Monthly Installment Loans for Bad Credit

Writer and editor - Joseph Smith | Updated on 2020-07-01
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Benefits of Monthly Installment Loans for Bad Credit

Monthly installment loans include any loan where you borrow a fixed amount of money and then repay the loan in agreed-upon installments. Mortgages, student loans, and personal loans are all examples of monthly installment loans. Many lenders offer installment loans for people with bad credit, giving them the chance to refinance their debt and start improving their credit score. Unlike credit cards, monthly installment loans are fixed expenses, so you can’t add onto a loan once you’ve taken it out.

Best Bad Credit Installment Loans

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 ?

Flexible repayments

One of the biggest advantages of installment loans is that you can control your monthly repayments to some extent. Many loans have different repayment times, ranging from one year to several decades. A long-term loan will have smaller monthly repayments simply because you have more time to pay the amount off. This flexibility allows you to take out a loan safe in the knowledge that you can afford to pay it back.

Fast availability

Most online lenders have streamlined their application process, so you can hear your application result within hours. Having such a fast turnaround time means that you can have the money in your bank account as soon as you need it, which can be essential if you need to pay off an emergency expense.

Who Can Get a Monthly Installment Loan with Bad Credit?

Many lenders are willing to lend to individuals with bad credit. These loans may have some extra conditions, such as being secured with collateral or having higher interest rates to offset the lending risk. The main consideration is whether you can afford the monthly payments, which involves a soft credit check that looks at your monthly income.

Requirements for an Installment Loan Application with Bad Credit

The basic requirements for anybody applying for an installment loan are:

  • Older than 18 and preferably over 21
  • Have a monthly income of at least $800 before tax, preferably earning closer to $2,000
  • Have an active bank account
  • Proof of identity, such as an ID
  • Proof of income, such as a pay stub

Pros and Cons

As with many other financial options, installment loans come with several pros and cons, which are especially important if you have bad credit. Understanding these pros and cons can help you decide whether monthly installment loans for bad credit are the right choice for you.

Pros:

  • Flexible repayment rates: you can decide the length of your repayment term, which will impact how much you pay every month. The shorter your repayment term, the higher the amount you have to pay per month, but the less you’ll have to pay overall since you’re not paying off additional interest. Longer-term loans will have lower monthly repayments, but you’ll end up paying a lot more due to interest. The best option is to stick to a repayment plan that you can reasonably afford without going too low on your monthly repayments.
  • Options for bad credit: many lenders will have bad credit options in place for people who want installment loans.
  • Higher borrowing limit: because monthly installment loans have long-term repayment options, the amount you can borrow tends to be higher as well. A higher borrowing limit means that you can get exactly the amount of money you need without having to take out multiple loans.

Cons:

  • Higher interest rates: bad credit installment loans tend to have high interest rates because lenders need to mitigate the risk that you’ll default on the loan. These rates can add up over time, costing you thousands of dollars more than a similar loan with a lower interest rate.
  • Hard credit checks: lenders will often do hard checks with the relevant credit bureaus when they approve your loan. These hard credit checks are noted on your credit history and will drop your credit score. Your loan repayment history is also reported to the credit bureaus, though this may be an advantage if you’re keeping up with your monthly repayments.

How Soon Can My Application Be Approved?

How soon you get your decision will depend on many factors, including the size of the loan you’ve applied for and their lending approval process. An automated process usually approves small loans, so you can have your decision within several minutes. Larger loans of over $5,000 or more can take longer since they need manual review and approval.

However, in many instances, this process is also streamlined, so you should hear whether or not your application has been successful in a couple of working days, at most.

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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