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Best Installment Loans of November 2024

An installment loan can provide quick cash. Here’s how they work and where to get one.

Author
By Lindsay Frankel
Lindsay Frankel

Written by

Lindsay Frankel

Writer

Lindsay Frankel has been in personal finance for over eight years. Her work has been featured by MSN, CNN, FinanceBuzz, and The Balance.

Edited by Meredith Mangan

Written by

Meredith Mangan

Senior Editor

Since 2011, Meredith Mangan has helped steer content creation in mortgages and loans, insurance, credit cards, and investing for major finance verticals, including Investopedia and The Balance.

Reviewed by Meredith Mangan

Written by

Meredith Mangan

Senior Editor

Since 2011, Meredith Mangan has helped steer content creation in mortgages and loans, insurance, credit cards, and investing for major finance verticals, including Investopedia and The Balance.

Updated October 1, 2024

Editorial disclosure: Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. Credible Operations, Inc. NMLS # 1681276, is referred to here as “Credible.”

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An installment loan lets you borrow money for a wide range of purposes, including debt consolidation, buying a home, or paying for a wedding. You repay the loan with regular, predictable payments (aka installments) over a period of years, such as two to 30 years, depending on the type of loan.

But with so many lenders to choose from, finding the best installment loan can seem daunting. To help narrow your options, we evaluated personal loan lenders offering installment loans based on terms, fees, rates, funding time, customer experience, and more. 

Compare rates on installment loan in November 2024

Advertiser Disclosure

All APRs reflect autopay and loyalty discounts where available | LightStream disclosure | SoFi Disclosures | Read more about Rates and Terms

Best installment loans

The best installment loans, in our opinion, offer fixed interest rates so that you don't need to worry about the payment changing as current interest rates adjust. They're also widely accessible. 

For this reason, we focused on personal loans since they don't require that you own a home or have home equity to qualify. In fact, you don't need to pledge any sort of collateral on most personal loans, and some lenders can even approve your application and fund your loan the same day you apply. 

Best overall

SoFi

SoFi

4.9

Credible Rating

Check Rates

on Credible’s website

Est. APR

8.99 - 29.99%1

Loan Amount

$5,000 to $100,000

Min. Credit Score

Does not disclose

Pros and cons

More details

Best credit union for personal loans

Penfed

PenFed

4.6

Credible Rating

Check Rates

on Credible’s website

Est. APR

8.49 - 17.99%

Loan Amount

$600 to $50,000

Min. Credit Score

760

Pros and cons

More details

Best for fair credit

Upgrade

Upgrade

4.5

Credible Rating

Check Rates

on Credible’s website

Est. APR

9.99 - 35.99%

Loan Amount

$1,000 to $50,000

Min. Credit Score

600

Pros and cons

More details

Best for no origination fees (and low rates)

