will ask for in that process. Although other lenders are available online, the rates from PersonalLoans.com and $35,000 max loan funds may be your best option.
Pros
- Fast approval
- Can have funds in less than 24 hours if approved
- Combines P2P and traditional lending
- Loans available up to $35,000 if approved
- Some lenders here provide startup capital for new businesses
Cons
- Some P2P loans have higher approvals and lower rates, but also a higher origination fee than some traditional lenders will require. This may result in a higher upfront cost (origination fee) but a lower monthly payment.
Loan Verification Steps
Not only is Personal Loans a lending network comprised of multiple lenders, but it also includes P2P lenders. This means that each potential lender will have its own verification requirements. Some may even require you to upload additional documents, but they will disclose those requirements when the lender provides a loan term.
Remember that there is no requirement that you accept any loan terms, so there is no pressure. You may also find that repayment terms continue coming in from different lenders over several days, so there is no rush to accept one quickly.
Reputation
Having been in business since 2001, Personal Loans has an excellent reputation for matching those in need of funds with lenders. This platform has been in business for a long time, and because they don’t cater exclusively to loans for bad credit, they have an exceptionally high number of former, happy customers.
Requirements
- $2,000 monthly income requirement
- Minimum credit score requirement: 580 for personal installment loans and 600 for P2P loans
- Applicants must be 18 or older
- Applicants must be US citizens or permanent residents
- Applicants must have an active bank account
- Applicants must have an appropriate income for the repayment plan
Term Length
90 days (three months) to 72 months (six years)
Fees
Fees will vary because of different credit scores, loan amounts, verified income, and several other factors. Some P2P and traditional lenders may charge origination fees, but not all do.
Minimum Loan Amount
$1,000
Maximum Loan Amount
$35,000
APR Ranges
5.99-35.99%
Avant (4.5 out of 5 stars)
Key Features
Avant is a traditional lender and one of the few direct lenders on our list. This company started in 2012 to provide personal loans and credit cards to clients who had bad credit but needed installment loans. While most lenders require a high credit score to provide a loan, Avant’s typical loan customer has a credit score between 600-700, with some having sub-600 credit scores.
Avant is also unique in providing options for secured and unsecured loans. If you have some sort of collateral and are willing to give the lender a lien, you may be able to secure far better repayment terms on one of their secured installment loans.
Application Process
Submitting your information to Avant only results in a “soft” credit check, which will not affect your credit score. The lenders will only pull your total credit score once you accept one of their installment loans, which can be helpful.
The application process is straightforward and will only take a few minutes. You have to submit your personal information (name, address, age, phone number), whether you rent or own your home, how long you’ve lived there, what you need the loan for, and your income range.
Once you submit your information, you will receive offers within a few minutes. If you find & accept an offer that appeals to you, you will often have your funding within a day.
Pros
- A traditional lender with a low credit score requirement
- Fast access to your funds, typically in less than 24 hours
- Fast approval, often just minutes after your application is submitted
- Both secured and unsecured loans for bad credit scores
- Considers child support and alimony as income
Cons
- No co-signers or co-borrowers allowed
Loan Verification Steps
As a direct lender, Avant does have the disclosures for their loan verification process listed on their website. They are open that the minimum credit score they will accept is 580, with most of their customers having a credit score between 600 and 700.
The company will pull your credit score from the consumer reports companies and verify that you meet their income requirements ($20,000 per year).
You may also receive offers for one of their credit cards, which can be a great tool to help build your credit score. Just be sure you use it responsibly, and don’t run up a large amount of credit card debt.
Reputation
Avant has amassed over 19,000 reviews on Trustpilot, with customers giving them an average score of 4.7 out of 5 stars.
Requirements
After confirming your identity, Avant will ensure that you meet all their other requirements. You must be a US citizen, over 18 years of age, have a credit score over 580, and have at least a $20,000 minimum annual income.
Term Length
Two to five years
Fees
An origination fee of 4.75%
$25 for late payments
$15 returned payment fee
Minimum Loan Amount
$2,000
Maximum Loan Amount
$35,000
APR Ranges
9.95-35.95%
Best Egg (4 out of 5 stars)
Key Features
Best Egg is similar to Avant in that it is also a direct lender that offers both secured loans and unsecured installment loans. This lender also provides the option of choosing a credit card (which can help to build your credit score if used responsibly). You can use the installment loans from Best Egg for various reasons, but one of the most popular products they have is to consolidate debt.
