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November 13, 2019

Taking Out Installment Loans with Bad Credit - is it Possible?

The biggest problem with having bad credit, is that it doesn’t just go away, and it’s incredibly difficult to get rid of. It can follow people around for years, and is sure to affect their long term relationship with finances. One of the biggest issues that tends to accompany bad credit, is that no conventional lender like a bank or building society are likely to approve you for a loan – but luckily there are other ways. There are plenty of online lenders that will possibly consider you for installment loans, and here’s just how that’s possible.

Are there Installment Loans Especially for Bad Credit?

If you were looking for no credit check installment loans Canada, then all you’d really have to do is type those key words into your preferred search engine, and voila, you’d find a lender fairly quickly. Do remember that before choosing a lender, to do your research and ensure they’re a well reputed company. As with any sort of online organizations, there are businesses out there that are less than reliable.

But to answer the question, yes, there are installment loans available for those with bad credit. In fact, that’s what these loans are specifically made for – they’re personal installment loans, and a lot of the time you don’t even have to explain what they’re for. Some credit unions might also consider applications from those with poor credit.

These loans can either be secured or unsecured. Of course, secured means you have to put up collateral, such as a car, in order to be approved for the loan – but ensure you can pay it back, or you’re likely to lose your collateral. Of course, unsecure loans are the opposite, but both can have high interest rates, so do your research and make sure you’re getting a good deal.

What’s the Difference Between a Normal Installment Loan, and a Bad Credit Installment Loan?

Very simply put, the difference between these two loans is that one is specifically for people with poor credit, and the other one is a more generic loan which you’d be unlikely to be approved for at all with a bad credit score. Functionality wise, however, they are one in the same.

As with all loan totals they can range between hundreds and thousands of pounds or dollars, and with your lender, you set up a repayment schedule over an agreed amount of time, where you pay back a set amount on each specified date. Although these terms do tend to be fixed, the interest rates can still differ. This means that whereas some lenders will fix interest rates for the time in which it takes you to pay back the loan, others will have them as variable – meaning interest can go up or down depending on the economy at the time. Of course, these interest rates do tend to change from lender to lender, so again we’d suggest doing some good old research. A lot of them can have higher interest rates, and higher fees. This is specifically for those with worse credit scores, and tend to differ dependant on credit history overall.

What are the Requirements when Applying for Installment Loans with Bad Credit?

Finally, the requirements when applying for installment loans with bad credit are of course a lot less than they would be elsewhere, there are still a few things you’ll have to provide in order to be considered eligible for the application itself. Again, these can vary from lender to lender, but tend to include things such as:

  • Your full name being provided.
  • The age you are at present, and a government issued ID or social security number.
  • Some information regarding your income. They’ll need to know you have some sort of regular source of money coming in order to afford to pay the loan back.
So yes, these requirements are a lot less than they would be elsewhere, but they’re still important. Companies that require this information are likely to be more reliable than those who don’t, so do bare this in mind when shopping around. As well as this, be sure to read all of the terms and conditions – including the small print – that accompanies each lender. As we previously stated, for every reliable company out there, there’s an untrustworthy one with hidden fees waiting to pounce. Stay safe online with your finances, and always know who you’re dealing with – that’s the bottom line

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