Identifying the best types of installment loans for bad credit can be challenging in the current financial landscape. These loans stand out due to their more accommodating credit score requirements, offering a beacon of hope for those grappling with less-than-ideal credit histories. They provide various loan amounts, cater to different financial needs, and feature comparatively long repayment terms. A notable aspect of these loans is the option to apply with a co-signer or co-borrower, significantly enhancing your approval odds.
What Are Installment Loans for Bad Credit?
Installment loans for bad credit are designed for people with lower credit scores. These loans are different because they don’t need as high of a credit score to get approved. They work by letting you borrow a certain amount of money and then pay it back in regular monthly installments over a set period of time. This makes it easier to plan your budget because you know how much you need to pay each month.
These loans can be for various amounts to help with many financial needs. One helpful feature is that some of these loans let you apply with someone else, like a co-signer, making it easier to get the loan.
These loans may have higher interest rates or extra fees because lending to someone with a lower credit score can be riskier for the lender. So, look into all the details before you take one.
Best Installment Loans for Bad Credit Borrowers
It is vital to conduct thorough research before selecting a loan, ensuring it aligns with your financial requirements and circumstances. Careful consideration is essential in choosing the best bad credit installment loans for your needs.
Wise Loan
Lender Details
Wise Loan, founded by Tommy Glenn, is an installment loan company that has been in business for approximately 8 years and was accredited by the Better Business Bureau (BBB) on April 5, 2015. The company primarily offers loans for small businesses and individuals, mainly catering to those with bad credit. Wise Loans’ loans vary in size range with repayment terms of 4 to 12 bi-weekly payments. Notably, the company doesn’t require an excellent credit score for loan approval, aiming to support consumers needing help with credit. Wise Loan is among the best online installment loans for bad credit in 2024.
Loan Specifications
Loan Amounts:
$200 to $3,500 (depending on your state)
APR:
299.96% to 799.00% (depending on where you live and your credit rating)
Minimum Credit Score:
N/A
Pros and Cons
Pros:
- Same or next-day funding
- Flexible qualification requirements
Cons:
- Only available in Delaware, Idaho, Louisiana, Mississippi (returning customers only), Missouri, South Carolina, Texas, Utah, and Wisconsin
- Small loan amounts
Upgrade
Lender Details
Upgrade, Inc., an American neobank, was founded in 2016. Since its inception, the company has made significant strides in the financial sector, raising $600 million in equity funding and issuing over $10 billion in loans since 2017. Upgrade’s primary focus is on providing credit and banking products to consumers, including fixed-rate credit cards and loans. They also offer mobile banking services and have developed a suite of credit monitoring and education tools. It is based in San Francisco, California, with additional offices in Phoenix, Arizona, and Montreal, Quebec, Canada.
Loan Specifications
Loan Amounts:
$1,000 to $50,000
APR:
8.49% to 35.99%
Minimum Credit Score:
580
Pros and Cons
Pros:
- Low minimum credit score requirement
- Borrowers can use loans to cover business expenses.
- Offers direct lender payoff for debt consolidation loans
Cons:
- High Annual Percentage Rate range
- Charges fees for origination, late payments, and insufficient funds
Universal Credit
Lender Details
Universal Credit, founded in 2017, is a financial service company owned by online lender Upgrade. The company offers unsecured personal and debt consolidation loans, catering to many borrowers, including those with low credit scores. The company offers repayment terms of 36 to 60 months.
Loan Specifications
Loan Amounts:
$1,000 to $50,000
APR:
11.69% to 35.99%
Minimum Credit Score:
580
Pros and Cons
Pros:
- Flexible qualification requirements
- Next-day funding
- No prepayment penalty
Cons:
- High APRs
- All personal loans charge a 5.25% to 9.99% origination fee
Avant
Lender Details
Avant, also known as Avant, LLC and formerly AvantCredit, is a Chicago, Illinois-based company in the financial technology industry. Founded in 2012, Avant has become a significant player in the fintech sector. The company’s principal offerings include lines of credit and personal loans. Avant’s is a mid-prime lender that uses proprietary technology to assess individual creditworthiness.
