Many personal installment loans are designed for borrowers with bad or lower-than-average credit scores. So while it will depend on more than just your credit score, it is possible to get an installment loan with bad credit.
Having bad credit can certainly make life more difficult. You may have a difficult time getting approved for many different types of loans and financial products. You might even have a hard time getting a credit card or opening a traditional bank account. Having low credit can be tough to fix without the proper financial products and resources afforded to people with good credit.
But fortunately, there are still options for getting the cash you need. Several types of quick cash options exist for borrowers who struggle with a low credit score. These include payday loans, title loans, pawn shop loans, personal installment loans, and more. And if you can pay off these loans on time, without late or missing payments, you may be able to improve your credit score in the process.
When lenders review your application, your credit score is usually a big part of it. But it isn’t usually the only part of it. Many credible lenders will also review your banking information to see the status of your bank account. They will also usually confirm your income with bank statements or pay stubs. This is one of the most important parts of the process since this will be a good indication of whether you have the ability to repay the loan.
Your credit score is affected by many factors. If the loan company or financial institution you’re working with reports your payments and activity to the credit bureaus, then it will affect your credit score. You can find out if your lender reports to the bureaus by simply asking them. Regardless of whether they do or not, it’s always important to make payments on time and repay the loan in full by the due date you agreed to.
On-time payments, paying off your debts, and lowering your credit card usage are three ways to start to improve your credit score and set yourself up for success in the future.