No matter how fast and badly you need the money think twice before applying for a NO credit check Installment Loan. Undoubtedly, they are quick, easy and convenient way to solve any financial problems especially for those with bad credit but may turn rather risky. You are promised instant approval, extensive availability but may get high rates and even worse debt. Do you want to know why and to get advice how to avoid these risks? Read the article till the end.

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How Installment Loans Online work

Guaranteed approval Installment Loans

No credit check Installment Loans from direct lenders

Bad credit Installment Loans

The dangers of no credit check Installment Loans

Alternatives to no-credit-check Installment Loans

How Installment Loans Online work. 

You’ve decided to solve your financial problems taking out an online Installment Loan? But need some explanation and advice how it works? Read through our expert guide on the available amounts, terms, rates, fees, the applying process from start to finish and as a bonus learn some free tips how to do it faster, easier and cheaper.

An installment loan is called this way as it’s paid off in installments. You can borrow from $1,000 to $5,000 depending on the lender and your credit score, income and various other factors. The term may vary from 6 to 36 months on average and you can choose the most convenient payment plan: monthly, biweekly, etc.

Installment Loan may seem similar to Personal Loan what concerns the purpose of its use for any personal needs. But, most lenders advertise Installment Loans as short-term smaller-amount bad credit cash advance with no credit check and instant approval.

Let’s try to figure out how true it is and what you can really expect:

  • Getting an Installment Loan is fast and easy as you apply online filling out a free application form and get the money deposited into your bank account the next business day;
  • It’s really highly available for bad credit borrowers as lenders consider other factors besides your score. But it may lead to higher rates to make up for a high risk the company takes;
  • Neither collateral nor guarantor is required as most Installment Loans are unsecured;
  • Although lenders may avoid doing hard credit check with one of the three major credit bureaus, they may do a soft inquiry with Teletrack, a company that provides credit information specifically to short-term lenders.
  • Besides credit score and credit history you need to meet other requirements such as certain income, employment, etc.
  • Repayment is rather convenient as scheduled installments help you plan the budget and not default the loan.

What you should look out for before applying for an Installment Loan:

  • Interest rates which can be rather high as there are no limits from the states;1
  • The easier you are approved the more risks you face with getting into debt as you don’t know whether you can afford this loan;
  • Rollovers and extensions may seem a good option but on the other hand they will double the price of the loan;
  • In case of default you may become a victim of hard debt collecting companies. Don’t panic, look for consumers’ protection at the official state organization.


Are you still in doubts? Got lost in a great number of advantages and disadvantages Installment Loans have? Look at the table to clear it up once again and choose the pluses or minuses that overweigh in your individual case:



  • Your chances of approval are much higher.
  • You don’t have to wait days to get an answer but will know almost instantly if you are approved for the loan.
  • The request forms are short and simple, asking for only basic financial and personal information and taking but a few minutes to fill out.
  • The cash can normally be credited directly to your bank account within a single business day.
  • You get more time to repay than with an online payday loan , but a shorter repayment period than with most bank loans. This means you don’t have to repay in one lump sum but yet will not be burdened with payments for long periods of time.
  • You can request from the privacy of your own home, online, and not risk being asked embarrassing questions in a loan interview.


  • The interest rate is higher than some other types of loan.
  • There may be origination fees and other costs to procure them.
  • Qualification for a loan requires documents such as proof of income.
  • People with very low credit ratings or a recent bankruptcy may need to pay higher interest, find a cosigner, or provide collateral.
  • Any purchases made with the funds may be repossessed if the borrower fails to make payments on time.
  • Previous payments will not be returned if the borrower defaults on the loan.
  • Some lenders may offer unreasonable terms, particularly to people with poor credit records or low income.
  • There are several methods of calculating interest, which can be confusing to many people.
  • The conditions cannot be changed once the loan is signed, even if the borrower's financial situation changes. Some lenders allow refinancing, but this requires taking out an entirely new loan.

Follow these expert tips and you’ll definitely ensure safety and usefulness of this cash advance:

  • Make sure you can afford monthly payments, they are advised to be not over 10% of your monthly income.
  • Sign up for automatic withdrawal to ensure you always pay off on time.
  • Shop for cheaper loans, compare rates and terms of different lenders.
  • Look for a reliable licensed lender with verified reviews.
  • When borrowed responsibly, online unsecured Installment Loans are a helpful tool for bad credit consumers.

"There are two primary choices in life; to accept conditions as they exist, or accept the responsibility for changing them. " -   

Denis Waitley

Do lenders guarantee instant approval or it’s a commercial trick?


Applying for a bad credit Installment Loan you expect to get approval and get it fast. You are ready to pay higher interest rates as you badly need the money quick and without any additional requirements, checks, paperwork, etc. Approval for an Installment Loan is easier to get online from a direct lender or broker than from traditional banks and credit unions, but we can’t say it’s 100% guaranteed. We offer the best way – fill out a free Compacom form right now and in some minutes, you’ll learn if you qualify for a loan.

