Direct Lenders For Bad Credit Installment Loans
If you have bad credit, you may be experiencing difficulty obtaining a loan from traditional lenders such as banks. Most financial institutions use your credit score to determine your ability to repay a loan. They also use it to determine how risky you are as a borrower. Therefore, you may end up receiving loans with higher than normal interest rates if your credit score is below average.
Luckily, there are other options available for people with bad credit. Installment loans provide you with the funds you need while giving you more time to repay. In fact, direct lenders for bad credit installment loans are often flexible in working with you to establish the terms of your loan. They will take into account your income and the amount of money you need before they determine your repayment period. You can also negotiate your loan interest rate and compare options from multiple lenders.
Just because you have bad credit doesn’t mean that there aren’t loan options available to you. If you’re considering a bad credit installment loan, it’s important to know what they are, how they work, and how you can identify the right lender who can meet your needs.
Understanding Installment loans for bad credit
One-third of people in the U.S have bad credit (or below average credit scores). Therefore, if you have bad credit, you’re not alone. While you may feel locked out of loan options from banks, credit unions, and other similar financial institutions, installment loans for bad credit can help you attend to immediate financial emergencies and repay the loan over a period of time.
By definition, an installment loan for bad credit is essentially an unsecured loan that you can borrow directly from various lenders. The loan is repaid over several months or years, depending on the loan amount and the repayment period you have negotiated with your lender.
Bad credit installment loans direct lenders will issue you with a loan based on your income rather than your credit score. As long as you have a stable and reliable income, direct lenders will work with you to determine how much you can borrow and how much time you will have to repay the loan.
What makes installment loans for bad credit stand out from other types of loans is that you don’t have to repay an installment loan all at one go. As compared to payday loans where the principal plus interest is due on your next paycheck, installment loans are split into monthly payments that span across several months or years.
In the case of having bad credit, most direct lenders don’t consider your credit score when approving you for a loan. Whether you have bad credit or no credit history at all, most lenders will primarily consider your monthly income over your credit score. In this way, your chances of approval are much higher and you also won’t have to undergo further credit checks (which may hurt your credit score).
You may be concerned about multiple credit checks further affecting your already damaged credit score. Luckily, direct lenders for installment loans will not look deeply into your credit history, and thus you will rarely have a hard credit check run on your record.
Online direct lenders for bad credit installment loans
Most installment loans for bad credit can be applied for online and the funds deposited into your U.S bank account. Online installment loans are not only simpler to apply for, but they’re also quicker to process. In fact, most installment loans are delivered into your bank account in less than 24 hours.
Through this highly efficient application process, installment loans come in handy when you’re in need of quick cash. You can use the funds to cater to a medical emergency, catch up on a rent/mortgage payment, or handle travel expenses.
Direct lenders who offer installment loans for bad credit are often quite flexible to work with. You can often negotiate with the lender if you need more time or if the interest rate is too high. It’s also a good idea to compare multiple lenders before you settle on an installment loan. Installment loans for bad credit direct lenders are thus designed with flexibility and the needs of the borrower in mind.
To help make this process easier, service providers such as Bonsai Finance connect you with quality loan lender. We connect you with our network of certified and professional lenders to make it easier for you to find a loan. By filling out one application, you can access multiple lenders and compare interest rates, repayment periods, loan amounts, and much more.
Why get an installment loan for bad credit?
If you’re looking for financial assistance to keep yourself afloat, you may be wondering if installment loans for bad credit are a good option. In addition, if you have bad credit, you may feel restricted in your ability to access financial resources.
There are many reasons why borrowers look for installment loans. In addition to the benefit of having more time to repay, installment loans for bad credit also offer the following benefits.
Quick and easy application process
Installment loans are often easy to apply for. In fact, most applications take less than 15 minutes to apply, and funds are deposited in less than 24 hours. Furthermore, by using resources such as Bonsai Finance, you can gain access to multiple direct lenders by filling only one application.
In the application itself, you won’t be asked for detailed financial information as you would with a traditional bank loan. The most important thing to demonstrate is a stable and reliable income.
Can be used to meet many different financial needs
As compared to payday loans and other short-term fast cash loans, installment loans for bad credit can be used for many different needs. They come in handy for both emergencies and other financial obligations that you may have. For example, an installment loan is a useful option for purchasing a used car (or finishing up on a pending car payment). You can also use installment loans to carry out home renovations, plan for a vacation, or reduce credit card debt.
