Best Installment Loans in January 2026
An installment loan comes as a lump sum that you’ll pay back in equal monthly payments
Best installment loan lenders
| Lender | User rating | APR | Term | Amount | |
|---|---|---|---|---|---|
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8.99% – 29.99% | 24 to 60 months |
$5k – $50k |
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7.99% – 24.99% | 36 to 84 months |
$2.5k – $40k |
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7.95% – 29.99% | 24 to 60 months |
$5k – $50k |
||
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6.49% – 24.89% (with autopay) | 24 to 84 months |
$5k – $100k |
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6.74% – 17.99% (with autopay) | 12 to 60 months |
$600 – $50k |
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8.99% – 35.99% | 24 to 60 months |
$2k – $50k |
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8.74% – 35.49% (with discounts) | 24 to 84 months |
$5k – $100k |
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7.74% – 35.99% (with discounts) | 24 to 84 months |
$1k – $50k |
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6.50% – 35.99% | 36 to 60 months |
$1k – $75k |
| Lender |
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|---|---|---|---|---|---|---|---|---|---|
| User rating | |||||||||
| APR | |||||||||
| Term | 24 to 60 months | 36 to 84 months | 24 to 60 months | 24 to 84 months | 12 to 60 months | 24 to 60 months | 24 to 84 months | 24 to 84 months | 36 to 60 months |
| Amount | $5k – $50k | $2.5k – $40k | $5k – $50k | $5k – $100k | $600 – $50k | $2k – $50k | $5k – $100k | $1k – $50k | $1k – $75k |
Read more about how we made our picks for the best installment loans.
Best installment loan lenders at a glance
An installment loan is a loan that you get as a lump sum and then pay back in fixed monthly payments, plus interest. Personal loans, mortgages, auto loans and student loans are all types of installment loans. We’re focusing on personal loans in this article.
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It’s not impossible to get an installment loan with bad credit. Shop with lenders known to offer bad credit installment loans. Consider taking out a joint loan with someone who has good credit to improve your odds. Offering collateral on a secured loan might also help.
Terms to know when comparing installment loans
When you’re in the market for a big-ticket item, you shop around, right? The same logic applies to personal installment loans. You can’t know if you’re getting the most competitive rate if you don’t compare offers. The definitions below might help while you review your options.
APR: An APR measures the total cost of your loan, including interest and fees. The higher the percentage, the more expensive the loan.
Repayment term: This is the length of time you’ll have to pay off your loan. Since you’ll have more time to spread your balance across, a longer loan term can give you lower monthly payments. On the flip side, a short term means you could pay less overall interest.
Loan amount: Double-check your loan amount before accepting an offer. An installment loan is a lump sum of money. If your loan doesn’t cover what you intended, you’re out of luck unless you get another loan.
Fees: Many installment loans come with fees, the most common being an origination fee. This is an upfront fee that the lender will deduct from your loan amount. Some lenders only charge this fee to bad-credit borrowers. Others apply one to every loan or skip them altogether.
Funding timeline: Lenders have two funding timelines — one for loan approval and one for how quickly it can release your funds (called loan disbursal). You may want to ask the lender if it can send your loan via direct deposit as this is typically the fastest method.
Where to find an installment loan
Knowing where to shop is the first step in finding an installment loan that works for you.
Banks
Your bank can be a great place to get an installment loan. Although eligibility requirements with banks can be strict, you could get a relationship discount if you qualify.
Note that some banks have discontinued their personal loan options in recent years. These include Bank of America, Chase and Capital One.
Below you’ll find some of the most popular banks that offer installment loans with APR discounts. This list isn’t all-inclusive, so contact your bank for more information.
| Bank | APR discount |
|---|---|
| Wells Fargo Bank | 0.25% to 0.50% for autopay from a Wells Fargo checking account |
| Citibank | 0.50% for autopay, 0.25% for existing Relationship Tier customers |
| U.S. Bank | 0.50% for autopay from a U.S. Bank account |
| PNC Bank | 0.25% for autopay from a PNC checking account |
| Fifth Third Bank | 0.25% for autopay from a Fifth Third checking account |
| M&T Bank | 0.15% to 0.50% for existing customers and/or autopay through an M&T checking account |
Credit unions
Credit union membership comes with perks. Like banks, they often offer APR discounts for autopay. But unlike banks, APRs on federal credit union personal loans cannot exceed 18% per federal law.
