We’ve made an attempt to compare the reliable lenders, issuing installment loans without incredibly high APRs or the cunning tactics that many short-term lenders use.
We will explain what installment loans are, outline how the lenders differ, try to explain why it’s hard to get best installment loans for bad credit, advise how to avoid scams and choose the best option. Read on to know more about the lenders we recommend.
What Is an Installment Loan?
The term “installment loan” basically explains itself. It’s a kind of loan that can be repaid through a series of monthly payments (i.e. installments), which are usually fixed. The loan repayment is typically scheduled over a set amount of time.
Best Online Installment Loans
The loans of this lender top out at $40,000. Its APRs start at 5.99% and can reach 35.89%. These are the best installment loans online for borrowers with excellent credit. Lending Club is not available in West Virginia and Iowa. In case you make a payment by check, Lending Club will charge you a fee.
This company offers various kinds of small personal loans from traditional bank lenders, short term installment loans, and peer-to-peer loans. PersonalLoans.com gives loans up to $35,000. Its APRs range from 5.99% to 35.99%.
This resource is informative and authoritative. However, it is not a direct lender. It’s just a referral site. That is why you don’t know all the essential information that helps understand what fees you will have to pay or the terms and conditions a direct lender will provide. When comparing the best bad credit installment loans, use PersonalLoans to save your time and effort. Solicit multiple offers at once from various lenders.
If your credit is not good enough to borrow from LendingClub, you can take out an installment loan from Avant if your credit score is 580 or higher. The maximum loan amount is a bit lower than of the previous lender we mentioned. It is $35,000. The APRs are slightly higher, they start at 9.95%, but it’s possible to get money faster. These easy installment loans are available in 46 states plus the District of Columbia.
The state law and credit determination can change the APR and the loan amount. Minimum loan amounts differ from state to state.
To take out a loan from Prosper, you will need to have solid credit. It proposes the APR starting at 5.99%. It is also possible to borrow up to $35,000. The website of Prosper is quite transparent, it is easy to use it. It does not contain any extra important information in the fine print.
In case you need money straight away, Prosper is not the top option as it is a peer-to-peer lending service. It will take you between one and two weeks to find investors ready to fund your loan in full. The origination fee starts from 0.50% and can reach 4.95%.
In the same way as other lenders, Prosper offers long term installment loans. The loan duration is 3-5 years.
Best Installment Loans with Physical Office Locations
OneMain can be a good choice if your options are subject to credit limits or you want to see your lender in person before signing a loan agreement. This lender issues mostly unsecured loans. Secured loans with lower APR are available as well. This brick-and-mortar option is convenience. It has over 1,800 branches across the U.S.
Wells Fargo is a good option for borrowers with good or perfect credit who want to combine competitive loan terms and personal service. It has over 6,200 locations all over the country. Its site proposes good tools for account management. The APRs are 7.24-24.24%. The loan amount ranges from $3,000 to $100,000.
If you are not a WellFargo customer until now, you will have to visit one of its branches and apply in person. The majority of personal installment loans are unsecured. However, if you have a savings account that can be used as collateral or a Wells Fargo CD, you might be able to get a secured loan.
How to Avoid Scams?
- Avoid lenders who push loan renewals. Such renewals are profitable for predatory lenders. The more often you renew your plan, the more money they get.
- Refuse insurance add-ons. In case your lender offers you a credit disability or a credit life insurance, decline it firmly. Such policies will not protect you.
- Steer clear of advance guarantees and fees. Some lenders promise that you will get instant approval with no credit check. Stay away from them. Upfront fees are also a reason to reject.
- Don’t cooperate with high-pressure lenders. If they pressure you somehow, stop shopping around and just walk away.
- Approach a lender on your own. Predatory lenders can suss out their borrowers with calls, postcards, emails, and other ads. As a rule, legitimate lenders don’t act this way.
How to Shop for an Installment Loan?
- Shop around. First of all, check if your bank provides monthly installment loans. They can offer you a lower interest rate or better terms of repayment to keep you afloat. Credit unions can be an option if you’re not sure you will qualify at big banks.
- Ensure that there is no sense to use a credit card. Sometimes it’s better to pay for a big purchase with a credit card than take out an installment loan. However, if your credit limit doesn’t allow you to spend the amount you need, installment loans for poor credit can be your best option. You will have to pay an origination fee. Yet, it’s really convenient to pay fixed monthly payments.
- Compare fees. The origination fees of the small installment loans range from 1% to roughly 6% of the total amount of the loan. The stated APR may already include this fee but it’s better to check it twice.
- Borrow for the shortest term possible. It’s advised to take out loans for a short term to repay it faster, thus paying less in interest.