Bad Credit Installment Loans
“Bad credit” is a phrase that’s used to describe someone who has information on their credit report which would lead a lender to think they might not pay back their loan in a timely manner. For example, if you have a credit card, and you’re late with your payments several times a year, then you have bad credit. On the other hand, if you make all of your credit card and loan payments on time, you have good credit.
Getting loans when you have good credit is usually pretty easy to do. On the other hand, if you need a loan and you have bad credit, that’s pretty hard.
An “installment loan” is a loan where you receive cash or a product, and your payments are fixed at a specific amount over a specific number of payments. Those payments are called installments. A common type of installment loan is a cash advance loan from a payday loan company. For example, you might borrow $200, with the understanding that you’ll pay it back with five payments of $50 each. (Notice that the total amount of the payments is more than you borrowed. That amount is called interest, and in the case of a payday type loan, interest rates are exorbitant.)
To get an installment loan when you have bad credit, you should probably consider some kind of payday loan company. The exorbitant interest rates that they charge cover the higher percentage of people who default on their loans. Getting a payday loan of this sort is almost always a bad financial move, but sometimes you have little choice. (Suppose you have a medical emergency and no cash, for example.)
A good way to get money with bad credit is to borrow money from a friend or family member. But you should make sure to pay this money back when you say you will. Your friends might not run an actual credit check, but it doesn’t take long to develop a reputation as a deadbeat.
You can learn more about bad credit installment loans at NoCreditCheck.org, a site which offers a lot of insight into what to do if you have bad credit or no credit.
Comments Off