Introduction to Bad Credit Long-term Installment Loans
Bad credit long-term installment loans are designed for people with poor credit. When you have bad credit you can’t qualify for many loan programs, including those for higher amounts, like a car loan, mortgage or business loan. Bad credit can affect your ability to gain employment, especially in the financial sector. By obtaining a bad credit long-term installment loan, and repaying it, you can improve your credit rating so that in the future you will be able to qualify for other loans.
Not all lenders offer bad credit loans, and the few that do, do not check your credit. Approval is based on ability to repay the loan, the current status of your employment and if you have an active bank account.
Qualifying for a Bad Credit Long-term Installment Loan
People with poor credit can qualify for bad credit loans. Many types of people have bad credit including those with no credit and people who have no debt. People who’ve defaulted on loans, a mortgage, student loans, credit cards and more can meet the qualifications.
A credit bureau report from Equifax, TransUnion or Experian will reveal the applicant’s credit history. Once the application has been submitted online to the lender, it will be reviewed and either approved or not. Poor credit does not necessarily hinder your ability to borrow. The truth is, getting a bad credit long-term installment loan is advised to give you an opportunity to improve your credit.
Applying for a Bad Credit Long-term Installment Loan
Follow these steps:
- Complete the application form with correct information. Make sure everything is up to date.
- Fax over any additional documentation the lender requests. These might be a copy of your social security card, paystubs, bank statements, employment records, etc. Ask about this right away to avoid delays.
- When the application is received it is matched to a lender. You will get an email confirming your application is there and is under review.
- Once you get loan approval, an email will come with instructions on how and when the loan is to be repaid, the penalties and fees for late payments, and when the loan would be referred to a collection agency.
- If the loan is denied, you will be told why in an email.
- Approval is based on ability to repay due to employment status and an active bank account.
- The funds are wired to your bank that day or the next. Payments are made through your bank account, as stipulated by the lender.
Applicants who are denied can reapply in the future once their credit improves. Lenders sometimes offer other loan products for these people. If you decide to look elsewhere, read reviews and talk to people you know.