Best Lender for Those With a Rating of 580 or More
- APR rates are reasonable
- You may borrow against a tax refund if you qualify
- A range of conventional financial institutions and alternative solutions
- You may qualify with a low income and a score of 580
- Hardly any extras
- There’s no way to work out costs before you receive your offers
- The platform is an intermediary, so you should research the company making the offer too
Company Overview
PersonalLoans.com is a lending platform that matches lenders and borrowers. The streamlined application process and lower credit requirements make it simple to get the financing that you need. The platform works with a peer-to-peer bank and direct lenders to provide a range of financing.
The efficiency of the platform makes it a good source of trusted installment loans for bad credit.
How It Works
The process is as simple as completing the online application. PersonalLoans.com checks if you qualify and determines which lenders are best suited to your needs. If approved, you’ll receive several offers to choose from.
Requirements
To qualify you must:
- Be a U.S. citizen over the age of 18
- Earn at least $2,000 a month
- Score at least 580 with the credit bureaus
- Have a checking account
Benefits
Intuitive Platform
You’re getting a no-frills experience that’s simple to use. There’s no need to waste time working out how and where to apply.
Offers Tax Refund Advances
Few loan companies allow you to borrow against your tax refund. PersonalLoan.com facilitates the process by connecting you to firms that provide this service. You may need to show some tax documents to prove your case, but there’s no need for other documentation.
Restrictions
You must explain what the money’s for upfront, but the lenders don’t typically tell you how to spend it. If you need trusted installment loans for bad credit with as few questions as possible, this is a good option.
| Loan Amounts | $1,000 to $35,000 |
| APR Range | 5.99% to 35.99% |
| Repayment Terms | 90 days to 72 months |
| Funding Time | At least one business day |
Best Lender for Recent Graduates and Borrowers With No Credit History
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- Works with banks, not peer-to-peer lenders
- You get the money fast
- Allows borrowers with a scant credit history
- Types of interests vary extensively between banks
- The origination fee may be as much as 8%
- No co-signed or secured loans
Company Overview
Upstart is a thoroughly modern secondary lender. Its unique evaluation model makes it one of the top-rated installment loans for bad credit. You may apply for a loan in case you need to cover medical bills, debt consolidation, home improvements, private student loans, vacations, or large purchases.
How It Works
The firm uses sophisticated artificial intelligence algorithms to evaluate more than just your credit history. It takes education, residence, job history, and several other factors into account and assesses your earning potential.
Requirements
To qualify you must:
- Have a credit score of at least 600
- Not have any delinquent loans
- Have no recent bankruptcy
- Have less than six enquiries with the credit bureau (exceptions apply)
- An annual salary of at least $12,000
Benefits
The primary benefit is that the company offers great pre-approved installment loans for bad credit.
Consolidation Service
If you apply to pay off other loans or credit cards, Upstart sends the money to your creditors.
Flexibility
Unfortunately, there’s no autopay discount. One of the conditions of approval is that you set up an automatic payment. You may, however, change the date of the debit throughout the term if necessary.
You may schedule payments to match a monthly or weekly payday. This feature all short-term installment loans share. It makes it convenient for the client.
Hardship Program
Upstart makes allowances for clients facing financial hardship in certain instances. They’ll provide a payment holiday for qualifying cases. This does not count against you as a non-payment as long as you resume the installments as agreed.
| Loan Amounts | $1,000 to $50,000 |
| APR Range | 6.16% to 35.99% |
| Repayment Terms | Between 6 months and 60 months |
| Funding Time | Usually, one working day |
- The turnaround time is fast
- Generous repayment terms
- The firm provides financial counseling
- Easy to qualify
- The firm not clear on fees or APR before you sign up
- Not available in every state
- The website knowledge base is poorly organized
Company Overview
Oportun is a great option for online installment loans instant approval. As long as you provide the requisite information, you’ll have your answer in ten minutes or less. The firm targets low to mid-income earners with a limited credit history.
The firm is a direct lender and provides:
- Personal Loans: Both secured and unsecured
- Credit Cards: These start with a low credit limit, allowing you to build a credit history
- Auto Loans: Secured against the value of your vehicle
How It Works
The firm places less emphasis on your credit history, focusing instead on your income, how you service your existing debt, whether you’re able to afford the repayment, and your monthly transactions towards utilities, rent, and cell phone bills. What’s good is they don’t require a minimum credit rating.