Best Egg makes debt consolidation installment loans a great option if you have credit card debt or other debts you would like to pay off. With their direct pay, you can save money with lower interest rates, and Best Egg will pay your monthly debt payments directly to your creditor. The online lender also allows one customer to have multiple installment loans simultaneously, as long as those loans don’t equal more than $50,000 of existing debt (and as long as you are approved).
This lender also allows early payoff with no penalties, allows you to change your repayment schedule or payments online, and has very high customer ratings. Best Egg requires a minimum credit score of at least 640.
Application Process
The application process with Best Egg is fast and simple, as long as you have fair credit history and stable employment. These personal loans are frequently used by people with excellent credit scores and a good job but want credit approval to pay off existing debt or increase their revolving credit through debt consolidation.
Best Egg is a simple 3-step process if you meet their barriers to entry. Once you provide your personal and banking information and select what type of personal loan you seek, the lender will verify your information. Once your credit history, credit score, and income are verified, you can have your funds within a day. If you choose debt consolidation, they can make those payments within 24 hours.
Pros
- Good rates
- Customer reviews are extremely positive
- Direct pay to your creditors can give you better interest rates
- Multiple loans allowed for the same customer
Cons
- Must have a fair credit score with the credit unions and stable employment
Loan Verification Steps
After submitting your information, Best Egg will conduct a “soft credit pull” from the credit bureaus to ensure you meet their requirements. They will also confirm your identity and employment. If you accept the loan terms they offer, they will perform a “hard credit pull” with the credit bureaus to ensure the information is correct before they send the funds.
Reputation
Best Egg has an A+ rating with the Better Business Bureau (which is very high for the online installment loans industry), over 6,500 reviews on Trustpilot, and 89% of those reviews give them 5 out of 5 stars. This is about as good of a reputation as a company giving installment loans can have.
Requirements
- A minimum credit score of 640
- Must be 18 years or older
- Must have a low debt-to-income ratio
- Must be able to verify your identity and address
- Must be able to verify your income
Term Length
36 or 60 months
Fees
0.99-5.99% origination fees
$15 late payment or returned check fee
Minimum Loan Amount
Standard: $2,000
Massachusetts residents: $6,000 minimum
New Mexico & Ohio residents: $5,000 minimum
Georgia residents: $3,000 minimum
Maximum Loan Amount
$50,000
APR Ranges
7.99-35.99%
Evergreen Lends (3 out of 5 stars)
Key Features
Evergreen Lends is a tribal lender that provides installment loans for bad credit. They provide funds extremely quickly — often in less than 24 hours after your installment loan for bad credit is approved.
Application Process
The process of applying for an installment loan from Evergreen Lends is simple & fast. At the top of every page on their website is an “apply” button, which will take you directly into the application portal. You will be required to input personal information such as name, social security number, driver’s license number, address, and phone number.
Once your personal information is submitted, you will have to enter the banking information for where you would like to receive your funds. Next, enter details about your employment and income. At the end of the process, you will have to answer whether you are in the US military and provide references.
Once you have provided all of the information above, you can send your application for review by Evergreen Lends. The approval process is speedy; if approved, you can receive your funds in less than 24 hours.
Pros
- Receive funds very fast if you are approved
- Provides installment loans for bad credit
- Allows you to borrow up to $600 your first time if approved
Cons
- First-time borrowers cannot borrow more than $600
- Repayment terms and monthly payments can be as high or higher than payday loans
Loan Verification Steps
Evergreen Lends does not disclose the income level or credit score required to receive one of their loans. They also do not disclose their loan verification steps or process, but the requirements below should help someone know if their loan funding will likely be approved.
Reputation
Because Evergreen Lends is a tribal lender located in the Lac du Flambeau tribal territory, they do not follow state laws and have tribal immunity from many Federal laws. The firm has a B- rating from the Better Business Bureau, with most complaints being about customer service.
Requirements
Evergreen Lends has a list of states that they will not do business in, which means that you can not get a loan from them as a resident of the following states:
- Wisconsin
- Virginia
- West Virginia
- New York
- Arkansas
There are a few other requirements needed to secure bad credit installment loans from Evergreen Lends:
- You have to be at least 18 years old
- You need to have a bank account in your name
- You must have a working email address and phone number
- You have to have been with your current employer for at least 90 days
- Your job must be your primary source of income
- You must be a U.S. citizen or permanent resident
- You cannot be an active member of the US military
Term Length
The repayment terms for an installment loan from Evergreen Lends can be between several months or up to a year, with no penalty for early payoff. The repayment schedule can be set up to be paid weekly (every seven days) and up to every 20 days.
