Taking out emergency installment loans is easier than waiting for your bank loan’s approval. There are thousands of lenders who provide quick installment loans online, and the funds are usually disbursed on the same day you apply. So no matter why you need money instantly, if you’re in a financial crunch, you can get an online installment loan—even with bad credit.
Getting an installment loan without a credit check is not a big deal, but understanding how this affects your future finances is important. While there are numerous lenders out there to give you the money you need (and in most cases it helps ease the burden), it is also important to choose the right options. The most important things that matter are interest rates and when you’ll need to repay.
What Are Emergency Installment Loans?
Installment loans let you borrow a lump sum of money and repay it with interest over a fixed period in monthly payments (called installments). They can be secured (requires collateral) or unsecured (doesn’t require collateral). You can get them through banks, credit unions, or online lenders.
Who Qualifies for Better Rates?
As long as you have a good credit score, you’ll qualify for lower interest rates. However, for people with a not-so-perfect score, lenders do charge higher interest than the usual market rates. It is still possible to secure lower rates (with a bad credit score), but that will need some shopping around.
What Costs Are Involved?
Apart from the interest a lender also charges you fees like origination fees, finance charges, etc. Often, all of these costs are grouped together in an Annual Percentage Rate (APR). It is advisable to take a look at this number first before you sign any documents since it reflects the true costs of borrowing the loan.
When Should I Get an Emergency Loan?
For urgent financial needs, emergency installment loans are a great option because there are minimal requirements and documentation. You may use them for consolidating debt, paying medical bills, covering outstanding balance on your credit card, etc.
However, if you take an installment loan but struggle to pay back, the ongoing interest and late penalties are something to consider. You’ll also risk damaging your credit score with every missed monthly payment. If the amount you need is small, using your credit card and borrowing from friends or family might be a better choice.
Payday Loans vs. Installment Loans
Payday loans are short-term, high-interest loans that give you funds quickly to cover expenses until your next paycheck. And installment loans allow for longer repayment periods than just a few weeks. While payday loans require you to repay in a lump sum, installment credit follows a regular monthly payment structure.
Usually, payday cash advances are riskier because of the higher borrowing costs involved—often crossing APRs of 400 percent. Installment loans are better for emergencies and they allow you to borrow more (up to $5,000) as compared to a cash advance (up to $1,000).
How Can I Get a Loan with Bad or No Credit?
Many lenders offer emergency installment loans for bad credit based on income alone. By taking into account factors like debt-to-income ratio, income stability, and employment history, they can keep their requirements basic. Here are the documents you’ll typically need to apply:
- Identification Documents
- Bank Statements
- Social Security card
- Utility Bills
Some lenders stick to strict credit requirements, while others are flexible with approving people with scores below 300! So it’s really a wide range spectrum that you’ll be dealing with. Avant, Upstart, and LendingClub are a few lenders who are poor-credit-friendly.
However, you don’t need to apply through every lender individually when you can get multiple approvals with trusted lenders by submitting a single loan application online. For faster funding, you should choose lenders who are safe and offer clear terms. Having documents prepared and applying during business hours will further speed up your loan process.
How to Avoid Predatory Lenders?
If a lender pressures you to sign documents or hurry with the loan process, that’s a red flag. You can easily spot an illegitimate lender if:
- Their terms sound unclear
- There are hidden fees
- They force you to borrow
- Fine print has unreadable text
- Repayment is too soon
- Interest rates are unmanageably high
- Lender’s website is too vague
- No active contact details on website
- Lender is not licensed
After finding a lender, you can easily check if they are licensed by looking them up on the NMLS Consumer Access website.
Where to Apply for Emergency Installment Loans?
To take out an emergency installment loan, you can apply to a lender either online or by physically visiting their store.
Depending on your state, the lenders available to you may change. Each state imposes its own regulations on the amount you can borrow and APRs charged by lenders. So, you must compare loan options by understanding whether the terms are within the range the government allows.
Some reputable lenders may even charge you no fees at all, but there are very few. The best way to get terms that are suitable for you is to really compare many options before choosing one.
If you wish to cut this process short, you can simply apply with Best Rate Check to get guaranteed approval with multiple lenders in just a single short loan application. You’ll find the best rates, be paired with only trusted lenders, and have the flexibility of choosing longer repayment terms. The best part is there are no credit checks, lengthy documentation, or collateral requirements.
Compare Secure & Trusted Lenders – Apply Now
Best Rate Check, as we mentioned above, is a platform that connects you to reliable lenders online. By submitting a small loan application (which asks for only your email and loan amount), you’ll be matched with local as well as nationwide lenders who offer low rates. The lenders chosen don’t require credit score checks, so even people with less-maintained scores are welcome to apply.
In just a few clicks, you’ll be able to receive multiple approvals, and hence more options to choose from. By narrowing down to the best terms, you’ll get to pay back in small manageable monthly installments. This keeps you in control by keeping all the costs predictable from the start.
You won’t need to deal with hidden fees, waiting to get approved, or lengthy documentation. Without having to put up your asset at risk, you can borrow the money you need and get funds within an hour or a day. Get pre-approved in minutes for the best emergency installment loans.
Frequently Asked Questions
Yes! Many lenders cater to the requirements of people with bad credit scores. With some options you may even be able to secure lower interest rates despite your score. That’s because other factors like your income, current debt, etc. play a role in getting you favorable terms.
To get an installment loan online with poor credit, you may apply through platforms like Best Rate Check. You’ll get connected to the best lenders through an easy, small loan application.
Yes, many payday lenders also give out installment loans. And many payday installment loans allow you to repay in monthly payments.
Absolutely! A lot of lenders apart from banks give installment loans that can be repaid over as long as 72 months.
Emergency loans are worth it because they give you access to the money you need quickly. However, it is also important to choose a loan that is affordable and doesn’t harm your financial health in the long run.
You can use installment loans for just about any purpose—debt consolidation, home improvements, credit card bills, car repair, wedding expenses, unexpected travel costs, medical bills, etc.
You can get a $2,500 loan with bad credit by applying either through lenders directly or through websites that allow you to get approved with multiple lenders in just one application.
Short-term loans are designed to let you borrow money only for a short period of time (usually within weeks). You need to repay them in lump sum on the due date or pay back in installments.
It is not illegal to do so, but your credit score might take a toll if you’re borrowing again to repay your last debt. Furthermore, this may keep you in a cycle of debt which is difficult to overcome in case you fail to get approved for a loan the next time.
Emergency installment loans are a way to get the money you need in times of financial emergencies. Useful for covering a variety of expenses, you don’t need to worry about paying them back in lump sum like payday loans. The loan can be repaid in monthly payments called installments.
Most lenders disburse the loan amount directly to your bank account, usually on the same day. In some cases, you may receive the funds on the next business day.
You will find all sorts of interest rates with different lenders. But it is best to settle for something in the range of 6 to 36 percent. Above that, your loan could be too costly.
Yes, generally there are processing charges, prepayment penalties, late payment penalties, etc. To finance your loan, lenders may charge you a percentage of your loan amount as fees. You can expect 0.5-5% being charged as fees for your loan.
