A personal installment loan can help you split up the cost of a large expense over several months or years. Learn how installment loans work and compare our picks for the best loans.
Checking rates is free and won't impact your credit score.
An installment loan is a loan you borrow in a lump sum and repay in smaller increments, plus interest, over regular intervals of time. The interest rate is usually fixed and the payments, which are often made monthly, remain the same throughout the life of the loan.
Personal installment loans can be used for a variety of purposes including debt consolidation, home improvement projects, car repairs, medical procedures, large purchases, weddings and travel. These loans typically range from $1,000 to $100,000 with repayment terms from two to seven years. Reputable lenders cap annual percentage rates (APRs) at 36%.
Best for installment loans at a credit union
7.89 - 18.00%
$500 - $50K
None
6 months to 7 years
Best for good or excellent credit
2025 NerdWallet award winner
7.99 - 24.99%
$2.5K - $40K
660
3 to 7 years
Best for debt consolidation
2025 NerdWallet award winner
7.74 - 35.99%
$1K - $50K
600
2 to 7 years
Best for joint borrowers
2025 NerdWallet award winner
7.90 - 35.99%
$1K - $60K
600
2 to 7 years
Best for home improvement
2025 NerdWallet award winner
6.49 - 24.89%
$5K - $100K
660
2 to 7 years
Best for secured installment loans
6.99 - 35.99%
$2K - $50K
600
3 to 5 years
Best for bad or fair credit
6.70 - 35.99%
$1K - $75K
None
3 to 5 years
Best for installment loans at a bank
9.99 - 19.49%
$2K - $30K
Undisclosed
1 to 5 years
Best for fast funding
2025 NerdWallet award winner
8.74 - 35.49%
$5K - $100K
None
2 to 7 years
Our team of consumer lending experts follows an objective and robust methodology to rate lenders and pick the best.
30+
Lenders reviewed
We review over 35 lenders, including major banks, top credit unions, leading digital platforms, and high interest installment lenders operating across multiple states.
25+
Categories assessed
Each lender is evaluated across five weighted categories and 27 subcategories, covering affordability, eligibility, consumer experience, flexibility, and application process.
60+
Data points analyzed
Our team tracks and reassesses hundreds of data points annually, including APR ranges, fees, credit requirements, and borrower tools, ensuring up to date, accurate comparisons.
We evaluate more categories than competitors and carefully weigh how each factor impacts your experience.
NerdWallet’s review process evaluates and rates personal loan products from more than 30 financial technology companies and financial institutions. We collect over 60 data points and cross-check company websites, earnings reports and other public documents to confirm product details. We may also go through a lender’s pre-qualification flow and follow up with company representatives. 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. Our ratings award fewer points to lenders with practices that may make a loan difficult to repay on time, such as charging high annual percentage rates (above 36%), underwriting that does not adequately assess consumers’ ability to repay and lack of credit-building help. 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.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodologies for personal loans and our editorial guidelines.
Here’s what stands out about our top-rated lenders for the best personal installment loans.
First Tech Credit Union offers personal installment loans with competitive rates, fast funding and a wide range of loan amounts. You have to be a member of the credit union to get a loan. You can join if you work for one of First Tech’s 900+ partner companies, if someone in your household is a First Tech member or if you live or work in Lane County, Oregon. You can also become a member by joining the Financial Fitness Association or the Computer History Museum, which may come with a small fee.
With a minimum credit score requirement of 660, Discover is suitable for borrowers with good or excellent credit (scores in the mid-600s and above). This lender offers competitive rates, no fees and fast funding.
If you’re getting an installment loan to consolidate debt, Upgrade will send the loan funds directly to your creditors. This lender also has a rate discount of up to 4 percentage points for borrowers who opt for direct pay to creditors.
LendingClub lets you add a co-borrower to a personal installment loan application. Adding a co-borrower with a higher credit score or income may increase your chances of getting approved or qualifying for a larger loan amount or lower interest rate.
LightStream offers some of the highest loan amounts and longest repayment terms for its home improvement installment loans, with a max of $100,000. You can take as long as 20 years to repay home improvement loans of $25,000 or more.
Best Egg offers two ways for you to secure a personal installment loan. You can either use a vehicle as collateral or permanent fixtures in your home, like built-in cabinets. Borrowers can save money with a secured loan, because rates are typically lower. However, you risk losing your collateral if you don’t repay the loan as promised.
Many lenders rely heavily on an applicant’s credit history to determine approval for a personal installment loan, but Upstart considers applicants with low credit scores or no credit history at all. Instead, the lender factors in nontraditional data, like education and work experience, when making loan approval decisions.
Citi offers installment loans with competitive rates and no fees. Existing Citi customers can benefit from rate discounts and same-day funding.
