Best Installment Loans for 2024 (From Bad Credit to Instant Online Approval)

• APR: 7.96–35.97%

• Loan amount: $1k–$50k

• Loan term: 2–7 years

• Minimum credit score: 560

• Origination fee: 1.85–8.99%

Why we love it

Upgrade gives you access to fast loans, as quickly as one day after application approval, alongside low fixed rates. Loans can be used for various personal reasons, but you can also use the loan to cover any business expenses. After receiving your loan, if you’re in a rush to pay it off, there are no prepayment fees to catch you out.

Upgrade also offers a handy mobile app and Credit Health tool, so you can track your balance and make payments—all without even getting out of bed.

What to look out for

APR rates can differ depending on your credit score, credit history, and loan term—those with higher credit scores will likely receive a lower APR.

Be sure to make timely payments, as Upgrade will charge a $10 fee if your payment is 15 days late or not paid at all. Autopay users will also lose out as there’s no discount available.

• APR: 8.30–36%

• Loan amount: $1k–$40k

• Loan term: 3–5 years

• Minimum credit score: 600

• Origination fee: 2–6%

Why we like it

It’s always nice to have some variety, and Lending Club delivers by offering personal loans, balance transfer loans, and auto loans. They also permit joint applications and several perks if you sign up as a member.

The Lending Club offers a generous 15-day grace period if you fail to make your payment on time—helping to ease some pressure from the repayment process.

What to look out for

In comparison to other loan amounts, Lending Club has a lower limit of $40k. So, if you’re looking for a larger loan to pay off over a longer period, you may be better off with one of our other options.

While not a huge difference, it’s also worth noting that the APR rates are slightly higher than the other options on our list. Although, you’re likely to get a lower APR with a good credit score.

• APR: 7.99–35.99%

• Loan amount: $2–$50k

• Loan term: 3–4 years

• Minimum credit score: 600

• Origination fee: 0.99–8.99%

Why we like it

Best Egg covers a pretty flexible loan amount range, so it’s a good fit for those wanting both smaller and larger loans.

After application approval, Best Egg will deposit your loan quickly within 1-3 business days, although half of their customers will likely receive their loan the next day. If you’re keen to pay your loan off early, you’ll also be happy to know that there are no prepayment penalties.

What to look out for

You may not be charged for prepayment, but you will get charged for late payments—$15 if you’re over three days late.

Be wary of origination fees as well, as they can differ depending on your loan term. Likewise, your loan amount, APR, and loan term can depend on your creditworthiness, income, and debt payment obligations.

• APR: 7.99–35.99%

• Loan amount: $2k–$50k

• Loan term: 3–5 years

• Minimum credit score: 560

• Origination fee: 1–5%

Why we like it

When compared to other top lenders, Prosper stands out for having a relatively low minimum credit score requirement—even catering to those with poor credit. You’ll get your loan within three business days if your application is approved.

Prosper also doesn’t charge any prepayment fees, so you’re free to pay off your loan early and cut down your rates.

What to look out for

Like most lenders, they set your APR rates after taking your creditworthiness, loan terms, and Prosper’s own rating into account. Origination fees can also vary from as little as 1% up to 5%.

If you’re tempted to opt for Prosper due to the minimum credit score requirement, be aware that your APR rate will likely be higher if you have a poor credit score.

• APR: 7.99%–35.99%

• Loan amount: $2k–$36.5k

• Loan term: 2–6 years

• Minimum credit score: 600

• Origination fee: 0–6%

Why we like it

Lending Point is another one that will appeal to those will low credit scores. Despite their minimum requirement being 600, they’ve been known to go down to 590.

However, the catch is you’ll likely receive greater interest rates, which are pretty high compared to other lenders. Once you receive your loan approval, you should get your money the next business day. If you’re eager to pay off your loan, Lending Point won’t charge you prepayment fees.

What to look out for

As always, the loan conditions depend on several factors, such as your credit score, financial background, and Lending Point’s own scoring system. Regarding income, you must have a minimum of $350,000 to be eligible for the loan.

Origination fees can also differ depending on which state you live in. And for those living in Nevada or Virginia…well, you’re out of luck, as Lending Point doesn’t cover these states.

