Bad Credit Loans Monthly Payments Direct Lenders

Writer and editor - Joseph Smith | Updated on 2020-05-20
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Bad credit loans monthly payments direct lenders alternatives

There are several types of bad credit loans with monthly payments. Among these are auto loans, personal loans, installment loans, and payday loans. Selecting one will depend in large part on the purpose and the borrower’s credit history.

Companies reserve bad credit loans for people with poor credit. Shopping around among lenders can ensure that borrowers make the best choice. Multiple offers will allow the borrower to compare terms to see which option fits their needs.

Another strategy is to get a loan from a friend or family member. In these cases, borrowers do not have to worry about credit checks or bank account balances.

Best bad credit loans direct lenders and connectors

Loans Amount Cost / APR ? Bad Credit Features
CashUSA
$500 - $10,000
Individual rates
Bad credit allowed
Allowed
  • Loan terms start at 3 months.
  • Next-day deposit: In some cases ?
  • High approval rates ?
  • Time for decision: 1.5 min ?
  • Type of service ?
QuickLoanLink (Personal loan) $300 - $35,000 APR:
Starting at 6.90% ?
Bad credit allowed
Allowed
  • Loan term 2 months to 7 years
  • Credit check type: Soft ?
  • Next-day deposit: In some cases ?
  • Min creditscore: 550
  • High approval rates ?
  • Time for decision: 1.5 min ?
  • Type of service ?
HonestLoans
$400 - $5,000
$30 - $750 ?
Bad credit allowed
Allowed
  • Same-day deposit: In some cases ?
  • High approval rates ?
  • Time for decision: 1.5 min ?
  • Type of service ?
CreditLoan (Personal loan) $100 - $40,000 APR:
Starting at 5.34% ?
Bad credit allowed
Allowed
  • Loan term 2 months to 7 years
  • Same-day deposit: In some cases ?
  • High approval rates ?
  • Time for decision: 1.5 min ?
  • Type of service ?
LifeLoans (Personal loan) $500 - $40,000 APR:
Starting at 5.99% ?
Bad credit allowed
Allowed
  • Loan term 2 months to 5 years
  • Credit check type: Both ?
  • Next-day deposit: In some cases ?
  • Min creditscore: 580
  • High approval rates ?
  • Time for decision: 1.5 min ?
  • Type of service ?
GazelleLoans
$300 - $5,000
Individual rates
Bad credit allowed
Allowed
  • Same-day deposit: In some cases ?
  • High approval rates ?
  • Time for decision: 1.5 min ?
  • Type of service ?
OppLoans (Direct Lender)
(Personal loan)
$1,000 - $5,000 APR:
Starting at 99.00% ?
Bad credit allowed
Allowed
  • Loan term 9 months to 3 years
  • Next-day deposit: In some cases ?
  • Low approval rates ?
  • Time for decision: 1.5 min ?
RubikLoan
$100 - $1,000
$1,000 - $5,000
$15 - $300 ?
APR from 6.9% ?
Bad credit allowed
Allowed
  • Same-day deposit: In some cases ?
  • High approval rates ?
  • Time for decision: 1.5 min ?
  • Type of service ?
Personal Loans (Personal loan) $500 - $35,000 APR:
Starting at 5.99% ?
Bad credit allowed
Allowed
  • Loan term 3 months to 6 years
  • Credit check type: Soft ?
  • Next-day deposit: In some cases ?
  • Min creditscore: 580
  • High approval rates ?
  • Time for decision: 1.5 min ?
  • Type of service ?
BadCredit.com
$100 - $5,000
Individual rates
Bad credit allowed
Allowed
  • Next-day deposit: In some cases ?
  • High approval rates ?
  • Time for decision: 1.5 min ?
  • Type of service ?
OpenCashAdvance
$200 - $5,000
Individual rates
Bad credit allowed
Allowed
  • Same-day deposit: In some cases ?
  • High approval rates ?
  • Time for decision: 1.5 min ?
  • Type of service ?

Getting approved for a bad credit loan

People with poor credit might have a harder time getting approved, if they want to get a bad credit loan with monthly payments. Fortunately, there are some steps people can take to get approval for a loan.

