You Have Options: Direct Lenders for Bad Credit Installment Loan

04:26 AM March 27, 2019

This article discusses personal finance and the options that are available for a bad credit installment loan. Some of us may not know what our options are, and we are here to help guide you through your financial woes, so you can grow and learn more about loans and bad credit situations. It will also help readers that have bad credit, are in debt, or are looking for a direct lender to assist them with a bad credit installment loan. This is more of a guide, and a way to teach those with bad credit that there is some light at the end of the tunnel. I’ll list some direct lenders who are able to help those with bad credit.

Credit cards are great when you have an emergency expense or some serious bill that needs to be paid. However, the debt that can be accrued during a month or so can become very large and cause even more stress and worry. When we have debt, we may lose our jobs, lose hours of work at our jobs, or our salary may decrease for some unforeseen reason. Many situations can occur in our lives that affect whether or not we can pay off our credit cards. When we can’t pay our credit card bills, we damage our credit history and credit score. When we have bad credit, we feel as if the world is falling apart. We think about getting a loan to assist us in paying off these credit cards. If you have a lot of debt and bad credit, there are some direct lenders who can help. These direct lenders for bad credit installment loans can assist you in fixing your debt. Also, by decreasing your debt with the help of direct lenders, you can take the first steps to debt recovery and financial freedom.

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Having bad credit can cause a lot of stress and worry in your life. If you have bad credit, life doesn’t always treat you very fairly, either. There is hope though. There are direct lenders who can give you a loan even with bad credit. Here is a list of direct lenders for bad credit installment loans. These options may help alleviate some of your stress.

Direct Lenders for Bad Credit Installment Loans        

What is an installment loan for bad credit?  A bad credit installment loan is a type of finance where the principal and interest are paid back in equivalent sums. The scheduled interval payments are usually made over a long period of time. These payments are paid at agreed-on times. These are made on a monthly basis once you have worked out your loan details. Many variations of these loans exist, but the online installment loans are the safer and much more affordable option.  These are financially safer than the payday and car-title pawn loans. Those, we recommend that you stay away from.

One thing that is so attractive about these loans is that they approve just about anyone who has a source of income. They are very easily approved, which is another reason to apply; you don’t need to be restricted by past financial debts. The time determined to pay back your loan could be over the course of a few months, or perhaps within a 10- 20-year time frame. You should always look at the interest on this time range. The longer it takes you pay back your loan, the more interest you will pay over the life of the loan. There is no way that it will not be super high. Most of these loans are made with that cost in mind.   There are many direct lenders for bad credit installment loans. With these direct lenders, you will be able to gain some financial independence, instead of feeling as if there is no hope left for monetary improvement. Here are some of the different types of installment loans.

Different Types of Online Installments Loans

There are many different types of installment loans that you can find online. Before you apply for one of these, make sure that you have done your research on the loan. The first type of installment loan is a car loan. This is one loan that can really make or break you. Taking out this type of loan is risky, especially if you don’t pay the monthly payments on time. Your car will be at risk of being taken, and that is why most should stay away from this type of loan all together. Most people call this a “Title Pawn” loan.

Another installment loan that you can get online is a student loan. If you are a student in college and you need some money for books, food, or supplies. You have the option to take out a student loan. They’re good while you’re in school, but when you graduate, you must begin to pay them back. There is a fixed amount each month that you are required to pay. There is an option to defer your loans, but the interest that they accrue over the time you defer the loan could end up being astronomical.

There are also unsecured bad credit installment loans. These loans are ones in which you pay a little bit of money over a long period of time, and they have larger interest rates. They are for those with bad credit. These types of lenders really know how to get you excited, often times luring in those in financial desperation. You will probably be approved, but will have a lot of interest accrued over the loan life. The decision to take out this type of loan is a tough one, and needs to be planned to avoid the debilitating interest.

Mortgage installment loans are loans that you take out from a lender when you are going to buy a house. You must be careful with these types of loans, too. If you don’t pay back the loan company on time, you risk your property, credit, or other tangible assets.

Pros: Installment Loans

There are a few pros and cons when it comes to installment loans. One pro is that, with these loans, you will know how much your monthly payments will always be. There are no surprises. There will be a fixed interest rate, too.  Another pro is that you have a longer time to pay the loan off compared to the other loan types. Installment loans are very quick and easy to access. Most of the time, they’ll go right into your bank account, so you can take care of your debt immediately.

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Cons: Installment Loans

There are penalties for any missed payments. If you can’t repay something, then you will receive an additional, substantial fee as a penalty. There is personal property risk involved when you take out installment loans. Some of these quick loans ask you to put up your property as collateral. We advise to never put up your home or anything real to take out a loan. It is not a good option for receiving emergency funds.  It is also difficult to determine when the ideal time for taking out a loan is. Any loan can, and will get you further into debt. Again, putting in the proper time and effort is essential; do your research so you don’t end up accruing more debt.

What Does Bad Credit Mean?

Bad credit occurs when someone or a company cannot repay their debt on time or in full. Bad credit is based on the history of the person or company, and what payments have been made toward their total debt amount. Other financial information is considered as well. Some of those factors may include income, job status, and more. If you have ever taken out a loan, used a credit card, or paid any bank debts, you have a credit history. If you have a low credit score, you have “bad credit.” A low credit score is anywhere ranging from 550 and below. When your credit is bad, it’s hard to get a loan. If you do, the interest will be extremely high.

These are the dreadful loans that we want to try to avoid, but sometimes, when our best friend took out and loan and it was great, we begin to veer in that direction. Without research or assistance, we feel like we need money immediately and our day job isn’t cutting it financially. There are loans to help you get money immediately. However, make sure that you have a way to pay the loan when it is due. We recommend talking to a financial advisor before making any decisions, and determining what kind of monthly payments are reasonable for your income.

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