Loan Specifications
Loan Amounts:
$2,000 to $35,000
APR:
9.95% to 35.99%
Minimum Credit Score:
580
Pros and Cons
Pros:
- Secured and unsecured loan options are available
- Low credit score requirement (580)
- Loan terms of up to 60 months are available
Cons:
- Charges an upfront administrative fee
- High starting APR for prime borrowers
- Co-signers and co-applicants are not allowed
Lending Point
Lender Details
LendingPoint is a financial services company specializing in personal loans, founded in 2014. Their main products include personal loans for consumers, focusing on those with fair to good credit reports, and financing solutions for merchants and service providers. Lending Point or its banking partners can fund a personal loan before the next business day.
Loan Specifications
Loan Amounts:
$2,000 to $36,500
APR:
7.99% to 35.99% (with autopay)
Minimum Credit Score:
600
Pros and Cons
Pros:
- Quick funding
- Low credit score requirements
- No prepayment penalty
Cons:
- Origination fee up to 10%
- Co-signers and joint loans are not permitted
- Not available in Nevada and West Virginia
Oportun
Lender Details
Oportun is a financial services company founded in 2005 that is known for offering inclusive and affordable financial solutions. Their main products include personal loans, auto loans, and credit cards, catering primarily to consumers with limited or no credit history. This focus reflects their commitment to financial accessibility and inclusivity.
Loan Specifications
Loan Amounts:
$300-$10,000
APR:
29.00% to 35.95%
Minimum Credit Score:
None
Pros and Cons
Pros:
- Accepts borrowers new to credit
- Community Development Financial Institution
- Co-sign and limited secured loan options
- Option to prequalify with soft credit check
- Small loans starting at $300
Cons:
- May charge an origination fee
- High rates
- No option to change your payment date
LendingClub
Lender Details
LendingClub is a digital marketplace bank established in 2006 that provides personal loans, auto loan refinancing, and tailored banking services. Its main products include personal loans for debt consolidation, home improvement, and major purchases. Additionally, LendingClub offers a suite of banking services, including savings accounts, checking accounts, and more, following its acquisition of Radius Bank in 2021.
Loan Specifications
Loan Amounts:
$1,000 to $40,000
APR:
9.57% to 35.99%
Minimum Credit Score:
~600
Pros and Cons
Pros:
- Will directly pay off third-party creditors as part of balance transfer loan
- Co-applicants permitted
Cons:
- Origination fees and late fees
- Limited loan term availability
- High APR range
Achieve
Lender Details
Achieve, founded in 2002, is a digital personal finance company that originated from Freedom Financial Network’s expertise. The company offers a range of financial solutions, including personal loans, debt resolution services, and home equity loans. Achieve’s mission is to support the economic well-being of everyday people, helping them manage debts, save money, and plan for the future with innovative technology and personalized support.
Loan Specifications
Loan Amounts
$5,000 to $50,000
APR
8.99% to 35.99%
Minimum Credit Score
620
Pros and Cons
Pros:
- High loan amounts
- No prepayment fees or collateral are required
- Long repayment periods
Cons:
- High APR Range
- Minimum credit score of 620
Tips for Comparing Installment Loans for Bad Credit
When comparing installment loans for bad credit, you’ll need thorough research to find the most suitable option. Understanding your specific financial needs is the first step; this includes assessing your repayment capacity, interest rates you can manage, and the loan term that works for you.
The market offers numerous products, each with unique features and terms. It’s important to match these with your needs, considering factors like loan amounts, APR ranges, and eligibility criteria, especially for bad credit.
By carefully evaluating the following items, you can choose a loan that not only meets your immediate financial requirements but also helps you attain long-term financial health:
- Research Minimum Qualifications: Investigate the lender’s minimum credit score and income requirements. This step ensures you focus on loans you are likely eligible for, saving time and avoiding unnecessary credit inquiries.
- Review Interest Rates: Examine the Annual Percentage Rate (APR) different lenders offer. A lower APR can significantly reduce your loan’s overall cost.
- Prequalify When Possible: Seek prequalification to identify loan terms without impacting your credit score. This process helps you compare different lenders’ offers.
- Consider Additional Fees and Costs: Pay attention to origination fees, late fees, and other charges that could increase the total loan cost. These fees vary widely among lenders.
