6 Guaranteed Installment Loans for Bad Credit

Few financial services companies will dare to use the term “guarantee” for, well, anything. There really are no guarantees in finance, and claiming to guarantee anything, like approval for a credit product, is simply asking for angry customers (and a potential lawsuit).

In other words, the closest you’ll get to a guaranteed installment loan is finding a lender with flexible credit requirements that specifically caters to those with bad credit. While every credit application comes with risk, the right lender can make it almost guaranteed.

So, let’s dive into what might be the nearest thing to guaranteed installment loans for bad credit. We’ll also discuss some alternative options you might want to consider, like credit cards.

Personal installment loans can be used for a wide range of financing needs, from auto repairs to debt consolidation. They’re repaid through monthly payments over the course of the loan term, which makes them ideal for large purchases that you need to pay off over months or years.

Most personal installment loans are unsecured, meaning you don’t need to put up any collateral. This can make them difficult to secure (and costly) if your credit score isn’t great. However, online lending networks, like the ones we mention below, can help you find a flexible lender offering reasonable terms.

An important thing to note is that online lending networks are not direct lenders. Instead, lending networks partner with direct lenders so they can connect with borrowers from across the country.

Once you select an offer from an online lending network, you’ll be directed to the lender’s website to view the complete loan agreement and finalize the process. After that, the lending network steps aside, and it’s just you and the lender.

In many ways, a credit card line of credit can operate much like an installment loan. For example, both products allow you to break your repayment up into multiple payments over time, but both also have a required minimum payment each month.

Credit cards, however, differ in a few key ways, the first of which is reusability. Once you’ve paid off your balance, you can use your credit card again and again for short-term financing. Given the typically small limits of subprime cards, this makes credit cards often ideal for smaller purchases you can pay off quickly.

4

Surge® Platinum Mastercard®

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Surge® Platinum Mastercard®

4.1/5.0

About this rating

Our experts rate credit card offers based on factors like rewards, APRs, signup bonuses, fees, and approval rates, with a focus on benefits that provide the best value. We also consider cardholder needs such as credit-building potential, issuer reputation, and customer service. Our ratings are unbiased, updated regularly, and not influenced by issuers.

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★★★★★ 4.1/5.0

at Continental Finance'ssecure website

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• Up to $1,000 Initial Credit Limit
• See if you Pre-Qualify with No Impact to your Credit Score
• Less than perfect credit? We understand. The Surge Mastercard is ideal for people looking to rebuild their credit.
• Unsecured credit card requires No Security Deposit
• Perfect card for everyday purchases and unexpected expenses
• Monthly reporting to the three major credit bureaus
• Use your card everywhere Mastercard is accepted at millions of locations
• Enjoy peace of mind with Mastercard Zero Liability Protection for unauthorized purchases (subject to Mastercard guidelines)
• Apply with Confidence! There is no impact to your credit score if you’re not approved. See terms.

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Intro (Purchases) See website for Details

Intro (Transfers) See website for Details

Regular APR 35.90% Fixed

Annual Fee $75 - $125

Credit Needed Bad, Limited, Fair

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5

Milestone® Mastercard®

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Milestone® Mastercard®

3.8/5.0

About this rating

Our experts rate credit card offers based on factors like rewards, APRs, signup bonuses, fees, and approval rates, with a focus on benefits that provide the best value. We also consider cardholder needs such as credit-building potential, issuer reputation, and customer service. Our ratings are unbiased, updated regularly, and not influenced by issuers.

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★★★★★ 3.8/5.0

at Milestone Mastercard®'ssecure website

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• Guaranteed $700 credit limit if approved.
• Apply with Confidence! There is no impact to your credit score if you’re not approved. See terms.
• Don't Have Perfect Credit? No Problem!
• Join over a million consumers who are working on building their access to credit.
• Zero Fraud Liability - Peace of mind that comes with having a Mastercard.
• Get the credit you deserve, even with less-than-perfect history.
• No security deposit, and a path to better credit.

