Using your emergency fund is often the best first step when facing financial hardship—but what if that fund is depleted or not enough? Life is unpredictable, and unexpected expenses can arise at the worst times. That’s when borrowing may become a necessary solution.
Many borrowers find installment loans to be a reliable and flexible option for financial support. However, not all installment loans are alike. In this guide, we’ll break down what installment loans are, explore the most common types, and explain how you can qualify—regardless of your credit score.
Understanding Installment Loans
An installment loan is a type of loan where you borrow a lump sum and repay it through scheduled payments—usually monthly—over a fixed term. This structure makes it easier to manage large expenses, and installment loans often have lower interest rates than payday loans or credit cards.
People turn to installment loans for various reasons, such as medical emergencies, job loss, debt consolidation, major purchases, or unexpected repairs. While some loans are unsecured, others may require collateral. Regardless, the core idea remains the same: you borrow now and repay over time.
Even borrowers with less-than-perfect credit may find options available to them—though these loans might come with higher interest rates or stricter repayment terms. Still, repaying such a loan on time may help rebuild your credit history.
Common Types of Installment Loans
Installment loans fall into two main categories: secured (backed by collateral) and unsecured (based on your creditworthiness). Here are some examples:
Personal Loans
These are unsecured loans that don’t require any assets as collateral. Offered by banks, credit unions, and online lenders, personal loans typically come with fixed repayment terms and a set loan amount. They're often used for consolidating debt, paying medical bills, or handling large purchases.
Payday Loans
Payday loans are small, short-term loans that are meant to be repaid by your next paycheck. While they offer fast funding with minimal credit requirements, they also carry extremely high interest rates and fees, making them difficult to repay on time.
Cash Advances
A cash advance allows you to borrow against your credit card balance. While convenient, they usually come with steep interest rates and fees. Unlike personal loans, cash advances don’t involve structured installment payments and may lead to faster accumulation of debt.
Bad Credit Loans
These loans are tailored for individuals with low credit scores—often 500 or below. Many lenders offering these loans may not perform a traditional credit check, but they’ll still evaluate your ability to repay. Expect higher interest rates and stricter terms, but also the opportunity to rebuild credit if payments are made on time.
Auto Loans / Title Loans
Car title loans are secured loans that use your vehicle as collateral. You maintain possession of the car, but the lender holds the title until the loan is repaid. While they offer fast approvals and funding, failing to repay may result in losing your car.
Mortgages
Mortgages are long-term, secured loans used to purchase real estate. The home serves as collateral, and failure to make payments can result in foreclosure. Mortgage terms typically range from 15 to 30 years and require a thorough financial evaluation before approval.
Home Equity Line of Credit (HELOC)
A HELOC lets you borrow against your home’s equity—essentially a second mortgage. It provides a revolving credit line with variable interest rates. HELOCs are often used for home improvements or large expenses and are generally offered to borrowers with solid credit and at least 15% equity in their property.
Where to Get an Installment Loan
At Certes Financial Pros LLC, we make applying for an installment loan quick and simple. Just complete the short online form on our site, and we’ll connect you with a lender from our trusted network.
Providing accurate details—including your credit score—can improve your chances of receiving a loan offer. Once a lender reviews your information and decides to proceed, they’ll send you a loan agreement outlining the amount, interest rate, fees, and repayment schedule.
How to Apply
The application process is straightforward:
- Check your credit – Even if applying for a bad credit loan, knowing your credit score helps determine the best loan terms.
- Pre-qualify online – Most lenders offer instant pre-qualification with no impact on your credit.
- Submit required documents – These typically include a valid ID, proof of income, residency, and other relevant details.
- Review and accept the offer – Make sure to understand the terms before accepting.
- Receive funds – Once approved, your loan may be funded within 24 hours.
Final Tip
Repaying your installment loan on time helps establish a positive payment history. That not only avoids late fees—it can also improve your credit profile, giving you better loan opportunities in the future.
Frequently Asked Questions
Here are answers to some of the most common questions about installment loans:
One major advantage of installment loans today is accessibility—many lenders operate entirely online, allowing you to check your eligibility, complete your application, and receive funds without ever visiting a physical branch.
Additional benefits include:
- Fixed payments that make budgeting easier
- Transparent terms with no hidden fees
- No prepayment penalties, meaning you can pay off early without extra cost
- Convenience and speed, often with same-day decisions
That said, rates may be higher for those with poor credit, and missed payments can hurt your credit score.
In most cases, submitting a loan request through Certes Financial Pros LLC does not impact your credit score, especially if the lender uses a soft credit inquiry during the prequalification phase.
However, once you accept a loan and begin repayment, your payment behavior is reported to the major credit bureaus. Making payments on time can improve your credit over time, while missed or late payments may result in negative marks on your report.
Yes. While many traditional banks tend to deny borrowers with low credit scores, some online lenders specialize in working with individuals who have bad credit. These lenders consider factors beyond just your credit history, such as income and employment status.
Keep in mind, though, that loans for bad credit often come with:
- Higher interest rates
- Shorter repayment periods
- Smaller loan amounts
Still, they can be a practical solution in emergencies—and a path toward rebuilding credit.
Installment loans aren’t the only way to borrow money. Depending on your situation, alternatives may include:
- Credit cards (especially for smaller expenses)
- Personal lines of credit
- Payday loans (best used with caution due to high fees)
- Peer-to-peer lending platforms
- Borrowing from friends or family
Always consider interest rates, repayment terms, and long-term impact before choosing any loan option.
Summary
Installment loans offer a flexible way to handle larger or unexpected expenses—like medical bills, car repairs, or debt consolidation—without the stress of lump-sum repayment. They can also help you improve your credit standing through responsible repayment.
If you're considering an installment loan, Certes Financial Pros LLC can help match you with a reputable lender offering terms that suit your situation. Reach out today to get started.
