Having a bad credit line can be a serious impediment if you're looking for a loan. It's one of the first things that banks and other formal loan sources look into, and a bad credit history means you don't qualify for one of their most basic prerequisites for getting a loan. There are many situations where online installment loans can “come to the rescue” and get you through a tough period without suffering any “permanent damage.” Below, we look at a few examples of when you might opt for an online installment loan, and then we cover the basics of how these types of loans work.
Online Installment Loans for bad credit
How Online Installment Loans Can “Ease Your Mind”It is easy to fall into a situation where you are “stressed” for the lack of immediate cash, despite having the long-term ability to cover all your expenses. Here are a few common examples: First, it may be you are in danger of falling behind on your house or car payments, due to a short-term financial difficulty. In this case, a short-term loan can carry you through and prevent risking losing your home or your only means of transportation (which could then lead to losing your job and only source of income.) A second example of where online installment loans can tide you over “rough spots” without your “feeling the financial bumps” would be if you are risking bank overdraft fees and various other forms of late fees. A small installment loan can prevent your having to pay such fees and will not normally cost you as much in interest as the fees would have been. A third example would be for purchasing items that are not “necessities” but that it would greatly disrupt your life and plans to do without. Examples might be getting extra cash to take with you on an important trip or buying a car to use at college when classes are soon to start and you can’t borrow a car.
How Online Installment Loans WorkNot only can a timely online installment loan ease the stress caused by a difficult situation, they also are easy and stress-free to process. Most online installment loan lenders will approve even those with bad or no credit if they can demonstrate ability to repay and have a U.S. bank account. There are normally no credit checks, and the personal and financial information asked for is extremely basic. You can expect to fill out the online application form in a matter of minutes and to get a response instantaneously or within a few seconds. Cash will usually be deposited in your account within one business day. You will be given regular installment payments that will usually be every two weeks or month, and so long as you make your payments on-time, you can minimize interest paid and build your credit score.
Types of Loans, Including Online Installment LoansFortunately, there are other options available for those with bad credit, including online installment loans. An installment loan offers you the chance to repay a loan within a certain period of time in multiple installments. Let's take a look at the types of installment loans available for people with bad credit, with a special focus on online installment loans:
Small LendersThese are the types of loans you receive from non-formal sources. These loans do not carry the transparency of formal loan sources such as banks or cooperatives, but remain a popular choice for many people because the money is loaned immediately without many of the prerequisite checks that banks insist on. Such loans are usually taken out for small amounts and often carry the option of payback in multiple installments.
Student LoansStudents often have little credit history of their own, but need financial assistance to get through college. In such cases, their credit history is often overlooked in favor of their previous academic performance and desire to receive an education. Such loans are usually only available to students and is covered under the government's right to education policy. The loan can be put to use in a variety of ways, such as paying tuition fees, buying study material, renting accommodations and for daily needs.
Mortgage LoanHaving some form of shelter is one of the most basic rights that everyone has, but not everyone has the money to pay for the mortgage on a piece of property. In such cases, a mortgage loan can be applied for and received by the buying party. The loan is then paid back in the form of installments every month or year until the full mortgage amount has been paid back. Mortgage loans are supplied not only by formal lenders but also by informal lenders, and the latter sources are often more relaxed and accepting of a bad credit history.
Installment Loans OnlineA revolution of the digital age, online installment loans are the newest sources of ready cash for those in need of installment loans for bad credit. This is not a peer-to-peer lending service, and cuts through the bureaucracy you often find in banks. The process of filing for a loan online is quick and easy, and can be performed without your ever having to move out of your house. Some of the other advantages offered by installment loans online include:
- They are perfect for buying new or used cars, as well as paying an existing car loan with ready cash.
- They offer competitive fixed interest rates to the person in need of online installment loans bad credit.
- They offer a choice of loan terms up to eighteen months. You can choose which plan works best for you and pay the money back in installments accordingly.
- The whole process takes place in the digital world, and can be completed on your laptop or mobile without having to stand in long queues.
