Installment Loans

Apply Online With Bad Credit & No Credit Checks

Installment loans allow you to spread repayment over several months, which can help people to pay for an emergency and give them time to get back on their feet. Dime Alley proudly offer options to repay over 1 to 60 months, with options for people with bad credit and no credit checks. Check your eligibility today to see if you qualify for loans of $1,000, $2,000 or $5,000.

Installment-Loans

Author · Reviewed author · Edited author · Modified on 24 November, 2023

Online installment loans are characterized by the borrower repaying the borrowed sum through fixed monthly payments or “installments.” They cater to individuals with various credit histories, including those with poor credit scores. Unlike some traditional loans that demand a good or fair credit profile, these loans offer a lifeline to those who may have struggled with their financial past.

Statistics from the Federal Reserve Bank of New York reveal the popularity of installment loans, with approximately 27.5% of American adults holding at least one installment loan in the third quarter of 2020. This prevalence highlights the trust and reliance placed in this form of credit by individuals seeking financial assistance. 

The defining feature of installment loans is the structured repayment schedule, where borrowers steadily pay back the principal amount and interest through a series of scheduled installments, as opposed to a lump-sum payment requirement. Other popular loan types include bad credit loans, cash advance loans, and payday loans.

 

What are Installment Loans?

An installment loan is a loan that can be repaid over a course of multiple repayments, rather than having to be paid back in one go. The defining feature of is the structured repayment schedule, where borrowers steadily pay back the principal amount and interest through a series of scheduled installments, as opposed to a lump-sum payment requirement.

With Dime Alley, you can borrow money today and choose to repay over 1 to 60 months in monthly installments, whether you wish to borrow $500, $1,000, $5,000 or more. Enquire about:

  • 30 day loans
  • 90 day loans
  • 3,6,9,12,24,48 and 60 month loans

How Do Installment Loans Work?

Installment loans work by allowing customers to borrow a fixed sum over several months, and pay it back over time, usually in equal installments. This approach may be preferred to other forms of fast loans, such as payday loans which only last a few weeks.

Some customers may prefer to receive the money upfront to pay for an emergency and have several months to pay it off, with the option to repay early if they would like to.

Receive a fixed sum upfront – You will be able to borrow an amount based on factors such as your income, credit score and affordability – and you can receive money immediately to pay for any important purchases, personal reasons or emergencies.

Fixed interest rate – You know exactly how much you are paying each month and at what rate, with no surprises or changes to the rate during the loan term. This can give you peace of mind and therefore you know exactly how much to budget for.

Early repayment – You can repay early at any time and often save money because less interest is being accrued overall.

 

Key Features

Loan Amounts $100 to $35,000
Loan Term 1 to 60 Months
Rates
6.99% to 400% APR
Accept Bad Credit Yes
Direct Lenders Yes
Fixed Interest Yes
Early Repayment Yes

 

How Much Will an Installment Loan Cost Me?

Good credit: Borrow $30,000 at 10.99% APR for 60 months. Interest to pay: $652.12 per month. Total to repay: $36,652.12

Bad credit: Borrow $1,000 with 100% APR over 12 months. Total interest: $620 per month. Total repayment: $1,620

 

Advantages of Installment Loans:

  1. Convenience: One of the primary benefits of online installment loans is the convenience they offer. Borrowers can apply for these loans from the comfort of their homes or anywhere with internet access, saving time and effort compared to traditional in-person loan applications.
  2. Accessibility: Online lenders often have more lenient credit requirements, making it easier for individuals to qualify for installment loans with bad credit. This accessibility can be a lifeline for those who might not have access to traditional financing.
  3. Quick Approval: These loans typically have a faster approval process than traditional banks or credit unions. Many online lenders provide instant approval decisions, allowing borrowers to access funds quickly when needed.
  4. Transparency: Online lenders often provide detailed information about loan terms, interest rates, and fees on their websites. This transparency helps borrowers make informed decisions and avoid hidden costs.
  5. Flexible Repayment Options: Borrowers can often choose from a range of repayment terms to find a schedule that fits their budget. This flexibility can make it easier to manage monthly payments.