Requirements
To qualify for these installment loans for bad credit in 2022, you must:
- Provide proof of your identity on a government-issued document
- Have a verifiable phone number and address
- Give proof of regular income, preferably from permanent employment
- Live in one of the states that the company operates in
Oportun allows you to have a co-signer if you don’t qualify on your income alone. They may require security in the form of an asset.
Benefits
Improves Your FICO Score
Oportun assists clients in creating a credit history because it reports payments on all of its products. As long as you make your payments on your installment loans online or via automatic payments on time, you have a good foundation for a great score.
Community-Focused Company
The federal government certifies the firm as a Community Development Financial Institution. It is therefore obliged to assist in uplifting the communities it operates within. The company does so by providing financial education.
The Consumer Financial Protection Bureau has not registered any complaints against the firm.
Free Coaching
Oportun partners with UnidosUS. The organization aids in the upliftment of Latino communities through financial education, childcare, emergency aid, and finding employment.
Adheres to Conservative Lending Principles
While Oportun is lenient in terms of qualifying criteria, they’re strict about affordability. They typically don’t allow you to borrow more than 5% of your monthly income.
Restrictions
Unlike college loans, there are no restrictions and you may use the funds for whatever you like.
| Loan Amounts | $300 to $10,000 |
| APR Range | 19.90% to 35.99% |
| Repayment Terms | 6 months to 48 months |
| Funding Time | 2 to 24 hours |
Best Lender for Monitoring and Improving Credit History
- Simple application and qualification process
- Reasonable interest rates
- Allows joint applications
- Prequalification won’t affect your credit
- Funding takes a bit longer
- No mobile app available
- Charges between 2% and 6% loan origination fees
Company Overview
LendingClub is a peer-to-peer or secondary marketplace lender. The firm rates as one of America’s biggest online lending platforms and provides you with an agreement within minutes.
It offers financing for personal loans, paying off debt and credit cards, major expenses, home improvements, medical bills, businesses, unexpected expenses.
How It Works
The process is simple:
- Input the amount you require and the reason for the loan
- Fill in some personal details
- The company performs a soft pull, not a hard credit check, to see if you qualify
- You’ll be prequalified and receive multiple loan offers
- You select the offer best suited to your needs
Requirements
To qualify, you must:
- Have a credit score of 600 or more
- Be a permanent resident of the United States
- Have an established credit history of at least three years
- Have a debt to income ratio of under 35% to 40%
- Be able to provide pay stubs or proof of regular income
Benefits
Member Center
Members have access to a set of robust credit assessment tools to help them monitor and improve their credit history.
Company Assigns Grades
The company grades each client in terms of income and credit history. These grades are useful to investors and help the borrower secure better interest rates.
Debt Consolidation Service
Apply for a consolidation loan, and LendingClub will pay up to twelve creditors on your behalf.
Allows Joint Loans
The firm allows two people to apply jointly. They’ll consider the application only if the DTI ratio falls below 35% for both.
Transparent Pricing
You’ll pay between 2% and 6% as an origination fee. This only applies if you accept the loan, prequalification is free. The interest rates are capped at 35.89%. The company also charges a late payment fee of $15 or 5% of the amount, but only if the payment is more than 15 days late.
Restrictions
If you apply to repay debt, you must pay the funds to your creditors.
| Loan Amounts | $1,000 to $40,000 |
| APR Range | 10.68% to 35.89% |
| Repayment Terms | 36 to 60 months |
| Funding Time | Up to 7 days |
- A wide choice of offers
- You complete the process online
- Installment loans from direct lenders
- They don’t give you any idea of rates or fees as they’re an intermediary
- Some lenders charge excessively high interest
- There’s no guarantee that they’ll be able to find a match for your loan request
Company Overview
Slick Cash Loan is another secondary marketplace credit provider. They facilitate transactions between willing borrowers and lenders. They provide a range of loans, such as installment, payday, no credit check, bad credit, short-term, and personal.
The firm is an intermediary and doesn’t issue the cash itself. You’ll find the greatest installment loans with no credit check here. With the wide variety of lenders associated with the site, you’ll find a good match for your needs.
How It Works
The process is simple:
- Complete the form online
- The company performs a soft credit check
- It then matches your application with suitable lenders within the network
- You receive offers that you’ll need to choose from
Requirement
To qualify you must:
- Be a resident of the United States
- Be at least 18 years old
- Have an established credit score, even if it’s poor
- Have valid contact information that they can use to contact you
- Provide a bank account for the direct deposit
- Be permanently employed
Benefits
The process of applying is quick and easy. They have a pool of lenders who may be willing to take more risks than banks and financiers. Funding comes directly from the lender, not through Slick Cash Loan.