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Intro (Purchases) N/A

Intro (Transfers) N/A

Regular APR See terms

Annual Fee See terms

Credit Needed Bad/Limited/Fair

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6

Capital One Platinum Secured Credit Card

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Capital One Platinum Secured Credit Card

4.0/5.0

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Our experts rate credit card offers based on factors like rewards, APRs, signup bonuses, fees, and approval rates, with a focus on benefits that provide the best value. We also consider cardholder needs such as credit-building potential, issuer reputation, and customer service. Our ratings are unbiased, updated regularly, and not influenced by issuers.

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★★★★★ 4.0/5.0

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• No annual or hidden fees. See if you're approved in seconds
• Building your credit? Using the Capital One Platinum Secured card responsibly could help
• Put down a refundable security deposit starting at $49 to get at least a $200 initial credit line
• You could earn back your security deposit as a statement credit when you use your card responsibly, like making payments on time
• Be automatically considered for a higher credit line in as little as 6 months with no additional deposit needed
• Enjoy peace of mind with $0 Fraud Liability so that you won't be responsible for unauthorized charges
• Monitor your credit score with CreditWise from Capital One. It's free for everyone
• Get access to your account 24 hours a day, 7 days a week with online banking to access your account from your desktop or smartphone, with Capital One's mobile app
• Top rated mobile app

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Intro (Purchases) N/A

Intro (Transfers) N/A

Regular APR 28.99% (Variable)

Annual Fee $0

Credit Needed Limited, Bad

See Rates & Fees »

Another valuable way credit cards differ from loans is that most credit cards provide the ability to enjoy 0% short-term financing. It’s called the grace period and nearly all cards — even subprime and secured cards — offer this feature.

Simply put, the grace period is the time between your statement closing and your bill’s due date. If you pay off your entire balance during this period, you won’t incur any interest fees on that balance.

The grace period isn’t good for everything, however. First, some cards may not have one, so check your card’s terms and conditions or your cardholder agreement to verify that your card has a grace period.

And the grace period doesn’t apply to every type of transaction. If you make a balance transfer or a cash advance, for instance, your transaction will likely start accruing interest the moment it posts to your account (you’ll also typically be charged a fee for these transactions, so read the terms and conditions).

Bad credit borrowers have options outside of traditional lenders, including the following:

• Pawn loans: These are loans secured by collateral. You take an item of value, such as jewelry or electronics, to your local pawnshop. The pawnbroker will offer you cash equal to a small percentage of the item’s value. When you pay the loan off, you get your item back. If you don’t, it goes up for sale in the shop. No credit check is required.
• Credit union Payday Alternative Loans (PALs): These are installment loans of up to $2,500 offered by select credit unions. They have low APRs and friendly repayment terms, as they were created as an alternative to expensive payday loans. You must become a member of the credit union to qualify, but these are probably the best alternative available. Good credit is not required, but you will have to undergo a credit check.
• Auto title loans: This is another type of secured loan that requires you to own the title to a vehicle. You find an auto title lender that will take your vehicle’s title in exchange for a cash loan. Just like a pawn loan, when you repay the loan as agreed, you’ll receive your title back. These loans are especially risky because you could lose your vehicle if you don’t repay. It is reported that 1 in 5 auto title borrowers loses their vehicle. A credit check generally isn’t required.
• Cash advance apps: These aren’t installment loans, but they are an easy means to an end. A few apps, such as Dave, let borrowers link their bank account for an advance on their next paycheck. You must receive direct deposit to qualify, but no credit check is involved. Some of these apps don’t even charge for the service.
• Friends and family: This is another no-credit-check with low- or no-interest option if you know someone who may be willing to loan you the money. While the terms are friendly, you may jeopardize your relationship if you don’t repay them as agreed. The Consumer Financial Protection Bureau provides a good worksheet for writing up an agreement.

We all love certainty, don’t we? There’s nothing quite like knowing with absolute confidence that what you’re about to do will succeed.

Unfortunately, there are few guarantees in life — and fewer still in finance, where failed guarantees are swiftly met with legal documents. No, the best you can do to find a guaranteed loan or credit product is research, research, research.

When you have bad credit, the key to being approved for an installment loan — whether for personal financing or business expenses — is to find the right lender. Look for one that frequently works with less-than-stellar credit profiles and is comfortable with the financial risk that can entail.