Installment Loans for Bad Credit

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Won't impact your credit

Checking offers will not impact your credit score*

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Funding up to $100,000 and APRs as low as 3.99%*

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Same-day and next-day available for certain offers*

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Get Guaranteed Installment Loans for Bad Credit Today

Installment loans, or personal loans as they usually are called, are one of the most common ways to borrow money. Installment loans for bad credit are available through several lenders. To find out if you qualify, start by applying or checking offers.

Quick. Simple. Secure.

How To Apply For Installment Loans for Bad Credit

1 Pre-qualify

Fill out easy online form to check for pre-qualified offers with no impact to your credit score

2 Select offer

Compare terms and payment options to select offer that’s best for you

3 Finish application

Complete application process on your selected lender’s website*

4 Receive funding

After loan approval, your funds should arrive within 1-2 business days*

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“The process couldn’t have been any easier. I filled out a short form that took me less than 2 minutes and within seconds I got multiple offers from lenders.”

 

- Mike T. (TN)

“It was important to me that I could review my offers without any impact to my credit score, before deciding on the best loan option.”

 

- Carol R (FL)

“I like the easy online and 100% paperless experience of Acorn Finance. I received my money two days after completing my application.”

 

- Bob S (WI)

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FREQUENTLY ASKED QUESTIONS

Learn More About Installment Loans for Bad Credit

Finding a guaranteed installment loan for bad credit may be difficult. If you are unfamiliar with your credit score, you should start by checking your credit report. Once you know what your credit score is you can find a lender that can help. There are times when you might need to borrow money. For example, you may have a major repair, medical bills, a special event like a wedding, home improvements, or a trip you need to take. Borrowers have a lot of options when it comes to borrowing. Some common ways to borrow are a line of credit, a credit card, a home equity line of credit, a cash-out refinance, or an installment loan.

Read more - FAQ

What are installment loans?

A personal installment loan generally can be between $1,000 and $100,000. Installment loans are usually unsecured. The lender has not taken any collateral or assets from the borrower to secure the loan. People typically take between one and twelve years to repay them. The rate of interest is fixed for the term of the loan in most cases. So, what makes them installment loans? They are called installment loans because they are repaid in equal payments over the term of the loan. The lender advances the funds to the borrower, and the borrower repays the loan with equal monthly payments.

Other types of installment loans are mortgages and vehicle loans. You will make fixed payments, and eventually, the loan will be paid off.

Installment loans have advantages and disadvantages. The fixed payments can make it easier to manage and budget for. These loans have an end in sight, so eventually, they will be paid off. Some types of credit, like credit cards and lines of credit, often keep people in a debt cycle because people can keep accessing the credit limit. Having an installment loan can help boost your credit rating. Once you have had it open for a while and make regular payments on time, your credit rating could increase somewhat.

Some borrowers don’t like getting the money in one lump sum because they can’t re-access the limit. If they need more money, they need to go through the borrowing process again and either increase their loan amount or get another loan. The fixed payments can be hard for some people to manage as well. If you miss payments or make partial payments, you could damage your credit rating too.

Where can I get an installment loan with bad credit?

Some lenders will provide installment loans for bad credit. Some banks and credit unions can approve loans for customers or members with bad credit. One of the more common ways is to apply for installment loans with bad credit is online. Online lenders usually have less strict requirements compared to traditional banks and credit unions. Some online lenders can consider borrowers with lower credit scores. Some lenders that have minimum credit scores as low as 560 are LendingPoint, Upstart, Upgrade, and Universal. Other lenders like OneMain and Oportun don’t have a minimum credit score.

If you have bad credit and need an installment loan, it is important that you research companies before accepting loans. You will want to make sure they have reasonable rates, fees and are legitimate lenders.

What credit score do you need to get an installment loan?

