Do Long Term Installment Loans No Credit Check Really Exist?
Many loan providers advertise no credit check loans, but do these loans really exist? To be honest, a credit check is a legal requirement for those who offer loans. Most lenders will check your credit no matter what types of loans they are going to give you. However, you can pre-qualify for some loans online, which doesn’t impact your credit, but most lenders will do a hard credit check once you apply.
A credit check helps lenders determine your ability to repay the loan. If you are confident that you can pay the long term installment loan off comfortably, credit checks should not deter you from getting the loan you need since paying back on time helps bolster your credit rating.
Can I Get Long Term Installment Loans for Bad Credit?
Yes, you can get a long-term installment loan for bad credit. Here’s what you need to do to increase the chances of getting your loan approved.
Assess Your Credit Report
Before you submit your loan details, it’s important to evaluate your credit report. If your scores aren’t encouraging, you can take the necessary steps to improve your scores. Knowing your scores also helps to get a rough estimate of how much you might get from the lender.
Check Your Budget
Your budget dictates how much you can afford as monthly payments for the installment loan. You can use an installment loan calculator on your lender’s page to calculate how much you will be paying.
Prequalification allows you to preview how much lenders will give you. You only need to enter your personal details and specify how much you earn. The provider will show you the loan amounts you can take and repayment terms. Luckily, prequalification doesn’t affect your credit scores. So, you can try out multiple offers before choosing the best deal.
Selecting a loan offer that works for you initiates the loaning process. For a smooth, uninterrupted process, ensure you have all the required loan documents, including bank statements, W-2s, and paystubs. From here, a lender will then perform a hard credit check, which will slightly dip your scores.
Where Can I Get Bad Credit Installment Loans?
You can access bad credit installment loans from the following lending options:
Direct Lender for Bad Credit
Working with a direct lender allows you to submit your loan details to one specific lender. Since there are no intermediaries, it might be easier to get a loan if you’ve previously worked with the lender. It’s worth noting that direct lenders charge higher interest rates since they offer bad credit loans.
Online Loan Broker
You can also turn to an online loan broker for financial assistance. CocoLoan is such an online loan broker. We don’t offer loans. Instead, we connect you to reputable online lenders you can trust. The advantage gained here is that you save yourself from the hassle of shopping around for trustworthy lenders.
How much would you like to borrow?
How Does CocoLoan Find Me Installment Loans Online?
Getting an installment loan with us is pretty easy. You simply need to follow these three steps:
Submit Your Details
Submit your personal and financial details. Lenders want to determine your eligibility based on the information you provide. Therefore, ensure you provide the correct details.
After submitting your details, you will be presented with multiple offers from our diverse database. Compare the loan offers based on factors like interest rate, fees, and repayment terms.
Get Your Cash Fast
The final step is where your chosen lender will process your loan. Money will be credited to your bank account within 24-48 hours. Some lenders are fast and can process your money in minutes.
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What Should I Consider When Looking for Long Term Installment Loans?
To ensure you choose the right provider that meets your needs, compare options based on the following factors:
Annual Percentage Rates (APR)
How much does the installment loan cost? This is a crucial concern that should help determine whether a lender offers reasonable lending rates. Usually, the cost of a loan is expressed as an annual percentage rate. The interest rate and other fees are included in the total cost.
Consider loan fees like an origination fee. The amount varies depending on the loan provider, but it should range between 1-10% of the loan amount. Ensure your lender discloses any fees before signing an agreement.
Providers have a minimum credit score that they can accept. If you have bad credit, knowing whether your lender will give you a loan is essential.
Compare the monthly payments lenders offer to determine whether you can afford the installment loan. The right deal for you is one that you can comfortably repay monthly without straining.
Reputable lenders report to credit bureaus about loan repayments. Therefore, if you continuously repay your loan on time, you stand a chance to build your credit. So, confirm whether a lender offers credit-building features that will benefit you in the long run.
Are There Any Alternatives to Installment Loans for Bad Credit?
Other alternatives to installment loans for bad credit include seeking assistance from charities, local nonprofits, and religious organizations. A paycheck advance app can also come in handy here. And if your family and friends trust you, you can always turn to them for financial help.