Personal Installment Loans for Bad Credit

What is bad credit?

Bad credit is a term that is commonly used to describe having a low credit score. This usually is the result of someone having experienced challenges in managing their finances in the past. This could include a history of late or missing payments among other factors.

It's important to remember that having bad credit does not mean someone is irresponsible or incapable of managing their finances. There are many reasons why someone might have bad credit, such as job loss, unexpected medical expenses, or a period of financial hardship.

What is a credit score?

A credit score is a number that represents a person's creditworthiness. Or in simpler terms, it's a score that lenders use to determine how likely someone is to pay back a loan, credit card, or other types of debt.

Some people also may have limited or no credit history, meaning they haven't had much experience using credit. This too can present challenges when looking to borrow money.

What causes a bad credit score?

Many factors impact a credit score, including your payment history, the amount owed, credit mix, and length of credit history. Payment history is one of the top factors used to determine your credit score and making late payments on a credit card or loan, or missing payments altogether, can be one of the main reasons people get a bad credit rating. The credit bureaus track these issues and the more often it happens, the lower your credit score may drop.

Your credit rating may also decline if your outstanding debts are high relative to your income, if you have credit cards that are close to their spending limits, or if you've applied for new financing recently that requires a credit check. Together these could be seen as signs that you are less likely to pay back debt, which makes approving a new loan more of a risk for lenders and lowers your credit score. If this sounds familiar, don’t feel overwhelmed, and know that RISEcredit.com has helped thousands of people get back on their feet with our free tools and helpful personal finance articles.   

What does it mean to have no credit?

Another type of credit problem is when you're new to finance and have no repayment history for a lender to check. This is called having 'no credit’ or being ‘credit invisible’.  Similar to having bad credit, having no credit can make it difficult to be approved for a loan. The good news is that building credit from scratch is possible and can help with loan applications in the future. 

What to know about personal loans for bad credit

The lower your credit score, the more difficult it may be to get approved for a personal loan and could lead to higher interest rates if you're successful in getting a loan. This means that rebuilding your credit rating is an important step toward helping to improve your financial health in the future.

Each situation is different, but a good way to start improving your credit is by bringing any past-due accounts current.  Creditors will then report these payments to the credit bureaus.  Continuing to make on-time payments on loans or other types of debt that are reported to the credit bureaus can also help improve your credit score.

What are the types of loans for bad credit?

The concept of “bad credit” is subjective, but there are loan options for people with non-prime credit:

• Personal loans have fixed term payments made over a set timescale and can either be unsecured or use your car or home as collateral.
• Joint personal loans may be a good option if you have less than perfect credit, as applying jointly with a co-borrower who has better credit should improve your chances of being approved for a loan.
• A personal line of credit is a quick and easy way to access money when you need it, while only paying interest on the amount you borrow.

Keep in mind, the best loans for bad credit will depend on the specific circumstances of your financial situation, including your credit history and the personal loan amount you need.

How to get a loan with bad credit

Generally, higher credit scores result in better loan offers and rates, but even if you consider yourself to have bad credit, you still may be able to qualify for a loan. Some online lenders may charge fees or higher interest rates to people with lower credit, so you should do thorough research to compare loan options and read the specific terms before committing to an offer.

Every lender makes their own decisions, and at Risecredit.com we recognize that people's circumstances vary. That’s why we believe everyone should have access to responsible credit that meets their needs and helps them reach a better financial future. Even if you have been told you have bad credit, RISEcredit.com wants to help you get the cash you need and will work with you as you build a better financial future. That’s the RISE difference.

Rise is here to help

If you’re feeling frustrated by your current credit situation, rest assured, a credit score is just a number that lenders use to measure how likely someone is to repay a debt and not a measure of you as a person. The good news is there are steps you can take to improve your credit score and Risecredit.com is here to assist you with helpful financial wellness tools. Apply online in just minutes and you could receive $500 to $5,000 in your checking account as soon as tomorrow. *

This content provided is for educational and informational purposes only and does not constitute financial or legal advice. RISE is not acting as a credit counseling or repair service, debt consolidation service, or credit services organization in providing this content. RISE makes no representation about the reliability or suitability of the information provided – any action you take based on this content is at your own risk.

^{* Applications processed and approved before 6pm ET are typically funded the next business day. RISE is offered only to residents in states where permitted by law. To obtain credit, you must apply online and have a valid checking account and email address. Approval for credit and the amount for which you may be approved are subject to minimum income requirements and vary by state.}