Best of

Installment Loans for Bad Credit: Compare Alternatives to Payday Loans

Amrita JayakumarJuly 24, 2019

At NerdWallet, we strive to help you make financial decisions with confidence. To do this, many or all of the products featured here are from our partners. However, this doesn’t influence our evaluations. Our opinions are our own.

Installment loans for bad credit may be associated with payday loans, but there are options that are less expensive and less risky.

Summary of Installment Loans for Bad Credit: Compare Alternatives to Payday Loans

LenderBest ForEst. APRMin. Credit ScoreLearn More
Avant

Avant

on Avant's website

Installment loans, credit check

9.95 - 35.99%

580

on Avant's website

OneMain

OneMain Financial

on OneMain Financial's website

Installment loans, credit check

18.00 - 35.99%

None

on OneMain Financial's website

Upgrade

Upgrade

on Upgrade's website

Installment loans, credit check

6.98 - 35.89%

600

on Upgrade's website

Upstart

Upstart

on Upstart's website

Installment loans, credit check

5.67 - 35.99%

620

on Upstart's website

LendingPoint

LendingPoint

on LendingPoint's website

Installment loans, credit check

10.99 - 35.99%

585

on LendingPoint's website

Oportun

Oportun

See my rates

on NerdWallet's secure website

Installment loans, no credit check

20.00 - 67.00%

None

See my rates

on NerdWallet's secure website

OppLoans

OppLoans

See my rates

on NerdWallet's secure website

Installment loans, no credit check

59.00 - 199.00%

None

See my rates

on NerdWallet's secure website

LenderBest ForEst. APRMin. Credit ScoreLearn More
Avant

Avant

on Avant's website

Installment loans, credit check

9.95 - 35.99%

580

on Avant's website

OneMain

OneMain Financial

on OneMain Financial's website

Installment loans, credit check

18.00 - 35.99%

None

on OneMain Financial's website

Upgrade

Upgrade

on Upgrade's website

Installment loans, credit check

6.98 - 35.89%

600

on Upgrade's website

Upstart

Upstart

on Upstart's website

Installment loans, credit check

5.67 - 35.99%

620

on Upstart's website

LendingPoint

LendingPoint

on LendingPoint's website

Installment loans, credit check

10.99 - 35.99%

585

on LendingPoint's website

Oportun

Oportun

See my rates

on NerdWallet's secure website

Installment loans, no credit check

20.00 - 67.00%

None

See my rates

on NerdWallet's secure website

OppLoans

OppLoans

See my rates

on NerdWallet's secure website

Installment loans, no credit check

59.00 - 199.00%

None

See my rates

on NerdWallet's secure website

Our picks for

Installment loans, credit check

These online lenders accept lower scores and check your credit, debt, income, and other factors that help them assess your ability to repay the loan. All offer different benefits depending on whether you want to finance a purchase, pay off debt or even if you have no credit history.

Avant

on Avant's website

Avant

Min. Credit Score

580

Est. APR

9.95 - 35.99%

Loan Amount

$2,000 - $35,000

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

  • Low minimum credit score.

  • Refinancing option.

  • No prepayment fee.

Cons

  • No co-sign or secured loan option.

  • Does not offer direct payment to creditors for debt consolidation loans.

Qualifications

  • Minimum credit score of 580.

  • At least $20,000 in gross annual income.

Available Term Lengths

2 to 5 years

Fees

  • Administrative fee: 4.75%.

  • Late fee: $25 (most states).

  • Unsuccessful payment fee: $15 (most states).

Disclaimer

$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. The actual rate and loan amount that a customer qualifies for may vary based on credit determination and other factors. Avant branded credit products are issued by WebBank, member FDIC

Read Full Review
OneMain

on OneMain Financial's website

OneMain Financial

OneMain

Min. Credit Score

None

Est. APR

18.00 - 35.99%

Loan Amount

$1,500 - $20,000

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.

  • Co-sign option.

  • 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 $30 to $150. Percentage-based fees vary by state ranging from 1% to 5% 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.

Read Full Review
Upgrade

on Upgrade's website

Upgrade

Upgrade

Min. Credit Score

600

Est. APR

6.98 - 35.89%

Loan Amount

$1,000 - $50,000

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: Colorado, Iowa, Maryland, Vermont or West Virginia.

Available Term Lengths

3 to 5 years

Fees

  • Origination fee: 1.5% - 6%.

Disclaimer

Your loan terms are not guaranteed and are subject to our verification and review process. You may be asked to provide additional documents to enable us to verify your income and your identity. You may be required to have some of your funds sent directly to pay off your credit cards. This rate includes an Autopay APR reduction of 0.5%. By enrolling in Autopay your payments will be automatically deducted from your bank account. Selecting Autopay is optional. Annual Percentage Rate is inclusive of a loan origination fee, which is deducted from the loan proceeds. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. Personal loans issued by WebBank, Member FDIC. Please refer to Upgrade's Terms of Use and Borrower Agreement for all terms, conditions and requirements.

Read Full Review
Upstart

on Upstart's website

Upstart

Upstart

Min. Credit Score

620

Est. APR

5.67 - 35.99%

Loan Amount

$1,000 - $50,000

on Upstart's website


Min. Credit Score

620

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

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. Loans are not available in West Virginia or Iowa. 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 $5,001. The minimum loan amount in GA is $3,100. The full range of available rates varies by state. The average 3-year loan on Upstart will have an APR of 20% and 36 monthly payments of $35 per $1,000 borrowed. There is no down payment and no prepayment penalty. The average APR on Upstart 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.

