Some people don’t like the idea of borrowing money online, even if they desperately need cash, while others realize how helpful taking out online loans can be. With the proper information, the chance of getting a good deal on a loan APR is much higher, so make sure you are well informed on terms before deciding to take out an installment loan online. Especially if you have a bad history with money or a poor credit score. 

Many lenders won’t offer a loan to borrowers with poor credit, but an installment loan might be an exception. They are something you should consider if you are thinking about a home renovation, paying for a wedding, or wanting to afford a new car payment. In situations like these, it can help to find loans online with almost instant approval. Depending on the lender, your credit check can take up to a couple business days to approve your credit application. Typically, you can receive your loan by the next business day, but it will depend on which loans for bad credit you’re applying for. If you need money now, and an APR to fit your budget, just remember that there are options out there for you. 

The important thing to remember is that you should always find a loan or form of credit that suits your specific financial needs. There are many forms of credit out there, so you’ll want to be careful with your choice. If you do plenty of research you’ll find the right loan for you. Read on to learn more about getting an online installment loan, and how online loans work. 

What Are Personal Installment Loans?

At this point, you may be wondering “what is an installment loan?” A personal installment loan is one of the most popular types of loans where you borrow money from a lender, and then repay it with interest over a series of fixed payments called installments. An installment is simply a loan payment. In certain cases a customer may want to use one instead of using credit cards or payday loans, especially if they don’t have credit access due to a low score. Maybe they’ve racked up too much debt on their credit cards, or want to avoid the high costs and APRs of unsecured payday and title loans. Lots of lenders offer loan services. Some unsecured online installment loans may have fewer fees and expenses than your typical payday loan or payday advance on average.1 And fortunately, there are many options out there for bad credit installment loans. Which means that having bad credit won’t stop you from getting the financing you need. 

Installment loan payments are usually made through monthly scheduled payments, but they can be made weekly, bi-weekly, or on a different schedule that is determined before taking out a loan from a lender. Make sure to check out the payoff terms and APR of installment loans in advance. It’s important to know your total payoff amount, the APR, whether there’s a prepayment penalty, and all of your repayment options for any online loan or financial product on the internet. Unsecured personal loans have a lot of terms and conditions a customer should research before signing on the dotted line. And one of the most important things to pay attention to is the APR. The APR is also one of the best ways to compare loans to one another. If you’re comparing rates for installment loans online, using the APR is how you should start. 

Personal installment loans can be used to rebuild credit or cover mid-to-high expenses like repairs for a new house or rent for your apartment, even if you have good credit scores. Installment loans also tend to offer higher loan amounts than other bad credit alternatives. These costs are usually too much to put on credit cards at once, so getting an installment loan and spreading payments over an extended period can make them more manageable. It’s always wise to opt for several installments rather than one lump-sum payment. And while finding a payday loan online may be easy and fast, paying it back might not be. This is one of the reasons that installment loans online may be more manageable for your situation. 

Common Types Of Installment Loans Online

Installment loans are a popular form of lending that can be found online or at physical locations:

  • Car Loans are used to purchase a new vehicle. Monthly installments are usually paid over 12 to 96 months, although not all lenders issue installment loans within that range, you need to check that out. If you fail to maintain the repayment schedule, your newly bought vehicle acts as a collateral for an installment loan, and a lender may repossess it. Make sure that lenders provide clarity in terms of payment and especially hidden fees. You can find these at dealerships, or even at a bank or credit union. You’ll likely find the best rates at credit unions. 
  • Mortgages are monthly installment loans used for buying a house. They are usually repaid over 15 to 30 years with monthly payments. Like with auto loans, your property acts as collateral in case you don’t follow the regular payments. A home mortgage loan usually comes with lower interest rates since they are considered secured, and some even have fixed payment rates that don’t change over time. You always need to stay on the same page with the lender, regardless of the loan amount and monthly installments. Mortgage lenders will run credit checks and review your income and employment status to make sure you can repay your loan on time. 
  • Personal Loans provide money that can be used for a variety of purposes, like debt consolidation or paying off sudden unexpected expenses like medical bills. And you can usually get a personal loan even with poor credit or a bad history of repayment. A personal loan won’t normally require collateral like your car or house. And the best part is that installment loans usually come with much lower interest rates and fees than payday loans. Plus, there are many options for installment loans online. 

