When looking for guaranteed installment loans for bad credit, there aren’t many options. The main issue with getting a loan is that lenders look at your credit score. This gives them the information they need to decide if you’d be a good fit for borrowing money. However, even people who are diligent in paying their credit card bills end up with poor credit. So, what’s the problem, and how can you find installment loans, regardless of your credit score?
Why Do I Have Poor Credit?
Contrary to popular belief, many people fall in the range of what’s considered to be ‘bad credit.’ In fact, this is so common that nearly a third of Americans have a credit score that’s lower than 601. With the charts for marking credit scores going from 0-850, this is considered to be on the lower end, hence a poor credit score.
Credit scores can go down for several reasons. For starters, it takes time to build up a good credit score. Many people who have credit cards use them for several years before their scores go up to a good rate. If you have a newly opened account or fresh credit card, you might have to deal with poor credit for a few years.
Another reason why people can have bad credit is because of missing a payment. While it takes years to build up a decent score, it only takes one payment to cause it to plummet. Even with a steady income, everyone has extra unexpected expenses from time to time. When those add up, people don’t have enough to pay those credit card bills, and then their scores take a turn for the worst.
While there are many reasons for poor credit, one that many people don’t realize is that poor credit can also be due to a lack of variety in one’s credit cards. If you use a single credit card for all of your expenses, your credit score may not be as good as someone’s who uses a few different cards. Spreading your charges out over a few cards is the best way to get multiple sources of good credit on your score.
What are Guaranteed Installment Loans for Bad Credit?
Even people with great credit scores have trouble finding good lenders. Unfortunately, this stress only increases when someone has poor credit. But with the help of your Bonsai Finance representative, you can find a lender who’s committed to giving you a loan with reasonable rates.
From the different types of loans, the best loan for poor credit scores is an installment loan. Installment loans are also known as personal loans, and these are arguably the best kind of loans out there. They follow a very structured format, in the sense that the borrower first pays a lump sum, then follows a regular monthly payment plan. The rates don’t change and the interest fees also stay the same throughout the duration of the loan term. This predictability makes it easier on the borrower to pay on time. However, as with any loan, there’s always the issue of the lender performing a thorough credit check. It makes sense for them because they need the affirmation that their borrower is capable of repaying that money. But it becomes a problem for that person who’s stuck with poor credit.
How Bonsai Finance Can Help
This is where Bonsai Finance steps in to help you out. At Bonsai Finance, not only do you receive expert advice on which lender to trust, but you can also skip the credit checks. While traditional banks don’t accept poor credit, Bonsai Finance helps you find the best lenders who provide guaranteed installment loans for bad credit.