Read Full Review
LendingPoint

on LendingPoint's website

LendingPoint

LendingPoint

Min. Credit Score

585

Est. APR

10.99 - 35.99%

Loan Amount

$2,000 - $25,000

on LendingPoint's website


Min. Credit Score

585

Key facts

LendingPoint accepts low credit scores and has flexible payments. Rates are high but comparable to competitors.

Pros

  • Qualify with bad credit.

  • No prepayment fee.

  • Flexible payments.

Cons

  • Does not offer direct payment to creditors for debt consolidation loans.

  • No co-sign or secured loan options.

Qualifications

  • Minimum credit score of 600.

  • At least $20,000 in annual income.

  • Debt-to-income ratio of less than 35%.

  • Live in the District of Columbia or one of the states where LendingPoint operates.

Available Term Lengths

2 to 4 years

Fees

  • Origination fee: 0% - 6%.

  • Late fee: $30 after 15-day grace period.

Disclaimer

Loan approval is not guaranteed. Actual loan offers and loan amounts, terms and annual percentage rates (“APR”) may vary based upon LendingPoint's proprietary scoring and underwriting system's review of your credit, financial condition, other factors, and supporting documents or information you provide. Origination or other fees from 0% to 6% may apply depending upon your state of residence. Upon LendingPoint's final underwriting approval to fund a loan, said funds are often sent via ACH the next non-holiday business day. LendingPoint makes loan offers from $2,000 to $25,000, at rates ranging from a low of 15.49% APR to a high of 34.99% APR, with terms from 24 to 48 months.

Read Full Review

Our picks for

Installment loans, no credit check

The following lenders do not check credit, and while rates are lower than payday lenders, they can still be high. Consider your alternatives before choosing one.

Oportun
See my rates

on NerdWallet's secure website

Oportun

Not yet rated

Oportun

Min. Credit Score

None

Est. APR

20.00 - 67.00%

Loan Amount

$300 - $9,000

See my rates

on NerdWallet's secure website


Min. Credit Score

None

Key facts

Oportun is a no-credit-check loan for borrowers who need fast cash, but high rates make it an expensive option.

Pros

  • No credit check or bank account required.

  • Fast funding.

  • Financial education and counseling available.

Cons

  • High rates.

  • Available in a limited number of states.

Qualifications

  • Proof of identity.

  • Proof of regular income.

  • Have a verified address and phone number.

  • Live in one of the states that Oportun serves.

Available Term Lengths

6 to 46 months

Fees

  • Origination fee: None.

Disclaimer

Read Full Review
OppLoans
See my rates

on NerdWallet's secure website

OppLoans

Not yet rated

OppLoans

Min. Credit Score

None

Est. APR

59.00 - 199.00%

Loan Amount

$500 - $3,000

See my rates

on NerdWallet's secure website


Min. Credit Score

None

Key facts

OppLoans offers no-credit-check small loans with fast funding but high rates. You may have cheaper options.

Pros

  • No credit check required.

  • Fast funding.

  • Payment flexibility options.

Cons

  • High rates.

  • Short repayment terms.

Qualifications

  • Minimum credit score: None.

  • Minimum monthly gross income: $1,500.

  • Must be employed or have benefits (not self-employed).

  • Have a bank account in your name with 40 days of history.

  • Receive your paychecks through direct deposit.

Available Term Lengths

0 month to 2 years

Fees

  • Origination fee: None.

Disclaimer

Read Full Review

Credit union installment loans for bad credit

Another option if you have bad credit: Consider going to a credit union. Rates at federal credit unions are typically lower than online lenders — and they offer payday alternative loans geared toward bad-credit borrowers. You have to become a member of the credit union, but doing so may get you a loan specifically designed for your financial situation.

On the downside, credit unions generally use a hard credit pull to see if you qualify, which will temporarily knock a few points off your score.

First Tech Federal, Navy Federal and USAA (which is not a credit union but has a military-focused membership) are options worth exploring if you have bad credit.

How to choose an installment loan

  1. Compare rates: For all unsecured personal loans, it’s helpful to compare rates at different lenders so that you can find the lowest rate for the amount you need. Most online lenders allow you to check your rate without affecting your credit score in the process.
  2. Explore lender perks: Some lenders offer features tailored to the reason you're borrowing money or to help you pay off your loan. If you're consolidating debt, some lenders will send the loan money to creditors on your behalf, or let you check your credit score to see how paying off debt helps it. Others may allow you to change your due date or offer a hardship plan if your financial picture changes.

» MORE: 4 steps to pre-qualify for a personal loan

Alternatives to installment loans for bad credit

If you have bad credit and need money quickly, take a moment to explore these low-cost options. Other lenders might promise fast, painless approval, but you will end up paying much more in interest and fees.

Last updated on July 24, 2019

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 Installment Loans for Bad Credit: Compare Alternatives to Payday Loans

  • Avant: Best for Installment loans, credit check
  • OneMain Financial : Best for Installment loans, credit check
  • Upgrade: Best for Installment loans, credit check
  • Upstart: Best for Installment loans, credit check
  • LendingPoint: Best for Installment loans, credit check
  • Oportun : Best for Installment loans, no credit check
  • OppLoans: Best for Installment loans, no credit check