Restrictions
There are none. You may do what you like with the money.
| Loan Amounts | $200 to $5,000 |
| APR Range | Depends on lender |
| Repayment Terms | Depends on lender |
| Funding Time | About 2 days |
- Flexible payment solutions
- Quick finance options available
- A very simplistic product range
- Able to fund loans within one business day
- Allows secured installment loans for bad credit
- Avant doesn’t allow co-signing
- An origination fee of 4.75%
Company Overview
Avant is another big player and provides ideal installment loans for those with poor credit. It offers attractive interest rates for people with good credit scores but will also consider lending to those with lower ratings. Its target market is middle-income Americans.
They assist clients in improving their credit scores by offering low-limit credit cards. These range between $300 and $1,000.
How It Works
The process is simple. You complete the form online, and the company runs a soft check. If you qualify, they make you an offer. For an unsecured loan, it takes around 24 hours for the funds to appear in your account.
If there’s collateral involved, it takes a little longer as there are documents to sign.
Requirements
To qualify:
- There’s no minimum length of credit history, but your score must be 580 or more
- You must be a resident of the United States with a valid SSN
- You have to be 18 or over and permanently employed
- You’ll have to provide your banking details
- Clients must earn an annual income of $20,000 or more
The firm offers unsecured or secured loans, so you may have to provide collateral.
Benefits
Refinancing
The firm does allow clients to apply for refinancing after they’ve made at least six monthly payments. Clients with late payments in the last six months don’t qualify.
Improve Your Credit Score
Avant reports to the big three credit bureaus. Ensuring that you pay on time every month will help you build a strong credit profile.
Flexibility
Clients may pay in extra amounts or repay the money early without penalties. When necessary, they may also alter the date of their monthly installments.
Useful Mobile App
The Avant app works on both Android and iOS systems. It allows borrowers to manage their accounts and make payments easily.
Restrictions
Not applicable.
| Loan Amounts | $2,000 to $35,000 |
| APR Range | 9.95% to 35.99% |
| Repayment Terms | 24 months to 60 months |
| Funding Time | 24 hours |
Best Lender for People With Terrible Credit
- Installment loans for bad credit with fast funding
- Quick application process
- Qualifying couldn’t be simpler
- The balance doesn’t drop quickly
- The firm will lend to almost anyone
- The APR is very high
- Rates are high compared with other bad-credit lenders
- No additional benefits like unemployment protection
Company Overview
NetCredit provides services to consumers who wouldn’t ordinarily qualify for credit. They don’t specify a minimum rating or history. All they look at is your ability to repay the debt.
Be warned; the rates start at a level most other companies set as a maximum. This is not a good alternative if you have fair or even slightly poor credit. If you’re desperate for financing, however, you’re almost guaranteed installment loans for bad credit.
Requirements
You may apply if:
- You’re a U.S. citizen and 18 or older
- You have a regular source of income and a verifiable address
Benefits
Benefits include the ease of application and the lenient approval criteria. The firm’s fees are low in comparison to other companies. It may charge up to 5% for an origination fee depending on state law. It’s one of a small group of niche lenders.
Restrictions
None.
| Loan Amounts | $1,000 to $10,500 |
| APR Range | 34% to 155% |
| Repayment Terms | 6 months to 60 months |
| Funding Time | Same-day or within 24 hours |
How to Choose a Bad Credit Loan Lender – Guide
When selecting a company to work with, there are a few things to consider.
Stay away from:
- The promise of high loan amounts despite adverse listings
- Installment loans for bad credit with awful reviews
- Companies that insist you pay cash to “verify” your application or clear your credit
- Unregistered firms or those without a physical address
- Businesses offering guaranteed approval
Before accepting any offers, check:
- What fees do you pay? Some companies seem to charge low interest rates and make up the difference with administration, application, and administration fees. Work out what your APR (interest rate with all fees included) is for a fair comparison.
- What are the installment loans for bad credit reviews from other users? Every company in this industry has its share of negative press, but there should also be many great reviews. If there aren’t, don’t accept the offer.
- What are the repayment terms? How easy is it to make payments? Must you go to one of the company’s offices, or can you make direct deposits?
- Are there penalty fees? Firms may levy late payment fees, recovery charges, unpaid item charges, or even lodge a penalty for settling the amount early.
- Restrictions: Are there any restrictions in terms of what you may do with the money? Are you able to refinance or apply for a second loan later?
