3 proven ways to get online installment loans with bad credit
When you have bad credit (a FICO score below 630), getting an installment loan that allows you to repay the money in fixed monthly installments can be less risky and more affordable than payday loans. But with so many options on the market, it’s easier to channel the skeptic in you, especially if you’re considering getting a personal loan.
Luckily, it’s not as difficult as you’d imagine. As long as you have your budgeting demands and finances in sight, you should be able to link with a reliable lender online.
Here’s a guide that will help you get a personal loan easily.
What to consider when getting an installment loan online
Finding an authentic online lender can be a tricky business. Considering these factors beforehand may help you make a more informed decision.
- Credit score: If you’re looking to pay minimal interest rates for the installment loan, improve your credit score.
- Duration of repayment: To avoid overpaying on interest, opt for a manageable short-term loan. While the amount of interest on a short-term loan will generally be higher than a long-term installment loan, you will end up spending a lower interest amount as the interest accrues for a shorter period.
- Annual Percentage Rates (APRs) inclusive of interest rates and fees can help you determine how much you will pay to take out a loan. Rates below 36% may prove to be the most economical option for you.
If you’ve considered your state of finances and want to pursue an installment loan, you’ll do best to choose a plan that easily integrates with your budgeting demands.
3 proven ways to get online installment loans with bad credit
The right lender will report your payments to the major credit bureaus, thus helping you build credit while you’re actively working to get yourself out of the financial ditch. Finding a reliable lender, however, can be quite time-consuming. To help give you a headstart, here are 3 proven ways you can get an online installment loan—even with bad credit!
1. Upgrade
APR: 5.94 to 35.47%
Loan Amount: $1,000 to $50,000
Min Credit Score: 560
Pros:
- Low minimum credit score requirements.
- Allows long repayment terms.
- Allows secure and joint loans. Co-applicants can help lower APR.
- Offers 0.5% point rate discount for using autopay.
- Repayment terms range from 24 to 84 months.
Cons:
- You will need excellent credit on existing debt to get a low APR.
- Has origination fees (2.9 to 8%)
Why choose it?
Upgrade allows you to qualify with a co-applicant, giving it a distinctive edge over its competitors. All you need to get started is a credit score of 560 and a well-qualified co-applicant to bring down your interest rates. You and the co-applicant will, of course, need to meet the required criteria to be eligible. Once approved, the company will take as little as a day to fund you.
Please note: Upgrade does not extend its services to West Virginia and the District of Columbia.
2. Lending Point
APR: 9.99 to 35.99%
Loan Amount: $2,000 to $36,500
Min Credit Score: 580
Pros:
- Low, minimum credit score requirements.
- Speed funding.
- Repayment terms range from 24 to 60 months.
- Pre-qualification: Soft credit check.
- Post-qualification: Hard credit check.
- No prepayment penalties.
Cons:
- Charges origination fees (0 to 6%).
- No joint loans.
- High APRs (compared to competitors).
Why choose it?
LendingPoint uses AI and data-driven decisions to approve loans for applicants with credit scores as low as 580, making them one of the best online lenders on the web despite their low maximum loan amount. They have a speed-funding model that approves loans as fast as the next business day—a great feature if you’re looking to finance something on priority.
Please note: Lending Point offers personal loans to almost all U.S. states barring Nevada and West Virginia.
3. Avant
APR: 9.95% to 35.99%
Loan Amount: $2,000 to $35,000
Mininum Credit Score: 580
Pros:
- Offers refinancing options.
- Getting prequalified does not hurt your credit.
- Speed funding is available.
- Flexible repayment terms.
Cons:
- Offers personal loans to 42 U.S. states only.
- Has origination fees of up to 4.75%.
- Small maximum loan amount limit. May not be suitable for all.
Why choose it?
Avant specializes in small loans, funding approved applicants with credit scores as low as 580 in one business day. As the company pulls a hard credit check only if you proceed with the loan, linking with them won’t affect your credit score. The best thing about Avant? It also allows refinancing of loans. This can help you get a lower rate and take out more money in the future if desired.
While these are the best options on the market, it is natural to be troubled by the list of cons that rivals the pros of linking with these online lenders. If that’s what’s making you miss out on getting a personal loan to fuel emergencies, here’s an alternative—try CreditNinja.
How are CreditNinja’s installment loans different?
CreditNinja is a reliable lender—one that offers quick funding. From application to funding and repayment, the entire process is online. No more driving your schedule off the track for meetings with your lender!
That’s not all! CreditNinja also offers flexible terms, allowing you to maneuver through your tricky finance situation quickly and effectively. Explore CreditNinja’s online installment loan options to determine whether you’d be a good fit. A little research never hurt anybody, right?
Wrapping up
Bad credit can make availing of loans an absolute hassle. We often end up taking loans from questionable sources that charge high-interest rates—anything to get out of the financial ditch we find ourselves in! Luckily, that is not your only option. Many online lenders offer great personal loans to applicants with bad credit scores too!
All you have to do is find one that best accommodates your budgeting demands, go through their screening process to get approved, and you can be on your way to living your best life—with no financial struggles in sight!
