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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.

By
Annie Millerbernd
Jun 1, 2023

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LightStream
LightStream
LightStream
5.0
NerdWallet rating
LightStream targets strong-credit borrowers with no fees and low rates that vary based on loan purpose.
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Best Installment Loans

Lender
NerdWallet Rating
Est. APR
Loan amount
Min. credit score
Learn more
Upstart

Upstart

Get rateon Upstart's website
on Upstart's website
Best for Installment loans for bad credit

6.50-35.99%

$1,000-$50,000

None

Get rateon Upstart's website
on Upstart's website
Upgrade

Upgrade

Get rateon Upgrade's website
on Upgrade's website
4.5
/5
Best for Installment loans

8.49-35.99%

$1,000-$50,000

560

Get rateon Upgrade's website
on Upgrade's website
Lightstream

LightStream

Get rateon LightStream's website
on LightStream's website
5.0
/5
Best for Installment loans

7.99-24.49%

$5,000-$100,000

660

Get rateon LightStream's website
on LightStream's website
Universal Credit

Universal Credit

Get rateon Universal Credit's website
on Universal Credit's website
4.5
/5
Best for Installment loans for bad credit

11.69-35.99%

$1,000-$50,000

560

Get rateon Universal Credit's website
on Universal Credit's website
Lending Club

LendingClub

See my rateson NerdWallet's secure website
on NerdWallet's secure website
4.5
/5
Best for Installment loans

9.57-35.99%

$1,000-$40,000

600

See my rateson NerdWallet's secure website
on NerdWallet's secure website
RocketLoans

Rocket Loans

Get rateon Rocket Loans' website
on Rocket Loans' website
4.5
/5
Best for Installment loans

9.16-29.99%

$2,000-$45,000

640

Get rateon Rocket Loans' website
on Rocket Loans' website
OneMain

OneMain Financial

Get rateon OneMain Financial's website
on OneMain Financial's website
3.5
/5
Best for Installment loans for bad credit

18.00-35.99%

$1,500-$20,000

None

Get rateon OneMain Financial's website
on OneMain Financial's website
Achieve

Achieve Personal Loans

Get rateon Achieve's website
on Achieve's website
5.0
/5
Best for Installment loans

7.99-35.99%

$5,000-$50,000

620

Get rateon Achieve's website
on Achieve's website
Oportun

Oportun

See my rateson NerdWallet's secure website
on NerdWallet's secure website
3.5
/5
Best for Installment loans for bad credit

26.86-35.95%

$300-$12,000

None

See my rateson NerdWallet's secure website
on NerdWallet's secure website
Avant

Avant

Get rateon Avant's website
on Avant's website
4.0
/5
Best for Installment loans for bad credit

9.95-35.95%

$2,000-$35,000

550

Get rateon Avant's website
on Avant's website

Our pick for

Installment loans

Upgrade
Get rateon Upgrade's website
on Upgrade's website
Upgrade

Upgrade

4.5
Est. APR

8.49-35.99%

Loan amount

$1,000-$50,000

Min. credit score

560

Lightstream
Get rateon LightStream's website
on LightStream's website
Lightstream

LightStream

Est. APR

7.99-24.49%

Loan amount

$5,000-$100,000

Min. credit score

660

Lending Club
See my rateson NerdWallet's secure website
on NerdWallet's secure website
Lending Club

LendingClub

Est. APR

9.57-35.99%

Loan amount

$1,000-$40,000

Min. credit score

600

RocketLoans
Get rateon Rocket Loans' website
on Rocket Loans' website
RocketLoans

Rocket Loans

Est. APR

9.16-29.99%

Loan amount

$2,000-$45,000

Min. credit score

640

Achieve
Get rateon Achieve's website
on Achieve's website
Achieve

Achieve Personal Loans

Est. APR

7.99-35.99%

Loan amount

$5,000-$50,000

Min. credit score

620

Our pick for

Installment loans for bad credit

Upstart
Get rateon Upstart's website
on Upstart's website
Upstart

Upstart

Est. APR

6.50-35.99%

Loan amount

$1,000-$50,000

Min. credit score

None

Universal Credit
Get rateon Universal Credit's website
on Universal Credit's website
Universal Credit

Universal Credit

Est. APR

11.69-35.99%

Loan amount

$1,000-$50,000

Min. credit score

560

Oportun
See my rateson NerdWallet's secure website
on NerdWallet's secure website
Oportun

Oportun

Est. APR

26.86-35.95%

Loan amount

$300-$12,000

Min. credit score

None

OneMain
Get rateon OneMain Financial's website
on OneMain Financial's website
OneMain

OneMain Financial

Est. APR

18.00-35.99%

Loan amount

$1,500-$20,000

Min. credit score

None

Avant
Get rateon Avant's website
on Avant's website
Avant

Avant

Est. APR

9.95-35.95%

Loan amount

$2,000-$35,000

Min. credit score

550

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

Upgrade

Installment loans for debt consolidation.

560.

8.49% - 35.99%.

Next day.

Universal Credit

Installment loans for bad credit.

560.

11.69% - 35.99%.

Next day.

Upstart

Installment loans for fair credit.

None.

6.50% - 35.99%.

Next day.

Oportun

Installment loans with no credit.

None.

26.86% - 35.95%.

1 to 3 days.

LendingClub

Online installment loans.

600.

9.57% - 35.99%.

Next day.

LightStream

Installment loans for excellent credit.

660.

7.99% - 24.49%.

Same- or next-day.

Achieve

Joint installment loans.

620.

7.99% - 35.99%.

1 to 3 days.

OneMain Financial

Secured intstallment loans.

None.

18.00% - 35.99%.

1 to 2 days.

Rocket Loans

Fast installment loans.

640.

9.16% - 29.99%

Same-day.

Avant

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.

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

  1. 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.

  2. 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.

  3. 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.

  4. 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.

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.

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.

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.

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.

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.

To recap our selections...

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

  • 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.

  • 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.

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