Why Installment Loans Online For Bad Credit May Not Be A Good Idea – And Your Alternatives!

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If you have bad credit and you need emergency cash for a car repair, medical bill, or an issue with your home, you may be interested in installment loans online for bad credit. However, you may have trouble finding a lender willing to work with you – especially if your credit score is 600 or lower. In fact, partnering with an installment lender online may not be a good idea at all if you have bad credit. In this article, we’ll take a look at why you shouldn’t get installment loans online for bad credit, and your alternatives!

The Disadvantages of Installment Loans Online For Bad Credit

Here are just a few reasons that installment loans may not be a good choice if you have bad credit.

  1. Applying for more than one loan can sink your credit score – When you apply for a loan, you get a “hard inquiry” on your credit report. This can drop your score by 10-20 points – and multiple applications can drop your score even further. Even if you’ve been rebuilding your credit, this may impact your ability to get a good rate on the loan.
  2. Inflexible, with long-term commitments – Your loan terms are set in stone with an online installment loan. You could be locked into a long-term loan with a high APR, with no real way to get out of it. Even if you repay early, you may be hit with penalties for doing so, depending on the lender. 
  3. You’ll pay high APRs, even if you qualify – The average APR of a personal loan (with a reasonable credit score) is around 15%. If you have a bad credit score, your rate may be 25-30%, or even higher in some cases.

And because personal loans are amortized, most of your initial payments go towards interest at first, and you only begin to pay the principal down after several months. This means you’ll end up paying even more for the loan!

While an installment loan may be a decent idea if you have a reasonable credit score and solid finances, these three factors mean that installment loans online for bad credit are usually not a good idea.

What Are The Alternatives To Online Installment Loans?

Luckily, you do have a few other options for getting emergency cash. You could just use a credit card to pay for some of your expenses. If you don’t have a credit line available, another option is to get a title loan on your car – but you can only do that if you own your vehicle.

For most people with bad credit, the best way to get quick cash is with a payday loan. Payday loans are reasonably affordable, and there is no long-term commitment. In addition, you can qualify for a payday loan no matter what your credit score may be – and it has no impact on your credit report.

Need An Online Payday Loan? Apply Today!

Ay Mypaydayloan.com, we are the best provider of online payday loans nationwide. If you are thinking about getting installment loans online for bad credit, we’re a great alternative!

Learn more about our loans at our website, and check out our frequently asked questions section (FAQs) and requirements page to see if you qualify for a payday loan. Got more questions? Contact us for more information. We’d be happy to talk to you!

 

Next Day & Same Day Funding cut-off times:

  1. If your payday loan application is received and approved prior to 11:40 a.m. EST Monday through Friday, you should receive the funds the same day by 5:00 p.m. your time (If same day funding requested)
  2. If your payday loan application is received and approved after to 11:40 a.m. EST Monday through Friday, you should receive your funds by the next business day.
  3. If your payday loan application is received and approved Saturday or Sunday, you should receive your funds Monday or the next business day by 5:00 p.m. your time (If same day funding requested)
  4. If your payday loan application is received on a bank holiday, your application will be reviewed and approved the next business day.

Mypaydayloan.com – Hours of Operation for Customer Service

  • Monday – Friday from 9:00 a.m. to 12:00 a.m. EST
  • Weekends from 9:00 a.m. to 6:00 p.m. EST

 Contact us at: (888) 269-2303