• APR: 6.99–24.99%

• Loan amount: $3.5k–$40k

• Loan term: 3–6 years

• Minimum credit score: 660

• Origination fee: No fee

Why we like it

Marcus by Goldman Sachs stands out for having no origination fees, late fees, and no prepayment fees. Not only that, but you can also save money on rates by enrolling with Autopay and getting a 0.25% discount.

If you’re looking for some flexibility, Marcus lets you change your payment date up to 3 times throughout the loan term. You can also defer payment for one month without additional fees or interest after making consistent on-time payments for 12 consecutive months.

What to look out for

Loan offers differ depending on your financial background, and higher APR rates are charged for longer loan terms. Marcus somewhat restricts its borrowers by not allowing co-signers or co-applicants to sign. And for all the graduates out there, unfortunately, you can’t use the loan to refinance existing student loans.

Loans can take up to 4 days to be deposited after approval, so perhaps not the best option for those looking for emergency cash.

• APR: 7.99–23.43%

• Loan amount: $5k–$100k

• Loan term: 2–7 years

• Minimum credit score: 670

• Origination fee: No fee

Why we like it

Those seeking a speedy loan are in luck as SoFi offers same-day funding, with a maximum of 2 working days. You can also get a 0.25% discount with Autopay when applying for the loan.

A stand-out SoFi feature is their unemployment protection program, which helps you out if you lose your job while paying off your loan. For extra help in repayments, SoFi also has a mobile app to give you the tools to manage your loan better.

What to look out for

As well as looking at your credit score, SoFi requires you to be employed, typically with at least a $45k annual income. That being said, the average income of a SoFi borrower is approximately $100k.

SoFi also loses some points for not permitting co-signers and not allowing you to choose your preferred initial payment date.

• APR: 5.99–21.49%

• Loan amount: $5k–$100k

• Loan term: 2–12 years

• Minimum credit score: 660

• Origination fee: No fee

Lightstream is so confident in its services that it offers a 30-day loan experience guarantee. These services include same-day funding if your application and verification process is completed before 2:30 pm—ideal for those seeking a quick loan.

Unlike other lenders, Lightstream doesn’t charge a penny for origination fees, late payments, or prepayment fees. You can also get a nice discount with Autopay, which is available before you receive the funds.

What to look out for

APR rates are determined based on factors such as loan purpose, amount, term length, and credit profile. If you’ve experienced defaults or late payments in the past, be prepared for higher rates or application denial.

There’s also no prequalification process—so applicants with a good credit score are generally more likely to guarantee a loan.

Personal installment loans can help you quickly cover a large purchase, pay a medical bill, or pay off another debt.

Personal installment loans tend to be pretty flexible, and the amount loaned can range from hundreds to thousands of dollars. Repayments also offer flexibility and range from a few months to several years.

Like other installment loans, a personal loan is provided by a lender alongside a fixed interest rate and repayment period—both largely depend on your credit score. According to the Federal Reserve, the average interest rate on a 24-month personal loan was 10.16% in August 2022.

Your credit score is one of the critical factors for lenders when deciding whether to grant a loan approval. Here is a breakdown of the FICO credit score ranges—

• Excellent: 800–850

• Very Good: 740–799

• Good: 670–739

• Fair: 580–669

• Very Poor: 300–579

To calculate your credit score, Credit Karma offers an easy tool to check your credit for free.

Most lenders require a minimum score of 580 to qualify for an installment loan. But don’t write a loan off entirely if you have a poor credit score. Many lenders will approve loans with poor credit yet charge higher interest rates because of the higher risk factor.

On a positive note, if you have bad credit, making on-time payments from a loan is a handy way to improve your credit score.

Bad credit makes finding a lender who’ll provide an installment loan with no credit check can be tricky. Lenders want assurance that you’ll make the repayments—without a credit check, there’s no guarantee you’ll be able to make those payments.

Due to the added risk for lenders, if you find a no-credit-check installment loan, it will likely come with higher interest rates. These rates typically go up to 35%, but this can differ depending on the lender and the loan amount.