  • Payday Loans $100 - $1,000
  • Personal Loans $1,000 - $35,000

Still there are certain requirements you are to meet if you want to be approved:

  • US residence
  • Minimum regular income of $1,000 per month
  • Valid checking or savings account with direct deposit
  • Phone number and e-mail address (if applying online, you must be able to be contacted via phone if verification of application information is necessary)
  • Not be a regular or reserve member of the Air Force, Army, Coast Guard, Marine Corps or Navy (or be a dependent of someone who is,) serving on active duty under a call or order that does not specify a period of 30 days or fewer.
  • If applying Online, you must provide a valid Social Security Number
  • If applying at Loan Store, you must bring a valid government issued photo ID. A Social Security Number might not be required
  • If applying in-store, you must bring proof of income and proof of a bank checking account. Debit cards or pre-printed checks may be accepted in your state as proof of bank checking account; contact your local store for details. Acceptable documents may vary by state.

While it’s not easy to find 100% guarantees in the consumer credit world, what you can often find in abundance are lenders with flexible credit requirements that will give you a chance even with poor or bad credit history.

No credit check Installment Loans from direct lenders. 

You choose Installment Loans as they are advertised to be highly available even for borrowers with bad credit and with NO credit check which doesn’t affect your credit history. 2

In some cases, you can really avoid hard credit check from one of three major credit bureaus Equifax, Experian and TransUnion. And if they perform a hard inquiry, you’ll be informed of this beforehand. Direct lenders can evaluate your creditworthiness checking your income, employment history, previous debts, etc. It won’t affect your credit history on the one hand and will let the lender cut back on risks.

But NO credit check at all is more like a myth than reality. If you see a lender promising instant approval with NO credit check be careful and think twice before applying. It may be a fraud.

Besides, online Installment Loans WITH credit check have many advantages which outweigh the affect a hard inquiry may have on your financial situation:

  • Highly Accessible: 24/7 online with no hassle of driving and waiting in lines.
  • High Approval Rates: Most borrowers even with bad credit are likely to be approved for online Installment Loans.
  • Simple and safe application forms: Only the most essential information is required to fill out an application.
  • Quick processing: It takes only minutes to request a loan and get an instant decision from a suitable direct lender who will deposit the funds into your bank account within a day if you are approved.
  • Convenient and flexible repayment plan: Longer terms up to 36 months with repayment in equal usually monthly installments.
  • Better rates: Installment Loans WITH credit check tend to have lower rates/fees than NO credit check cash advance.
  • You may raise your credit score: Making payments on an Installment Loan on time you can improve a damaged credit score.

Consider the mentioned above pros and cons to decide whether you’ll go on looking for a NO credit check loan or you’ll resist this temptation and not take a risk of facing a fraud.

Bad Credit Installment Loans. 

When you qualify for an Installment Loan, it’s necessary both for you and the lender to evaluate how risky you are. 90% of lenders rely on the FICO (Fair Isaac Corporation) score. It’s based solely on your credit report and is determined by such factors as payment history, current level of indebtedness, types of credit used, length of credit history and new credit accounts. It ranges between 300 and 850.3

Read more:

Anyone with the score below 580 is considered a subprime borrower which means they used to have some problems paying off debts in the past and may be treated as risky customers for most lenders. But luckily for you, Online Installment Loans are the way out for people even with bad credit. Most lenders approve you accessing your financial situation individually and taking into account other factors such as: your employment history, average income, home ownership, etc. On the one hand, it’s very good as makes Installment cash advance quick to get and easy to qualify for. On the other hand, it leads to higher rates as lenders need to make up for the risk they take.

There are a number of reasons why online installment loans are a good solution for borrowers with bad credit:

  • Lenders approving subprime borrowers are not likely to run a credit check.
  • It’s a good option as you have little chances to get urgent cash from banks and credit unions if your credit score is low.
  • Convenient terms and a flexible repayment plan help you pay off the loan on time and avoid further debts which may even lead to raising the score.
  • You can consolidate your existing debts.

Bad credit Installment Loans will give you the advantage to not only build your credit score, but also ensure long term stability in short span of time.

The dangers of no credit check Installment Loans. 

Don’t want to affect your credit history taking out an Installment Loan? Looking for No credit check cash advance? Check out all the dangers they may set up before applying:

  1. High interest you can’t afford which leads to defaults and debt.
  2. Taking out another loan for additional fees, rollovers, applying for an extension plan, refinancing, etc.
  3. Loan defaults. It happens to 20% of Installment Loan borrowers. In the case of not paying the money off on time you may have the funds withdrawn from the bank accounts, the purchases repossessed and even become a victim of debt collectors.
  4. Penalty fees: overdraft fees for a failed attempt to withdraw funds from your bank account or non-sufficient funds fees for having not enough money on the account at the time when the loan is due.
  5. Bank account can be closed if it has a negative balance for an extended amount of time.

Alternatives to no-credit-check Installment Loans. 

If you need fast cash, you may be able to find alternatives to no-credit-check loans. Consider some of the following: 

  • Credit unions and banks.
  • Online Payday Loans (with credit check).
  • Personal Loans (from direct lenders performing a credit check).
  • Credit cards.
  • Social Government programms.4
  • Asking friends and family for help.

Though each of them has their own pros and cons they are still less risky.