6 Best Installment Loans 2020: Compare Options

Installment loans are borrowed funds that you repay in equal parts over a period of time. They're different from revolving lines of credit, which don’t have fixed payments and allow you to choose how much credit you use.

Personal loans are common installment loans that have terms from about two to five years and can be used for almost any purpose, whether you want to consolidate debt, remodel your home or cover an unexpected expense. Rates on installment loans vary — reputable lenders cap annual percentage rates at 36% — and the rate you receive largely depends on your credit score and income.

Here are our picks for the best installment loans for borrowers with good to bad credit, plus what you need to know about installment loans.

Summary of Best Installment Loans 2020: Compare Options

Lender	NerdWallet Rating	Est. APR	Min. Credit Score	Learn More
Marcus by Goldman Sachs Check Rate on Goldman Sachs's website	5.0 /5 Best for Installment loans for good credit	6.99 - 19.99%	690	Check Rate on Goldman Sachs's website
LendingClub See my rates on NerdWallet's secure website	5.0 /5 Best for Installment loans for good credit	10.68 - 35.89%	600	See my rates on NerdWallet's secure website
Upgrade Check Rate on Upgrade's website	4.5 /5 Best for Installment loans for fair credit	7.99 - 35.97%	600	Check Rate on Upgrade's website
Upstart See my rates on NerdWallet's secure website	4.5 /5 Best for Installment loans for fair credit	7.00 - 35.99%	600	See my rates on NerdWallet's secure website
OneMain Financial Check Rate on OneMain Financial's website	4.0 /5 Best for Installment loans for bad credit	18.00 - 35.99%	None	Check Rate on OneMain Financial's website
Avant Check Rate on Avant's website	4.5 /5 Best for Installment loans for bad credit	9.95 - 35.99%	580	Check Rate on Avant's website

Our picks for

Installment loans for good credit

Check Rate

on Goldman Sachs's website

Marcus by Goldman Sachs

5.0

NerdWallet rating

Min. Credit Score

690

Est. APR

6.99 - 19.99%

Loan Amount

$3,500 - $40,000

Check Rate

on Goldman Sachs's website

Min. Credit Score

690

Key facts

Marcus loans stand out for low rates, no fees, and flexible loan terms and payment options.

Pros

No fees.
Flexible payment options.
Directly pays creditors for debt consolidation loans.
Rate discount with autopay.

Cons

Requires good credit.
No co-sign option.

Qualifications

At least 18 years old (19 in Alabama; 21 in Mississippi and Puerto Rico).
Valid U.S. bank account, Social Security number or tax ID.
660+ credit score.
For debt consolidation loans, you may be required to send part of the loan directly to your creditors.

Available Term Lengths

3 to 6 years

Fees

Origination fee: None.
Late fee: None.

Disclaimer

Your loan terms are not guaranteed and are subject to our verification of your identity and credit information. To obtain a loan, you must submit additional documentation including an application that may affect your credit score. The availability of a loan offer and the terms of your actual offer will vary due to a number of factors, including your loan purpose and our evaluation of your creditworthiness. Rates will vary based on many factors, such as your creditworthiness (for example, credit score and credit history) and the length of your loan (for example, rates for 36 month loans are generally lower than rates for 72 month loans Your maximum loan amount may vary depending on your loan purpose, income and creditworthiness. Your verifiable income must support your ability to repay your loan. Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA and all loans are issued by Goldman Sachs Bank USA, Salt Lake City Branch. Applications are subject to additional terms and conditions.

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See my rates

on NerdWallet's secure website

LendingClub

5.0

NerdWallet rating

Min. Credit Score

600

Est. APR

10.68 - 35.89%

Loan Amount

$1,000 - $40,000

See my rates

on NerdWallet's secure website

Min. Credit Score

600

Key facts

LendingClub is a pioneer of peer-to-peer lending and a good option if you want to consolidate your debt.

Pros

Offers direct payment to creditors with debt consolidation loans.
Joint loan option.
Soft credit check with pre-qualification.

Cons

Charges origination fee and late fees.
Does not offer mobile app to manage your loan.

Qualifications

Minimum credit score of 600. LendingClub uses FICO 8 credit scoring model.
Minimum credit history of three years.
Debt-to-income ratio of less than 40% for single applications, 35% combined for joint applicants.

Available Term Lengths

3 to 5 years

Fees

Origination fee: 2% to 6%
Late fee: Greater of $15 or 5% of payment after 15-day grace period.

