Best Online Installment Loans for Bad Credit of September 2021

Key facts

Pros

• Allows secured and joint loans.

• Offers a wide range of repayment terms.

• Offers a 0.5% rate discount for setting up autopay.

• Offers significant rate discount for checking account customers.

• Offers rate discount with direct payment to creditors on debt consolidation loans.

Cons

• Charges origination fee.

• No co-signed loan option.

Qualifications

• Minimum credit score: 560.

• Minimum annual income: $35,000; average borrower income is $87,000.

• Minimum credit history: 3 years.

• Minimum number of accounts on credit history: 2.

• Minimum monthly free cash flow: $800.

• Maximum debt-to-income ratio: Varies between 55% and 65% including the loan you’re applying for and mortgage payments. To see your post-loan DTI, calculate your monthly payments on a personal loan, and then add them to your debt-to-income calculation.

• Average loan amount is $10,000.

• Average repayment term is 40 months.

Available Term Lengths

2 to 7 years

Fees

• Origination fee: 2.9% to 8%.

Disclaimer

Personal loans made through Upgrade feature APRs of 5.94%-35.47%. 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/. Accept your loan offer and your funds will be sent to your bank or designated account within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes the transaction. From the time of approval, funds should be available within four (4) business days. Funds sent directly to pay off your creditors may take up to 2 weeks to clear, depending on the creditor.

Key facts

Pros

• Offers rate discount with direct payment to creditors on debt consolidation loans.

• Option to change your payment date.

• Offers free credit score access.

• Offers a .5% rate discount for setting up autopay.

Cons

• Charges origination fee.

• No co-sign, joint or secured loan option.

Qualifications

• Minimum credit score: 580.

• Minimum number of accounts on credit history: 2 accounts.

• Maximum debt-to-income ratio: 75%, including mortgage and the loan you’re applying for.

Available Term Lengths

3 to 5 years

Fees

• Origination fee: 4.25% to 8%.

• Late fee: Up to $10.

Disclaimer

Personal loans made through Universal Credit feature APRs of 8.93%-35.93%. All personal loans have a 4.25% 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 27.65% APR (which includes a 22.99% yearly interest rate and a 6% one-time origination fee), you would receive $9,400 in your account and would have a required monthly payment of $387.05. Over the life of the loan, your payments would total $13,933.62. 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.

Key facts

Pros

• Accepts borrowers new to credit.

• Able to fund loans within one business day.

• Offers direct payment to creditors with some debt consolidation loans.

• Allows borrowers to choose and change payment date.

Cons

• Borrowers can choose from only two repayment term options.

• Charges origination fee.

• No mobile app to manage the loan.

Qualifications

• Minimum credit score: 580.

• Minimum credit history: None, this lending platform accepts borrowers with credit history too limited to produce a FICO score.

• Minimum gross income: $12,000.

• Employment: Full-time job, full-time job offer starting in 6 months, a regular part-time job, or another source of regular income.

• Must have U.S. residential street address where borrower resides (unless military personnel on active duty).

• Must be at least 18 years old.

• Valid email account required.

• Personal bank account with U.S. routing number required.

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

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 24.4% and 36 monthly payments of $36 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.

Key facts

Pros

• Soft credit check with pre-qualification.

• Option to choose and change your payment date.

• Can fund a loan the business day after approval.

Cons

• No co-signed, joint or secured loan option.

• Rates are high compared to other bad-credit lenders.

• Reports payments to two of the three major credit bureaus.

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

Qualifications

• Minimum credit score of 600; borrowers’ average is 670. LendingPoint uses the FICO 9 credit scoring model.

• At least $20,000 in annual income; average customer earns $85,000.

• Debt-to-income ratio of less than 40%; average customer is 15%.

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.

Key facts

Pros

• Option to choose your payment date.

• Offers joint and secured loans.

• Able to fund a loan the same or next business day.

• Offers direct payment to creditors on debt consolidation loans.

Cons

• Rates are high compared to other online lenders.

• Charges origination fee.

• No rate discount for autopay.

Qualifications

• Minimum credit score: None.

• Minimum income: None; average is $45,000.

Available Term Lengths

2 to 5 years

Fees

• Origination fee: $25 to $400 or 1 - 10%.

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 $300. 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: North Carolina: $7,500. New York: $20,000. An unsecured loan is a loan which does not require you to provide collateral (such as a motor vehicle) to the lender.

Key facts

Pros

• Soft credit check with pre-qualification.

• Offers co-sign, joint and secured loan options.

• Accepts borrowers new to credit.

• Offers small loans starting at $300.

Cons

• Available in a limited number of states.

• Borrowers cannot choose or change their payment date.

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

• Reports payments to two of the three major credit bureaus.

Qualifications

• Valid identification.

• Proof of income.

• Proof of address.

• Up to four references.

• Be 18 years or older.

Available Term Lengths

6 to 46 months

Fees

• Origination fee: $0 - $300.

• Late fee: Fixed amount or percent, $15 max.

Disclaimer

This is an advertisement for a consumer loan, subject to credit eligibility and state limitations. Loans in AZ, CA, FL, ID, IL, MO, NJ, NM, TX, UT, and WI are originated by Oportun Inc. California loans made pursuant to a California Financing Law license. NV loans originated by Oportun, LLC. In AR, DE, IN, KY, MS, MT, ND, NH, OR, SC, SD, and VA, loans are originated by MetaBank, N.A., member FDIC. Terms, conditions, and state restrictions apply. See oportun.com for details.