Key Bad Credit Installment Loans Benefits
Benefits include:
- Instant access to cash in emergencies: Loans are there for you when you need money in a hurry.
- Allows you to build a credit history: By paying on time every month, you show that you’re a responsible borrower.
- Affordable repayment schedule: You choose a term that’s affordable for you.
- More affordable than payday loans: As the term is spread out more, the interest rate is more affordable.
- Not a revolving credit facility: With a loan, you aren’t typically allowed to draw down the paid-off balance. Credit card debt can continue indefinitely.
How Do Installment Loans for Poor Credit Work?
Installment loans are one of the simplest forms of financing. You receive the cash up front and then pay off the interest and capital in monthly, weekly, or bi-weekly payments.
How to Apply:
The easiest way is to find a reputable company and apply through them. You’ll typically have to provide:
- Your full name and address
- Proof of identity and income
- Permission to pull your credit record
- Your social security number or proof of residency
Most firms provide an online portal to make the process easier.
How It Works When You Submit Your Application
1. Online vendors generally use an algorithm to perform a simple preapproval.
- The computer runs a soft check against your credit to check for adverse listings.
- This won’t affect your score; it’s merely a way to vet your creditworthiness.
2. The algorithm will factor in the other information and calculate how much you may qualify for.
- The firms with these types of installment loans with easy approval have fewer requirements.
- The firm will then produce an approval in principle. In it, you’ll get information such as the repayments, initiation fee, and APR.
3. Should you accept, the application proceeds to the verification stage.
- Here someone in the company typically confirms that the information you provided is accurate.
4. If everything checks out, the process moves to the final stages. This may include more paperwork, such as the signing over of collateral.
- You’ll typically get an initial approval in minutes. The funding of the loan normally takes between one and seven business days.
5. You get to decide on which lender to work with. You’ll either apply through to the finance company directly or through a loan aggregator.
- With the finance company, you receive one offer. With the aggregator, you receive several and must decide on the best one for your needs.
When you’re looking for the ideal online installment loans for bad credit, it’s often best to choose an aggregator. They provide you access to a range of offers. Just take care to read the offers carefully so that you know what you’re signing up for.
The lenders match the rate to the perceived risk of the loan. If you have a history of late or missing payments, they’ll assign a higher risk and interest rating.
Installment Loans for Bad Credit vs. Payday Loans
Bad credit loans are typically different from payday loans in that they’re usually taken out over a longer period. The company may require a co-signatory or some form of collateral. Such loans typically attract a lower interest rate than payday loans, but stretching out the installments adds to the overall cost.
Payday loans, on the other hand, are strictly short-term loans. They’re far simpler to get than installment loans for bad credit but must be repaid either as a lump sum or, at most, two paydays. The interest rate for such loans is typically extremely high, so they’re strictly for emergencies.
Best Installment Loans for Bad Credit at a Glance
- PersonalLoans.com: Best lender for those with a rating of 580 or more
- Upstart: Best lender for recent graduates and borrowers with no credit history
- Oportun: Best lender for low-income earners
- LendingClub: Best lender for monitoring and improving credit history
- Slick Cash Loan: Best for easy approval
- Avant: Best lender for middle-income earners
- NetCredit: Best lender for people with terrible credit
Wrap Up
Installment loans for bad credit provide a valuable service for consumers. They may give you breathing space through debt consolidation. They could help you pay for unexpected expenses. Used smartly, they can become a valuable tool in helping you to establish or rebuild your credit score. The first step is to partner with one of the firms on our list and with their help you can start managing your debt more effectively.
FAQ
What’s the easiest loan to get with bad credit?
The best guaranteed installment loans for bad credit are generally found through the secondary market. Private lenders are more willing to take risks than the traditional finance sector but may ask for security. Payday loans provide an alternative, short-term solution.
How can I get a $5000 loan with bad credit?
You’ll typically need some form of collateral or apply at a loan aggregator. Loan aggregators place your request on a marketplace. Investors then partially or fully fund the request. The annual percentage rate (APR) will be high.
Can I get a loan with a 500 credit score?
500 is below average and considered a very poor score. There may be lenders willing to assist, but you’ll pay high interest rates. You’re more likely to qualify for payday financing or secured loans than standard personal financing options.
Can I get an installment loan with bad credit?
Some lenders specialize in providing the best installment loans for bad credit. Secondary market lenders are probably your best option here. Bear in mind that you will pay a lot more for your financing.
