Best Installment Loans in October 2024

An installment loan comes as a lump sum that you’ll pay back in equal monthly payments

How Does LendingTree Get Paid?
LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
Privacy Secured  |  Advertising Disclosures
 
Written by Carol Pope | Edited by Amanda Push | Reviewed September 27, 2024
Best for:
APR discounts
lender-logo
Best for:
Unsecured loans
lender-logo
Best for:
Credit card refinancing
lender-logo
Best for:
No fees
lender-logo
Best for:
Small loans
lender-logo
Best for:
Joint loans
lender-logo
Best for:
Online loans
lender-logo
Best for:
Flexible terms
lender-logo
Best for:
Bad credit
lender-logo
+
More Options

Best installment loan lenders at a glance

Achieve: Best for APR discounts

(5,351)
User Ratings & Reviews rating-reviews-tooltip-icon

Ratings and reviews are from real consumers who have used the lending partner’s services.

(5,351)
User Ratings & Reviews rating-reviews-tooltip-icon

Ratings and reviews are from real consumers who have used the lending partner’s services.

8.99% - 35.99%

24 to 60 months

$5,000 - $50,000

620

1.99% - 6.99%

Pros
  • Multiple rate discounts available
  • Don’t need perfect credit to qualify
  • Can get help from a dedicated consultant when you apply
Cons
  • Every loan has an upfront fee between 1.99% and 6.99%
  • No small loans
  • Not available in all states

What to know

+

Achieve offers installment loans online, with three available discounts. You might get a lower annual percentage rate (APR) by adding a co-borrower with sufficient income. Using at least 50% of your loan for debt consolidation is another discount opportunity. And if you can prove you have sufficient savings in a retirement account, you could get a rate reduction.

Still, Achieve charges a mandatory origination fee. This is an upfront fee that Achieve will deduct from your loan funds. Do the math to make sure that this fee doesn’t negate your APR discount (if you qualify for one).

Read our full Achieve personal loan review.

How to qualify

+

Other than its minimum credit score (620), Achieve doesn’t disclose many details behind its approval decisions. You can see how likely it is that Achieve will approve you by prequalifying. When you apply, it will run a hard credit check. It may also ask for your:

  • Proof of income
  • Social Security number
  • Proof of identity
  • Employment status

Discover: Best for unsecured installment loans

(1,594)
User Ratings & Reviews rating-reviews-tooltip-icon

Ratings and reviews are from real consumers who have used the lending partner’s services.

(1,594)
User Ratings & Reviews rating-reviews-tooltip-icon

Ratings and reviews are from real consumers who have used the lending partner’s services.

7.99% - 24.99%

36 to 84 months

$2,500 - $40,000

720

None

Pros
  • Low APRs
  • No origination fees
  • Can temporarily reduce monthly payments during financial hardship
Cons
  • No co-borrowers
  • Requires excellent credit
  • $39 late payment fee

What to know

+

You might know Discover for its credit cards, but it also offers unsecured installment loans. Discover loans come with benefits such as repayment assistance, U.S.-based customer service and competitive APRs. Notably, LendingTree users have given Discover a nearly perfect satisfaction score.

But qualifying for a Discover loan can be hard. It doesn’t offer joint loans, and you must have excellent credit.

Read our full Discover personal loan review.

How to qualify

+

Discover requires a credit score of at least 720. At minimum, Discover applicants must also:

  • Have a Social Security number
  • Be at least 18
  • Bring in at least $40,000 a year, either individually or as a household
  • Have a physical address, email address and internet access

Happy Money: Best for credit card refinancing

(153)
User Ratings & Reviews rating-reviews-tooltip-icon

Ratings and reviews are from real consumers who have used the lending partner’s services.

(153)
User Ratings & Reviews rating-reviews-tooltip-icon

Ratings and reviews are from real consumers who have used the lending partner’s services.

11.72% - 17.99%

24 to 60 months

$5,000 - $40,000

640

1.50% - 5.50%

Pros
  • Low rates for excellent credit
  • Will pay your credit card companies directly
  • Can manage your loan through an online portal and mobile app
Cons
  • Only available for credit card refinancing
  • Not available to those with bad credit
  • Can take up to seven days for an approval decision

What to know

+

Since Happy Money only offers loans for credit card refinancing, it won’t work for everyone. Still, if you’re looking for this type of installment loan, this lender is worth considering. Happy Money is a lending platform that connects borrowers with lenders. Namely, credit unions.