 

Disadvantages of Installment Loans:

  1. High Interest Rates: For those borrowers with poor credit, these products may come with high interest rates (around 200% to 400% APR for payday products). Over time, these high rates can lead to substantial interest costs, making the loan more expensive.
  2. Potential for Predatory Lenders: The online lending space is not immune to predatory lenders or scams. Borrowers should exercise caution and thoroughly research lenders to avoid falling victim to fraudulent schemes.
  3. Debt Cycle: Easy online access to installment loans can tempt individuals into a cycle of debt. Borrowers may take out multiple loans without considering their ability to repay them, leading to a cycle of borrowing and indebtedness.
  4. Limited Regulatory Oversight: Online lending is subject to fewer regulations than traditional financial institutions. This lack of oversight can make it challenging for borrowers to address issues or disputes with lenders.
  5. Impulsive Borrowing: The convenience of online applications can lead to impulsive borrowing decisions. Borrowers should carefully assess their financial needs and repayment capacity before taking out an installment loan.

Can I Get Installment Loans with Bad Credit and Guaranteed Approval?

Yes, DimeAlley offers bad credit loans online so even if you have been turned down elsewhere, we have a number of options available for you. To be eligible, you must be in regular employment and have a stable income and you are committed to repaying your loan on time.

Whilst traditional unsecured and payday loans will need you to have a good credit score, our installment lenders are designed to work with people who have bad credit and very poor credit too.

By making multiple repayments, it allows you to spread the costs over time which can be more suitable for those with bad credit scores. Plus, we have a number of options including secured and title loans which allow you to leverage any collateral or assets you have to borrow money.

It is possible to get guaranteed $3,000 installment loans for bad credit, since Dime Alley works with such a large panel of lenders that we are always able to give you some kind of loan offer or decision. The best products will be unsecured and carry low rates starting from 6% APR, with a number of other options such as payday loans, credit unions or secured loans for those with bad credit.

A loan however is never fully guaranteed, since this will always be subject to final checks, which could involve a phone call to confirm some information, proof of income via a pay stub or bank statement and sometimes proof of your employment.

 

Can I Apply for Installment Loans With No Credit Checks?

Yes. DimeAlley offers no credit check installment loans. This is because we can connect you with loan products that involve using collateral or assets to be eligible, such secured loans.

For no credit check loans, you will still need to be employed either full-time or part-time and have a regular income to show that you can afford to repay your loan without falling into financial difficulty.

 

What Are Types of Installment Loans?

Unsecured Installment Loans

Your installment loan is not secured against a property or other collateral such as your car (with title loans). Your eligibility is based on income, employment and credit score and if you cannot repay, it will negatively impact your credit score, but you will not lose any valuable assets.

Personal Installment Loans 

For personal expenses and purchases including home improvements, buying a new car, debt consolidation, weddings, holidays, parties and more – this is for you as an individual borrower and not on behalf of your business or similar.

Secured Installment Loans 

This is a loan repaid over several months or years which is secured against a valuable asset that you own, such as a car or home. You will be able to borrow a percentage of the asset’s value (e.g 25%) and if you struggle to repay, your lender may be able to stake a claim in the asset or repossess it.

 

What Are Online Installment Loans Used For?

  1. Emergency Expenses: Installment loans can help cover unexpected medical bills, car repairs, home repairs, or other urgent financial needs. See also emergency loans for bad credit.
  2. Debt Consolidation: This is where you borrow large sums to consolidate multiple high-interest debts, such as credit card balances or payday loans, into a single, more manageable loan with a lower interest rate.
  3. Home Improvements: Some borrowers use installment loans to fund home improvement projects, such as renovating a kitchen, bathroom, repairing a roof or upgrading their living space.
  4. Auto Financing: This can be used to purchase a new car or vehicle or to cover auto repair costs.
  5. Education Expenses: Students or parents may use them to pay for education-related expenses, including tuition, textbooks, or other education-related costs.
  6. Travel: Borrowers may decide to borrow to pay for vacations, travel expenses, or family trips.
  7. Weddings: Planning a wedding can be expensive, and some individuals use them to help cover the costs of wedding venues, catering, or other wedding-related expenses.
  8. Business Capital: Entrepreneurs and small business owners may use long term loans to fund their businesses, purchase inventory, or cover operating expenses.
  9. Moving Expenses: When relocating for work or personal reasons, individuals may use loans repaid in installments to cover moving expenses, such as hiring movers or renting a new place.
  10. Legal or Attorney Fees: In certain legal situations, individuals may require financial assistance to pay for legal representation or court-related fees.
  11. Medical and Dental Costs: They are often used to cover the cost of elective medical or dental procedures, especially when insurance doesn’t fully cover them.