Personal information

Every lender will expect you to provide your personal and financial information. This includes the basics, such as your name and date of birth, as well as your social security and bank account information.

Source of income

For lenders, loaning money can be risky business. So, many want details regarding your employment information and source of income. They may require proof of a steady source of income to make sure you can pay the scheduled repayments.

Credit history

Lenders use your credit score to calculate the level of risk and give you a reasonable interest rate. The better the credit score, the better the interest rates. If you want to lower your APR, start improving that credit score. Bear in mind not all lenders check your credit history. However, no credit check means higher risk, so you’ll likely be charged higher interest rates.

We get it. Nobody likes reading the fine print. But, better to be safe than sorry when it comes to your finances. Here’s what to look out for when applying for an installment loan—

Origination fee

An origination fee is a percentage of the total loan amount that most lenders charge as compensation for processing a loan application.

Typically, these fees range from 1% to 8%—but some don’t charge a fee at all, a nice perk if you want to cut down on additional costs. Origination fees vary depending on factors such as the type of loan, the loan amount, and your creditworthiness.

Repayment terms

To avoid any credit score damage or late payment fees, make sure you’re crystal clear on your repayment dates and terms. It’s also worth checking if you will get charged extra for paying off your loan early (prepayment) or what penalties you’ll face for late or missed payments.

APR (Annual Percentage Rate)

The APR rate is the amount of interest you’ll need to pay on your loan. Lenders can set APR rates depending on several factors, including—

• Credit score

• Income

• Existing debts

• Employment information

Your credit score is usually the principal factor when determining APR rates, but it can differ depending on the lender, the size of the loan, and the duration of repayments. But, to put it simply—

The higher the credit score, the better the interest.

The type of loan also affects the APR, as short-term loans tend to come with higher interest rates than long-term loans. This is because short-term loans yield lower interest and a higher risk of loan default for lenders.

Prequalification

For some extra assurance, some lenders offer prequalification. This process allows you to determine what APR you're entitled to without damaging your credit score. Those with bad credit should keep an eye out for loans with prequalifications, as your chances of getting a loan approval won’t be as high as those with a good credit score.

Buying a car is an expensive but necessary purchase. To ease the financial strain, many opt for a car loan.

An auto loan allows you to borrow the cost of the vehicle and make monthly repayments, typically in the range of 2–5 years. As with other loans, the repayments come with a fixed interest rate.

In most cases, your vehicle serves as collateral. So, if you fail to make the repayments, the lender has the right to repossess your car.

For many, purchasing a house is one of the most costly purchases you’ll ever make. So, it makes sense that many take a mortgage loan to help finance the purchase of a house.

Before getting approval, lenders will check your credit score, source of income, and employment status. This extensive vetting process makes qualifying for a mortgage installment loan trickier. However, these checks are necessary due to the long-term repayment commitment, typically between 15–30 years.

Like auto loans, your house acts as collateral. This is good because the interest rates tend to be lower. On the flip side, if you don’t make the payments, you risk losing your property.

Experiencing financial rough spots is commonplace, but getting a loan can provide a quick fix for some temporary relief. Whether it's a personal loan or a specific auto or mortgage loan, you can get instant cash to relieve your financial strain.

If done responsibly, getting a loan can help improve your credit score. Making on-time monthly payments enables you to develop a cleaner credit history.

For those with a bad credit score needing a loan, try applying for a bad credit installment loan and make on-time payments to build up your credit score.

Installment loans come with fixed monthly payments, which allow you to plan your budget and make regular repayments. The predictability means you’ll have no nasty surprises regarding unexpected payments and fees.

While scheduled payments are great for planning ahead, they don’t leave much room for flexibility. If you find yourself in a position where you’re unable to make payment, you risk damaging your credit score or facing collateral loss.

As well as damaging your credit score, late or missed payments can also come with penalty fees. Fees can differ among lenders, who may also increase the interest rate.

You can also be charged a prepayment penalty for paying off your loan too early. Depending on the loan size, prepayment penalties can range from hundreds to thousands of dollars.

Interest rates on installment loans differ from person to person and can largely depend on your credit score. Those with no credit history or a bad credit score can struggle to secure a loan and will likely be charged high-interest rates if successful.