By federal law, credit union loans can have a maximum APR of just 18%. That means the most creditworthy of Happy Money borrowers could get an ultra-competitive rate. But you must have at least fair credit to qualify.

Read our full Happy Money personal loan review.

How to qualify

+

Happy Money is fairly straightforward about its requirements. First, you must have a credit score of at least 640. It also requires that you have:

  • Zero delinquencies on your credit report
  • An acceptable debt-to-income (DTI) ratio
  • Sufficient credit history with a solid credit mix
  • Adequate credit utilization

Happy Money doesn’t specify how many years of credit history it’s looking for. However, you can prequalify without taking a hard credit inquiry.

LightStream: Best for no fees

(331)
User Ratings & Reviews rating-reviews-tooltip-icon

Ratings and reviews are from real consumers who have used the lending partner’s services.

(331)
User Ratings & Reviews rating-reviews-tooltip-icon

Ratings and reviews are from real consumers who have used the lending partner’s services.

6.99% - 25.49% (with autopay)

24 to 84 months

$5,000 - $100,000

Not specified

None

Pros
  • Offers Rate Beat, a rate-matching program
  • No fees
  • Same-day loans possible
Cons
  • Requires applicants to have at least good credit to qualify
  • Doesn’t offer prequalification
  • No small loans

What to know

+

LightStream (an arm of Truist Bank) offers online loans for borrowers with good to excellent credit. This lender is so confident in its competitive APRs that it has a rate-matching program. If you get a similar loan offer with a lower APR, LightStream could beat it by 0.10 percentage points.

Unfortunately, you cannot prequalify for LightStream. That means you’ll take a hard credit hit to check your eligibility.

Read our full LightStream personal loan review.

How to qualify

+

Although LightStream doesn’t disclose its minimum credit score requirements, it only works with borrowers with at least good credit. Approved LightStream borrowers have some factors in common, including:

  • At least five years of credit history
  • Assets, such as a retirement account or liquid assets like a checking or savings account
  • An acceptable DTI ratio
  • No delinquencies or other negative payment history issues

PenFed Credit Union: Best for small installment loans

(14)
User Ratings & Reviews rating-reviews-tooltip-icon

Ratings and reviews are from real consumers who have used the lending partner’s services.

(14)
User Ratings & Reviews rating-reviews-tooltip-icon

Ratings and reviews are from real consumers who have used the lending partner’s services.

8.99% - 17.99%

12 to 60 months

$600 - $50,000

Not specified

None

Pros
  • Offers a wide range of loan amounts
  • Competitive rates
  • No origination fee
Cons
  • Requires a high credit score
  • Requires you to join the credit union to borrow
  • Lackluster mobile app ratings

What to know

+

As a credit union, you can find lower-than-average interest rates with PenFed. It also offers small loans. Most lenders start their loans at $1,000 (or higher). In contrast, PenFed’s smallest installment loan is $600.

However, PenFed loans are only available to members.

Read our full PenFed personal loan review.

How to qualify

+

You can prequalify before you’re a member, but you’ll need to join to accept your loan. All you have to do to join is open a savings account with a minimum deposit of $5.

PenFed doesn’t shed much light on its loan eligibility criteria. It may ask for bank statements, retirement statements, pay stubs or tax returns to verify your income.

Prosper: Best for joint installment loans

(3,642)
User Ratings & Reviews rating-reviews-tooltip-icon

Ratings and reviews are from real consumers who have used the lending partner’s services.

(3,642)
User Ratings & Reviews rating-reviews-tooltip-icon

Ratings and reviews are from real consumers who have used the lending partner’s services.

8.99% - 35.99%

24 to 60 months

$2,000 - $50,000

560

1.00% - 9.99%

Pros
  • Offers low rates for excellent credit
  • Applicants may still qualify with bad credit
  • Can adjust payment due dates online
Cons
  • Approval decision could take up to five business days
  • Charges multiple fees (origination, late payment, check payment and insufficient funds)
  • Customer support unavailable on weekends

What to know

+

Prosper is a peer-to-peer lender. That means individual investors, rather than financial institutions, fund its loans. Although credit requirements are a bit more lax under this model, it could be days before an investor funds your installment loan.