The first step is to improve the current credit history. That starts with getting a copy of the credit report from one of the three major credit bureaus: TransUnion, Experian, and Equifax. After examining it and reporting any errors, such as fraudulent accounts or outdated information, people can also pay bills on time, improve their credit utilization ratio, pay off debts, and limit the number of hard credit checks.

Fixing a credit score is not easy or quick. Even minor inquiries, such as hard credit checks, will stay on the report for two years. Additionally, delinquent payments will last for seven years, and some bankruptcies are visible for a decade.

If the loan is urgent, get a cosigner. Cosigners serve as a third party that agrees to repay the loan in case the primary borrower default. These individuals have superior credit scores and can help if the borrower cannot meet the minimum income requirements or other considerations.

Where are the basic requirements for a bad credit loan?

The basic requirements for a bad credit loan will vary from lender to lender. As a rule of thumb, an applicant should be a US citizen or permanent resident. They also need to be at least 18 years old.

At the bare minimum, lenders typically require a credit score, payment history, and proof of income. The credit score is the most significant factor as it reflects how reliable someone is with money. As a result, people with higher credit scores will usually get lower interest rates and more competitive terms. Individuals with poor credit loans will get higher interest rates and less favorable terms.

Payment history accounts for 35% of the FICO score. It demonstrates to lenders whether or not someone has missed payments and how frequently that occurred. A single missed payment will stay on a credit score for seven years.

Lenders also want to see that applicants have a consistent flow of income. Proof of employment and income will reassure financial institutions that the person can pay back the loan. Their income will also dictate the loan amounts and repayment period.

Things to check when taking a bad credit loan

The first thing to note is the interest rate. Depending on the type of loan, the interest rate will be anywhere from 5 to 35%. That figure will typically be higher for individuals with poor credit.

Second, check the fees and additional products. Some direct lenders will include origination fees, which compensate for loan processing and result in borrowers paying 1 – 8% more. There may also be prepayment, delinquent, closing, and appraisal fees, as well as loan insurance.

Advantages of monthly payment loans

Monthly payment loans or installment loans let people borrow money that they can pay back incrementally. Typically, the repayments happen once per month for a predetermined period. The structure and simplicity make it easy for borrowers to schedule repayments.

Monthly payment loans are relatively fast. People can have the money they need in as little as a business day or two. Additionally, the longer the loan term, the lower the monthly payments will be. The payment amount is the same each month, too, because the interest rate is fixed.

Perhaps most importantly, bad credit loans offer a source of financing that doesn’t exist anywhere else. These lenders are willing to take a chance of consumers, almost regardless of their credit history. Knowing there is a possible financial solution can make all the difference.

Disadvantages of bad credit loans

Often bad credit loans have higher interest rates that are upwards of 30 to 35%. For instance, someone that accepts a two-year $2,000 loan with a 35% interest rate will end up paying $2,808.96. Therefore, the borrower pays more than $800 for the privilege of borrowing the money.

The interest rates can be even higher for payday loans.

Direct lenders and connectors

Direct lenders with no credit check as well as does that preform hard checks all hold a specific license to loan money to borrowers. That includes banks, credit unions, and online lenders. Applicants have the benefit of working directly with the financial institutions when it comes to determining interest rates, repayment periods, and other terms.

Because there is no intermediary, customers can have a direct conversation with the lender. However, negotiating terms and conditions may be daunting, particularly if the borrower does not have experience in the industry. They also do not have anyone to represent their best interests when applying for the loan.

Connectors work as a go-between for customers and direct lenders. These professionals leverage their knowledge, experience, and connections to find their clients the best deal possible. While there is a fee associated with their services, they are likely to procure the optimal loan. A connector can streamline the overall process while finding lower rates.

When someone uses a connector, they are beholden to their abilities to perform up to par. Brokers also have some limitations as they cannot make exceptions to the terms and conditions of a loan. Furthermore, they cannot perform the final underwriting or funding choices for a loan.

Joseph Smith

Joseph Smith
Writer and editor

Joseph Smith is an experienced freelance writer with over 11 years of experience. His area of expertise includes finance, loans and lending. His work has been featured on various large websites including this one.
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