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How to Find Guaranteed Installment Loans for Bad Credit August 5, 2021

Installment loans can be a good option when you need funds to cover an emergency or unexpected expense, say for health-care costs or a car repair bill.

But if you have bad credit, applying for an installment loan can also be a frustrating experience. If you’re looking for a guaranteed installment loans for bad credit, Klya Credit is worth a look.  

 

You don’t have the funds you need and aren’t sure where you’re supposed to come up with them. You’ve applied to some online loan companies, but you can’t get approval. They point to your bad credit score. You’re looking for a guaranteed installment loans for bad credit. 

What are you supposed to do?

Installment loans with guaranteed approval

If your credit score is above 500, your annual income is $12,000 or above, and your information is verifiable—you’re eligible for an installment loan offer, guaranteed. These are the loans you need in a situation like this: you’ll get money instantly, a reasonable amount of time to pay it off, and interest rates that make it affordable. And you’ll build your credit by making on-time payments that get reported to the major credit bureaus.

But why would Klya approve you for an installment loan when you’ve been turned away over and over by other lenders? Great question. To explain, let’s first dive into why you’ve been getting declined in the first place: your credit score.

How bad credit scores work

Ahh, your credit score. That 3-digit number some faceless agency is building about you with every major financial action you take. You might barely understand it, yet it holds a huge influence over your life. The credit agencies don’t disclose exactly how they calculate your a score, but generally, here’s what goes into it[1]:

  1. Payment history: This one is simple: It’s how often you pay your bills on time. The more you pay on time, the more your score improves. Miss payments, and your score gets worse.
  2. Credit utilization ratio: This one, on the other hand, might make you scratch your head. Basically, it’s how close you are to using up your credit limit.

A simple example:

You have a credit card with a limit of $1,000 and you have a $200 balance on that card.

Your credit utilization ratio is your debt divided by your available credit[1]. In this case,

$200 / $1,000 = credit utilization ratio of 20%

TIP: A lower ratio is better for your score. It means you’re not letting debt build up.

    1. Credit history: This looks not only at the amount of time you’ve been using debt but also at the average age of all your accounts. It’s why you should avoid opening and closing credit cards; accounts with short lifespans hurt that average.
  1. Credit mix: This one takes a look at how many different lines of credit you have. The more variety—a credit card, a home loan, a car loan—the better for your score.

Your credit score could also be affected every time someone runs a hard credit check on you. That happens when you apply for a line of credit, so be careful that you only pick lenders who run soft credit inquiries during the application process. With Klya Credit, we built our application process to allow you to check your rates and loan offers without risk to your credit score.

What is a bad credit score range?

FICO calls scores under 669 “Fair” and those below 580 “Poor.”[1] So if you’ve had trouble paying bills, have a lot of debt against your credit limit, and have just a few types of credit, you’re likely to have what they call bad credit.

Your credit score represents you, but it’s not designed for you. It’s there to help banks and other financial institutions decide how much they should lend to you. A higher score means they’re more likely to grant you approval for a loan. And they’ll lend to you at more affordable interest rates. Lower scores mean the opposite: You’re less likely to get a loan, and if you do get approval, it’ll be for lower amounts and at higher interest payments.

Bad credit scores affect more than loans

A bad credit score has ripple effects beyond your ability to get approval for installment loans. The lower your score, paradoxically, the harder it can be to build it back up. Why? It’s expensive. Bill-pay company Doxo found that a 35-point change in a credit score can cost the average U.S. household an additional $301 a year in interest[4]. That means you accrue higher expenses, which are harder to pay off, which makes it harder to get loan approval.

There’s a psychological cost to bad credit as well. In a survey by Credit Sesame, nearly 79% of people with scores 549 and lower reported having negative feelings. Forty-nine percent of respondents said they felt worried about their credit score and 46% reported feeling ashamed of it.[5]

Why you’re getting declined: Direct lenders vs. indirect lenders

We don’t need to tell you all this. You’re living it. You’ve probably gotten denied over and over as you’ve hunted for a guaranteed installment loan with bad credit. Now, we don’t blame any other companies for doing it; it makes sense for their business. They want to make sure someone can pay back a loan, and one way to do that is to look at the credit score. After all, it’s the main way to tell how well a person has managed their debt.