Fees
Evergreen Lends implements a fee ranging from $15 to $30 for every $100 of principal borrowed.
Minimum Loan Amount
$250
Maximum Loan Amount
If you are a first-time borrower, you cannot borrow more than $600. Once you repay that first loan, the loan amounts can be from $250 to $2,000.
APR Ranges
The APR ranges for Evergreen Lends are no longer displayed on their website, but using the Wayback machine to find when they previously were, the lending company has ranged between 273% and 1564%.
What Are Installment Loans?
An installment loan is so named because these personal loans are paid back in equal monthly payments (installments). Some may include an origination fee, but not all do. The monthly loan payments for these personal loans will vary based on the loan amount, lender, interest, credit score, debt-to-income ratio, and any origination fee.
Types of Installment Loans
- Auto loans
- Buy now, pay later loans
- Mortgages (home loans)
- Personal loans
- Debt consolidation loans
- Home renovation loans
- Medical debt loans
- Payday loans
- Student loans
- Emergency Loans
- Home equity loans
- Vehicle equity loans
Examples of Online Installment Loans
Auto loan
These installment loans are often secured through your bank or a car dealership to purchase a new or used vehicle.
Buy now, pay later loan
Typically offered by retailers, these installment loans allow you to take possession of an item for sale and pay it off through a monthly payment.
Mortgage (home loan)
Typically offered by banks, mortgages are installment loans used to purchase homes.
Personal Loan
Personal loans can pay for any number of expenses. These can either be a secured loan or an unsecured loan.
Debt Consolidation Loan
These loans consolidate debt from multiple sources into one, often with lower monthly payments.
Home Renovation Loan
Some home renovations can be very costly, with some payment required before construction begins. A home renovation loan allows one payment to the contractor, which the homeowner can pay off through an installment loan.
Medical Debt Loan
Medical emergencies can be costly. Medical debt loans allow a borrower to pay it all off in one sitting and then make monthly payments to the entity that provided this personal loan.
Payday Loan
Payday loans are often for people with bad credit history but with steady employment. The fees and interest rates charged by payday lenders often make the loan proceeds far more expensive than the loan itself.
Student Loan
College has become quite expensive. Student loans usually pay the school directly and allow a grace period in the loan term before the student has to begin paying it back.
Home Equity Loan
As a form of secured loan, home equity loans allow borrowers to take a loan against the equity they have in a home they own.
Auto Equity Loan
A secured loan similar to a home equity loan, vehicle equity loans allow you to borrow money against ownership of a vehicle.
How Do Installment Loans Work?
Many lenders will provide installment loans to people with excellent credit, poor credit, and everything in between. Each lender will have different requirements and offer different loan terms to be approved.
Some installment loan lenders are online only, while others may be traditional institutions with brick-and-mortar offices. Once a potential borrower finds the lender they would like to apply with, they must submit personal, banking, and other information required to the lender.
The lender will decide whether the borrower meets their requirement threshold for the amount requested and may offer different loan amounts where appropriate.
The lender will then offer the loan and repayment terms. These may or may not include an origination fee and can include either a fixed interest rate (fixed monthly payments) or a variable one (that changes based on outside factors or the repayment schedule).
Once borrowers agree to the interest rates and loan amounts offered, a contract is signed, and the loan funding is sent to the agreed-upon place.
The borrower must then make installment payments until the total debt is paid.
What Are Installment Loans Used For?
An installment loan is used anytime a borrower needs a large, single payment that they would like to pay off through installment loan payments. These can include many different types of loans, from a car loan to a home loan, student loan, home renovation loan, medical debt loan, debt consolidation loan, or anything else needed.
What to Pay Attention to When Getting an Installment Loan
Any installment loan can significantly affect your credit history. If you make your monthly payments on time, it will raise your score. If you miss payments, it will drop your score. Whether you have excellent credit or poor credit, pay close attention to the following factors in your loan terms:
Payments
Be sure you can make the monthly payment required.