 

What Information Do I Need To Qualify For Installment Loans?

The information you need to apply includes:

  • Name
  • Date of Birth
  • Address
  • Contact details
  • Employment and income
  • Bank details
  • Social security number (SSN)
  • Email address and US cell number

 

What is The Criteria For Installment Loans Online?

  • Over 18 years old
  • Hold American citizenship
  • Have a social security number
  • Have a checking account for us to deposit your funds into
  • Have a minimum monthly income of $800 or $500 if you work part-time
  • Are steadily employed

 

Where Can I Apply For Installment Loans Near Me?

Dime Alley offers installment loans for bad credit across the the US including Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Washington DC, West Virginia, Wisconsin and Wyoming.

With our loans connection service, we will match your loan enquiry with the best US lender based on your location, income, credit score and more, offering you the most competitive rates and the best chance of being approved.

We will also try to allocate the best type of product for you, whether it is an unsecured product, or secured against your car or home, or completely alternative products from apps, credit unions, stores, banks, credit cards and more.

Whatever product we suggest, we will aim to process your loan request as fast as possible, with a quick decision and funds available within 24 hours or less.

 

What is the Difference Between Payday Loans and Installment Loans?

The main difference is that payday loans are often used for just 2 to 4 weeks for emergencies and repaid on the borrower’s next pay date from work. Payday products have strict regulation, including state price caps to ensure that they are not misused.

By comparison, loans repaid over installments are designed for borrowing larger amounts and spreading repayment over several months or years. So this could be less for an emergency but rather a big purchase or event, perhaps for a wedding, consolidating some existing debts or paying for a college education.

Payday Loans
Installment Loans
Loan Amounts $50 to $2,000 $100 to $35,000
Fixed Rates Yes Yes
Loan Term 2 to 4 weeks 1 to 60 months
APR 6.99% to 36% APR 200% to 400%
Bad Credit OK Yes Yes
Early Repayment Yes Yes

 

Steps to Spot Predatory Lending Practices

Predatory lenders often target vulnerable borrowers with deceptive or unfair terms that can lead to a cycle of debt. 

Here are some steps to recognize and steer clear of predatory lending practices:

  1. Research the Lender: Start by researching the lender thoroughly. Look for online reviews, ratings, and customer feedback. Legitimate lenders should have a positive reputation, while predatory lenders may have numerous complaints or negative reviews.
  2. Check for Licensing and Registration: Verify that the lender is licensed and registered to operate in your state. State regulations vary, and a legitimate lender should comply with local laws.
  3. Examine Interest Rates: Predatory lenders often charge excessively high-interest rates, often well above the limits set by state regulations. Compare the interest rates offered by different lenders to ensure they are competitive and reasonable.
  4. Understand the Terms and Fees: Carefully review the loan agreement, including the terms and fees. Look out for hidden fees, prepayment penalties, and balloon payments, which can make the loan more expensive than it initially appears.
  5. Avoid High Fees: Predatory lenders may charge excessive fees for loan origination, late payments, or other services. Be aware of all fees associated with the loan and avoid lenders that impose unreasonable charges.
  6. Watch for Pressure Sales Tactics: Be cautious if the lender uses aggressive or high-pressure sales tactics to push you into taking out a loan. Legitimate lenders should provide information and allow you to make an informed decision.
  7. Read the Fine Print: Carefully read and understand the loan agreement, including the terms and conditions. Pay attention to the repayment schedule, interest rate, and any clauses that may impact your ability to repay.
  8. Report Suspected Predatory Lenders: If you encounter a lender engaging in predatory practices, report them to your state’s attorney general’s office, the Consumer Financial Protection Bureau (CFPB), or other relevant authorities.

Frequently Asked Questions and Common Questions

Is a payday loan installment or revolving?

A payday loan is more likely to be classed as an installment loan if repaid over several months, such as 3 or 6 months. But typically payday loans are used for emergency purposes, so money is borrowed upfront in one lump sum and then repaid on the customer’s next pay date, which is usually around 2 to 4 weeks time. 