Still, Prosper may be worth the wait. If you have excellent credit, you could see competitive APRs. Further, fair credit doesn’t automatically pull you out of the running.

Read our full Prosper personal loan review.

How to qualify

+

Prosper’s minimum credit score requirement is 560. It will also pull your TransUnion report, review your DTI ratio and consider other credit-related factors. Prosper also requires that you:

  • Be at least 18
  • Have a Social Security number and a verifiable bank account
  • Not live in Iowa or West Virginia

SoFi: Best for online installment loans

(97)
User Ratings & Reviews rating-reviews-tooltip-icon

Ratings and reviews are from real consumers who have used the lending partner’s services.

(97)
User Ratings & Reviews rating-reviews-tooltip-icon

Ratings and reviews are from real consumers who have used the lending partner’s services.

8.99% - 29.99% (with discounts)

Pricing Disclosure

Fixed rates from 8.99% APR to 29.99% APR reflect the 0.25% autopay interest rate discount and a 0.25% direct deposit interest rate discount. SoFi rate ranges are current as of 02/06/2024 and are subject to change without notice. The average of SoFi Personal Loans funded in 2022 was around $30K. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed and will depend on the term you select, evaluation of your creditworthiness, income, and a variety of other factors. Loan amounts range from $5,000– $100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0%-7%, which will be deducted from any loan proceeds you receive. Autopay: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi. Direct Deposit Discount: To be eligible to potentially receive an additional (0.25%) interest rate reduction for setting up direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A. or eligible cash management account offered by SoFi Securities, LLC (“Direct Deposit Account”), you must have an open Direct Deposit Account within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled payroll direct deposits of at least $1,000/month to a Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion. This discount will be lost during periods in which SoFi determines you have turned off direct deposits to your Direct Deposit Account. You are not required to enroll in direct deposits to receive a Loan.

24 to 84 months

$5,000 - $100,000

680

0.00% - 7.00% (optional)

Pros
  • Same-day funds possible
  • Has a highly rated mobile app
  • Discounts for autopay and direct deposit
Cons
  • Applicants may need to pay origination fee to get the lowest rates
  • Bad-credit applicants won’t qualify
  • No small loans

What to know

+

If you’re looking for a fast installment loan, SoFi should be on your radar. In 2022, 82% of SoFi applicants who applied before 7 p.m. EST on a weekday received same-day funding. That is, unless they were consolidating debt directly.

SoFi doesn’t charge any required fees. It may offer an optional origination fee in exchange for a lower APR.

Read our full SoFi personal loan review.

How to qualify

+

SoFi’s minimum credit score is 680, so you’ll need at least good credit. SoFi also requires that you:

  • Be the age of majority in your state
  • Be a U.S. citizen, an eligible permanent resident or a nonpermanent resident (including DACA recipients and asylum seekers)
  • Have a job, a job offer with a start date within 90 days or another form of sufficient income

Upgrade: Best for flexible terms

(2,248)
User Ratings & Reviews rating-reviews-tooltip-icon

Ratings and reviews are from real consumers who have used the lending partner’s services.

(2,248)
User Ratings & Reviews rating-reviews-tooltip-icon

Ratings and reviews are from real consumers who have used the lending partner’s services.

9.99% - 35.99% (with discounts)

24 to 84 months

$1,000 - $50,000

580

1.85% - 9.99%

Pros
  • APR discounts for autopay and debt consolidation
  • Secured installment loans available
  • Offers joint loans
Cons
  • Charges an origination fee
  • High maximum APR
  • $10 late payment fee

What to know

+

A secured loan (or a loan that requires collateral) can be easier to get if you have bad credit. With lending platform Upgrade, you can use your car as collateral to boost your chances of loan approval. You could also consider adding a creditworthy co-borrower and taking out a joint loan.

Be sure to keep up with your payments, though. Although Upgrade’s late fee isn’t as high as some, it may charge you $10 if your payment is late by 15 days or more.

Read our full Upgrade personal loan review.

