Getting An Installment Loan In California Even With Bad Credit

Personal loans in California always have a certain amount of criteria that come with them, no matter how big or small. However, the most significant obstacle people usually encounter when trying to get a personal loan or line of credit is the excellent credit score that generally comes with it. 

Credit history and FICO scores are essential, especially for unsecured personal loans, because the lender wants to know that the borrower is reliable enough to repay loans. Unfortunately, for borrowers who may have gone through or are currently going through rough financial times, their credit scores are likely not good enough to qualify for personal loans offered by banks. 

There are still options if you need good credit, such as installment loans in California or other personal loans where credit is less important. But there are also ways to improve your chances of getting a loan.

Installment Loan Lenders Usually Use Alternative Credit Checks

Instead of using a system based mainly on the FICO score or ratings given to you by the three major credit bureaus, many installment loans in California with bad credit have other ways of evaluating potential borrowers. 

This means they will look beyond some of your past minor financial details that may have knocked your credit score lower than it should be. 

The lender usually wants to ensure you have shown the ability to pay off debt or other bills in the past. Even if your financial situation has improved since your score took a hit, you can usually still get accepted for an installment loan. Be warned: It could be a scam if you find an online lender who promises a loan with zero credit checks.

Report All Personal Income To The Installment Loan Lender

Since installment loans in California with bad credit differ from most other personal loans due to not being as prominent in amounts you can borrow or requiring any collateral, your income is usually a more significant factor for being approved than credit. 

Your credit is even less of a consideration if your weekly or monthly income is well in the range needed to afford installment loan payments. While employment income is the primary income you need to verify, if you have supplemental income from alternative jobs or hobbies, you should also provide proof. 

Lenders will usually want to see multiple documents such as pay stubs, bank statements, tax forms, and others to ensure you have valid income sources.

You Can Remove Errors From Your Credit Report

Sometimes, details that affect your credit history and ability to get a personal loan are errors in your credit report history. It is common to see charges or activity in your name that isn't entirely accurate and must be removed. You can go to www.AnnualCreditReport.com and order a free copy of your report once each year and look it over to make sure it's correct. 

If you see errors, you can usually dispute them with the credit bureaus, creditors, or other parties and have them removed, though you may sometimes need outside help. But this is one sure way to better your chances of loan approval.

The bottom line is installment loans in California are even better than payday loans because you can get them even with not-so-good credit and have better terms. Unlike payday loans, which only allow you to borrow up to $300, which must be repaid in one lump sum within a month at the latest, you can usually borrow more with installment loans. 

They are also typically paid off over several months up to a year in fixed installments, which allow your budget more flexibility. Your credit is vital with installment loans, but only one of the factors considered.

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