What Are $5,000 Personal Installment Loans?
Personal installment loans of up to $5,000 are a financial solution for people who need to borrow money fast. Simply put, you take a lump sum of money that you later repay over several months. A simple application may grant you access to online installment loans. On top of that, a direct lender is more likely to accept your loan request, despite a bad credit score. The application process is fast and straightforward. As an effect, you will usually receive a reply in a matter of minutes.
Personal Loans vs. Payday Loans
Personal and payday loans are both unsecured loans reasonably easy to obtain. However, they differ in terms of loan amounts, time frame, and repayment. For instance, with a cash advance, you could typically apply for a maximum loan amount of $1,000. In contrast, a personal loan allows for loan requests of up to $5,000. As for the loan terms, you would typically need to refund a payday loan in 30 days maximum.
In contrast, you pay off personal loans in fixed monthly installments. In other words, you have more time to repay your debt in smaller scheduled payments. Besides, the repayment period for installment loans online is more flexible. It spans over several months, up to two years, depending on several factors.
Payday loans are typically more expensive than installment loans. However, the interest rate and the APR (annual percentage rate) for an installment loan are lower. The exact finance charges depend on the loan term, amount, and the customer’s details. Your loan provider may also charge an origination fee.
Will I have Guaranteed Approval for Online Installment Loans?
“Guaranteed approval” is a term loosely used in the lending industry. The reason is that most lenders will grant you an installment loan in 80% of the cases. Moreover, their loan offers don’t depend much on an applicant’s bad credit history. Most service providers will lend money to anyone who meets the eligibility criteria. This is good news for all potential borrowers with a less-than-perfect credit score.
Compared to the loans from traditional financial institutions, an online personal loan is easier to obtain. For that reason, it is often referred to as a guaranteed approval loan.
Why Consider an Installment Loan Online?
Online installment loans can prove to be effective when solving a financial emergency. The average customer for personal loans online needs a quick financing solution. In most cases, applicants have a poor credit score and have been recently denied a loan. The most popular reasons for taking bad credit personal loans include:
- debt consolidation;
- paying off medical bills;
- financing house repair or redecoration projects;
- providing a down payment for a bigger purchase such as a car;
- organizing family events;
- funding an urgent trip;
- unexpected expenses that require immediate action.
An installment loan online is a convenient solution due to its fixed interest rates. In other words, borrowers find the regular monthly payments manageable.
What Are the Benefits of an Online Installment Loan?
When applying for an installment loan, you don’t need to provide as much information. Borrowing from a bank, for instance, would require more details. A personal loan from direct lenders has more advantages, including the following:
- online requests 24/7;
- quick application process;
- fast response rate;
- high approval rate;
- no collateral;
- convenient interest rates;
- flexible payment schedule;
- bad credit friendly;
- quick money deposit within one business day;
- building your credit score.
An installment loan is an alternative to more expensive options, such as high-interest credit card loans. In addition, customers find it easy to access online personal loans.
Can I Get a Personal Loan Online with a Poor Credit Score?
You can access personal loans even with a bad credit score. This is one of the most important features that made installment loans popular. A traditional bank will pull your full credit report from the three main credit bureaus to check your credit history. Getting a loan from banks and credit unions is more likely if you have good credit. More specifically, a FICO score below 620 will reduce your chances of being approved by traditional lenders.
Direct lenders don’t usually do any hard credit checks. Instead, they use faster alternative options that do not affect your credit score. As an effect, most direct lenders will review your application within a few minutes. Unlike a bank or a credit union, a direct service provider will offer personal loans even to applicants with a low credit score. Instead of focusing on credit reports, direct lenders will look into your income. As a result, their approval rates are higher compared to traditional banks.
Eligibility Criteria for an Online Installment Loan
To qualify for a loan, you need to check on the criteria below:
- Be at least 18 years old;
- Hold a US citizenship or permanent residence status;
- Have a recurring source of income;
- Own a valid bank account (checking account);
- Provide your email address and phone number.
Providing error-free personal information will ensure a more smooth loan process. In other words, any mistakes or typos may prevent you from being approved. Also, many lenders offer bad credit personal loans only to applicants with a monthly income of over $1,000.
Where to Find Bad Credit Personal Loans
With ASCIN Loans, you can reach out to specialized lenders. They offer loans even to applicants with a bad credit score. We screen every profile to ensure you get top service. In addition, the loan application process is both fast and safe. You can have your money in your checking account within one business day. It only takes three steps:
- Submit your online request. It will take you a few minutes.
- Get approval and sign the loan agreement. If you qualify, you will ;
- Receive your funds.
The lenders we work with don’t do a hard credit check to evaluate your eligibility. In other words, they offer bad credit loans based on criteria other than credit scores. With only a soft credit check from lenders, you can get approval. Moreover, you have good chances to receive your bad credit installment loan of up to $5,000 the next business day.
What to Consider before Applying
Before applying for a personal loan, there are a few things people with bad credit need to consider.
- Alternative options. Make sure you are choosing the loan for your needs. If you need a smaller loan amount, consider a credit card cash advance or a payday loan. If you are looking to finance a startup, business loans may be more appropriate. If you need the money for your studies, make sure you checked the option of student loans. A home equity loan could be a better solution for a larger loan amount, especially with a lower credit rating.
- Your needs and possibilities. Whether you need to solve a financial issue or consolidate debt, decide how much money you need. Once you establish the loan amount, estimate if you can afford to repay an installment loan. Take an average interest rate as an example.
Loan conditions. Do a quick research to see the average offers for bad credit personal loans. Check interest rates, loan amounts, APR, loan terms. Depending on your needs, check how soon the funds will hit your bank account. Last but not least, make sure you trust your lender.