If you have bad credit score and don’t know where to borrow the necessary amount of money to realize the project you have or to pay for the house repair, you should use installment loans for bad credit designed with the aim to give a chance to those customers, who have less opportunities because of their poor credit history. By the way, installment loans online are the best chance to improve your bad credit history and build new good score following the only rule not to miss the monthly payments.
What is an installment loan and how it differs from payday loan?
Installment loan is a long-term, which mustn’t be repaid from the next payday. Compared to payday loans online, an installment loan is given for the longer period of time and can be repaid for many months. Installment loans are usually used for long-term projects, which require large amount of money. There is no one single lump payment here. The best examples of installment loans are auto loans and mortgages, when you give the borrowed money back over months and the sum is equally divided.
Example of an installment loan
Imagine a situation that you want to get $1000 to repair your house. You apply for the installment loan and get the necessary amount of money, which must be paid back within two years at a 25% rate. After getting your loan, you will have to pay $53.37 during 24 months. The payments must take place regularly each month.
Tips how to get installment loans no credit check
The process of getting installment loans takes place online and is quite simple and quick due to the fact that no credit check is provided. The absence of teletrack and credit check is obvious as installment loans are given to bad credit borrowers despite their score. There are simple tips how to be approved for the loan. Check them out here:
- Fill in an application form online: be careful and avoid mistakes as they may cause misunderstandings and be rather time-consuming both for the borrower and the lender. Check your filled application twice before you submit it.
- Have basic personal information at hand: first you are recommended to check out which information is obligatory to be filled in and prepare all documents in order not to spend much time remembering your Social ID number or any other financial or banking details.
- Provide only valid contact information: it is very important as in case there are some problems with your application form arise, you will be contacted via e-mail or telephone call using the contacts you have mentioned in your application form. In case you write not valid contact information you risk missing an opportunity to get important information on time.
- Check out requirements and do your best to meet all of them: there are no so many requirements, however, they are obligatory: each borrower must be at least 18, have some work, be able to prove his or her monthly income with the paycheck or any other document, have the valid banking account, be able to provide all necessary information online.
As you see, there are no difficulties getting bad credit installment loans if you are able to meet the requirements.
What should you know about installment loans direct lenders?
A lot of companies offer short-term and long-term loans for both good and bad credit borrowers. There are two types of lenders: mediator companies playing the role of middlemen between the borrower and the direct lender and the direct lenders themselves. Some people think that it is not safe to apply for the loan via mediator companies, however, this is not true. You get your loan only from the direct lender in any case. But the benefit of getting your money with the help of such companies is that they search for the best deal tailored to your needs.
You can choose among many offers from the direct lenders and get the one you find more suitable for your current financial situation. Sure that if you were recommended by your friend to use the services of some trustworthy direct lender you can apply for such installment loan. However, it is better to save time spent for search and entrust your installment loan offer to the mediator company, which has a wide network of direct lenders to choose from.
Benefits of getting bad credit installment loans
There are a lot of advantages to enjoy when you take bad credit loans. The most important are listed here:
- Minimum of requirements to the bad credit borrower with providing no credit check;
- Simple procedure of getting installment loans filling an online application form;
- Long loan repayment period, which may last up to two years depending on the lender;
- Lower cost of installment loan compared to the payday loan interest rates.
Getting installment loans online you borrow money without any unnecessary questions asked as the lender is interested only in your current financial status and ability to repay the loan on time. You aren’t going to be asked by the lender why you failed repaying the credit last time, which damaged your credit score. In any case, you have the great opportunity to build your credit rating together with the installment loans.
Build good credit history with payday installment loans
Installment loans are organized in such a way that you are able to benefit from scheduled repayments not only because it is much more convenient in comparison with the one lump sum repayment but also because such repayment terms give bad credit borrowers a chance to restore their credit history easily. How is that? You don’t need to do anything special as each time you make on time monthly repayment you contribute to your improved credit score. Multiple payments over time will be able to help you build good credit history without any efforts. Just follow your scheduled repayment plan and don’t miss the due date of the installment loan repayment and your score is going to be rebuilt gradually.
Apply for installment loan if you have bad credit or no credit history at all and enjoy the long repayment period and large amount of the borrowing you can get depending on the monthly income you have.