Disclaimer

*All loans made by WebBank, Member FDIC. Your actual rate depends upon credit score, loan amount, loan term, and credit usage and history. The APR ranges from 10.68% to 35.89%. The origination fee ranges from 1% to 6% of the original principal balance and is deducted from your loan proceeds. For example, you could receive a loan of $6,000 with an interest rate of 7.99% and a 5.00% origination fee of $300 for an APR of 11.51%. In this example, you will receive $5,700 and will make 36 monthly payments of $187.99. The total amount repayable will be $6,767.64. Your APR will be determined based on your credit at the time of application. The average origination fee is 5.49% as of Q1 2017. In Georgia, the minimum loan amount is $3,025. In Massachusetts, the minimum loan amount is $6,025 if your APR is greater than 12%. There is no down payment and there is never a prepayment penalty. Closing of your loan is contingent upon your agreement of all the required agreements and disclosures on the www.lendingclub.com website. All loans via LendingClub have a minimum repayment term of 36 months. Borrower must be a U.S. citizen, permanent resident or be in the United States on a valid long-term visa and at least 18 years old. Valid bank account and Social Security number are required. Equal Housing Lender. All loans are subject to credit approval. LendingClub’s physical address is: 595 Market St suite 200 San Francisco Ca 94105. **Based on approximately 60% of borrowers who received offers through LendingClub’s marketing partners between Jan. 1, 2018, and July 20, 2018. The time it will take to fund your loan may vary.

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Our picks for

Installment loans for fair credit

Check Rate

on Upgrade's website

Upgrade

4.5

NerdWallet rating

Min. Credit Score

600

Est. APR

7.99 - 35.97%

Loan Amount

$1,000 - $35,000

Check Rate

on Upgrade's website

Min. Credit Score

600

Key facts

Upgrade offers personal loans plus credit-building tools; you'll need strong cash flow to qualify.

Pros

Credit health tools.
Hardship plans.
Directly pays creditors for debt consolidation loans used to pay off credit cards.

Cons

Origination and late fees.

Qualifications

Minimum credit score: 600.
Minimum annual income: None, but most applicants earn more than $30,000.
Minimum monthly free cash flow: $800.
Maximum debt-to-income ratio: 60%.
Unavailable to borrowers in: Iowa or West Virginia.

Available Term Lengths

3 to 5 years

Fees

Origination fee: 2.9% to 8%

Disclaimer

Personal loans made through Upgrade feature APRs of 7.99%-35.97%. All personal loans have a 2.9% to 8% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. For example, if you receive a $10,000 loan with a 36-month term and a 17.98% APR (which includes a 14.32% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $343.33. Over the life of the loan, your payments would total $12,359.97. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by Upgrade's lending partners. Information on Upgrade's lending partners can be found at https://www.upgrade.com/lending-partners/.

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See my rates

on NerdWallet's secure website

Upstart

4.5

NerdWallet rating

Min. Credit Score

600

Est. APR

7.00 - 35.99%

Loan Amount

$1,000 - $50,000

See my rates

on NerdWallet's secure website

Min. Credit Score

600

Key facts

Upstart is a good option for those who have short credit histories and promising financial futures.

Pros

Accepts borrowers new to credit.
Fast funding.

Cons

Origination and late fees.
No secured or co-sign option.

Qualifications

Minimum credit score: 620.
Minimum credit history: None.
Minimum annual income: $12,000.
Max debt-to-income ratio: 45%.

Available Term Lengths

3 to 5 years

Fees

Origination fee: 0% - 8%.
Late fee: 5% of past due amount or $15, whichever is greater.

Disclaimer

This offer is conditioned upon final approval from an Upstart Powered bank or licensed lender which is based on consideration and verification of financial and non-financial information. Rate and loan amount are subject to change based upon information provided in your full application. This offer may be accepted only by the person identified in this offer, who is old enough to legally enter into a contract for the extension of credit and who currently resides in the United States. Duplicate offers received are void. Closing your loan is contingent upon meeting certain eligibility requirements and your agreement to the terms and conditions of Upstart and a bank or a licensed lender partnered with Upstart. Loans are originated by Upstart Powered banks and licensed lenders on the Upstart platform. Loans in Maryland, Massachusetts, Nevada, and Nebraska are made by Cross River Bank, an FDIC-insured New Jersey state chartered commercial bank. Loan amounts from $1k-$50k* Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will qualify for the full amount. The minimum loan amount in MA is $7,000. The minimum loan amount in Ohio is $6,000. The minimum loan amount in NM is $5,100. The minimum loan amount in GA is $3,100. APRs from X-Y, loan term (3 or 5 year loan terms), amount of monthly payment** **The full range of available rates varies by state. The average 3-year loan offered across all lenders using the Upstart platform will have an APR of X% and 36 monthly payments of $Y per $1,000 borrowed. There is no down payment and no prepayment penalty. Average APR is calculated based on 3-year rates offered in the last 1 month. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved.

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Our picks for

Installment loans for bad credit

Check Rate

on OneMain Financial's website

OneMain Financial

4.0

NerdWallet rating

Min. Credit Score

None

Est. APR

18.00 - 35.99%

Loan Amount

$1,500 - $20,000

Check Rate

on OneMain Financial's website

Min. Credit Score

None

Key facts

OneMain is an option for bad-credit borrowers, but it comes with high starting rates and an origination fee.

Pros

Fast funding.
Offers joint and secured loan options.
Free credit score access.

Cons

May charge origination fee.
High rates.

Qualifications

Minimum credit score: None, average is 600 to 650.
Minimum credit history: Not provided.
Minimum annual income: None, average is $49,000.

Available Term Lengths

2 to 5 years

Fees

Origination fee: Varies by state.

