Guaranteed Installment Loans for Bad Credit

Writer and editor - Joseph Smith | Updated on 2020-05-26
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An installment loan is a type of credit where you borrow a specific amount and pay it back in pre-defined installments. Common installment loans include mortgages, car loans, and personal loans. Unlike credit options, such as credit cards, installment loans have a fixed credit amount and fixed repayment options.

The main advantage of an installment loan is that your repayments are fixed and predictable. If you take a fixed-interest installment loan, you will know exactly how much your monthly repayment will be for the lifetime of the loan. If you choose a flexible interest option, your amount may vary slightly depending on the interest rate at that particular time.

Best “Guaranteed” Installment Loans for Bad Credit

Loans Amount Cost / APR ? Bad Credit Features
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 ?
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 ?
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 ?
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 ?
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 ?
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 ?
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 ?

What Are Installment Loans for Bad Credit?

You can also adjust the term of your loan to fit your needs and your budget. A long-term loan will have smaller monthly repayments, but you’ll be in debt for longer and will wind up paying much more interest on the loan. A shorter-term loan will have higher monthly repayments but have shorter terms, resulting in less interest and less time in debt.

One thing to know about installment loans is that since they’re for a fixed amount, you can’t simply add extra debt when you need extra money. Also, regular installment loans can be difficult to get if you have a bad or imperfect credit score since lenders want to know that they’ll get their money back from you.

A sub-segment of installment loans are installment loans for bad credit. These loans are aimed at people who have a bad credit history but still need money. These loans are usually secured, which means that you’ll have to put an asset (such as your home) as collateral for the loan. The danger with this is that if you’re unable to make your loan repayments, you may lose your home as well.

Where to Get Guaranteed-installment Loans for Bad Credit

Unfortunately, you will never be able to get a guaranteed-installment loan for bad credit, simply because no lender can guarantee that they’ll issue you a loan. All lenders need to do a credit check before agreeing to lend money, though how thorough this check is will depend on the lender. The best you can hope for is a “highly likely installment loan for bad credit.”

As with any other loan, your best option is to shop around. Most lenders will offer installment loans for bad credit, so get in touch and find out what their terms and conditions are. Be sure to compare the interest rates, loan amounts, and repayment terms of each lender to find the loan that best meets your needs. Try to get as short a loan term as possible, since it will end up saving you a lot of money in the long run.

Installment Loans Options

There are many different types of installment loans, though they tend to work in similar ways. Car loans, mortgages, and student loans all qualify as installment loans.

Mortgages

Mortgages are long-term installment loans for buying a house. The loan term is between 15 and 30 years and most come with fixed interest rates, meaning that your monthly repayment will stay the same throughout those 30 years.

Personal loans

Personal loans are loans where you can use the money you borrow for any reason, such as paying off medical debt or supplementing your income during an emergency. The interest rate for personal loans is much higher than for mortgages or car loans, mainly because personal loans are often unsecured.

What are the Benefits of Installment Loans?

Easy application

You can apply for various installment loans online, which is faster and more convenient than going to each lender individually. Most applications are automated, so you’ll also get a response much faster than going through physical channels. If you time your application correctly, you may even be able to get your money within the same day.

Higher borrowing limit

Since you can repay installment loans for a long time, lenders are more willing to lend large amounts of money. Longer terms are a great advantage, especially if you need a lot of money fast, such as to cover an emergency expense.

Also, being able to borrow a large sum means you don’t have to apply for multiple small loans to cover your debt. One large loan will have a lower impact on your credit score than taking out lots of small loans, which will help you get competitive interest rates and keep your credit score stable.

Flexible repayment terms

One of the best things about installment loans is that you’ve got control over your monthly payments. You can choose to repay large amounts in a shorter time or smaller amounts over a longer time. This choice allows you to tailor your monthly repayments to suit your financial situation. It’s a great way to start managing your finances and consolidating debt into manageable pieces that you can afford to pay off.

Can I apply for a loan even with a poor credit rating?