Flexible loan terms
Because installment loans are directly issued by lenders, you can negotiate for competitive interest rates and repayment periods. And if you’re comparing offers from multiple lenders, you have even more leeway to select a loan option that meets your financial needs.
No credit or bad credit is ok
Installment loans for bad credit are available for people who have below average credit scores (or no credit history at all). This means that you can still access financial assistance and more time to repay the loan, regardless of your credit score.
Most bank loans are strict on their credit score requirement and they may also offer less flexible repayment options. In addition, payday loans are often only suitable for short-term emergencies. Installment loans are the perfect medium where you get quick access to a loan and more time to repay it.
Installment loans can also help you build your credit score. By making timely repayments to the lender, you will be demonstrating financial responsibility and improving your credit rating over time.
Bad credit installment loans direct lenders versus other loan lenders
While they all offer important financial services, direct lenders for installment loans differ from other loan lenders. An installment loan is designed in a unique way from traditional bank loans and payday loans. For example, payday loans work well for immediate short term financial needs. They can be used to cater towards an urgent medical expense, car repair, rent payment, etc.
On the other hand, a bank loan is a longer-term commitment. Most loans via the bank take years to repay and they may involve large sums of money. This is why bank loans rely on credit scores and detailed financial information.
Lenders that deal with installment loans lie somewhere between payday loans and bank loans. While they offer immediate cash for financial needs, they also allow you more time to repay the loan over several months (or years). Installment loan lenders provide you with a solution when you need a loan that’s more flexible than a payday loan but less involving than a bank loan. Installment loans are also less risky in nature than secured loans (such as title loans). For example, while a title loan may give you access to more cash, you risk losing your primary means of transportation if you end up defaulting.
How to apply for an installment loan
Installment loans for bad credit are quite simple to apply for. If you need cash for an upcoming vacation, to purchase a car that you’ve always wanted, or to fix a leaking plumbing system in your home, an installment loan is a useful option to consider.
The application process for installment loans is as easy as ABC. You only need to demonstrate the following requirements.
- Age between 18-65 years old
- A stable and verifiable income
- Have a valid U.S Bank account
- Some lenders may also request for a cell phone number where they can reach you
Most people can gather the above information in a matter of minutes. This means that installment loans are convenient to apply for and you can access them even with bad credit.
When looking for a lender, Bonsai Finance can help you save time and connect you with a quality lending partner. We keep a robust network of bad credit installment loans direct lenders who can help you meet your financial needs. And because our application process is quick and simple, you will have multiple loan options to choose from in a matter of minutes.
Installment loans for bad credit direct lenders: What should you consider?
As useful as installment loans for bad credit are, you should also do your part to ensure that you select the best option for your financial situation. For example, it’s up to you to select a lender and loan terms that fit into your personal budget.
You should also ensure that you can repay your loan on time so as to avoid getting further into debt. Before you apply for an installment loan, ask yourself the following questions.
1. What will I use this loan for?
When borrowing an installment loan, you should have a plan for how the money will be used. Installment loans can help you meet immediate and longer-term financial needs if you plan accordingly. However, simply borrowing a loan for the sake of it can land you in further financial crisis.
2. Have I found the right lender?
Your direct lender will determine many factors pertinent to the loan itself. Even before applying, you should ensure that your lender is certified, insured, and experienced in the field.
Luckily, Bonsai Finance does this initial filtering for you and makes your work much easier. Our certified network of lenders is proven to offer safe and reliable financial services.
3. Are the loan terms acceptable?
Next, make sure you read the fine print of every loan that you apply for. Keep note of what your interest rate is, how much time you will have to repay, and who to contact if you come across any difficulty. Don’t shy away from negotiating any loan terms that you find unfavorable.
4. Can I afford to repay?
Most importantly, only apply for loans you can realistically afford. Don’t get carried away and opt for high loan amounts that don’t fit your income or budget. Timely repayments will help you establish a positive relationship with your lender (and they can also improve your credit score).
Direct lenders for bad credit installment loans offer useful financial services to borrowers. Even with bad credit, you can still access an installment loan to help meet your current financial needs. And because you often have more time to repay, you can adjust your budget accordingly while still remaining on your feet.