Payday loans are not considered to be revolving, because the loan stops at the end of the month, whereas loans which continue month-after-month such as credit cards are considered to be revolving.

How long can I pay my installment loan over?

Customers can repay over 1 month to 60 months (or equal to 5 years) – this will depend on whether you prefer the payday option which may be just a few weeks or months, or the longer installment option which can be several years to stretch out your repayments.

Payments are usually made in equal monthly installments from the bank account you choose and you always have the option to repay early if you would like to do so.

Is it more expensive to borrow for longer, with installment loans?

Yes, typically the longer you borrow for, the more expensive the installment loan will be. This is because your loan is calculated on a daily interest rate, so if you keep your loan for 30 days, you will be charged 30 days of interest, or if you have the loan open for 60 or 90 days, you will pay 60 or 90 days interest. 

Whilst it might be appealing to have the loan open for as long as possible, you may want to think about how long you really need the loan for or be prepared to pay it back early when you can afford to do so.

Payments are usually made in equal monthly installments from the bank account you choose and you always have the option to repay early if you would like to do so.

Do installment loans impact your credit score?

Simply applying for an installment loan will not impact your credit score negatively, unless you made a ton of applications in a short space of time which some lenders view as being suspicious.

By consecutively making your repayments on time, this will in fact improve your credit score, as you are considered to be more creditworthy. However, if you fail to make repayments on time, your credit score will slowly be damaged.

What are some alternatives to installment loans?

Personal Line of Credit

A personal line of credit allows you to borrow funds as needed, up to a predetermined credit limit. You only pay interest on the amount you borrow, and you can repay and borrow again as long as you stay within your credit limit.

Credit Cards

Credit cards are a flexible form of borrowing, allowing you to make purchases or access cash advances. You have the option to pay off your balance in full each month to avoid interest charges or make minimum payments over time.

Payday Alternative Loans (PALs)

PALs are short-term loans offered by some credit unions as an alternative to payday loans. They typically have lower interest rates and more favorable terms.

Secured Loans

If you have assets such as a car or savings account, you can use them as collateral to secure a loan. Secured loans often come with lower interest rates compared to unsecured loans.

Are auto loans installment loans?

Yes, an auto loan used in order to purchase a car or other vehicle is considered to be installment, because you are paying off the loan over 3 or 4 years usually in equal monthly payments.

What happens if I cannot repay my installment loans?

If you miss repayments on your loan, you will usually be given around 24 to 48 hours to make payment without incurring any late fees or damage to your credit score.

However, once your loan is in arrears, you may be charged a late penalty, added interest for any days the loan is left outstanding and this will negatively impact your credit score and this could make it harder to access traditional finance in the future.

Is Dime Alley a broker or a direct lender?

Dime Alley is a broker, meaning that if you’re approved, we do not provide the funds for your loan directly. Instead, we connect you to a direct lender who is best suited to your situation from our trusted panel.

Your information is completely secure and will not be sent or shared with any other companies or third parties without your permission and we will not charge you anything for using our service.

Resources For Struggling Borrowers

If you are struggling to pay back an installment loan, consider these resources and assistance programs for struggling borrowers:

  • AARP Foundation: The AARP Foundation offers resources and programs aimed at helping older adults with financial and housing issues. Explore their website for information and assistance programs: https://www.aarp.org/aarp-foundation/ 
  • Legal Services Corporation (LSC): LSC provides legal assistance to low-income individuals facing civil legal issues, including housing and financial matters. Find a legal aid program near you on their website: https://www.lsc.gov/.
  • National Consumer Law Center (NCLC): NCLC provides resources and publications on consumer law and advocacy. Their website offers valuable information for consumers facing financial challenges: https://www.nclc.org/ 
  • United Way: United Way organizations in various communities may provide financial assistance and referral services to individuals in need. Visit the United Way website to find a local chapter: https://www.unitedway.org/

Editorial Note

Before you decide to take out a loan, whether it’s online or in person, it’s really important to look at your money situation and figure out what you really need. Also, make sure you understand all the costs, rules, and terms that come with the loan.

Remember, being a responsible borrower and making your payments on time is key to getting the most out of your installment loan. This not only helps you deal with your debts and improve your money situation but can also set you up for better loan terms and easier approval if you need to borrow again down the road.

 

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