People, especially those who are the first time borrowers, often wonder if they need a good credit score to avail an online installment loan. The same question is also very important for the people with bad credit for the obvious reason. They all want to feel assured before they apply for a loan. Unfortunately, quite some lenders do not accept a bad credit score in order to approve an installment loan. They either encourage you to go for an expensive payday loan that offers limited cash or ask to pledge collateral to take out an installment loan. It is not very surprising given the fact that they don’t want to fund a borrower who is a potential loan defaulter.