If you are in desperate need of money and have a low credit score, it might be difficult to attain a strong financial position. It can be frustrating when lenders reject your loan application due to poor credit, or when you are too embarrassed to borrow money from friends and family, placing you in a much dire situation.
To help bad credit borrowers, online lenders like Montana Capital Bad Capital Loans provide easy approval installment loans for bad credit. These loans are super quick to get and can be availed of in a shorter duration than traditional personal loans.
What are Bad Credit Installment Loans?
Installment loans are a kind of personal loan that let you borrow a lump sum of money that you are allowed to pay over a fixed duration in equal monthly payments.
Since the majority of installment loans are unsecured you are not required to provide any collateral for loan approval. Usually, if you have a steady monthly income with an excellent debt-to-income ratio, you won’t find much difficulty getting approved for Installment loans.
Can I Apply Online for Installment Loans with Bad Credit
Lenders like Montana Capital Bad Credit Loans provide customers with an option to apply online. So now you can just stay in the comfort of your home and apply for installment loans online using these 3 simple steps:
- Fill Online Application
Begin the loan application by filling out an online application form. Provide us with some basic personal & financial information and submit the form. Since you won’t be able to update your information once it’s submitted, make sure to cross-verify each detail before you submit the application
- Quick Lending Decision
We review your application thoroughly and form a lending decision based on the information you have provided. On meeting the eligibility criteria of our lenders, you will be provided with an online agreement that you can sign digitally using your mobile or laptop.
- Receive Funds
Once you sign the agreement, you are entitled to receive the loan proceeds directly into your bank account within a short duration.
Requirements to Apply for Installment Loans for Bad Credit
Unlike traditional loans from banks or credit unions, Installment loans for bad credit don’t come with hefty requirements. Just by fulfilling some basic requirements, you can be pre-approved for a loan. All you need to get qualify for a loan includes:
You will need to provide us with some basic personal information related to your identity and residency including:
- Phone Number
- Social Security Number
- Driving License or Passport
- Proof of Residency
To demonstrate your ability to repay the loan you need to provide a proof of income. Though a traditional 9-5 job is not required and there are various other ways to prove your income like:
- Pay Stubs
- Bank Statements
- Income Tax Return
- Signed letter from employer
Providing banking information is crucial for an easy, fast, and streamlined application process. You will need to have an active checking account for receiving the loan proceeds.
Benefits of Installment loans for Bad Credit
There are certain times in life when you need some extra cash in your pocket. During such a situation, an installment would be an optimal choice, especially if you have a poor credit score.
Some major advantages of installment loans for bad credit are:
Quick & Easy Application Process
One major reason why you should go with installment loans is that the application process is simple, and you can obtain money quickly. Also, an installment loan doesn’t have hard requirements for you to qualify for a loan.
Poor Credit Score is not an Issue
Having a bad credit history or low credit score won’t be a hurdle when applying for an installment loan for bad credit. If you have a steady monthly income to prove your ability to repay the loan, you are entitled to apply for Montana Capital Bad Credit Loans.
Easy Monthly Payments
As its name implies, the repayment amount of the loan would be divided into equal installments so that it won’t be an extra burden on your pocket. Moreover, the loan would have a fixed interest rate so you will have a better idea of the amount you have to pay every month until the loan is repaid completely.
Rebuild Credit Score
If you want to rebuild your credit score, an installment loan can prove to be extremely handy. Since you have to make payments every month it paves way for an improved credit score. However, you need to pay every monthly installment on time to make positive changes in your credit score.
Types of Installment Loans for Bad Credit
When it comes to installment loans there are several types of loans available that can be both secured and unsecured. While unsecured loans come free from any collateral, you may have to provide collateral for secured installment loans. Below are some popular types of installment loans
Car/ Auto Loans
You can choose to get an installment loan for purchasing a new car. Though buying a new vehicle comes with a high cost and not all online lenders provide loans of such a high amount, you need to first check it with the lender.
Since your car would act as collateral for this loan, in case you fail to maintain the repayment schedule, the lender may hold possession of your car.
A personal loan can be used for a variety of purposes including debt consolidation, medical expenses, home renovation, etc. Having a good credit score or strong repayment history is not required to apply for such loans.
Since these loans are unsecured by nature you won’t be required to provide collateral, having a steady source of monthly income would be enough to qualify.
Student loans can be used to pay for undergraduate, graduate, or any other form of education. The good thing about a student loan is that the repayment starts only after you complete your education and start a job.
What Can I Use Bad Credit Installment Loans For?
When it comes to how to use the funds from bad credit installment loans there is no fixed rule. Once you get the loan amount it’s totally up to you how you want to use the loan amount. The majority of people in the United States use the loan amount for:
Sometimes life hits you hard financially and leaves you with no choice but to use your emergency funds. This can include medical expenses, utility bills, unforeseen vacations & other cases.
Things get severe when you haven’t saved up enough money to tackle the financial hit. Applying for a personal loan might be an option but things get even tougher when you are struggling with a poor credit score.
In such situations applying for a bad credit installment loan could be your only option. As these loans are easy to get, can be approved quickly, and don’t require a high credit score.
Home improvement is a significant job, whether you are getting ready to sell your house or simply want to freshen things up for the new season.