The credit score you need to get an installment will vary depending on the lender. For example, Axos has a minimum credit score of 740. The minimum credit score for Lightstream and Marcus is 660. Avant has a minimum credit score of 550. Some lenders that we already looked at, like OneMain, do not have a minimum credit score.

The best thing to do is check your credit score before you apply. You can use this as a starting point to see which lenders would be the best to work with, considering the credit score you have.

Are there no-credit-check installment loans?

It is possible to get a no-credit-check loan, but it’s not a good idea in most cases. The lender does not check your credit before approving the loan and advancing funds. Without a credit check, the lender doesn’t know if you pay your debts back on time or not. To compensate themselves for this risk, they can charge very high interest rates-sometimes over 400% APR. Not only does this make borrowing extremely expensive, but it can also trap the borrower into a never-ending debt cycle.

How are installment loans different from payday loans?

Installment loans are larger amounts, are repaid over many months or years with scheduled payments, and the interest rate doesn’t usually exceed 35.99%.

Payday loans typically don’t exceed a few hundred dollars. The payday lender expects the loan plus interest and fees to be repaid within a couple of weeks. However, interest rates on payday loans can easily exceed three digits-some are as high as 400% APR.

How does a bad credit loan work?
Bad credit loans usually don’t work differently than good credit loans, but more documentation may be required. Lenders may request proof of income, employment, residency, and so forth. In addition, bad credit loans may vary in the following ways:

The rate will likely be higher
The amount approved might be less
The amortization period might be shorter
There can be origination fees
The lender might require security or a cosigner

Which loan company is best for bad credit?

It depends on what you are looking for. Some companies will fund loans quickly, others don’t have a minimum credit score, and others don’t charge origination fees. Some highly rated companies for borrowers with bad credit are Upstart, Lendingclub, Avant, and Upgrade.

How can I get an installment loan with terrible credit?

Getting an installment loan when you have terrible credit can be difficult. Knowing your credit score should help you look for lenders that can be willing to work with you. If you can’t qualify for a loan on your own, there are some things you might be able to do to help you qualify. If you can secure the loan with an asset, the lender may approve your request. Adding a cosigner can help, too, since the lender will have another borrower to make loan payments if necessary. Getting someone to guarantee the loan can also help. Many lenders will approve guaranteed installment loans for bad credit.

What is the easiest loan to get approved for?

Secured loans are typically the easiest to qualify for. Securing the loan with an asset like cash in an account or a vehicle reduces the lender’s risk, making them far more likely to approve the loan. If the borrower doesn’t make their payments, the lender will eventually take the asset to settle the debt. This gives borrowers’ an added incentive to make their payments. Borrowers don’t want to lose their collateral, especially if they need something like their vehicle. In cases like this, borrowers will often be very diligent about making their payments. Lenders know this and so will approve secured loans more easily than unsecured ones.

How can an installment loan help my credit?

Installment loans should be reported on your credit report. Opening a loan can initially drag down your credit score if the lender made a hard inquiry and if the loan is new. The way to use a loan to help your credit rating is to make all your payments in full and on time. Late or missed payments will have the most damaging effect on your credit rating, so it is important not to have any. As you pay down the loan, the amount you owe compared to what you borrowed will decline, which will positively affect your credit rating. Remember that it can take several months of paying your loan on time before you see your credit score increase, so it is essential to be patient with the process.

Closing Thoughts

Having bad credit can make it a challenge to get an installment loan, but some lenders deal with borrowers who have bad credit. Ultimately, if you can rebuild your credit before applying for a loan, this should increase your chance of approval and save you money. If you need to borrow money now consider applying with a cosigner or securing the loan with collateral. At Acorn Finance, you can check personal loan or installment loan offers without impacting your credit score. In addition, you can check offers with a co-applicant. Most of Acorn Finance’s lending partners have a FICO requirement 600 or above. Checking offers through a platform such as Acorn Finance allows you access to multiple offers from top national lenders, depending on your credit score.

Compare installment loan offers with no impact on your credit score. . . get started now!

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