How to qualify

+

When you apply for an Upgrade installment loan, it will review your credit score, credit usage and payment history. Its minimum credit score requirement is 580. You must also:

  • Be the age of majority in your state
  • Be a U.S. citizen or permanent resident or live in the U.S. with a valid visa
  • Have a verifiable bank account and email address

Upstart: Best for bad credit

(16,778)
User Ratings & Reviews rating-reviews-tooltip-icon

Ratings and reviews are from real consumers who have used the lending partner’s services.

(16,778)
User Ratings & Reviews rating-reviews-tooltip-icon

Ratings and reviews are from real consumers who have used the lending partner’s services.

7.80% - 35.99%

36 or 60 months

$1,000 - $50,000

300

0.00% - 12.00%

Pros
  • One of the lowest minimum credit score requirements around
  • May still consider applicants with no credit
  • Next-day loans possible
Cons
  • Could have a high origination fee
  • Only offers two loan terms
  • High maximum APR

What to know

+

Getting an installment loan when your credit isn’t great can be tricky. You might have luck with Upstart.

This loan marketplace considers more than just your credit score. In some cases, your education can help you get approved. Also, Upstart sometimes approves borrowers with no credit.

However, if you do have bad credit, you’ll likely pay a high APR, a high origination fee or both.

Read our full Upstart personal loan review.

How to qualify

+

Upstart has transparent borrower requirements. To be eligible, you must have:

  • A 50% DTI ratio (45% in Connecticut, Maryland, New York and Vermont)
  • No bankruptcies within the last year
  • No current delinquencies
  • Fewer than six inquiries on your credit report within the last six months (not including inquiries for student loans, mortgages or auto loans)

If the credit bureaus report a significant drop in your score after Upstart approves you, the lender may cancel your loan before it’s sent.

How to get an installment loan

What is an installment loan? 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.

Before you apply for an installment loan, be sure that you can afford to pay back what you borrow. Missing payments is a sure-fire way to tank your credit score. Use our personal loan calculator to see the true cost of an installment loan, considering interest.

If your budget shows that you can handle another monthly installment payment, then you should:

1. Check your credit

Use LendingTree Spring to get your free credit score. Lenders offer the most affordable loans to borrowers with scores of at least 670. You might qualify with fair or poor credit, but be prepared for high APRs and origination fees.

2. Prequalify with multiple lenders and compare

Most lenders allow you to prequalify for a personal loan. This is a quick way to check your eligibility without taking a ding to your credit. Prequalification doesn’t guarantee approval, but it can help you decide whether a lender is worth pursuing.

3. Apply and accept your offer

Once you’ve compared offers (more on that below), it’s time to apply.

Loan applications are usually pretty simple. You’ll provide some basics like your name and birthday. You will also need to provide your annual income. The lender may ask for bank statements, and you’ll almost certainly need to provide a government-issued ID.

When the lender approves you, you’ll sign your loan documents. Then, it will send you your loan. About 30 to 45 days later, you’ll begin paying it back in equal monthly installments.

Having a hard time getting approved? 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.

How to compare 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.

BankAPR discount
Wells Fargo Bank0.25% to 0.50% for autopay from a Wells Fargo checking account
Citibank0.50% for autopay, 0.25% for existing Citigold and Citi Priority customers
U.S. Bank0.50% for autopay
PNC Bank0.25% for autopay from a PNC checking account
Fifth Third Bank0.25% for autopay from a Fifth Third checking account
M&T Bank0.15% 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.

Targeting online installment loans can also help you compare offers. Most online lenders allow you to prequalify and may provide an approval decision in minutes. At LendingTree’s loan marketplace, you could compare up to five lenders at once with no negative impact to your credit.

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 28 lenders to determine the overall best nine installment loans. To make our list, lenders must offer installment loans with competitive APRs. From there, we prioritize lenders based on the following factors:

  • Accessibility: Lenders are ranked higher if their personal loans are available to more people and require fewer conditions. This may include lower credit requirements, wider geographic availability, faster funding and easier and more transparent prequalification and application processes.
  • Rates and terms: We prioritize lenders with more competitive fixed rates, fewer fees and greater options for repayment terms, loan amounts and APR discounts.
  • Repayment experience: For starters, we consider each lender’s reputation and business practices. We also favor lenders that report to all major credit bureaus, offer reliable customer service and provide any unique perks to customers, like free wealth coaching.

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.