It may not be the best idea to get an unsecured personal loan while having bad credit because a poor FICO score can get you turned down for cheap bank loans or you have to pay higher APR to get accepted. Conservative organizations such as banks or even credit unions will not approve loans for people with damaged credit since they have a poor record and high risk of defaulting on payments. These lenders do not want to carry any risk in case you do not pay them back the borrowed funds and they have to go to a lot of legal recourse in order to get back their loan principal.
However, some specialized online loan companies have created the long term installment loans for bad credit that is designed to help anyone borow money easily when they need it urgently for any purpose. You can get financial assistance from these lenders who are willing to help borrowers get money to pay for emergency home repair, car repair, medical bills, credit card debts etc.
Installment Loans With Monthly Payments
Basically, when your personal credit history is badly tainted by previous late payments, county court judgments, IVA, etc, a long term installment loan with monthly payments may be the best option to borrow cash fast. The monthly pay back amount is designed to be affordable so that you will not be late again. This can help you rebuild good personal credit at the same time.
Usually poor FICO credit is often caused by forgotten, omitted or perhaps ignoring your debt obligations to creditors. As long as you can consistently pays your debts timely, any previous mistakes will be overwritten and you can fix your poor FICO credit rating conveniently. Some lenders also provide secured long term poor credit loans using valuable collateral for cheaper loan APR.
If you are a home owner or has a car or truck, these can be placed against a secured long term installment loan with no upfront costs. This is necessary when you need to borrow a lot of money, such as a $20,000 installment loan to pay credit card debts with high interest rates. Comparatively, your new secured installment loan will be much cheaper than the typical card 24% APR. The average loan you can get starts from $5000 unsecured installment loans up to 24 months. If you need a long term 20 year personal installment loan or to borrow $50,000 dollars, a suitable collateral is necessary in most cases at any good installment lenders for bad credit.
You can choose a short 2 year loan term if you can afford the monthly pay back, or extend the repayment schedule to 30 years of very big installment loans. Just note that the longer you take, you more interest fees you pay in the end. For people who are unemployed and need a loan, a 5 year loan will give you enough time to get a new job and slowly pay back the borrowed money. You will have lesser pressure with debt collection when each monthly payment is modest and affordable.
The application process is usually easy and no hassle. You can compare 10 year personal installment loan rates on the internet easily and there are many lenders that will give you a free bad credit loan quote within minutes. This is much faster compared to calling up the banks one by one. Due to the ease for consumers and borrowers to check out the loan rates, these online loan companies provide very competitive bad credit installment loan rates so it is easy to get a good deal.
BBB Registered Installment Loan Lenders
Do not be too hasty in signing a loan agreement with any company. Take some time to review their track record and see if they are BBB registered installment loan lenders. Depending on how bad is your FICO score, you have a job or no job, the type of collateral pledge etc, you can negotiate with brokers on the personal loan marketplace for the best payment terms and conditions.