How Do Installment Loans Work?

Direct lenders for installment loans in America need some kind of security that customers will be able to pay back the borrowed amount of cash, so that’s why an online installment loan comes with collateral. Most online lenders require that you have a job with a steady paycheck or monthly income to ensure that you will be able to pay each installment in accordance with your repayment terms. Your credit score is also essential for getting approved for the money you need. And typically the better your credit score, the better APR you can get. And this principle will apply, no matter what type of loan you’re looking for. 

The lender will ask for all of this information on the application. They’ll probably need quite a bit of personal and financial information such as: your employment information, bank account info, social security number, and more. If approved, many installment lenders will deposit your funds directly into your bank account. Some may even send the money as fast as 24 hours after approval. Once the funds are deposited you can access them with your bank card, or through a cash withdrawal. 

Depending on the lender and terms of service, you can make installment loan payments online through automatic monthly deductions from your bank account, direct deposit at the store, or over the phone to repay your loan; it’s up to you to choose the most convenient option to repay the debt. This is generally how most installment loans are paid off. Typically, for an online loan, you can complete the entire loan and repayment process without needing to leave the house. 

On-time payments will help you improve your credit score, which can come in handy the next time you are taking out an installment loan from a lender. A higher credit score means that a customer will be able to apply for higher loan amounts, better terms, and a better APR.2 Maximum loan amounts and specific terms may also vary by state.

What To Consider When Getting An Installment Loan Online

Getting an interest rate for an installment loan that allows you to make affordable monthly payments should be a priority when getting an installment loan, or really any online loan. Online direct lenders in America factor in many different aspects during their hard inquiry on applications for loans. They check and calculate the risk and give you a specific interest rate and APR based on your credit score, income, other debts, debt-to-income ratio, and your employment. Lenders must be assured that a customer can repay the installment loan money before offering the service. Sometimes you may want to improve your credit score health before you decide to apply for an installment loan. Improving your credit score will lower your interest rates and APRs. You can check your credit score online if necessary prior to applying for installment loans. The bottom line is, a better credit score means lower interest. 

Interest rates and fees for installment loans may vary depending on your specific financial situation. This is also true with other financial products, like credit cards. The loan terms and duration of repayment may also vary based on your credit history. While short-term installment loans typically yield higher interest rates than long-term installment loans, the amount of interest paid on a short-term loan is usually lower, because there’s less time for interest to accrue. Usually installment loans are more predictable than payday loans and cheaper than cash advance loans. Payday loans online can have higher chances for approval than installment loans if you have a bad credit score. But beware, as they also tend to have bad repayment terms and interest rates. Payday lending can be a risky option if you’re already in a tough financial situation.

That is why it is crucial to evaluate your financial needs and figure out what type of loan works best for you. Some people want to repay the loan as soon as possible, while others like to stretch it out for smaller installment payments. Whichever you choose, make sure it fits your budget, short-term or long-term financial needs, and you get an installment loan you are comfortable paying each month to repay your debt

Keep in mind that the borrowed loan amount is fixed – you can get much more flexible terms with a credit card or a line of credit, although you may be able to refinance your loan to receive additional funds depending on your financial needs.3 CreditNinja does not have penalties for repaying your installment loan early, although some other lenders might charge you additional fees, it’s better to check that before applying for an installment loan online. CreditNinja allows some installment loan borrowers to refinance. If you need more money or more time to repay, reach out to our customer care team. 

Benefits Of An Installment Loan

Installment loans are a very popular lending option for many borrowers. And the best installment loans are ones that cater to your specific situation. There are plenty of lenders offering installment loans now, including CreditNinja, LendingClub, OppLoans, LendingPoint, SeedFi, and many more. But the one that is right for you will depend on your personal financial history and preference. 

