Having a negative credit history can make it difficult for people to get a loan. Bad credit can mean you were not able to meet payment commitments in a previous loan, had declared bankruptcy, or still have an unpaid balance that has been sitting for a while. In short, lenders will see you as a risk more than an asset and will not likely lend you any money. However, all hope is not lost yet. You can still avail payday loans and installment loans for bad credit online.
While you do remain a high-risk client because of your poor history, bad credit installment loans from GADCapital.com and similar lending agencies give you an opportunity to correct your past mistakes and once again gain good credit. By offering a chance to take out a loan, without regard for your tainted financial past, you get a new lease of life, so to speak. Installment loans online, despite their relatively higher interest rates, are not only a means to obtain quick cash, they can also help get you out of the red if you take your payments seriously.
Bad Credit? There’s Still Hope
Purple payday loan installments, for one, offer borrowers a chance to fix their negative credit score by making it easier for people to repay their loans. By creating a structured and staggered payment scheme, the amount that borrowers need to put up monthly becomes lower (compared to a payday loan) and more achievable. Sometimes, when there is an urgent need, people simply agree to any interest rate and repayment offer because they are in dire need of cash now. Installment loans can give you the money you need now alongside a repayment schedule that you can realistically keep up with.
One thing you should remember about negative credit is that it is not permanent. If you decide to wait it out and not borrow anything at least for the next seven to 10 years, your bad record will fall off your reports on their own. You can always choose to save up and then just wait for the chance to reapply for a traditional loan in the future. However, if this is not possible for you and you need money immediately, installment loans can be a godsend.
3 Reasons Why People Choose Online Installment Loans
Despite the relatively high interest rate, why do people still choose online installment loans? It is true that there are states that do not allow it and financial experts advise against it, but if you see that you can manage the payments responsibly, you cannot discount this option entirely. There are three key reasons why online installment loans remain very popular with Americans.
- Higher loanable amount – Installment loans usually range from $1,000 to as high as $5,000, depending on your current financial status. This contrasts greatly with the typical payday loan, which is usually just under $1,000.
- More manageable payments – Installments usually run from 6 months to 24 months, and the principal amount is split over the pre-agreed duration (plus interest and other fees). As opposed to a payday loan, which will have you paying a lump sum on your next salary date, you can pay a smaller amount over a longer period and still have some money left for your other day-to-day needs and minor incidentals.
- Fast processing – Typically, online loans take less than 5 minutes to apply for, and approval can come in less than an hour. If you get approved for a loan, you can expect the money to be in your bank account in 24 hours.