Installment Loans for Bad Credit

Installment Loans for Bad Credit | Citrusnorth

Life tends to throw us curveballs. Your credit score may affect your application for installment loans, scores have been lowered in the past due to bad luck, poor decisions, or unforeseen events.

While there are many credit scoring methods, the FICO score is the most commonly utilized since it is employed by the three major credit reporting agencies (Equifax, Experian, and TransUnion). The FICO score is a number that runs from 300 to 850, with 850 being the highest possible.

What Exactly Is Bad Credit, and How Does It Affect Me?

The lender and the kind of loan you’re looking for determine what constitutes a poor credit score. Many home mortgage lenders, for example, consider anything below 620 to be sub-prime, while others think 640 or 680 to be sub-prime. Subprime borrowers have a bad or limited credit history and thus pose a higher risk to lenders.

Many individuals are unaware that bad credit may have far-reaching implications, such as being denied a credit card or being unable to buy a house or vehicle. Consumers with poor credit find it challenging:

  • Get cell phone contracts
  • Student loans with no risk
  • Car insurance at a low cost
  • Locate a job

What is the significance of the job link? According to a survey conducted by the Society for Human Resource Management, six out of ten private companies examine the credit histories of at least part of their job applicants, with 13 percent doing so on all candidates to assist prevent fraud and assess a candidate’s trustworthiness, among other things.

Getting a Loan Despite a Bad Credit Score

Because their choices are restricted, people with poor credit may find it challenging to borrow even small sums of money.

Personal loans have traditionally been obtained through banks. If you have poor credit, though, your prospects of being approved are limited.

Even if you don’t have poor credit, getting a modest loan may be challenging since most banks won’t accept loans under $5,000 because they aren’t profitable.

So, what does this mean for individuals who have poor credit and need a loan of less than $5,000?

Installment Loans for Bad Credit Applicants

Installment loans are growing more common, particularly among those with poor credit. Installment loans may assist borrowers with a variety of requirements, including:

  • Automobile maintenance
  • Expenses incurred for medical or dental treatment
  • Holiday vacations or holiday presents
  • Fees are spent due to having a new baby, being divorced, or paying for a funeral.
  • Payments that you have incurred as a consequence of your job (electronics, tools, etc.)
  • Home improvements and the necessity for emergency housing
  • Costs spent as a consequence of being a student (tuition, laptop, supplies, etc. )
  • Consolidation of debt

What Is an Installment Loan, Exactly?

Simply put, an installment loan enables you to borrow once and return in regular, pre-determined sums over a certain period (typically monthly payments that do not rise or decrease).

Installment loans, whether you have excellent or poor credit, offer a fixed interest rate and monthly fee depending on the loan amount, interest rate, and time you have to repay the loan.

This implies that each payment reduces your initial loan amount while still paying interest. Installment loans include things like home mortgages and car loans.

Payday Loans vs. Installment Loans

Installment loans and payday loans are not the same things. Installment loans, unlike payday loans, provide more significant sums of money and are also:

  • Refinancing is a lot simpler now (based on a smaller principal and or for extended maturity)
  • A technique of repaying long-term financial commitments in installments.

Installment Loans Can Assist People With Bad Credit

It’s also worth noting that people with poor credit may benefit from installment loans. Your FICO credit score is based on some factors from your financial history:

  • This score is reduced by 35 percent when you have repossessions, bankruptcy, or late payments.
  • The debt due to load of 30% – current due amounts, number of accounts with balances, the amount paid down, and so forth.
  • The average account age and the oldest account age make about 15% of the credit history length.
  • Credit Searches in the Previous 12 Months – 10% If you have a lot of credit inquiries, your credit score may suffer.
  • Revolving, mortgage, installment, consumer finance, and other kinds of credit are all utilized to make up 10% of credit forms. A balanced mix of debt is related to higher credit ratings since it shows that you are an informed and responsible borrower.

Installment Loans for People with Bad Credit: Choosing the Right Lender Is Crucial

It’s easy to identify advocates and opponents of installment loans in today’s heavily scrutinized financial industry.

Installment loans, according to proponents, are a better choice for borrowers with bad credit since, unlike payday loans, there is no final balloon payment that might result in the borrower accumulating even more debt.

In addition, since installment loans can help you improve your credit score, they are rapidly gaining traction among financial experts and consumer advocates.

However, many people are against installment loans and the businesses that provide them. Predatory lending is unfortunately not a new occurrence in the financial sector, which is another reason consumers should carefully analyze and choose the lending companies with which they do business.

When Bad Credit Is an Issue, CitrusNorth: Our Approach to Installment Loans

CitrusNorth is a significant supplier of installment loans for poor credit, with 279 locations throughout six states in the southeast.

CitrusNorth, unlike impersonal internet lending businesses, has a long history of engagement in the communities we serve (primarily rural regions), allowing us to get to know and assist generations of families.

Indeed, since 1941, our aim has remained the same: to treat our friends and neighbors with the respect and personal attention they deserve when it comes to their financial requirements. Respect is a powerful motivator, which is why we created our installment loan options.

The following are some of the benefits you’ll discover with a CitrusNorth installment loan:

  • The entire public is invited to participate. All choices must be made locally due to our relationship-based financing strategy. That means your loan officer will be someone you see in the grocery store or at a minor league game rather than a faceless corporate decision-maker thousands of miles away. Our executives believe that having this degree of personal connection aids us in making better installment loan lending choices, mainly when credit is a concern.
  • Transparency, timeliness, and the simplicity of obtaining a loan are all important factors to consider. It’s hard enough to make ends meet sometimes; getting a loan with poor credit shouldn’t be one of them. CitrusNorth collaborates with you to create the procedure as simple as possible. To begin, there are no fees, and your funds may be in your account within 24 hours (excluding weekends).
  • Monthly payments that are predictable and help in the development of credit. Our loans are not the same as payday loans, which are secured by your next paycheck. Installment loans from CitrusNorth, whether for bills, needs, or debt consolidation, help you save money and better manage your finances by allowing you to:
  • You are making it feasible for you to make a single monthly payment that is easy to handle.
  • By focusing on the principle rather than the interest, we can help you pay off your debt faster.
  • They allowed you to pay off debt more quickly than if you paid off individual accounts (when used for debt consolidation).
  • As you make on-time payments, your credit score will improve.

Fill Out An Application For A Installment Loan

While having poor credit may make it more challenging to get an installment loan, CitrusNorth makes the process simple.

We can assist you whether you have unanticipated costs or just need a little more assistance giving your family the Christmas they deserve. Fill out our online form when you’re ready to start, and a local representative will contact you.

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