Getting the right loan for your specific situation and income is crucial. Make sure you’re always taking into account the fees, APR, loan amounts, and other details. Lenders are required to disclose these details when no matter what type of loan or form of credit you’re considering. Just make sure to ask questions about the loan, and find out more details than their advertisement might offer. 

An online installment loan can be a great way to improve your current financial situation and get the money you need. These fast loans come with a simple borrowing process for a consumer, and there are no hidden fees you should worry about with CreditNinja. If you’re in need of a good loan experience where the credit check isn’t the only thing considered, CreditNinja may have the types of online loans you need. 

Once approved for a certain amount for an installment loan, you get a specific interest rate, and have to pay fixed installments over an agreed period. In terms of stability, you always know how much you need to pay each month, and you can plan your budget accordingly to repay your debt. This type of loan is designed to help you with unexpected expenses. And the best part is, you can get a loan even if you don’t have perfect credit. This might not always be the case with other lenders like banks or peer to peer lending. 

Finding loans and forms of credit that work for you might not be easy. But at CreditNinja, we offer reliable financial support whenever you need it. Our speedy online cash loans come with flexible terms and can be used to improve your financial situation quickly and on convenient terms. Plus, you can repay your money through manageable monthly installments. 

CreditNinja has your back, with fast, easy, and reliable personal loan financing, even if you’re a customer with less-than-perfect credit scores. If you need money in a pinch with no hidden fees and flexible payoff terms, CreditNinja may have the right unsecured personal loans for you. Whether you’re trying to pay off credit card debt, or have an unexpected expense, we’re here to help. 

Avoid adding debt to your credit cards, and predatory lending options like unsecured payday and title loan financing. You can get your cash loan in just one business day after loan application approval in most cases, so start your online application today and see what we can offer you. Don’t settle for expensive and risky lending options, apply today with CreditNinja.

Learning more about personal finance is the first step to protect yourself and secure your financial future. Research topics online, check out the CreditNinja website or even sites like Bankrate. And for more information on personal installment loans, payday loans, credit scores, money orders, and all things personal finance, visit our blog: The CreditNinja Dojo!

Frequently Asked Questions

Many personal loans are designed for borrowers with less-than-perfect credit. This means that having a low credit score doesn’t necessarily bar you from being approved for an installment loan! Just make sure you find the right lender and loan for your situation.

The first step in any loan shopping process is to research loan types and the lenders that offer them. Once you find the right loan and lender for you, then it’s time to fill out an application. The lender will then determine whether or not they can offer you a loan. If they make you a loan offer, many lenders will now deposit the funds directly into your bank account.

The length of your repayment term and the amount of payments will depend on the specific installment loan you receive, as well as the state where you live. Payment intervals will vary based on the frequency of your income (e.g., weekly, bi-weekly, semi-monthly, or monthly).

While you may be able to get several installment loans at once from multiple lenders, it may be a risky financial move. Having too many loans and payments can be difficult to manage. And if you can’t repay your loans, you may start to see your credit score drop.

There are risks associated with any loan or financial product. One common risk would be that your credit score can suffer if you don’t make loan payments on time. A lower credit score can make it difficult to receive loan approval or good interest rates.

There are several things to keep in mind when applying for a loan online. The first would be your credit score. This is one of the biggest determiners of loan approval. You’ll also want to consider your loan needs, the type of lender you want, and the repayment terms.

The best way to apply for an installment loan is to start by finding the right loan and lender for your specific financial needs. Once you know that, you can fill out an application. Many lenders now offer fully online application and repayment processes.

Using an online lender certainly can make the application and repayment process more streamlined. Many lenders now allow you to apply, receive approval, and make payments from the comfort of your own home. Convenience is probably the biggest benefit of using lenders that operate online.

If you have a bad credit score, there are still ways to get the cash you need. Many installment lenders offer loan products to borrowers with less-than-perfect credit scores. You can also consider applying for secured loans that require collateral.

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