subject: Bad Credit Installment Loans - Loan Irrespective Of Your Credit Profile [print this page] Bad Credit Installment Loans - Loan Irrespective Of Your Credit Profile
A bad credit installment loan is a type of loan designed especially for people with poor credit record. Generally lenders do not provide loans to borrowers who have bad credit history. Bad credit history implies that the borrower defaulted in making payments or made late payments. Now, there are lenders who offer loan even if you are a part owner of a property or even if you have bad credit to the extent that you missed a few payments on your current credit payments.
A bad credit installment loan can also help the borrower to re-establish their credit rating. The loan amount also depends upon the income level. The loan amount varies from lender to lender. Cost of availing these loans, i.e. interest charged on loan also varies from lender to lender. It also depends on the profile of borrower in terms of his/her credit score, source of income, age etc.
Usually the duration for repayment ranges in between 5 years and 25 years. In this case, a borrower has two options:
A) First, to go for short duration of loan in which case the installment amount is usually higher but the hidden advantage is that the borrower can payback completely within a short span of time. In this case, cost of loan i.e. interest charged is comparatively lower.
B) Second, to go for longer payment duration, in which the installment amount becomes less compared to an installment for short duration loan. In this case, payment of a small sum every month becomes quite easy but such installment needs to be paid every month for a longer duration.
Usually the borrower has complete freedom to decide about the usage of the loan amount, once it is credited in his/her account. It is up to him/her whether he/she wants to renovate house or is falling short of cash to buy a car. In fact, the borrowers can use these loans to pay credit card bill and reduce other debts to reduce their monthly outgoings to a more manageable amount.
