It is nothing short of a nightmare for individuals having a bad credit history to seek an installment loan from a bank. They are denied such a facility as they are seen as untrustworthy by the banks. As you know, an installment loan is a financial product offered by banks where borrowers have the facility to repay a small amount every month along with interest to pay back the entire amount in a long time period. This is a very convenient arrangement as the borrower has to pay only a small amount of money every month. A very good example of an installment loan is mortgage loan while auto loans also qualify as installment loans.
Private Lenders are Ready to Disburse Loans
However, banks are not the only sources of money for people, especially those suffering from a bad credit history. In these hard economic times, there are many private lenders who are willing to risk their money over people not considered trustworthy by banks. If you have a steady stream of income and run a bank account in your name, you can secure an installment loan from a private lender that can be repaid in installments over a period of time. In fact, if you work out your resources and do calculation to find out how much you can repay to the lender every month without any difficulty, you can easily get such a loan.
Repay in Time to Build Your Credit
Remember, bad credit installment loans are not payday loans as they carry a lower rate of interest and are also of a longer duration. You can use such a loan judiciously to build your credit by paying the installments on time. If you can convince the lender that you have the means as well as willingness to repay the loan on time, it should not be difficult for you to get an installment loan.
Secured and Unsecured Loans
Even though loans from private lenders are often termed as no documentation loans, getting a lower rate of interest becomes possible if you have a property that can serve as collateral. Unsecured loans are obviously costlier in comparison as lenders do not have the luxury of collateral. If you do not have a fixed asset to serve as collateral, you have to be ready to pay a higher rate of interest.
Explore Your Options
There are millions of individuals like you who do not have a decent credit score and are looking for loans. There are multiple options available to you in terms of private lenders who have set up shop online. Compare the features of their installment loans as well as rates of interest to find out the lender who is most suitable according to your requirements. Just make sure that you have the means to repay the installments on time. Shop around and you are sure to get money on terms that you find affordable.