Installment Loans For Bad Credit
Are you looking for an installment loan but have bad credit?
Before you fill out any of those free online applications you see all over the internet there are some very important things you need to consider and be fully aware of before you move forward.
In this post I’ll be covering everything you need to know about installment loans for bad credit; the good, the bad, and the downright ugly.
Now don’t get me wrong these types of loans do serve a purpose but should only be used responsibly and only in true financial emergencies.
So what’s good about installment loans for bad credit?
This type of loan can be a viable solution if you need to pay back the loan over a period of time compared to a single lump sum payment.
For example, if you needed to borrow $1,000 but you can’t pay back the whole amount with your next paycheck, a loan with 5 installment payments of $200 plus interest and fees over the course of your next five paychecks may be what works for you.
One of the bad parts of installment loans for high credit risks is dealing with privacy issues and potential scams especially over the internet.
Be extremely careful when submitting your personal contact information online for an installment loan for bad credit. Many of these sites simply transfer you to third party sites and in many cases will share your email and contact information to other organizations for marketing purposes.
Read the privacy and terms and do your due diligence. You’ll be surprised to find many of the sites are not the lenders, but merely lead generation sites.
Now, time for the ugly part of installment loans for bad credit; the interest and fees.
Did you know lenders offering these short-term loans may offer you an APR between 200% and 2,281%!
Yep, you read that correctly, 2,281%!
While installment loans for bad credit typically have a higher loan amount than a payday loan, the amount you are able to borrow depends on the state you reside in.
You should never sign an installment loan agreement without understanding the terms and conditions associated with late payments, non-sufficient funds fees, rollovers, payment extensions, etc.
Using an installment loan for bad credit for something other than an unexpected emergency can be a costly mistake. If you need to borrow money for an unexpected emergency, have a limited budget and bad credit, then it may be just what you need.
On a final note, bad credit does not have to be something you’re stuck with. I strongly encourage you to take advantage of my free course on credit restoration so you never have to accept high interest rate loans ever again!
Ready to repair, restore and reclaim your excellent credit scores? Submit your name and email below to receive my FREE course ‘7 Steps To Superior Credit’ ($497 value) =>
To Your Success In Business and in Life!
Did This Blog Help You? If so, I would greatly appreciate if you like and shared this on Facebook.
About the author
Marco Carbajo is a business credit expert, author, speaker, and founder of the Business Credit Insiders Circle. He is a business credit blogger for Dun and Bradstreet Credibility Corp, the SBA.gov Community, and All Business.com .His articles and blog; Business Credit Blogger.com, have been featured in ‘American Express Small Business’, ‘Business Week’, ‘The Washington Post’, ‘The San Francisco Tribune’,‘Alltop’, and ‘Entrepreneur Connect’. You can also find Marco on Google+.
Image courtesy of FreeDigitalPhotos.net