Online lenders offer borrowers personal loans that are paid back through installments. These personal loans for bad credit often have a short installment period to help break apart the repayment amount over a series of pay cycles. You will be responsible for a set amount over a series of weeks or even months and provided you make the regular payments, you will have repaid the amount in full in a set amount of time.
Personal loans are different than other installment loans. With a traditional installment loan, you usually have some form of collateral at stake with the payment cycle. A car loan, for example, is a type of installment loan. When you take out an auto loan, the lender will set up a series of installment payments over the course of several years. If you fail to make the regular payments on your vehicle, it will be repossessed by the lender.
With personal loans for bad credit, however, there is no car or house or boat, or another item to guarantee the loan. The lender is extended a type of financial trust to you, the borrower, that you will repay the loan in a set amount of time. To help offset the lender’s risk you can expect the loan amount to be relatively small. Most personal loans of this type are between $100 and $1000. The repayment period will also be much shorter than you’d expect from other installment loans.
Your credit score is designed to be information for future lenders about your past borrowing habits. Mistakes from your financial past can linger on your credit score for years, however. This means the punishment for a mistake you made can last quite a bit longer than it took for you to improve your financial position and your money management. When you need to borrow money with bad credit, online lenders make it easy. No credit checks, simple terms, and a streamlined borrowing process help you when you need help the most.