Disclaimer

Not all applicants will qualify for larger loan amounts or most favorable loan terms. Loan approval and actual loan terms depend on your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral). Larger loan amounts require a first lien on a motor vehicle no more than ten years old, that meets our value requirements, titled in your name with valid insurance. Maximum annual percentage rate (APR) is 35.99%, subject to state restrictions. APRs are generally higher on loans not secured by a vehicle. Depending on the state where you open your loan, the origination fee may be either a flat amount or a percentage of your loan amount. Flat fee amounts vary by state, ranging from $25 to $400. Percentage-based fees vary by state ranging from 1% to 10% of your loan amount subject to certain state limits on the fee amount. Active duty military, their spouse or dependents covered under the Military Lending Act may not pledge any vehicle as collateral for a loan. OneMain loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB’s Regulation Z, such as college, university or vocational expenses; for any business or commercial purpose; to purchase securities; or for gambling or illegal purposes. Borrowers in these states are subject to these minimum loan sizes: Alabama: $2,100. California: $3,000. Georgia: Unless you are a present customer, $3,100 minimum loan amount. Ohio: $2,000. Virginia: $2,600. Borrowers (other than present customers) in these states are subject to these maximum unsecured loan sizes: Florida: $8,000. Iowa: $8,500. Maine: $7,000. Mississippi: $7,500. North Carolina: $7,500. New York: $20,000. Texas: $8,000. West Virginia: $14,000. An unsecured loan is a loan which does not require you to provide collateral (such as a motor vehicle) to the lender.

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Check Rate

on Avant's website

Avant

4.5

NerdWallet rating

Min. Credit Score

580

Est. APR

9.95 - 35.99%

Loan Amount

$2,000 - $35,000

Check Rate

on Avant's website

Min. Credit Score

580

Key facts

Avant's low starting rates make it a good option for borrowers with low credit scores and income.

Pros

Able to fund loans within one business day.
Soft credit check with pre-qualification.
Option to change your payment date.

Cons

Charges origination fee.
No option to include co-signer.

Qualifications

Minimum credit score of 580.
At least $20,000 in gross annual income.

Available Term Lengths

2 to 5 years

Fees

Administrative fee: Up to 4.75%.
Late fee: $25 (most states).
Unsuccessful payment fee: $15 (most states).

Disclaimer

A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33. Minimum loan amounts may vary by state. If approved, the actual rate and loan amount that a customer qualifies for may vary based on credit determination and other factors. An administration fee of up to 4.75% will be deducted from the loan proceeds. Avant branded credit products are issued by Webbank, member FDIC

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» MORE: Installment loans for bad credit

Before you take an installment loan

As with any form of credit, it's important to take steps to ensure you get a loan that fits your financial goals and budget. Our recommended steps:

Weigh the pros and cons: Installment loans have benefits over other forms of credit, including credit cards, but they have cons too. Learn about installment loans and consider the pros and cons.

Know your credit score: Borrowers with higher credit scores get better rates, which means less interest costs over the life of the loan. If your credit needs work, do what you can to elevate your score.

Have a plan to pay it off: If you don't already have one, build a budget that accounts for your loan repayments. NerdWallet recommends allocating 20% of your budget to debt payments and savings.

Shop around for the best rate: Most online lenders allow borrowers to pre-qualify and receive estimated rates and terms, allowing you to compare options from multiple lenders. Pre-qualification typically involves a soft credit check, which doesn't impact your credit score. In addition to rates, compare loan features from each lender, like whether they report repayments to credit bureaus or have a hardship plan in case you fall behind.

» MORE: Pre-qualify with multiple lenders on NerdWallet

No-credit-check installment loans

Be wary of lenders that offer installment loans without performing a preliminary credit check, which involves a soft pull of your credit report. Such no-credit-check installment loans share characteristics with conventional payday and auto-title loans, including sky-high interest rates and additional fees that make the loan less affordable than you initially thought it would be.

Some online lenders, such as Oportun and OppLoans, offer installment loans and are positioned as low-cost alternatives to payday loans. However, their rates are still high, and you should consider these lenders only once you've ruled out other lower-cost options. Capital Good Fund is another no-credit-check lender that offers lower rates, but is available in only a handful of states.

Last updated on February 13, 2020

Methodology

NerdWallet's ratings for personal loans award points to lenders that offer consumer-friendly features, including soft credit checks, no fees, transparency of loan rates and terms, flexible payment options, accessible customer service, reporting of payments to credit bureaus and financial education. We also consider the number of complaints filed with agencies like the Consumer Financial Protection Bureau. This methodology applies only to lenders that cap interest rates at 36%, the maximum rate financial experts and consumer advocates agree is the acceptable limit for a loan to be affordable. NerdWallet does not receive compensation of any sort for our reviews.

To recap our selections...

NerdWallet's Best Installment Loans 2020: Compare Options

Marcus by Goldman Sachs: Best for Installment loans for good credit

LendingClub: Best for Installment loans for good credit

Upgrade: Best for Installment loans for fair credit

Upstart: Best for Installment loans for fair credit

OneMain Financial : Best for Installment loans for bad credit

Avant: Best for Installment loans for bad credit