Reading Terms & Conditions
The terms & conditions will outline important issues like when you must begin paying the loan proceeds back, your interest rates and if they are fixed or variable, and whether origination fees are included.
Researching Other Opportunities
There are seven different online installment loans for bad credit listed in the article above. No matter your credit history, you should always research to find the best installment loan agreement for your needs.
Company Reputation & License
Payday lenders are notorious for offering expensive terms to people who often don’t have other options. Before you decide on any lender, research its reputation and reviews from former customers.
Interest Rates
The interest rates of your loan terms will determine your monthly loan payments. Many homeowners got into serious trouble in 2008 because they chose variable interest rates that started low but soon became so expensive they couldn’t afford them. Pay close attention to the interest rates and how they are structured.
Main Requirements for Getting an Installment Loan
Each lender will have different requirements based on credit score, loan amount, income, debt-to-income ratio, and several other factors. At the very least, every lender will require the following:
- Steady employment and income
- An active bank account
- Verifiable ID & Personal Information (Social Security number, Address, phone number)
- Must be a US citizen or legal resident
- Must be at least 18 years old
Alternatives to Installment Loans
If you need emergency money, there are alternatives to installment loans. Here are a few of them:
Credit Cards
When used responsibly (by not running up credit card debt), a credit card can help to provide access to money you can then pay off in monthly installments.
Line of Credit
If you own a business, you can use a line of credit through a bank to provide fast cash when needed.
Secured Loans
If you have equity in your home, vehicle, or some other form of collateral, a secured personal loan will often have far better loan terms than an unsecured one.
Difference Between Installment Loans & Payday Loans
Installment Loans
Whether secured or unsecured, an installment loan is when a large amount of money gets paid in one lump sum, which is then paid back in monthly installment payments.
Payday Loans
Payday loans could be a form of secured loan for bad credit, as they depend on the borrower’s steady paycheck. These loans are often costly and only offered in small amounts.
Related
Best Installment Loans FAQs
What Are The Best Bad Credit Installment Loans?
From our research, CashUSA, Bad Credit Loans, and Avant offer the best bad credit installment loans.
What Is The Easiest Installment Loan To Get Approved For?
The easiest installment loan to get approved for is with brokers like CashUSA, Lendfy, Bad Credit Loans, and Personal Loans because one application will send your loan request to an entire network of lenders. This improves the chances of being approved by one of them.
What Are The 3 Most Common Types Of Installment Loans?
The three most common types of installment loans are auto loans, mortgages, and student loans.
Do Installment Loans Hurt Your Credit?
A lender will perform a “hard credit pull” to verify you after you accept the loan terms they offer. So yes, this will cause your credit history to dip slightly.
If you make your monthly payments on time, installment loans can help to increase your credit. If you do not make those payments, it can significantly lower your credit.
Do Installment Loans Require A Credit Check?
Yes, installment loans will require a credit check. However, some installment loans for bad credit will accept very low credit scores.
Are Installment Loans A Good Idea?
Installment loans are a good idea if you can pay off the balance. If you don’t have a way to pay them off, they can dig you deeper into debt.
How Do Installment Loans Differ From Other Types of Loans?
Most traditional loans are, in fact, installment loans.
How Many Installment Loans Can I Get?
The only lender that we’ve found who allows multiple installment loans at a time is Best Egg. For most others, you will need excellent credit and a low debt-to-income to get more than one.
Important Disclosures: This website does not constitute an offer or solicitation to lend. The operator of this website is NOT A LENDER, does not make loan or credit decisions, and does not broker loans. The operator of this website is not an agent or representative of any lender. We are a lead generator. This website’s aim is to provide lenders with information about prospective consumer borrowers. We are compensated by lenders for this service.
Information about loans: Not all lenders can provide loan amounts up to the maximum that is advertised. The maximum amount you may borrow from any lender is determined by the lender based on its own policies, which can vary, and on your creditworthiness. The time to receive loan proceeds varies among lenders, and in some circumstances faxing of loan request form materials and other documents may be required. Submitting your information online does not guarantee that you will be approved for a loan.
Every lender has its own terms and conditions and renewal policy, which may differ from lender to lender. You should review your lender’s terms and renewal policy before signing the loan agreement. Late payments of loans may result in additional fees or collection activities, or both.
By using this website or services, you represent and warrant that you are at least 18 years old, that you are a resident of the United States, and that you are not a resident of any state where the loan you are applying for is illegal.