The 5 Best Installment Loans for Bad Credit in 2019
We have outlined the best instalment loans for bad credit in 2019! These legit loan lenders are guaranteed to help you get out of your financial slump
11:19 12 August 2019
If you have bad credit, an installment loan might be the answer. An installment loan is paid by fixed monthly payments. It's not the same as a personal loan (while both are paid in installments), as installment loans have high APRs.
Keep reading to learn about the five best installment loans for bad credit.
One of the Best Installment Loans: Avant
While Avant offers more than one type of loans, they do specialize in personal unsecured loans. To apply to this online leader, you will need a minimum credit score of 580. Interest rates are between 9.95 and 35.99 percent.
You can get do a soft credit check and get a preliminary offer from Avant. This way you can see if the lender will offer you a loan without officially applying. Avant is very transparent about their fees and loan terms.
You can borrow between $2,000 and $35,000 from Avant, and you have between 24 and 60 months to pay them back. There is also an administrative fee of up to 4.75 percent of the amount of your loan.
There will be a charge of $25 for any late payments, and you can get a refund if you are able to have three consecutive payments that are on-time. You will be charged $15 of a dishonored payment if your payment is returned, and there is no prepayment penalty fee.
If your credit score isn't good enough for Avant, you might have some luck with OneMain Financial. This lender doesn't have a minimum credit score and offers you both unsecured and secured loans. This gives you more options if you don't qualify for an unsecured loan.
The big problem with OneMain Financial is they are not forthcoming about their loan terms. Which means you can't find any fee or interest rate information on their website. They also don't offer any soft credit check pre-qualification as Avant does.
Instead, you will need to apply with a hard credit check to see if you got an offer and find out what your terms are.
You can borrow between $1,500 and $25,000 unless you live in Georgia or California. This is because Georgia's minimum loan is $1,500 for current clients and $3,100 for new customers. As for California, the minimum loan is $3,000.
You will have between 12 to 60 months to repay this loan. There isn't a prepayment penalty fee, but you do have to pay an origination fee that depends on which state you live in.
Your Local Credit Union
If you happen to be a member of your own local credit union, that might be the best way to get really good terms on an installment loan that is unsecured.
Some credit unions will give you call payday alternative loans (PALs) for a short term cash need. The best aspect about this is that the National Credit Union Administration won't let credit unions charge more than 28 percent APRs on PALs.
The biggest problem with this is that before you apply, you will need to be a member of a participating credit union for a month at least. Which means if you need cash now and you're not a member of a credit union, then this won't work, and you should go with OneMain or Avant.
You should also keep in mind that not all credit unions will offer you, PALs. Which is why that before you join one, you should make sure they offer installment loans.
For PALs you can borrow anyway between $200 to $1,000 and will have one to six months to repay it. There is a maximum fee for the application for $20, and other fees and terms could differ depending on the credit union.
Best Online Installment Loans: LendingClub
LendingClub is great because it's a peer-to-peer lender that lets individual investors fund the loans for those that apply. Because big banks are removed from the equation, LendingClub can offer installment loans for individuals with both high credit scores and bad credit.
Loans from LendingClub go up to $40,000 with APRs from 6.95 to 35.89 percent APR. But the best APRs are only there for applicants that have excellent credit or a FICO score of 720 or higher.
A perk with LendingClub is that they don't charge any brokerage fees, payment fees, or application fees. However, they will charge an origination fee that can be up to five percent of the amount of your loan.
People turn to LendingClub to usually cover a surprise expense that is large. These loans are very popular for people that are trying to consolidate debt with a lower interest rate. Luckily the LendingClub lets your apply online quickly, and you can select a loan offer, and get funds in your bank account in just a few days.
This website provides many different kinds of loans that range from peer-to-peer loans, traditional loans, and loans from direct lenders that have their own installment loans. The loan to all fifty states with loans up to $35,000 and APRs from 5.99 to 35.99 percent.
Peer-to-peer loans through PersonalLoans.com are available if you have a credit score of higher than 600. You also need to have a minimum verifiable income of $2,000 a month.
If you're applying for an installment loan, you will need at least a 580 credit score, with a minimum income of $2,000 a month. For bank loans, you will need a minimum credit score of 580 with a verifiable income that is at least $3,000 a month.
PersonalLoans.com is not a direct lender, it is just a referral site. Which makes it hard to vet through this site, as you don't know which lender you will end up working with.
It's best to use this site to compare terms and rates with lenders. When you get an offer, you can check out the loan reviews and do research to make sure you are working with a quality lender.
Get an Installment Loan Today
Now that you know the five best installment loans for bad credit in 2019, find the lender that makes the most sense for your situation. Depending on your credit, you will have certain options. For more lifestyle resources, keep browsing our blog.