People seeking personal installment loans for bad credit might be disappointed to find that the amounts approved for such transactions are usually fairly small, and that the installments in such loans rarely stretch out over more than 12 months.
That means that lenders, no matter how predatory, are not giving out $50,000 loans to be paid over 25 years at $200 per month. The more common terms are $1500 to be repaid over 12 months, for example.
Benefits of Personal Installment Loans
Even with those small amounts and a quick payback plan, consumers are realizing that the terms for such installment loans are far superior to those given in payday loan shops and payday loan sites. It’s also encouraging to note that many more online lenders are jumping into the installment loan field, eager to get the business even of people with a low credit score.
Terms of such loans depend on the state in which a borrower lives and his/her credit score. Those who qualify for installment loans appreciate the speed with which most lenders operate, often depositing funds into an account the next business day. Many of these lenders also do not require faxing information to them, making the entire process fairly smooth and seamless.
Here are some of the names of lenders who give installment loans to people with bad credit. These lenders are either well reputed or offer loans in amounts that are larger than normal, in case you are in a true fix: Quick Installment Loans Online and First Amerigo Installment Loans (loans up to $1500), MoneyNow USA (loans up to $5,000, with repayment terms up to 3 years long) and The Cash Store (up to $2,000).
Bad Credit Implications
As with any loans that are to be agreed upon, numerous quotes should be obtained and compared before signing anywhere. Pay particularly close attention to extra fees, including processing and monthly tariffs, application fees and the like, as well as pre-payment penalties and, of course, interest rates.
You will pay more for a personal loan if you have bad credit, but if you can find a reasonable interest rate that will only be applicable for 12 months or so, such loans can be a great way to make it through a particularly tough financial period in your life, and you won’t be chained to such loans for decades at a time.
Personal installment loans can be understood as a bridge between when you hit rock bottom with your credit score and when you can get back on your feet again and not require loans with above-average interest rates. They should be seen as a one-time fix, not a monthly fallback option.