It is not uncommon for you to find those with a bad credit rating to be rejected by banks and other financial institutions when they submit an application for an installment loan. If they eventually find an institution that will provide them with an installment loan the only option they are likely to face is to pay back the loan with a high interest rate.
Luckily, the internet has made it very possible for those with a bad credit rating to access installment loans for bad credit at a competitive interest rate. Moreover, online lenders will not carry out a hard credit check; instead, they will look or consider other factors like your ability to repay the loan on record time and whether or not you are a resident in the United States.
However, with hundreds of installment loan options on the market, it can be confusing for the average borrower to know which of the installment loans is best suited for them. So, in this article you will learn how to get guaranteed installment loans for bad credit. You will also learn the advantages and disadvantages of taking out installment loans and other eligibility factors that lenders usually consider before approving a loan request.
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What Are Guaranteed Installment Loans?
Installment loans are unsecured short-term loans that an online lender, bank or other financial institutions usually approves to borrowers in a lump sum and the borrower gets to repay the loan in installment (most time monthly) over an agreed period of time and at a competitive interest rate.
You don’t need to have an excellent credit rating to be approved for an installment loan and you can use the loan to achieve a wide range of purposes, including to pay for emergency medical bills, home renovation, repair of your broken down vehicle, or to go abroad on vacation.
How Do Installment Loans Affect My Credit?
Obtaining an installment loan does not directly affect your credit rating except when you default on your monthly installmental payment. Most online lenders usually report the profile or account of those that defaults to make on-time payments, and as a result, the three credit bureaus in the country can flag the account or profile of such borrower, which will be detrimental to their credit score.
In essence, it is important that you only borrow the amount that you are sure you will be able to repay within the agreed period of time. One strategy that you can adopt to ensure that you don’t miss a payment is to set up an auto payment or a reminder if possible.
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What Are The Pros and Cons of Guaranteed Installment Loans?
Installment loans are usually very helpful, especially when you are faced with a pressing family challenge that requires funds to address. However, it has its own downsides. Below are some of the advantages and disadvantages of taking out an installment loan from an online lender:
Pros
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- Easy and fast access to cash: Installment loans can be assessed from a direct lender within the same day of your loan application or the next business day, making it one of the most convenient loans you can apply for online.
- Easy to apply for: The process of applying for an installment loan is simple and straightforward, with only a few documents needed.
- Fewer requirements: Unlike other types of loans that require a number of documents to be presented before your loan application can be approved, installment loans generally require you to be at least 18 years old and also provide a means of identification.
Cons
- High-interest rates: One of the biggest disadvantages of applying for an installment loan is its high interest rate, making it an expensive loan option for borrowers.
- They are bad for building credit: If you are in the process of building your credit score, applying for an installment loan is not a great option. Lenders usually do not send their reports to credit bureaus, meaning that taking out this type of loan will not help to build your credit score.
What Are The Basic Requirements For Applying For Guaranteed Installment Loans?
To be considered for an installment loan, you will need to meet all of the following requirements:
- You must be at least 18 years of age as of the time of the loan application.
- You must have an active checking account that the lender will deposit the requested funds into.
- You must possess a valid means of identity; showing that you are a resident in the United States.
- You must also have a working phone number and a valid email address for easy communication.
- Lastly, you must provide proof of a source of income.
How to Get Guaranteed Installment Loans?
There are different lenders out there that are willing to offer you installment loans for bad credit. However, the application process is usually strenuous, which is why you need to work with a loan broker like US Bad Credit Loans. US Bad Credit Loans will hold you by the hand and walk you through the application process until you get the requested amount in your checking account.
Here’s how to apply for installment loans:
- The first step in the loan application process is to submit an online application. The application will contain the loan amount and your personal and financial details. Therefore, all information that you enter into the form should be genuine.
- Get a loan quote. US Bad Credit Loans will pair you with trusted and credible online loan lenders that will offer you different loan options. Go ahead to compare the loan terms, then pick an offer that you know you will be able to repay conveniently.
- Sign agreements: If you are satisfied with the loan terms of the offer that you choose, you can then proceed to sign the dotted lines.
- Receive your fund: At this point, the lender will credit your checking account with the amount that you have requested for.
Final Thoughts
Installment loans are a great option for those who have a bad credit rating and find it difficult to access a personal loan in a bank or other financial institutions. US Bad Credit Loans is not a direct lender, but they will link you to a direct lender that will offer you installment loans at a competitive interest rate. US Bad Credit Loans is flexible, transparent, and charges zero fees.