Most people shy away from seeking help from financial institutions when they have bad credit. They assume applying means an automatic denial, but that’s far from the truth.
You can still get small installment loans with subpar credit.
Getting a bad credit loan helps you catch up with outstanding debt owed to creditors and bills. If you’re strapped for cash, a bad credit loan gives you access to cash right away. Cash on-hand helps you maneuver day-to-day life.
Loans also help you plan for the future, especially if you have a savings account. You can borrow a little more than what you need and put the rest in savings. That way, down the line if you need emergency money for car repairs and such, you have it.
Do you need a loan to help with your finances but have bad credit? Learn whether you can get small installment loans with bad credit today.
What Are Small Installment Loans?
Installment loans are lump sums of money that you borrow and payback. These funds get paid in fixed payments, or what’s called installments.
Loans like this have a set period of time or terms that set dates for when the loan gets paid in full. Some examples or installments loans are mortgages, car loans, and home equity loans.
If you have student loans, that’s another great example of installment loans at work. Keep in mind that no installment loan works the same. Lenders have different terms and schedules concerning the way they loan money.
Make sure you understand the details of your contract before you sign it.
Smart Ways to Use an Installment Loan
Lenders don’t dictate how you use the money from an installment loan. What you do with the money is up to your discretion.
Some common uses for these types of loans include medical emergencies, household expenses, and cash needs.
Healthcare plans through the marketplace have out-of-pocket requirements as high as $7,900. To get treatment, insured persons can take out installment loans to cover the expense.
Also, 29% of Americans have less than $1,000 in savings. If your car breaks down or an appliance in the house stops working, you need cash right away. Installment loans help you keep cash readily available for urgent financial issues.
Can You Get Small Installment Loans With Bad Credit?
The requirements for installment loans for bad credit aren’t as strict as you might think. Most lenders who offer loans to individuals with bad credit don’t do hard credit checks.
They use alternative information to verify you can repay the loan. Sometimes that includes a soft credit check that doesn’t impact your credit score or loan approval. Most times that ask for:
- Proof of identity
- Social Security Number
- Driver’s Licence Number
- Income Information
These requirements determine the details of your loan—interest rates, terms, and such. Look for lenders who loan this way so further inquiries don’t lower your score any worse than it is.
Get a Loan
If you need money, don’t let your credit score stop you from getting small installment loans. You can still get the financial assistance you need with deficient credit.
Want to know more about finances? Check out our economics basics and put your financial future into perspective.