Which brings us to the direct vs. indirect lender issue. If you shop for a loan via an affiliate or an indirect lender, you likely will not have the opportunity to connect your bank account, which means there’s not enough data for a lender to approve you on the basis of your cash flow. This could have a number of negative consequences, such as lower loan amounts, but in the case of bad credit, it really hurts.

When it comes to bad credit, the problem comes when your credit score is the only thing a lender, direct or indirect, considers about you. That’s why you get declined: because other lenders don’t want to take a chance on you. Klya does. We search for reasons to approve you. It’s how we’re different and how we guarantee your loan once approved.

Let’s take a look at some good rules of thumb for any online installment loan provider, and why we can help you.

What to look for in a direct installment loan lender

Guaranteed and instant approvals

Your direct lender should understand you’re more than a number on paper. Do your best to understand the underwriting process and what factors go into it. That can help you pick a lender best suited to work with you.

The Klya difference: Yes, we look at your credit score—but unlike many competitors, we consider your entire financial picture. We look at your income and other sources of cash flow, and we approve your application fast. We know it’s not about where you’ve been; it’s where you’re going. As long as your FICO score is above 500, you’re providing us with verifiable information, and your annual income is $12,000 or above, you’re guaranteed to get a loan offer from Klya Credit.

No contracts unless guaranteed approval

Most online loans will try to lock you into a contract upfront, then put you through income and identify verification. They lead you on and make you think you’re approved, but you’re really not. Beware of lenders who ask you to enter agreements upfront, before verification. The terms and rates might change without a lot of clarity and communication.

The Klya difference: You’ll never be asked to sign anything unless we’ve already fully checked your information. That’s why we ask you for a contract only once you choose the loan you want.

No origination fees, guaranteed

Some installment-loan lenders are deceptive when it comes to lending to individuals with bad credit. Their loans sometimes come with hidden fees and prepayment penalties. Make sure you understand your lender’s fees beyond interest. There are few things more frustrating than taking out a loan for $1,000 but only receiving $950 because of an administrative fee. They should also be clear on your total payment timeline and amount.

The Klya difference: At Klya, there are no origination fees. What you request is what you’ll receive. We believe in full transparency for our borrowers. Not only will you know your monthly payment breakdown, you’ll get reminders when your payments are due, and you’ll choose from a variety of ways to pay.

Speed of funding: Same-day, instant funding

Most lenders worth their salt should get you funds in one business day, three at most. Be careful, though; some take longer. Ask the lender about their funding timeline.

The Klya difference: We understand when you need this money, you need it right away. That’s why we provide instantaneous funding for your online loan amount. All you need is a debit card and we can ensure you’ll receive your funds instantly.

In short, we’ve designed our entire online loan system with you—and everyone else held down by bad credit—in mind. We know you’re barely making it, we know you’re stressed, and we know the system isn’t helping you, no matter how hard you’re trying. That’s why we’re here. Our mission is to ensure all Americans, even with bad credit, have access to funds when they need it. If you’re looking for guaranteed installment loans for bad credit, let us help you get on track.

 


Check your loan options with no risk to your credit score. Apply now.


[1] https://www.fool.com/the-ascent/credit-cards/articles/heres-what-americans-fico-scores-look-like-how-do/

[2] https://www.experian.com/blogs/ask-experian/credit-education/score-basics/credit-utilization-rate/

[3] https://www.myfico.com/credit-education/what-is-a-fico-score

[4] https://www.doxo.com/insights/doxoinsights-hidden-costs-of-bill-pay-report/

[5] https://www.creditsesame.com/blog/credit-score/credit-sesame-survey-poor-credit/


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