If you find yourself faced with an unexpected financial need, and it’s not for buying a car or a house or getting a federal student loan, chances are you will have a hard time getting a bank loan to cover it. Banks generally don’t lend out money for “personal expenses” but only for big ticket “investment property.” For a “personal loan,” better to check out guaranteed installment loans for bad credit. Direct lenders rather than banks are usually the ones who will offer such loans.
Guaranteed Installment Loans For Bad Credit, Direct Lenders
“Guaranteed installment loans for bad credit direct lenders” – that’s a lot to take in in one quick listen. But what we can do is break it down into its four basic parts and examine each, one at a time.
Another name for installment loans is personal loans, or even the combined form “personal installment” loans. The basic point is that you can take out these loans for any and all personal expenses and then pay them back in regular monthly installments, as opposed to a payday loan where you repay in one lump sum.
What Does It Mean That These Loans Are “Guaranteed?”
Guaranteed, in the context of installment loans, means that given you meet a few bare bones criteria you will automatically be approved for the loan. Because of this policy, the vast number of applicants are allowed to take out their desired loan.
But what are the “basic requirements?” While this can vary a bit from lender to lender, usually it means you have to be an adult (18 and above), have a US-based bank account to receive the funds and repay from via automatic withdrawal, and you can’t have other fast cash loans still outstanding or that you defaulted on in the recent past.
Many Installment Loan Lenders Accept Bad Credit
The next element to look at is “bad credit.” If you have a “poor” or “bad” credit score – or anything below average, your chances of getting a traditional loan are often next to zero. You can usually still get a credit card, but that doesn’t answer the same need as a personal loan does – and personal loans often have lower interest rates than credit cards.
Not all personal installment lenders accept damaged credit, but many of them do. And they normally also accept those who have “no credit” – that is, lack any significant credit history. If you have good credit, you might be able to get better terms on your personal loan – but there are decent terms available for those with even very poor credit if they know how to look for them.
How Do Direct Lenders Differ From Banks?
Banks typically are limited in which loans they can accept based on federal regulations and based on third party’s who “buy” the loans as a kind of investment. This puts a big limitation on what kind of terms they can offer and who they can accept.
But a direct lender doesn’t sell your loan to someone else. That frees them up from the strictures such third parties might impose, and direct lenders often deal in their own money instead of with federal funds – so that frees them up from many regulations that apply to regular banks. The end result for the borrower is greater flexibility in terms and a better chance of getting approved for the loan.
How Do I Find The Best Installment Loan?
The fact that good personal installment loans exist, even for bad credit applicants, does you little good if you can’t find them. A Bonsai Finance, we provide you with advanced search tools that help you sift through the hundreds of offers to find the best guaranteed installment loans for bad credit, direct lenders, in minutes!