- Calculate Monthly Payments: Use online calculators to estimate your monthly payments. Calculators help you determine if the type of loan is affordable in your financial circumstances so that you can develop a realistic budget.
- Read Reviews From Other Borrowers: Check borrower reviews and testimonials to gauge customer satisfaction and the lender’s service quality. Reviews can provide insights into the lender’s reliability and the user experience.
Why Trust Wise Loan as Your Installment Loan for Bad Credit Lender?
Wondering what the best installment loans bad credit borrowers can apply for are? Wise Loan is perfect for borrowers with bad credit, providing speed, transparency, and incentives—our ability to offer same-day funding greatly benefits when you need money fast.
The application process is quick and easy, regardless of your credit background. Wise Loan’s transparency is a standout feature. We openly communicate the loan terms and total costs, enabling you to make an informed decision.
Moreover, Wise Loans helps you improve your credit profile by reporting your on-time monthly payments to credit bureaus. This aspect is crucial for subprime borrowers looking to rebuild their credit scores. Additionally, the rewards for consistent, timely repayments motivate financial discipline, further helping you build credit.
Wise Loan offers a three-day cancellation policy, providing a safety net so that you can reconsider your loan decision. This policy reflects our commitment to customer satisfaction and ethical lending practices. Furthermore, Wise Loan’s legitimate and secure online presence, with an encrypted website and transparent privacy policy, enhances trust and reliability.
Wise Loan deserves your consideration because of its quick funding times, accessible applications, upfront transparency, credit-building opportunities, and borrower rewards.
Frequently Asked Questions
Can You Get an Installment Loan With a 550 Credit Score?
You can get a personal installment loan with a 550 credit score, but it may be tricky. Lenders usually see a score of around 550 as a sign of financial hiccups in the past. They may be cautious.
You’ll likely find lenders specializing in bad credit loans, but watch out for higher interest rates and extra fees. Read the fine print and compare different options. Also, this could improve poor credit scores by making on-time payments. Always make sure a loan will stay within your budget.
Where Can I Get an Installment Loan with Bad Credit?
If you’ve got bad credit and need a personal installment loan, don’t worry — options await you. Online lenders are ideal because they often have more flexible requirements than traditional banks.
Credit unions are another solid choice. They’re member-focused and sometimes offer more favorable terms to folks with poor credit scores. Peer-to-peer lending platforms can be a good bet, too – they connect borrowers with individual investors. Just remember, loans for bad credit may come with higher interest rates. So, shopping around, comparing offers, and reading the fine print are vital to finding the best deal for your situation.
What Are Bad Credit Installment Loans Used For?
Bad credit installment loans are handy for various situations, especially when your credit score isn’t top-notch. People often use them for emergencies, like unexpected medical bills or urgent car repairs. They’re also great for covering big-ticket items, like new appliances or essential home repairs.
Some consumers use them to consolidate debt, turning multiple high-interest debts into manageable payments. They can even help improve your credit score if you make payments on time. Best of all, many online lenders do not ask why you want the money – they trust you to spend it as you see fit.
What is the Easiest Type of Installment Loan To Get?
Secured installment loans are among the easiest to get, as they require collateral, like a car or a house, which reduces the lender’s risk. Collateral makes these loans more accessible, even if you have a bad credit score. Personal loans, particularly from online lenders (like Wise Loan) and credit unions, are also relatively easy to obtain. Online lenders offer streamlined processes with rapid approval and less paperwork. Credit unions, being member-focused, may provide more accommodating lending criteria.
Online loans have straightforward application procedures and flexible eligibility requirements. However, that flexibility doesn’t always guarantee good terms or low-interest rates. You should thoroughly compare options and consider the interest rates and fees before obtaining any loan, especially one that puts your assets at risk.
Wise Loan is proud of its willingness to work with borrowers of every credit stripe. Apply now, and we may be able to provide loan funds within 24 hours. If you’re looking for easy access to bad credit installment loans, Wise Loan is ready to help.
The recommendations contained in this article are designed for informational purposes only. Essential Lending DBA Wise Loan does not guarantee the accuracy of the information provided in this article; is not responsible for any errors, omissions, or misrepresentations; and is not responsible for the consequences of any decisions or actions taken as a result of the information provided above.
