A false notion sometimes circulates out there that in order to get a loan on bad credit, you have to settle for a payday loan and pay it all back in one lump sum. Or, even if you can get bad credit loans monthly payments, the payments will be unreasonable and unaffordable. But neither of these assumptions is at all accurate.
About Bad Credit Loans MONTHLY PAYMENTS
In extremely short term financial shortfalls, payday loans may suffice. But sometimes, bad credit loans monthly payments are needed to get you through a longer term financial problem till you can regain your “financial balance.”
Personal installment loans for bad credit allow you to repay month by month for as long as 5 years in some cases. Most of the time, however, these loans have terms of only a year or so or less. You can set up the payment schedule and payments amount from the beginning according to your budget abilities and your personal preferences, within the parameters of what your lender will allow.
There is great flexibility in terms with most lenders. These are direct lenders who are able to work with you more than a bank can because they’re not dealing with third party’s who buy your debt and impose additional strictures on what the loan terms have to be.
Bad credit personal loans are quite common these days, and given a third of US adults have bad or poor credit ratings, that’s not a surprise. Note that approval for a fast cash personal loan and the size of your monthly payments are both determined based on your verifiable regular income. It has nothing to do with credit scores. Interest rates may vary with credit histories, but approval and payment structure (as to principal at least), will not.
Setting Your Monthly Installment Rates
To avoid late fees and missed payments due to insufficient funds being left after paying your other bills and expenses each month, you want your monthly installment payments to be set up in a way that is affordable and realistic. You should never have more than 20% of your income going to repaying your personal loan, unless you have very few other items in your budget.
And realistically, the longer you take to repay, the harder it will be to maintain a high percentage of your income as going toward the payments. That’s why 10% or 15% of your monthly income should be the limit with loans lasting a year or more, while 20% could work for, say, a three or six month long loan term. But everyone has to assess his or her own exact situation to determine what’s doable – it’s not a one size fits all proposition.
Finding Your Best Possible Payment Structure For Personal Loans
But again, not every lender will offer you the same range of terms. That’s where Bonsai Finance comes in. We can help you quickly and painlessly search through a vast number of lenders and loan offers. We make it much easier to find offers, compare them, and crunch the numbers to determine what is your best overall deal.
Keep in mind that the total amount you can borrow will be gauged based on your income level, and the bigger the principal, the longer a term will typically be allowed. So, one lender might cap you at $3,000 but another at $4,000. One lender might give you up to 3 years to repay if you wish, while the other might allow a maximum of 5 years. And interest rates and fees will differ from lender to lender as well.
At Bonsai Finance, we allow you to quickly enter search criteria that will pull up the bad credit loans monthly payments that best fit your true financial needs.
Here are some other helpful articles:
Your guide to bad credit student loans
Guide to personal loans for Uber drivers
Can you get a payday loan with no job verification?
Online loans instant approval – how it all works