Taking on Installment Loans Online Head OnBonsaifinance is not a peer-to-peer lending services, nor does it provide payday loans. What it does is provide access to a network of lenders who will fit your needs perfectly. The service is specially designed to be of help to borrowers who, for various reasons, might have a bad credit score which makes it difficult to get loans from traditional sources.
Installment Loans for Bad CreditThere are a number of reasons why taking out an installment loan online is a good solution for borrowers with bad credit, including these:
- The lender of an online installment loan will not likely bother to run a credit check on you.
- Loans of most lenders are approved even for bad credit borrowers so long as you have an adequate source of income to repay and a U.S. based bank account from which to repay.
- The loan terms for bad credit customers are much better, typically, than with payday loans or even with many credit card companies. Although bank loans may offer lower interest rates, those loans are not typically as short-term or as easily approved, which means comparing the two is like comparing "apples to oranges."
- Paying back your loan installments can help you out financially by improving your credit score. Showing ability to make regular payments on time is a major factor in determining your credit score.
- Installment loans taken out online can also help prevent your credit score from suffering further damage by helping you avoid late payments by providing fast and timely cash.
Online Installment Loans Are Perfect for Those in a HurryBesides the suitability of installment loans for bad credit, their other major advantage is convenience. Here are some of the factors that make these types of loans exceptionally fast and easy to process:
- Minimal information is required in the short application forms of most online installment loans. The application process literally takes only a few minutes, and you never even have to leave your home.
- The loan will normally be approved instantaneously or within a few short seconds. There is no long wait as with traditional bank loans and hardly ever a refusal.
- The borrowed cash is deposited directly into your bank account, typically by the very next business day — sometimes in a matter of hours. This is critical when you are in a financial "pinch."
How to Get Installment Loans Bad Credit or NotThere is a simple way to get access to money for your next vacation, home improvement project or even a used car. The qualifications are quite simple and straightforward:
- You will need to be between the ages of 18 and 65 years old
- You will need to be a U.S. citizen residing in the United States
- You must have a bank account for repaying the loan
- You need to have a debit or credit card for backup payment for the loan
- You need to have a regular income that can be verified via bank account transactions
- You will also need an active cellular phone that can receive both vocal calls and SMS text messages
Different Ways to Use Installment Loans Bad Credit or No CreditYou can use the money from these personal loans in different ways. No one is telling you that you are limited to spending the money in certain increments or amounts. As far as we are concerned, the money is yours to do as you please once we release it to you. Here is a sample list of the various ways that people have used the money from these personal installment loans bad credit or no credit:
- Home repairs or improvements
- New or used car purchase
- Educational financing in the form of student loans with no credit check
- Take a long awaited vacation
- Expand your personal wardrobe
- Pay off personal credit card debt and loans
How Personal Installment Loans for People with Bad Credit Differ with Our AgencyMany lenders do not offer even offer these types of loans to those with unfavorable credit. Unlike our loans, these lending agencies and traditional banks will not dare dabble in loaning to high risk borrowers with bad credit or no credit history at all. However, we at Bonsai Finance offer something quite different for the high risk loan applicant. Part of the beauty of this loan program is that it serves as a second chance for many of those same clients who would not qualify with any other type of lender. For some borrowers intent on rebuilding their own credit history and score, these bad credit loans might kick start your financial reboot. What is special about these loans beyond their availability is that these loans offer some exceptional features, especially for loans tailored for those with credit issues. Some of the unique features of term loans for people with bad credit include:
- Fixed interest at competitive lending rates
- Loan terms for up to an 18 month duration
- Monthly loan installment payments
Maximizing Your Term Loans for People with Bad CreditWhat you need to be sure to do once you have gained access to your personal loan. Once you get access to one of these personal installment loans bad credit or no credit, you need to ensure that you remain on time with your payments. Yes, your bank account is one methods for paying the installments on the loan, but there are other available options when you are working with our team of professionals at Bonsai Finance. You can use any of the following accounts for loan installment payments:
- Almost any type of checking account (not eligible for retirement accounts)
- Almost any type of savings account (not eligible for retirement accounts)
- Credit card of any type except for department store credit cards
- Debit card of any type including a "secured" credit card