How to pay for the home renovation is likely to be one of your main concerns as you plan it. The good news is you can use the loan amount obtained from an online installment loan and pay off the home renovation bills.
The loan proceeds from bad credit installment loans can be used as debt consolidation loans to confine all the existing debts into one. Implementing this may make it easier for you to pay off debt faster, save on multiple interest rates & efficiently keep a track of debt.
How to Choose an Installment Loan for Bad Credit
While shopping around for installment loans for bad credit there are certain things you must consider getting the most reasonable loan offers. These factors include:
Annual Percentage Rate
Choosing a lender that offers a minimum annual percentage rate for the loan is important while applying for bad credit installment loans. The annual percentage rate is not merely the interest rate but a combination of interest rate, loan origination fee, and other costs associated with the loan. The lower the APR the less costly your loan would be.
Since there are a plethora of online lenders available with each having different sets of requirements, you must choose a lender that fits perfectly into your requirements and creditworthiness. Make sure to choose a lender that accepts your credit score range and doesn’t have rigorous requirements.
Fees and Other Charges
In addition to the annual percentage rate, you must also compare lenders based on their prepayment penalties and overdue payment charges. Comparing these factors holds importance as these factors affect the overall cost of borrowing.
Choosing a reputable lender is important to avail of a hassle-free installment loan. There are a few uncomplicated ways to determine the reputation of a lender like reading feedback from old customers and asking friends or family members who have previously worked with the same lender.
How does Installment Loan Affect Your Credit Score
When you apply for a loan, lenders usually report to the three major credit bureaus i.e., Equifax, Experian, & TransUnion. If you keep making your monthly payment on time, you may witness a boost in your credit score. Since payment history accounts for a whopping 35% weightage on your credit score, missing any payment can reduce your credit score as well.
To avoid missing any payments, we advise you to choose the option of autopay, which lets you schedule and make the payment without fail.
When To Consider Bad Credit Installment Loans
Consider taking an installment loan for bad credit if your FICO credit score is near around 580 or Vantage Score of about 500. You may still apply for a loan if you don’t have any credit history and are just starting on your credit journey.
To get approved for an installment loan make sure you have enough monthly cash inflow to cope with the monthly loan payment.
Payday Loans Vs Installment Loans
While payday loans are repaid all at once, installment loans with bad credit are repaid over time with affordable monthly payments. This is the fundamental difference between the two types of loans. A Payday loan differs significantly from installment loan for individuals with weak credit in other ways as well, such as being substantially more expensive and smaller in amount.
Additionally, it’s vital to keep in mind that payday lenders often do not disclose your on-time payments to credit unions if you’re planning to improve your credit history. However, if you fail to make timely loan payments, they may report. On the other hand, if you make timely payments over time, installment loans may give you the chance to build your credit score.
Why Choose Montana Capital Bad Credit Installment Loans
Applying for installment loans with us comes with utmost ease as compared to applying with any traditional lender. We always strive to offer you an exceptional experience when you apply for a loan with us. We don’t make unnecessary calls or make you wait longer while you are looking to get some queries resolved. With us you get:
Online Access 24/7
We offer our customers ease of applying for installment loans at any hour of the day using our official website.
Fast Credit Decision
Once you apply for bad credit installment loans with us and provide us with your basic information, we get back to you with a lending decision that doesn’t take much time. In contrast to traditional lenders, we will let you know if you are pre-qualified or not in no time.
No obligation to Sign
Once you get approved for the installment loan with us, it’s up to you to accept the loan terms or not. In case you find the loan terms not optional for your needs, you can choose to reject the loan offer.
No Restriction on Funds
Once you get approved and receive your loan amount, it’s completely your choice to use the loan funds as per your needs. We put no restrictions on the usage of the loan amounts.
Easy Monthly Payments
Our installment loans are flexible and allow you to make the repayment in affordable monthly installments. Moreover, you don’t have to visit our physical location as we allow you to make repayment using online modes.
Frequently Asked Questions About Installment Loans for Bad Credit
Are Installment Loans Secure or Unsecured?
Though there exist both secure and unsecured installment loans, here at Montana Capital Bad Credit Loans we mainly deal in unsecured installment loans, which means you don’t have to provide any collateral for getting approved for a loan with us.
Can I get Installment Loans with a Bad Credit Score?
Installment loans can be applied through various lenders like banks, credit unions, etc., and they may run a credit check to determine your worthiness. Failing to meet the desired score can lead to loan rejection. However, some online lenders provide installment loans with bad credit that let you borrow money without having a strong credit history.
What if I Default on my Installment Loan?
In case you default on your installment loan, it might affect your credit score. Which in turn would make you unfavorable for better loans in the future. Therefore, we always advise our customers to make timely payments on their loans.
How many Monthly Payments do I’ve to make?
The loan tenure and repayment amount will completely depend on the amount you qualify & the duration you applied for. Generally, loans with a longer duration take more payments to pay off the loan completely.
Apply for Easy Approval Installment Loans for Bad Credit Today!
Looking for fast, easy, and reasonable personal loans with bad credit?
With Montana Capital Bad Credit Loans, you can apply for easy installment loans for bad credit that come with just a handful of requirements. With us, you can receive fast cash to meet your urgent requirements.
So, don’t hold back and apply for a personal installment loan online today.
Don’t wait another minute!
Take the first step today for your quick loan!