Best Installment Loans of June 2023
Installment loans are borrowed funds you repay in equal parts over a period of time. If you have bad credit, an installment loan can be less risky and more affordable than payday loans.
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Installment loans can help you cover a large expense, consolidate high-interest debt or get through an emergency. Compare our picks for personal installment loans, including loans for bad credit, and learn how to choose the best installment loan for your expense.
Best Installment Loans
Lender ▾ ▾ | NerdWallet Rating ▾ ▾ | Est. APR ▾ ▾ | Loan amount ▾ ▾ | Min. credit score ▾ ▾ | Learn more |
|---|---|---|---|---|---|
4.5 /5 | 6.50-35.99% | $1,000-$50,000 | None | Get rateon Upstart's website on Upstart's website | |
4.5 /5 | 8.49-35.99% | $1,000-$50,000 | 560 | Get rateon Upgrade's website on Upgrade's website | |
5.0 /5 | 7.99-24.49% | $5,000-$100,000 | 660 | Get rateon LightStream's website on LightStream's website | |
4.5 /5 | 11.69-35.99% | $1,000-$50,000 | 560 | Get rateon Universal Credit's website on Universal Credit's website | |
4.5 /5 | 9.57-35.99% | $1,000-$40,000 | 600 | See my rateson NerdWallet's secure website on NerdWallet's secure website | |
4.5 /5 | 9.16-29.99% | $2,000-$45,000 | 640 | Get rateon Rocket Loans' website on Rocket Loans' website | |
3.5 /5 | 18.00-35.99% | $1,500-$20,000 | None | Get rateon OneMain Financial's website on OneMain Financial's website | |
5.0 /5 | 7.99-35.99% | $5,000-$50,000 | 620 | Get rateon Achieve's website on Achieve's website | |
3.5 /5 | 26.86-35.95% | $300-$12,000 | None | See my rateson NerdWallet's secure website on NerdWallet's secure website | |
4.0 /5 | 9.95-35.95% | $2,000-$35,000 | 550 | Get rateon Avant's website on Avant's website |
Our pick for
Installment loans
Achieve Personal Loans
7.99-35.99%
$5,000-$50,000
620
Our pick for
Installment loans for bad credit
Universal Credit
11.69-35.99%
$1,000-$50,000
560
OneMain Financial
18.00-35.99%
$1,500-$20,000
None
NerdWallet’s guide to installment loans
Installment loans are loans you repay in equal payments over months or years. Lenders that offer installment loans have varying interest rates, repayment plans, qualification requirements and funding times.
This guide will help you decide if an installment loan is right for your plans and outline the steps to get one.
Why trust NerdWallet? NerdWallet has rated and reviewed personal loans from more than 35 financial institutions. We collect over 45 data points from each lender, interview company representatives, go through lenders’ pre-qualification processes, and compare lenders with each other as well as other financial products. We do not receive compensation for our ratings. Read more about our personal loan star ratings methodology and our editorial guidelines.
Table of contents
Best installment loans of 2023
Lender | Best for | Min. credit score | Est. APR | Funding time |
|---|---|---|---|---|
Installment loans for debt consolidation. | 560. | 8.49% - 35.99%. | Next day. | |
Installment loans for bad credit. | 560. | 11.69% - 35.99%. | Next day. | |
Installment loans for fair credit. | None. | 6.50% - 35.99%. | Next day. | |
Installment loans with no credit. | None. | 26.86% - 35.95%. | 1 to 3 days. | |
Online installment loans. | 600. | 9.57% - 35.99%. | Next day. | |
Installment loans for excellent credit. | 660. | 7.99% - 24.49%. | Same- or next-day. | |
Joint installment loans. | 620. | 7.99% - 35.99%. | 1 to 3 days. | |
Secured intstallment loans. | None. | 18.00% - 35.99%. | 1 to 2 days. | |
Fast installment loans. | 640. | 9.16% - 29.99% | Same-day. | |
Installment loans for low credit scores. | 550. | 9.95% - 35.95%. | Next day. |
What are installment loans?
Installment loans are so named because you receive the loan funds all at once and repay them in fixed monthly payments, or installments. Unlike credit cards with revolving credit — which you use, repay and repeat for long periods — you use an installment loan once, usually to finance a large purchase.
With a personal installment loan, you can borrow up to $100,000 and repay the loan over a term of two to seven years. Annual percentage rates are from 6% to 36%.
How do installment loans work?
After you’re approved for an installment loan, the lender deposits the funds into your bank account. You then repay the loan amount, plus interest, over the period stated in your loan agreement.
For example, if you get a $20,000 loan with a four-year repayment term and 12% APR, you’d make 48 installments of $527. An installment loan calculator can show how the loan’s interest rate and repayment term affect monthly payments.
