Online Installment Loans for Bad Credit

Eligibility Criteria

Our installment loans have easy-to-meet requirements to ensure their availability. You only need to following to qualify:

Be at least 18 years old; Provide your government-issued ID and SSN; Specify your bank account details; Provide proof of income and address; Provide your employer’s contact information.

How to Compare Installment Loans

Installment loan terms vary widely by lender. Find out what option better meets your needs before settling on one. Here are the parameters you should look at when comparing loans:

Lender’s reputation. Make sure the lender you choose is licensed to operate in your state and has mostly good reviews from former customers; Interest rates and fees. Pre-qualify from several loan providers and compare how much their loans will cost you. Pay attention to both an interest rate and extra fees for loan processing, late payments, or early repayment; Loan type. Some installment loans may require collateral. Such options typically have lower interest rates compared to unsecured ones but also involve the risk of losing your asset; Accessibility. Review the lender’s eligibility criteria to ensure you can meet them. Pay special attention to the income and minimum credit score requirements and check your FICO rating before applying for a loan; Repayment period. Make sure the repayment options offered are convenient for you. Choose the loan period that comes with both a convenient monthly payment and a reasonable total loan cost; Funding times. If you need money quickly, check out whether the lender can meet your urgent needs. Some loan providers may need up to 5 business days to transfer the fund to you; The ability to build credit. If you want to boost your credit score, choose lenders that report your monthly loan payments to major credit bureaus.

Installment Loan Alternatives

If you have bad credit but find regular installment loans unsuitable, there are a few more options you can turn to.

Personal Loans for Bad Credit

Bad credit personal loans from 15M Finance allow you to borrow up to $10,000 and repay the funds within 12 to 60 months in equal monthly installments. They can be used to cover a wide range of your personal needs, from home improvement to vacation expenses. No collateral is required to qualify. However, you may face stricter income and credit score requirements due to higher loan amounts offered.

Credit Cards

A credit card is a type of revolving credit that allows you to access the money within a certain limit. You can use the funds when you need them and pay interest only on the amount of your unpaid balance. If you pay off what you’ve used by the end of a billing cycle, there will be no interest applied. Alternatively, you can make a minimum payment based on your overall debt amount, while your outstanding balance will be subject to an APR.

Buy Now, Pay Later

These loans may be a good way to split the cost of a much-needed purchase into several parts, with the first installment due at the checkout when you buy an item. BNPL options are available online and at retail stores. You can apply via the marketplace website or on the checkout screen. Most plans come with no interest and fees and involve no hard credit checks. The repayment is made in equal parts within a few weeks to 12 months, depending on the service provider.

Payday Loans

A payday loan can be a smart way to cover small emergencies and short-term needs. They come with amounts of up to $1,000 and need to be repaid in 2 to 4 weeks after you receive your next paycheck. Payday loans have high APRs but can result in lower overpayment due to their short repayment periods. Before obtaining a payday loan, make sure you can comfortably repay the money on time.

Peer-to-Peer Loans

Peer-to-peer loans are options that people obtain through online platforms. Such platforms connect borrowers with individual investors, bypassing financial institutions. The process is typically 100% automated. P2P loans usually offer lower interest rates compared to traditional banks. They are also available to bad credit borrowers, but an APR will be determined based on a borrower’s risk level. P2P platforms may also charge you a fee for their services.

Tips on Responsible Borrowing

15M Finance promotes responsible borrowing and wants to encourage people to make informed financial choices. Here are a few tips for your smooth loan experience:

Know what you borrow money for. Determine your loan purpose and make sure you can’t do without debt. Don’t borrow money just in case or to finance luxurious items; Take out only what you need. Some lenders may approve you for a higher amount after verifying your income. Avoid this unnecessary debt as it will result in more interest over the loan life; Be realistic about your finances. Only borrow money if you can comfortably make your monthly loan payments without sacrificing other mandatory expenses; Have a clear repayment plan. Budget for repayment and refrain from borrowing if you experience long-term financial problems or have unstable income.

Ways to Improve Your Credit Score

Although there are many lenders that can give you a loan regardless of your credit score, improving your rating will help you get lower interest rates and more favorable loan terms in the future. Here are a few tips to follow to boost your FICO score:

Pay on Time

Build a strong history of on-time payments as it makes up 35% of your overall credit score. Don’t miss your bills’ and loans’ due dates and set up reminders or an autopay to minimize the risk of late payments.

Control Your Credit Utilization

Try not to use more than 30% of all your available credit limits. If you already exceed this level, ask a credit card issuer to increase your limit. This way, you will demonstrate you have a steady financial situation and can manage your money responsibly.

Maintain a Diverse Credit Mix

By having a healthy mix of personal loans and credit cards on your credit report you can prove you know how to handle different loan types. This way, your credit score may increase as soon as the new responsible account’s activity will be reported to the credit bureaus.

Keep Your Old Accounts Open

By closing your old accounts, you will reduce the length of your credit, which may result in a credit score drop. Even if you’re going to pay off some of your high-interest credit card balances, keep the accounts open if an issuer doesn’t charge any annual fees.

Don’t Apply for New Loans Frequently

Each time you apply for traditional loans, a lender performs a hard credit check to assess your creditworthiness. Each inquiry temporarily reduces your credit score by about 5 points. Too many credit checks over a short period may also demonstrate your financial need, making you look risky.

Apply for a Credit-Builder Loan

As the name suggests, such loans are designed to help people who are new to credit establish their ratings from scratch. They work as follows: instead of getting a lump-sum amount from a lender, you make your monthly loan payments upfront. Each of them is reported to major credit bureaus, increasing your FICO score. When the repayment period ends, you will get access to the funds.

Use a Secured Credit Card

A secured credit card is another option that helps borrowers build or improve their credit scores. It requires a security deposit that also serves as your credit limit. Then, you can use it just like a regular card. By making on-time payments, you show your responsible financial behavior, increasing your FICO rating. Over time, an issuer may convert your secured card to an unsecured one and return you the deposit.

Become an Authorized User

Ask your family member or friend who uses their credit cards responsibly to add you to their credit account. Each time a primary user makes any positive activity, it will improve your credit score. More than that, an account holder is not obliged to let you use the card, so there are no risks for them.