×
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
For individuals who have bad credit, taking out a loan can be difficult. Many traditional lenders are unwilling to lend money to those with poor credit scores, leaving borrowers looking for alternative sources of financing. Fortunately, there is a solution: online installment loans from Spotloan. Let’s take a look at why these loans can be beneficial for borrowers with bad credit.
Traditional lenders tend to rely heavily on credit checks when considering whether or not to approve someone for a loan. This can be a major stumbling block for those with low credit scores or no credit history at all. Thankfully, many online lenders, such as Spotloan, are more willing to lend to those with lower FICO scores, as they focus less on credit and more on other factors such as income and employment status, banking history, and other alternative data factors. As such, online installment loans can be an ideal option for those who don’t meet the criteria set by traditional banks and financial institutions.
Unlike payday loans, which must typically be repaid in one lump sum payment on your next pay date (hence the name), installment loans are paid off gradually over time via a series of smaller payments known as “installments”. This makes it easier to budget around loan repayments since you know exactly how much you need to pay each month and when the last payment will be due—giving you more control over your finances than ever before.
Since installment loans involve making regular payments over time, they could provide an excellent opportunity to improve your credit rating if used responsibly and if you choose a lender who reports to traditional credit agencies - each successful repayment may result in a boost in your score—making it easier for you to access larger amounts of capital in the future should you need it. But, keep in mind, not all lenders do, so if actively improving your credit score with a traditional credit agency is important to you, be sure to do your research. Spotloan only reports to non-traditional credit reporting agencies, so while making on-time payments with Spotloan may not help improve your credit score with traditional credit reporting agencies, it could help boost your credit score with non-traditional credit reporting agencies. And, while a lot of online installment lenders may hit you with hefty penalties for missed payments, Spotloan never charges late fees!
Taking out an online installment loan is one of the best ways for individuals with bad or non-existent credit histories to access quick capital without having to worry about being turned down by traditional lenders. Not only do they offer flexible repayment terms, but if that lender reports to traditional credit reporting agencies, they give borrowers an opportunity to improve their score if used responsibly—which can help them secure larger amounts of capital further down the line should they need it. As a reminder though, this could also mean your traditional credit score may be negatively affected if you miss a payment. If that’s a concern for you, using a lender like Spotloan could be the better option. And, unlike other online installment lenders, there are no penalties with Spotloan if you get a little behind and make a late payment. No late fees! Ultimately, if you find yourself needing quick access to funds but don’t have an excellent credit rating, then taking out an online installment loan could be just what you need! When you’re ready to apply or just want to explore your loan options, click the Get Started button from any page of our website. Want to speak with someone or need help getting started, reach out to our team today!