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Can I Get An Installment Loan If I Have Bad Credit?

A bad credit installment loan is designed for borrowers who are denied bank loans because of weak credit standing. When you have default on debts or late credit card payments, you get negative remarks recorded on your credit report. This lowers your credit score and make it difficult for most lenders to approve loans because the chances of you not paying back is too high. You can only get bad credit installment loans or even not. However, you have to contend with higher interest rates to compensate for the increased possibility of no payments.

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What You Must Know About Installment Loans

Even when you have credit problems, you can choose between secured or unsecured installment loans. If you are willing to put down collateral to secure a loan, it is easier to get better offers and even some companies will approve long term installment loans when you borrow against the equity in your car. However, such loans require more paperwork and asset appraisal for it takes a few days to process.

In such an agreement, the amount of money you want to borrow will largely depend on the type of assets used. Common sense tells us that you should not attempt to borrow 5000 installment loans today with a beat up truck and neither should you use your home to get a small loan because with secured financing, you risk losing ownership of your house if you default on your loan obligations.

If you are in a hurry and need to borrow $2000 dollars with bad credit, 3 month installment loans are more suitable since no collateral is involved and many online lenders can instantly process your request and directly deposit the money into your checking account.

If you do not have any assets, you can still get an installment loan with bad credit as long as the amount involved is not much larger than your monthly income. For tenants or students, getting an unsecured loan may be the only option. However, you need to consider whether the expensive fees are worth the trouble. In fact, many borrowers end up aggravating their existing financial hardship due to the additional debts they now carry. For example, the average rate on legitimate installment loans for bad credit is at least 15 percentage points compared to banks or credit unions.

We have seen many consumers getting trapped in a spiraling cycle of debts. Due to the ease of getting poor credit installment loans online, these people start relying on easy loans for short term cash strapped situations instead of trying to build up a cash buffer in their banking accounts. Then, the expensive installment loan payments eat into their income and makes it impossible to have any spare cash left at the end of the month. This cycle repeats until their overall debt becomes too large to be paid off on their own and they need to seek financial aid from friends and family.

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Instead of getting online installment loans, why not consider other alternatives to borrow money from friends or family. You can sell off some valuable items such as jewelry or watches, or even cash in your car. Doing so helps you avoid paying loan fees which are often unnecessary expenses. Budget your expenses so that you can have some surplus for the savings account each month. If you have a good amount of cash in the bank for emergency situation, you will not have to borrow money at bad credit loan rates.

Always strive to maintain a high credit score or repair your credit. This will allow you to get advertised loans from banks in future. Meanwhile, you can try to look for direct installment loans from online lenders and check out their quotes and rates for yourself.


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