Additionally, credit unions are nonprofits and frequently follow a mission to help their members achieve their financial goals. Your credit union may be willing to look past an imperfect borrowing history.
Online lenders
One of the easiest ways to get an installment loan is through an online lender. You apply from the comfort of your own home, and many do business with borrowers of all credit scores. But while getting an online loan can be easier than getting a bank loan, online loans tend to come with higher rates and more fees.
Installment loan alternatives
A loan can be a tool that helps you reach your financial goals. For some, an installment loan might not be the right tool for the job.
Credit card
Since a loan provides a lump sum of cash, a credit card makes more sense if you need money on an ongoing basis.
Paycheck advance app
Paycheck advance apps can be easy to use, which makes them risky. Still, they can get you out of a bind if you need cash between paychecks.
Loan from friend or family
Borrowing from a friend or family member can be a better alternative to a bad credit installment loan (since these come with high APRs). If you take this path, write up a personal loan agreement and stick to it to avoid damaging your relationship.
How we chose the best installment loans
We reviewed more than 40 lenders and loan marketplaces to determine the overall best nine installment loans. To make our list, lenders must offer installment loans with competitive APRs.
From there, we assessed each lender or marketplace across four categories: eligibility and access; cost to borrow; loan terms and options; repayment support and tools.
According to our standardized rating system, the best installment loans come from Achieve, Discover, Happy Money, LightStream, PenFed Credit Union, Prosper, SoFi, Upgrade and Upstart.
Our categories
We assess how easy it is for people to qualify and apply. This includes state availability, soft-credit prequalification, membership requirements, funding speed and whether borrowers with less-than-excellent credit can get a loan.
We evaluate how affordable the loans are based on minimum and maximum APRs, loan fees and rate discounts. Lenders with unclear or potentially predatory costs receive lower scores.
We consider repayment term flexibility, loan amount ranges and whether options like secured loans, joint loans or direct-to-creditor payments are offered — plus whether the lender clearly communicates these options.
We evaluate borrower experience after funding: customer service access, hardship or forbearance programs, payment flexibility and digital tools like mobile apps or credit monitoring.
Our process
We gather data directly from companies through their websites, disclosures and direct communication with company representatives. Our editorial team verifies and updates information regularly. We value transparency and award less favorable scores when lenders obscure or omit details.
Our editorial team applies the same scoring model and standards to every lender. Lenders cannot pay to influence our ratings.
Why trust our methodology?
LendingTree’s writers and editors diligently vet dozens of lenders to narrow down which ones offer the most affordable rates and a customer-centered experience. We have ongoing conversations with loan companies to ensure accuracy and collect first-person feedback to understand the holistic process of getting and repaying a loan.
Using my financial health counseling certification, I’m here to walk you through the important — and sometimes stressful — process of understanding your personal finances and credit.
Amanda’s experience in editing and financial education helps shape LendingTree articles that are clear, accurate and truly useful to readers. Her certification means our recommendations are built on a foundation of consumer-first financial knowledge — not just numbers.
Frequently asked questions
It can. Unless you get a no-credit-check loan, your lender will pull your credit report when you apply. This can negatively affect your credit scores, albeit temporarily. Making your payments on time (every time) could improve your score down the line.
The easiest installment loans are typically the most expensive ones. These include no-credit-check loans, payday loans, title loans and pawn shop loans. If you have bad credit, consider online lender Upstart or a paycheck advance app instead.
Installment loans can be handy, but they’re just another form of debt. You’ll pay to borrow through interest and fees. That’s not to say that an installment loan is always a bad idea. Just know what you’re getting into before signing on the dotted line.
Not always. Even if you have fair credit (or worse), you might qualify for installment loans online from lenders like Upstart or Upgrade. However, the most competitive rates generally go to borrowers with good credit or better. If you have rocky credit, expect to pay high APRs.