On-time loan payments help build your credit, while missed payments can hurt it.
Examples of installment loans
Many loan types share the installment structure — you might even have one now. Here are a few examples of installment loans:
Auto loans are secured loans, usually with fixed rates, that you repay in regular installments.
Federal student loans have fixed rates and are repaid in equal installments.
“Buy now, pay later” loans usually let you split an online or in-store purchase into four equal, interest-free payments.
Where can I get an installment loan?
Banks, credit unions and online lenders all offer personal installment loans. Compare lenders to find one that offers the best rates, terms and loan features.
Banks
Some national banks offer unsecured installment loans. If yours does, it's likely a good place to start comparison shopping because banks sometimes offer lower rates or softer borrower requirements for existing customers.
Small-dollar bank loans: Some major national banks have introduced new small, short-term loans in recent years. Customers of Wells Fargo, U.S. Bank, Bank of America and Truist may qualify for a loan of a few hundred dollars that is repaid in three to six equal monthly installments.
Credit unions
Credit union members may have access to low-rate installment loans, because federal credit unions cap APRs at 18%. Credit unions may review your membership standing in addition to your credit profile on a loan application, which may improve your chance of qualifying.
Small-dollar credit union loans: Some credit unions offer a type of small personal loan called a payday alternative loan. These loans are $2,000 or less, repaid monthly over six months to a year, have an APR of 28% or lower, and may not require good credit to qualify.
Online lenders
Online lenders serve a wide range of customers. Some cater to borrowers with stellar credit, while others offer loans for bad-credit borrowers. Most online lenders let you pre-qualify to see what rate, term and monthly payment you qualify for. Pre-qualifying doesn’t affect your credit score, so you can check offers from multiple lenders.
Small-dollar online loans: Small-dollar loans from online lenders can be tricky to navigate. Some lenders offer small loans with APRs below 36% — the maximum rate that consumer advocates say is affordable — but others charge rates well above that and may put borrowers at risk of defaulting.
When is an installment loan a good idea?
Here are three purposes for which a personal installment loan can be a good idea:
Debt consolidation: An installment loan can roll other unsecured debts, including high-interest loans and credit cards with revolving credit, into a single, fixed monthly payment. A debt consolidation loan is a good idea if the new interest rate is lower than the combined rate on the debts you’re consolidating.
Home repairs: There are many financing options for home improvements, but if you know how much money you need and can qualify for a low rate, an installment loan may be a good way to pay for fixes around the house.
Emergencies: Because they can be expensive, an installment loan shouldn’t be your first choice in an emergency. Instead, consider alternatives that cost little or no interest. But, if you have a plan to make your payments and need the funds fast, an installment loan can help you get through an emergency.
» MORE: Compare emergency loans
How to compare installment loans
Review qualification requirements. Try to find the lender’s qualification criteria, including minimum income and maximum debt-to-income ratio. Some installment lenders display this information on their website. If not, a website like NerdWallet may include it in a review.
Compare APRs. The best installment loan is usually the one with the lowest APR and affordable monthly payments. Compare lenders’ APR ranges and pre-qualify with multiple lenders to see which one makes you the best offer.
Look for fast funding. Some lenders can provide funds the same or next day after you apply, while others may take up to a week to deposit the loan into your account. Find a lender that offers fast funding if you need it.
Weigh other features. If you have two competitive offers, compare other loan features, like credit-building tools, budgeting help and the ability to change your payment date.
How to get an installment loan
Review your credit report. Check your credit report to see what a lender will see when it evaluates your application. You can get a free copy of your report at AnnualCreditReport.com. If you spot any errors, correct them before you apply.
Check in with your budget. Look at your income and expenses to see how much you can afford to pay toward the loan each month. Then, use an installment loan calculator to determine what APR and repayment term you’d need to get affordable monthly payments.
Pre-qualify. Most online lenders let you preview potential loan offers through pre-qualification. You’ll enter some information about your credit and income — as well as the loan you want — and the lender will show you possible loan amounts, rates and repayment terms. Pre-qualifying doesn’t affect your credit score, so you can review offers from multiple lenders to find the best one.
Accept a loan offer and apply. Once you’ve chosen a lender, you’ll formally apply for a personal loan. Gather documents like W-2s, paystubs and bank statements to make the application process go smoothly. At this time, the lender will do a hard credit pull and your credit score will temporarily dip.
» Get started: Pre-qualify on NerdWallet
How installment loans affect your credit
Loans can help or hurt your credit, depending on how you use them. Since many lenders report to the three major credit bureaus, an installment loan gives you the chance to build credit and show financial responsibility by making on-time payments.
» MORE: Revolving vs. installment credit
However, if you miss a payment or fail to repay the loan, your credit score could suffer.