SoFi can fund a personal installment loan the same day you apply if the loan agreement is signed before 5:30 p.m. ET on a business day. Fast funding can be crucial if you need cash for an emergency.
Lenders will check your credit report when evaluating your loan application. Checking your credit report in advance will give you the chance to spot any errors and correct them before you apply. You can view your credit report for free on NerdWallet or at AnnualCreditReport.com.
Many loan providers require a credit score in the 600s or higher to qualify for a personal loan. If you have bad credit, consider taking steps to improve your credit before applying.
Review your income and expenses to see how much you can afford to pay toward an installment loan each month. Then, use an installment loan calculator to determine what APR and repayment term you’d need to get affordable monthly payments.
Applicants with lower credit scores can expect to pay higher interest rates. A longer repayment term can result in lower monthly payments, but you’ll end up paying more in overall interest.
Estimated monthly payment
$309.92
Total interest over 3 years
$1,156.95
Total loan payment
$11,156.95
Loan amount
$10,000
Interest rate
7.25%
Loan term (years)
3
Many lenders let you preview potential loan offers through pre-qualification. You can pre-qualify online by giving the lender some information about yourself and the loan you want. If you meet the requirements, the lender will show your potential loan amount, rates and repayment terms.
Pre-qualifying typically takes only a few minutes and doesn’t affect your credit score. Review offers from multiple lenders to find the best one.
Once you’ve chosen a lender, you’ll formally apply for a personal loan. Gather documents like W-2s, pay stubs and bank statements to make the application process go smoothly. At this time, the lender will do a hard credit pull, which can cause your credit score to dip by a few points.
If you qualify, expect your loan to be funded within a week — though some lenders offer same- or next-day funding. Your first loan payment is typically due a month later.
While many personal loan lenders require good or fair credit, there are ways to boost your chances of approval if your score is lower.
» COMPARE: Best personal loans for borrowers with bad credit
Shopping for an installment loan online may turn up lenders that charge high rates for fast, easy approval. Be mindful of red flags such as claims of “guaranteed approval” or “no credit check.” Most legitimate lenders won’t approve borrowers without reviewing their credit and finances.
High-interest installment lenders may charge triple-digit APRs to consumers with bad credit. Interest on these loans could cost more than the original amount borrowed, so consider them a last resort after you’ve exhausted alternatives.
» MORE: Signs of a personal loan scam
Check the APR: Annual percentage rate is the best cost-comparison tool for installment loans and other types of credit. The best personal installment loan is usually the one with the lowest APR and affordable monthly payments.
Calculate monthly payments: Since missed payments can damage your credit score, it’s important to find an installment loan that you can comfortably repay each month. If the monthly payments don’t fit your budget, you may need a longer repayment term or to shop for more affordable offers.
Look for funding speed: Some personal loan lenders can provide funds the same or next day after you’re approved, while others may take up to a week.
Compare other features: If you’re deciding between similar offers, compare other loan features, like credit-building tools, budgeting help and the ability to change your payment date.
Buy now, pay later: “Buy now, pay later” is an installment plan you can use for a large purchase, like a laptop or mattress. When you check out online or at a store, the retailer may offer to let you split your purchase into four biweekly payments. BNPL plans typically don’t charge interest or require a hard credit pull, but the ease of getting these payment plans could lead to overspending.
Cash advance apps: You may be able to borrow a few hundred dollars using a cash advance app. These apps let you borrow money from your next paycheck with no credit check and mostly optional fees. This option only works if your budget can withstand that gap in your next paycheck.
Family loans: You likely won’t have to meet strict credit or income requirements when borrowing money from family or friends. A family loan can also save you the interest or fees a traditional lender would charge. However, you can jeopardize a personal relationship if you default on a family loan. Come up with a mutual agreement on how the loan will be repaid, put it in writing and stick to the terms.
Local financial assistance programs: There may be charities and nonprofit organizations in your area that provide assistance with bills and essential needs or offer low-cost loans for those in need. Contact 211 to get connected to an organization near you.
Extra income: If you have enough time, consider pursuing ways to make extra money, such as freelancing, babysitting, dog walking or selling items you no longer use. The amount you may make can vary.
If a personal installment loan is the right borrowing option for you, pre-qualify with NerdWallet to get offers from our partner lenders.
Pre-qualifying is quick, free and does not impact your credit score.
An installment loan can affect your credit when you get one and when you repay one.
Reputable lenders check your credit history to determine whether you’ll be able to repay a new installment loan. Some lenders offer no-credit-check installment loans, but those loans are riskier to the lenders. Those lenders make up for that risk by charging high interest rates.
There are lenders with low credit score requirements that offer personal installment loans to borrowers with bad credit (a score under 600). Borrowers with low credit scores may want to consider a co-signed, joint or secured loan to improve their chances.
