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Bad Credit Installment Loans: Choosing an Online Direct lender October 20, 2021

Even with the rise of lenders for bad credit installment loans online, many people still opt for traditional offline lenders. We’ll break down the benefits of online vs. offline lenders for borrowers with bad credit, so you can feel confident making the decision that’s right for you.


It used to be that taking out a loan to cover an unanticipated cost meant you had to go to a brick-and-mortar lender such as a bank, a credit union, or even a payday loan shop. Now, advances in financial technology have enabled dozens of companies to support online-only loans. In 2019, the credit reporting agency Experian found 67% of borrowers got their loan from a physical company, while 18% went with an online-only option. 

Giving consumers this choice is good. The more tools at your disposal for financial freedom, the better. 

Here at Klya, we’re biased, of course—we think online is great! But there are also circumstances in which offline may make the most sense. 

So why might people choose one over the other? Let’s outline the benefits of both—especially for borrowers seeking personal loans for bad credit.

What online lenders are good at

Convenience: Taking out loans from direct lenders online means you can fill out a form and find out if you’re approved right away. What’s more, you can apply from your home, on your phone, during a break from work—anywhere with a good internet connection. That means you can compare multiple options over a quick period of time.

Better for bad credit: Online lenders don’t have physical spaces, so they can be better for borrowers with bad credit. Why? They don’t have the costs of managing buildings, which means they can be more creative with revenue—in this case, taking on borrowers they perceive as riskier.

Prequalification: Some online lenders offer prequalification. That means you submit a partial application that will tell if you’ll be approved or not. You may not find out your exact rates, but you can avoid applying to multiple lenders. So you won’t have your credit score pulled (and thus lowered!) each time.

What offline lenders are good at

Trust: Some people just prefer talking to a person. And if you have a good relationship with your bank, credit union, or lender, that relationship can help your chances for approval. For borrowers looking to take out installment loans for bad credit, a good relationship can be critical. Unfortunately, offline lenders’ business models mean they often won’t service these borrowers to begin with.

Low-tech: With in-person, you have to bring in all your forms. To a person who’s confident with technology, this sounds terrible. But for some people, even going online is daunting. (The Pew Research Center found that 7% of American adults don’t use the internet. Even still, some internet-savvy folks simply may prefer the analog approach.

Speed: This used to be the big differentiator of offline lenders: fast cash loans. You could walk in, get approved, and walk out with cash. Online lenders have caught up here. Most online direct lenders will get you your money within 1–3 business days.

Klya’s approach to installment loans for bad credit online

While we can’t replicate the experience of a face-to-face meeting, we strive to provide the best online direct lender experience to borrowers with bad credit.

Convenience: Our advanced technology and around-the-clock teams work together to get your application processed as fast as possible. We get 98% of applications returned in less than 2 minutes. 

Better for bad credit:  Klya is one of the few online direct lenders that supports borrowers with credit scores from 500 to 625. 

Trust: With Klya, trust is built into our platform. Unless you’re misrepresenting yourself or your income, we guarantee a loan offer with a FICO score of 500+. Also, there’s no hidden surprises, like origination fees or balloon payments. 

Easy-to-use: We’re a team of experts in finance and installment loans. We’ve put a lot of effort into ensuring our forms are easy to understand and easy to use.

Speed: We do instant funding to a debit card. It’s the online equivalent of cash in hand. Once the funds are disbursed, you can go to any ATM near you. Because we understand that when you’re applying for an installment loan, you need the cash fast. 


There you have it. Now you know about the pros and cons of online and offline lenders—and how Klya offers the best of both. If you have bad credit, if you have an internet connection, and especially if you’re looking for a direct lender who will see you as more than a number, we’d love to work with you.

Submit a loan application today.

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