BEST OF
6 Best Installment Loans 2021: 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.
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 2021: Compare Options
Lender | NerdWallet Rating | Est. APR | Min. Credit Score | Learn More |
---|---|---|---|---|
Best for Installment loans for good credit | 6.99 - 19.99% | 660 | on Goldman Sachs's website | |
Best for Installment loans for good credit | 8.05 - 35.89% | 600 | on LendingClub's website | |
Best for Installment loans for fair credit | 6.94 - 35.97% | 580 | on Upgrade's website | |
Best for Installment loans for fair credit | 8.27 - 35.99% | 580 | on Upstart's website | |
Best for Installment loans for bad credit | 18.00 - 35.99% | None | on OneMain Financial's website | |
Best for Installment loans for bad credit | 9.95 - 35.99% | 550 | on Avant's website |
Our picks for
Installment loans for good credit
on Goldman Sachs's website
Marcus by Goldman Sachs
Min. Credit Score
Est. APR
Loan Amount
on Goldman Sachs's website
on LendingClub's website
LendingClub
Min. Credit Score
Est. APR
Loan Amount
on LendingClub's website
Our picks for
Installment loans for fair credit
on Upgrade's website
Upgrade
Min. Credit Score
Est. APR
Loan Amount
on Upgrade's website
on Upstart's website
Upstart
Min. Credit Score
Est. APR
Loan Amount
on Upstart's website
Our picks for
Installment loans for bad credit
on OneMain Financial's website
OneMain Financial
Min. Credit Score
Est. APR
Loan Amount
on OneMain Financial's website
on Avant's website
Avant
Min. Credit Score
Est. APR
Loan Amount
on Avant's website
» 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.
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 OppLoans, offer installment loans and are positioned as low-cost alternatives to payday loans. However, OppLoans still has high rates, and you should consider this type of lender 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 January 4, 2021
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 2021: 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