What Is a Personal Loan?

A personal loan is a type of installment loan that allows borrowers to get quick cash for unexpected expenses. Personal installment loans are typically recommended for emergencies because they are versatile and convenient. Most applicants can get funding in as little as one business day.  

What Are the Types of Personal Loans You Can Get?

There are four main types of personal installment loans available: bad credit loans, payday loans, cash advance loans, and no credit check loans. The best option for you depends on your financial needs and repayment preferences. Here’s a quick breakdown of your personal loan options: 

Bad Credit Loans

Bad credit loans are installment loans meant for subprime borrowers. While they have high approval rates, the high APRs and fees can result in a debt trap. Pay close attention to the annual percentage rate before applying. 

Payday Loans

Online payday loans are small dollar loans that typically have two week repayment periods. They’re meant to tide you over until payday, so they may only provide a few hundred dollars. If you cannot repay on time, you may end up in a debt trap due to costly rollover fees. Note: Payday and similar short-term loans may be restricted or unavailable in Illinois.

No Credit Check Loans

Loans without credit check do not require a hard credit inquiry. While appealing, they typically come with high interest rates and fees.

Cash Advance Loans

Online cash advance loans are small loans for people in between paychecks. These are similar to payday loans, and may only provide a two week repayment period. Note: Cash advance loans and similar short-term loans may be restricted or unavailable in Illinois.

Chicago Installment Loans

Chicago installment loan terms are flexible, so you can get an offer that fits your unique financial situation. Here’s an overlook at what you can expect to get in Chicago:

  • Loan Amounts — Personal installment loans can range from as low as $100 to several thousand dollars. However, your eligibility may vary based on creditworthiness and other factors.
  • Fixed Interest Rates — Personal installment loans typically have lower interest rates than other bad credit options, and rates are fixed for your convenience.
  • Repayment Terms — The repayment period can last months or years. 
  • Fees and Penalties — Illinois law limits fees, but compare lenders to avoid unnecessary costs.
  • Online Loan Management — Online lenders allow you to conveniently manage and pay your loan online. 

Chicago Installment Loan Rates

These are the average APRs and monthly payment amounts you can expect with a $500 personal loan: 

Term LengthAPR as low asMonthly Payment
0-436%$261.31
4-832%$91.28
8-1228%$56.64
12-2424%$33.35
Disclaimer: Loan details in the table are illustrative and not guaranteed. It does not constitute an offer, commitment, or guarantee of any specific loan terms. Final terms depend on creditworthiness, underwriting, and law. Contact the lender for personalized offers.

Can You Get a Bad Credit Loan In Chicago?

It is possible to get a loan with bad credit in Chicago, but terms may be more limited. Shop around to compare lenders and verify that any loan offer complies with Illinois lending regulations.

What Can You Use an Installment Loan in Chicago For? 

You can use an installment loan for almost any emergency expense in Chicago, such as repairing a car or covering medical costs. Here’s a quick breakdown of some examples:

Home Improvement
You can use a personal loan to improve the interior or exterior of your home. 
Credit Card Debt Consolidation 
Personal installment loans can help you consolidate high-interest debt. 
Medical Costs
You could cover expensive medical costs with personal loan funds.
Car Repairs
A personal loan could help you repair your car and get back on the road quickly.
Life Events
You can get money quickly for unexpected life events with a personal loan if you don’t have sufficient savings. 
Other Emergency Expenses
Personal installment loans can help if you’re dealing with any other type of emergency expense.

How Chicago Loan Options Work

Here’s a general overview of how a Chicago personal loan works:

Apply Online Fast & Easy
The application process for online loans is typically fast since you only need to provide a few personal details. 
Income Verification
Online lenders can quickly verify your income information through a secure bank verification process. 
Same-Day Availability
Some lenders may provide same-day or next-business-day funding.

Top Chicago Loan FAQs 

What is an installment loan?

An installment loan is a type of loan that is repaid in monthly installments over months or years. There are various installment options available, such as personal loans, home equity loans, and auto loans. Installment loans are recommended for large expenses due to their convenient terms and lower interest rates compared to other subprime options. 

How much can I borrow with a personal loan with bad credit?

Most personal loan lenders provide up to $50,000, but you are not likely to get the maximum amount with bad credit.¹ However, you may still get enough money for an unexpected expense if your income is sufficient and the lender has flexible credit requirements.  

What are the eligibility requirements?

Eligibility requirements for personal loans vary depending on the lender. If you have bad credit, look for lenders that don’t have minimum credit requirements. These lenders base approval on alternative factors, such as your income and payment history.

How quickly can you get funding from a personal loan?

Lenders that offer personal loans can typically provide funding in as little as one business day. However, it’s entirely possible to get same day funding depending on the time it takes you to get loan approval. 

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References:
  1. How Much Can You Borrow With a Personal Loan? | U.S. News