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LoanNow: Your Source on Installment Loans for Bad Credit

If you’re seeking extra funds to cover a financial emergency or to make a purchase to make life a little easier, you naturally want to pay as little as possible. If you don’t have friends or family willing to lend you money at zero percent interest, bank loans and credit unions represent some of the next best options for cheap installment loans.

When applying for an installment loan, bad credit puts a damper on the options that are available to you.  Bank loans and credit unions are the most likely sources for cheap installment loans, but you still pay a price.  You soon discover that when it comes to installment loans, poor credit will disqualify you for many bank personal loans.

If you search online for installment loans for bad credit, unfortunately most of what you will find are links to payday lenders, many of which are disguised as installment loans for those with poor credit. Some of the tell-tale signs to look out for are sites that feature multiple lenders, offers featuring small loan amounts or promises to finance your loan with no credit check or guaranteed approval.

LoanNow may provide a way to escape this dilemma. Before you put your personal possessions at risk with a pawn shop or tie yourself down to a high-interest installment loan, why not give us a try?

Installment Loans for Bad Credit

Bank Loans Demand Good Credit for Installment Loans and Lots of Patience

Banks offer some of the best long term loan options available. But getting a bad credit installment loan from a bank is a difficult proposition. That’s because most bank loans rely heavily on your FICO score as a basis for their lending decisions. And getting an instant decision or a quick response is completely out of the question.

For an unsecured installment loan, poor credit can be a deal breaker. That’s because most bank loans require a stringent credit underwriting process that is heavily weighted on your credit score. Lenders depend on FICO scores to gauge the ability of borrowers to repay unsecured personal loans. Negative entries, even for unavoidable situations such as serious illness can prevent you from qualifying. Borrowers who are struggling financially or who have been financially irresponsible in the past, have low FICO scores that raise doubts with banks that they will be able – or willing – to repay an unsecured personal installment loan.

Collateral for Bad Credit Installment Loans

If you find a bank willing to approve you, you likely must provide collateral or a credit-worthy cosigner. Banks are somewhat more lenient in underwriting secured installment loans, which makes sense. After all, if borrowers default on secured loans, lenders can seize the collateral to minimize or eliminate any losses.  However, if your score is too low or if you have too many detrimental items on your credit profile, you will likely be turned down, even if you provide collateral or a co-signer.

And even if your credit is stellar, there is nothing quick and easy about getting the money you need fast. The application process for many banks requires weeks of waiting. That’s potentially only a minor inconvenience during a major endeavor such as searching for a new house. But if you’re facing a financial emergency, the wait associated with bank loans is a price that’s too high to pay.

Alternatives to Bank Installment Loans for People with Bad Credit Also Carry Drawbacks

For borrowers with less than top notch credit, credit unions are somewhat more lenient than banks.  As non-profit organizations, credit unions don’t operate to generate dividends for stockholders. As a result, they are often more lenient about making lending decisions for their customers. Nonetheless, obtaining a bad credit installment loan from a credit union may require a co-signer or collateral.

Obtaining a bad credit installment loan from a finance company is often easier and faster than applying with a bank. Finance companies typically do not require collateral, and they are often less demanding in their underwriting requirements than banks. But finance companies charge higher interest rates than banks and finance companies, and are often not the option for quick or instant decisions.

Pawn Shops and Payday Lenders that Offer Bad Credit Installment Loans Can Wreck Your Financial Health

Many desperate borrowers who need extra money fast may turn to pawn shops or payday loans.  While it may be easier to borrow from these short term lenders, these loans hardly qualify as cheap or “easy” money.

Because pawn shops do not offer installment loans, poor credit is not an impediment. In fact, pawn shop proprietors don’t run credit checks at all. They extend credit strictly based on the value they place on the merchandise that you present.  They are also not the place to look for any kind of long term loan option. Once you accept their offer, you usually have 30 or 60 days to repay the loan, or lose your possessions for good. And you can forget the convenience of getting a quick loan online – with pawn shops you have to find one of their physical locations if you need money quick.

Payday loan companies have a well-deserved bad reputation. No one would consider loans from these types of companies to be cheap installment loans.  Their short-term loans perpetuate abusive lending policies that trap borrowers into endless cycles of debt. Savvy borrowers understand that these loans are among the worst possible sources for cheap installment loans, or installment loans of any type. In fact, these lenders should be considered a last resort for obtaining extra funds. But these lenders remain in business because they offer loans to people who find it difficult, if not impossible to obtain credit elsewhere because of their poor credit scores. They also have the benefit of being able to provide almost guaranteed approval and instant decision offers for many borrowers, which can be quite appealing when you need money fast.

Don’t Be Fooled By Fake Names When Offered Installment loans for People with Bad Credit

While most payday loans require lump-sum payments, oftentimes you may find that those that call themselves installment loans are frequently structured as an attempt to circumvent state laws that prohibit conventional payday loans. With these installment loans, you may have multiple payments, but they’re often scheduled only days apart. The due date for the final installment is usually only a few weeks after you receive your money. And interest rates can often be very high.

With one of these so-called installment loans, bad credit presents almost no obstacle. In fact, poor credit rarely enters the lending decision at all. Unlike conventional lenders, these short term lenders do not underwrite their loans through the three major credit reporting bureaus: Equifax, Experian and TransUnion. Instead, they extend credit to nearly anyone who can provide evidence of a steady form of income. The phrase “your paycheck IS your credit” is never more true than with a loan like this.

Given such dire circumstances, it’s not difficult to understand why four out of five payday loans are rolled over or renewed, according to the CFPB. And once borrowers are snared into the cycle of renewals, they remain in debt for months, often repaying many times more than they originally owed before they can finally close their accounts. In fact, most borrowers take eight loans annually, and remain in debt for five months out of the year, according to the Pew Charitable Trusts.
LoanNow installment loans for bad credit

LoanNow Offers a Way Out for People Seeking Installment Loans for Bad Credit

LoanNow recognizes that when you’re facing an emergency, you need money now, not weeks from now. So we make nearly all lending decisions within 24 hours.  This fast loan option makes taking care of your financial emergency quick and easy.

LoanNow doesn’t need to offer installment loans for bad credit. Our superior risk-driven, online-only ** underwriting service considers borrowers’ entire financial circumstances, not just their FICO scores. We are often able to approve borrowers that banks and other lenders turn down – without collateral. And you can do it all online from the comfort of your home.

Rather than promoting misleading ads for cheap installment loans, LoanNow combines fast efficient processing and reasonable, manageable long term repayment periods. Why not give LoanNow a try today? We may be the solution you’ve been searching for!


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Why LoanNow

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What We're About

  • "We believe we can change the world by helping people with less than great credit get back on track."

    Miron, The Team

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    Harry, The Team

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    Jesse, The Team

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* Funds will be distributed via ACH. Most banks will post the funds to your account by the next business day. Subject to underwriting approval.

** Subject to online availability and underwriting may request additional items prior to final approval.

† Loan approvals are subject to underwriting criteria and the approval process may take longer if required items are not able to be verified online or additional items are requested.

‡ Funds will be distributed via ACH. Most banks will post the funds to your account by the next business day. One’s bank will determine when funds are actually available.