Lenders have a lot of leeway on who they can approve for installment loans. There are many options available for people of all credit ratings, especially if you can show supplementary documentation such as pay stubs and proof of billing. Many lenders will use these documents in conjunction with a soft credit check to decide whether or not to approve the loan.

What are the Disadvantages of Installment Loans for Bad Credit?

High Interest rates

The main drawback of installment loans for bad credit is relatively high interest rates. They’re not at payday loan levels, but they’re still high enough to cost you a lot of money over time in repaying interest.

The reason for this is that lenders need to make their money back somehow. If they consider you a higher risk due to a bad credit score, they will cover their risk by increasing your interest payments. Even if you wind up defaulting on the loan, they will have gotten most of their money back by charging you a very high interest rate.

We always recommend shopping around when looking for loans. Different lenders will have different interest rates and repayment terms, so find the one that works best for you and saves you the most money in the long run.

Fixed loan amount

Unlike credit cards, once you’ve received your money from a loan, you can’t add more. Instead, you have to apply for a second loan, which can harm your credit history. When taking out an installment loan, make sure you’re borrowing enough money so that you won’t have to take out another loan soon.

Where Can I Check My Credit Score?

Each of the three main credit bureaus allows you to check your credit history and credit score for free once per year. You can do this via TransUnion, Experian, and Equifax’s websites, or you can use a third-party site to do it for you. The advantage of using a third-party site is that you can get all three of your credit reports at once without having to go through the process manually.

If you need to see your credit score more than once per year, you’ll have to pay for each report that the credit bureaus generate.

Improve Your Bad Credit Score

If you’re in the unfortunate situation of having a bad credit score, it can feel like getting it back up is impossible. Improving your credit score is a difficult and long-term goal, but it is achievable if you follow several strategies and manage your finances well.

Be aware of credit utilization

One of the main aspects of your credit score is your credit utilization, or how much credit you’ve used in relation to how much credit you can have. For instance, if you have a credit limit of $30,000 and you’ve borrowed $15,000, you have a credit utilization score of 50% (you’ve used 50% of the credit you have).

Ideally, you want to keep this score under 30%, which shows lenders that you can manage your credit responsibly.

Check for mistakes on your credit report

Mistakes can happen, and they can negatively impact your credit score without you even knowing about it. Companies may fail to report a payment, which makes it look like you either missed that payment or paid it late.

Luckily, each of the credit bureaus has a mechanism in place to deal with disputes, even though the process can be difficult and frustrating. We recommend that you take advantage of your free annual credit report to go over every detail and identify mistakes before they can seriously affect your credit score.

Use your credit card responsibly

Lenders want to see that you can repay your credit reliably. The best way to do so is to keep your credit card active and repay it monthly. Try to spend small amounts that you can pay off with ease to make yourself look attractive to lenders.

What Is the Difference Between a Hard Credit Check and a Soft Credit Check?

There are two main types of credit checks that lenders can perform, namely hard and soft credit checks. Both provide lenders with information about your credit situation, but they’re different enough that you should understand the difference between the two.

A soft credit check is one that doesn’t require your consent to perform. It doesn’t affect your credit score and only provides a small amount of information to the lender without going into your full financial history.

A hard credit check is one that you have to give consent for the lender to perform. Every hard credit check is noted on your credit history, so anybody who does a later credit check will be able to see every hard credit check on your report. Luckily, if you’re shopping around for loans, all inquiries done within 45 days count as a single hard credit check.

Each lender will have their process for approving loans and may need a hard or soft check. The only way to know for sure is to ask the lender beforehand.

What About a Same-day Loan (Deposit)?

There may be times when you urgently need your loan money in your bank account. While lenders aren’t allowed to guarantee same-day delivery of your money, it is possible to arrange a quick loan, provided you apply early enough for the approval to go through and the amount to be transferred within ordinary banking hours.

Summary

Installment loans are common types of loans with fixed repayment terms. They offer several advantages over other types of credit, including the ability to set your repayment terms and choose a fixed amount to borrow. Even people with bad credit can apply for installment loans, though they may have to payer higher interest rates to offset the risk to the lender.

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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