More and more people today are applying for installment loans online because of financial difficulties. Other than that, hundreds of people are now having bad credit due to their incapability of paying installment loans on time. Not paying payday loans on time will not just give people a bad credit but an increasing amount of money to be payed to the lender. This will result to having more difficulties in paying. It will most probably be harder for people to apply for an installment loan when they have bad credit. Fortunately, there are several kinds of bad credit installment loans today and here are some of them.
1. Bank Loans – There are a lot of local banks that offer installment loans with low cost for those people who have bad credit. However, this may require you to have a co-signer or a collateral which may can be a problem in applying for the loan. Banks will usually charge an interest not more than 20% which is smaller compared to payday loan companies.
2. Credit Union Loans – This is considered as the best installment loan option if you have a bad credit. This is because unlike the bank loan, applying for credit union loans does not require a collateral or a co-signer. Companies that have this kind of loan will offer you small unsecured loans. They may also offer loans that are secured by a certificate of deposit or a savings account.
3. Finance Company Loan – This is another company that offers loan for those who have bad credit. However, you should be careful in choosing a finance company because there are some of them that will charge more than 30% of interest. Go for finance companies that will offer you the smallest amount of interest.
4. Mortgage Loan – This kind of loan is offered by several companies to people who have any kind of credit history. They will only require you to have a proof of income, a stable job and a cash down payment. Companies who offer this kind of loan will usually charge a down payment of 5 to 20 percent for those who have bad credit.