One way to make sure your payments are on time is to set up autopay. Many lenders offer a small APR discount — usually a fraction of a percentage point — for borrowers who use autopay.
» MORE: How to manage your loan payments
Bad-credit installment loans
If you have a bad credit score (629 or lower), you may still be able to get an installment loan on your own, but there are things you can do to boost your chances of qualifying.
Get a co-joint or co-signed personal loan. Adding someone with a higher credit score or income to the application can improve your chance of qualifying or getting a lower rate. A co-borrower on a joint personal loan shares access to the funds and information about the loan. A co-signer cannot access the loan funds. In both cases, your co-applicant must repay the loan if you don’t.
Get a secured personal loan. Putting up collateral for the loan — like a car or savings account — gives the lender something valuable to take if you stop making payments, meaning a secured loan may be easier to qualify for. Weigh the benefit of using the collateral to get a loan against the risk of losing it.
Ask for less money. Lenders try not to provide loans that are too large for the borrower to repay. A lender may decide you qualify for a smaller installment loan than you requested. If you can combine a smaller loan with borrowing alternatives to cover your expense, you may have a better chance of approval.
» MORE: See your bad-credit loan options
High-interest installment loans for bad credit
Though you’ll ideally find an installment loan with a rate below 36%, some lenders offer high-interest loans with APRs above 36% that are more affordable than payday loans.
These lenders may not check your credit, which means they’re taking on more risk. For you, that means a higher APR — sometimes up to 150% or 200%.
While these loans may be repaid in installments, they are still unaffordable for most borrowers. Think of them as a last resort when your main alternative is a payday loan.
Alternatives to bad-credit installment loans
If you have bad credit and need money quickly, explore other low-cost options first.
Seek assistance from local nonprofits, charities and religious organizations.
Use a paycheck advance app to cover you until payday.
Try other ways to make money.
If you're comfortable with it, ask family and friends for a loan through a lending circle or family loan agreement.
Installment loans vs. payday loans
While you repay an installment loan in regular installments, you typically repay a payday loan in full on your next payday.
You may have an easier time planning for and repaying a loan that’s broken into multiple payments over several pay periods.
Here are some of the differences between installment and payday loans.
Installment personal loans | Payday loans |
|---|---|
Repaid over the course of months or years. | Repaid in full within a week or two — usually on your next payday. |
APR of 36% or below, ideally. | APR can be as high as 400%. |
Usually paid back online, over the phone or by check. | Lenders withdraw the money from your bank account, using either a check you wrote ahead of time or your account information. |
Usually require a credit check to assess your ability to repay the loan. | Do not require a credit check. |
Report on-time payments to credit bureaus to help build your credit. | Do not report on-time payments to credit bureaus to help you build credit. |
Last updated on June 1, 2023
Methodology
NerdWallet’s review process evaluates and rates personal loan products from more than 35 financial institutions. We collect over 45 data points from each lender, interview company representatives and compare the lender with others that seek the same customer or offer a similar personal loan product. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer consumer-friendly features, including: soft credit checks to pre-qualify, competitive interest rates and no fees, transparency of rates and terms, flexible payment options, fast funding times, accessible customer service, reporting of payments to credit bureaus and financial education. We also consider regulatory actions filed by agencies like the Consumer Financial Protection Bureau. We weigh these factors based on our assessment of which are the most important to consumers and how meaningfully they impact consumers’ experiences.
This methodology applies only to lenders that cap interest rates at 36%, the maximum rate most financial experts and consumer advocates agree is the acceptable limit for a loan to be affordable. NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodologies for personal loans and our editorial guidelines.
NerdWallet's Best Installment Loans of June 2023
- Upgrade: Best for Installment loans
- LightStream: Best for Installment loans
- LendingClub: Best for Installment loans
- Rocket Loans: Best for Installment loans
- Achieve Personal Loans: Best for Installment loans
- Upstart: Best for Installment loans for bad credit
- Universal Credit: Best for Installment loans for bad credit
- Oportun: Best for Installment loans for bad credit
- OneMain Financial : Best for Installment loans for bad credit
- Avant: Best for Installment loans for bad credit
Frequently asked questions
- Do installment loans require a credit check?
Most reputable installment lenders check your credit. You can pre-qualify for some online installment loans, which doesn’t affect your credit score, but most lenders do a hard credit inquiry once you apply.
A credit check is a sign that a lender wants to know if you can repay the loan. Some high-interest lenders offer no-credit-check loans, which can mean they’ll lend to you without considering whether you can pay the loan off.
- Can I get an installment loan with bad credit?
Some lenders offer installment loans to borrowers with low credit scores. A lender may consider things like your cash flow, income and employment to determine your rate on a bad-credit loan.
