What Types of Installment Loans are Available for People with Bad Credit?

There are ways to get an installment loan even if you have bad credit.
There are ways to get an installment loan even if you have bad credit. (Image: money image by Bradlee Mauer from <a href='http://www.fotolia.com'>Fotolia.com</a>)

When you have bad credit, you may think that it will be hard to get a loan. Luckily, there are installment loans that are available for those who don't have good credit, but who still need to borrow money. Learning about the different types can help you out when you need a loan and are unsure of where to turn because of your poor credit. An installment loan is simply a loan that must be repaid in equal sized payments for a specific amount of time.

Bank Loans

A bank will generally look at a customer's credit and require a good score in order to get a loan. However, you may still be eligible for a loan, especially if you have been had an account at the bank for a long time and your account is in good standing. Speak to a manager about the chances of getting a loan. You may be eligible for a smaller loan with higher interest, which may be enough for your needs.

Co-Signed Loans

Another way someone with bad credit may get a loan is to have a co-signer. If you know a family member or friend with good credit who is willing to take out a loan with you, you will be more likely to be approved by a bank or credit union.

Employment Cash Advance

You may be able to get a loan from your employer or company if you agree to pay it back in installments, or have the money taken directly out of your upcoming paychecks in installments. This type of loan would not require having good credit to receive.

Payday Loan

A payday loan is a short-term solution for those who have bad credit. You may borrow amounts from $100 up to $1,500, depending on how much money you make and the laws in your state. Payday loans can be found at many local locations, or can be applied for online 24/7. However, the interest rates on these loans are high, and should only be used as a last resort.

Car Title

Car title loans are similar to payday loans, as they are fast and easy, and require borrowers to have a checking account and and employment. Borrowers must also own their vehicle outright, as the car title will be used as collateral. A car title loan can be in the thousands, depending on the value of the vehicle.

These loans should also only be used as a last resort, however, as the penalty for not paying on the loan is losing your vehicle.

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