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Fastest Application Process for Bad Credit People 

 

Bad Credit Installment Loans – Option for Poor Credit Score

 

Have you found yourself in a situation where you need cash instantly but don’t have the option of qualifying for a bank loan? Many borrowers have found themselves in similar situations.

Most of the time they can’t just get cash from friends or family nor can they qualify for assistance programs. That leaves bad credit installment loans as their last result.

At Just Right Loans, finding bad credit lenders has been made simple. First, here is all you need to know about these loan options, so you can apply with confidence.

Guaranteed installment loans explained

 

A guarantee is a promise or assurance that when certain conditions are fulfilled, the lender will offer the loan. These are basic conditions like having a verifiable income and providing proof that you’re receiving regular paychecks. It’s not 100% guaranteed that you’ll get the loan if you meet all the conditions. The ultimate lending decision lies with direct lenders.

You can think of installment loans as lending out a large sum of money to a friend. Then, you ask them to pay a small sum every month until they clear the outstanding balance. While you may not charge your friend a fee, banks and other online lenders need to make profits. They cover their costs by charging interest.
Summary of the features of installment loans

FeatureExplanation
Loan duration3 months up to 72 months
Amount$500 to $35000. Most bad credit loans are up to $5000.
Installment frequencyBi-weekly or monthly as per the borrower’s payroll schedule
Credit typesPoor credit, good credit, excellent
Bank accountMost lenders require checking accounts. Few accept saving accounts.
Turnaround timeNext business day
FundingElectronic direct transfers. In-store pick-ups. A select number of lenders can deposit the cash to debit cards.

Who is eligible for loans with bad credit?

 

Customers who have FICO scores of less than 620. Based on the Vantage Credit Scoring Model, having a score of about 500 to 600 means you have a poor credit score.

Banks choose not to lend to customers in the poor credit score range. That leaves direct online lenders as this group’s last resort. Have you been recently turned down for a bank loan? You’re also eligible for online lending because of the fewer requirements.

Applying for a bad credit loan: 5 things to expect

 
  • Higher interest rates on average

Interest rates for personal loans are determined by three factors. The first is the borrower’s credit history, which is their behavior and experience with credit. Credit scores are calculated from the information in credit reports. Low scores mean that the perceived risk of lending money to the borrower is high.

The second is the loan’s term. A longer loan duration may attract higher interest rates. The third is the prevailing industry rates & limits set by the state. The average range is from 5.99% to 36%. In states without usury laws, the APR may be up to 100% or more for bad credit loans.

  • Not qualifying for the advertised amount

Lenders always advertise the maximum loan amount they can offer on their website or in emails. If they are willing to offer up to $25000 for instance, you’re not guaranteed to qualify for the max loan amount. Lenders determine your loan about by analyzing your income amount, loan duration, installment amount, DTI ratio, credit history, alternative data, etc.

  • Fast loan processing

Getting a loan will be so fast. That’s because the background checks are less comprehensive. The loan application form is received and processed in realtime.

Most lenders also have longer working hours than banks. It is unusual to find a company offering 24-hour loan services. The use of technology to verify the user’s information or to determine if they are eligible has also reduced processing times significantly.

  • Signing the loan agreement is done electronically

You will typically receive the loan agreement document as a PDF file. You may need a program that allows you to sign the PDF. Most e-signatures entail the use of a digital image of the signature. You’ll learn more about e-signing on the final stages of getting approved.

  • Soft credit checks

Have you applied for mortgages or credit cards recently? One thing you had sign-off on was a hard credit check. Fortunately, direct installment loan lenders don’t perform hard pulls. Soft checks are harmless and don’t require your authorization. Best of all, they are not recorded in your credit report.

  • Clear break down of terms and conditions

It’s vital to work with a lender who is transparent about their loan products. They must show the initiative to explain the loan’s terms and conditions, for instance, the APR, consequences of late payments, etc. Check their website for a privacy notice and other documents explaining their underwriting process, approval criteria, etc.

How to manage your installment loan

 

Most tips and guides are focused on helping you obtain loans. However, that is the easy part. The hardest part entails managing the installment loan. Here are some things to keep in mind:

  • Have a budget

If you borrow what you need and create a budget to use the funds, you avoid mismanaging the loan. Also, create a budget to cater for your day-to-day living expenses and monthly payments.

  • Don’t be late

Paying late fees or insufficient balance fees on bounced checks or failed automatic debits makes your loan more expensive.

  • Take advantage of early repayments

Many online lenders don’t impose penalties on early payments. Take advantage of this benefit by paying higher installment amounts.

It reduces the term of the loan. With a shorter term, your interest amount is reduced. You also get out of debt much faster.

  • Check if your score is improving

Do you want to improve your credit score? Work with a direct lender that reports to more than one credit agency. After four or more payments, obtain your credit score to see if there is some improvement. Working towards a higher score, helps you access future loans at better terms.

What to avoid when engaging with direct lenders

 

Some loan companies may not have your best interests at heart. Their installment loans may be tailored to disadvantage you. Though there are many trusted installment loans, here are some things to watch out for:

•Suspiciously high loan amounts – Borrow what you need and nothing more.
•High fees – Regardless of how badly you need a loan don’t compromise on the APR rate. Most complaints borrowers make after signing up for installment loans have to do with high fees.

•Red flags — Keep your guard up and avoid getting scammed. A dubious lender might request an initial down payment or processing fee. All fees must be part of the loan’s APR.

•Security — Ensure the website where you enter your sensitive data is encrypted. Check for their privacy policy that explains how your data is used or shared.

Use this Service to Find Lenders for Guaranteed Installment Loans for Bad Credit

 

Just Right Loans is a fast loan matching service. We help borrowers find credible installment loans. With a network of experienced lenders, a secure site and learning resources, we are your best shot at finding quality direct lenders.

Do you need a loan within a short period of time? Get funds in your checking account as soon as tomorrow. Fill out the form on this page and click the “Get Started” button to start the loan application.