So, your credit report has some blemishes on it, but still you're
doing your best to keep up with everything and believe that a loan right
now could really help you to consolidate some of your outstanding debts
as well as to rebuild your credit rating. The only problem is, who is
going to lend money to you given your current sketchy credit rating?
This is a common catch-22 situation, and often the only answer is to
apply for bad credit installment loans through your bank, credit union
or some other lending company.
There are pros and cons with installment loans, and hopefully this information will help you make a wise decision for yourself on whether or not to follow this path.
Pros
- Typically, anyone with a verifiable income of $1,200 per month or more, and with a minimal credit rating of just 450 can find a lender willing to take a risk on an installment loan.
- They are offered by most financial institutions, and much easier to qualify for than personal loans will be.
Cons
- Installment loans tend to be for very low amounts, which may not be enough to cover all of the debts you wish to consolidate, and come with short repayment terms of generally under 3 years.
- Borrowers with poor credit ratings are considered a higher risk by lending institutions, and so higher interest rates are usually attached to these loans.
For some people, the higher interest rates and short payback period will be acceptable in return for being able to put their financial house in order and rebuild their credit rating; but for many it can be just another weight to drag you further under and the better choice will be to simply find a way to budget your finances without taking on another large debt.
The bottom line is that there is plenty to consider before making a final decision with bad credit installment loans. You must weigh your own situation, how much the loan will really help you to stabalize your finances as well as your ability to repay the loan.
There are pros and cons with installment loans, and hopefully this information will help you make a wise decision for yourself on whether or not to follow this path.
Pros
- Typically, anyone with a verifiable income of $1,200 per month or more, and with a minimal credit rating of just 450 can find a lender willing to take a risk on an installment loan.
- They are offered by most financial institutions, and much easier to qualify for than personal loans will be.
Cons
- Installment loans tend to be for very low amounts, which may not be enough to cover all of the debts you wish to consolidate, and come with short repayment terms of generally under 3 years.
- Borrowers with poor credit ratings are considered a higher risk by lending institutions, and so higher interest rates are usually attached to these loans.
For some people, the higher interest rates and short payback period will be acceptable in return for being able to put their financial house in order and rebuild their credit rating; but for many it can be just another weight to drag you further under and the better choice will be to simply find a way to budget your finances without taking on another large debt.
The bottom line is that there is plenty to consider before making a final decision with bad credit installment loans. You must weigh your own situation, how much the loan will really help you to stabalize your finances as well as your ability to repay the loan.
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