Discover Personal Loans

Discover Personal Loans

4.4

Credible Rating

Check Rates

on Credible’s website

Est. APR

-

Loan Amount

$2,500 to $40,000

Min. Credit Score

660

Pros and cons

More details

Best debt consolidation loans for bad credit

Universal credit

Universal Credit

4.3

Credible Rating

Check Rates

on Credible’s website

Est. APR

11.69 - 35.99%

Loan Amount

$1,000 to $50,000

Min. Credit Score

560

Pros and cons

More details

Best quick loans for good credit

Splash Financial

Splash

4.3

Credible Rating

Check Rates

on Credible’s website

Est. APR

-

Loan Amount

$5,000 to $35,000

Min. Credit Score

700

Pros and cons

More details

Best home improvement loans and low rates

Lightstream

LightStream

4.2

Credible Rating

Check Rates

on Credible’s website

Est. APR

6.94 - 25.29%

Loan Amount

$5,000 to $100,000

Min. Credit Score

700

Pros and cons

More details

Best for large personal loans

BHG

BHG Financial

4

Credible Rating

Check Rates

on Credible’s website

Est. APR

-

Loan Amount

$20,000 to $200,000

Min. Credit Score

660

Pros and cons

More details

Best online experience

Lending club

LendingClub

4

Credible Rating

Check Rates

on Credible’s website

Est. APR

9.06 - 35.99%

Loan Amount

$1,000 to $40,000

Min. Credit Score

660

Pros and cons

More details

Best for all credit types

Avant

Avant

3.9

Credible Rating

Check Rates

on Credible’s website

Est. APR

9.95 - 35.99%

Loan Amount

$2,000 to $35,000

Min. Credit Score

550

Pros and cons

More details

Best bad credit personal loans

One main

OneMain Financial

3.9

Credible Rating

Check Rates

on Credible’s website

Est. APR

18.00 - 35.99%

Loan Amount

$1,500 to $20,000

Min. Credit Score

540

Pros and cons

More details

Best fast personal loans for all credit types

Upstart

Upstart

3.9

Credible Rating

Check Rates

on Credible’s website

Est. APR

7.80 - 35.99%

Loan Amount

$1,000 to $50,000

Min. Credit Score

620

Pros and cons

More details

Methodology

Credible evaluated the best installment loan lenders based on factors such as customer experience, minimum fixed rate, maximum loan amount, funding time, loan terms, fees, discounts, and whether cosigners are accepted. Credible’s team of experts gathered information from each lender’s website, customer service department, directly from our partners, and via email support. Each data point was verified by a third party to make sure it was accurate and up to date. 

Learn more about how Credible rates lenders by exploring our Personal Loans Lender Rating Methodology.

What are installment loans?

Installment loans are issued as a lump sum of money to a borrower and require regular payments of principal and interest. Many installment loans are fixed-rate loans, meaning the interest rate stays consistent for the term of the loan. Though some, like mortgages, may have variable rates, which means the rate and your payment can change with current interest rates. 

There are several types of installment loans, including:

  • Auto loans, which are secured by your vehicle and best for purchasing a car
  • Mortgages, which have longer terms and are appropriate for purchasing a home
  • Student loans, which may come with a grace period and can be variable or fixed
  • Personal loans, which you can use to consolidate debt, pay medical bills, fund a home improvement project, or pay for almost any other financial need

Personal loans allow you the most freedom to use the money as you see fit. They’re typically unsecured, which means you don’t have to supply any collateral, but can also mean a higher interest rate. You can usually borrow between a few hundred and several thousand dollars, and you can repay the money over the course of several months or years. 

How do installment loans work?

Each payment on an installment loan includes a portion of the principal, or the amount you borrowed, along with interest. But the cost of the loan isn’t necessarily limited to the interest rate, fees also need to be considered. 

This is where the annual percentage rate (APR) comes in. The APR accounts for both the interest rate and upfront fees, and generally ranges from around 6% to 36% on personal loans, depending on your credit score and other factors. The APR on a secured installment loan, like an auto loan or mortgage, might be less.

Related: How Do Personal Loans Work?

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Important

A loan’s APR accounts for both the interest rate and upfront fees, which makes it the best way to compare personal loan rates.

In addition to payment mechanics, installment loans have a few other features:

Loan amount

Many lenders offer personal installment loans up to $50,000. But some offer larger loan amounts of $100,000 or more, to well-qualified applicants. Home equity loans may be available for much more than this, depending on the amount of equity you have in your home.

Time to fund

If you apply for a personal installment loan online, you may be able to receive your money as soon as the same day, or it may take a few weeks to get the funds. Once the funds are delivered to your bank account, repayment typically begins within 30 days. Home equity installment loans can take a month or more to fund. 

Origination fee

Some installment loans come with an origination fee or other upfront fees, which may be charged as a percentage of the loan amount and are typically deducted from the balance before you receive the cash.

Check Out: Best Personal Loans With No Origination Fee

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Important

If a lender charges an upfront origination fee, you may receive less money than what you borrowed.

Repayment term

Most personal installment loans come with a choice of term, which is the length of time you’ll have to repay the lender. The term you choose may affect your APR. Terms generally range from one to seven years for personal loans, but may be shorter or longer, depending on your preference and the loan's purpose. Mortgages and student loans have longer terms, such as 30 years. 

How to get an installment loan

  • Research lenders: First, narrow down your options to lenders that offer the amount you need for the purpose you need it. Pay attention to minimum credit and income requirements. If you have bad credit, usually defined as a FICO score under 580, consider collateralized loans or lenders that allow a cosigner. 
  • Prequalify: For lenders that offer a prequalification process with a soft credit check, provide the requested information to get prequalified. You can prequalify with direct lenders for installment loans, or you can use a loan aggregator site to prequalify with several lenders at once. This will help you compare rates. Note that your final rate with each lender could differ slightly, or you may not receive final approval. 
  • Compare loan offers: Select a few lenders that offer the best rates and terms, and research other factors, such as customer service reviews, repayment flexibility, digital tools, and funding time to narrow down your options further. 
  • Choose a lender: Pick the lender that best meets your needs. 
  • Formally apply: Choose a lender to apply with, and provide any additional documents required to help the lender make a decision. Once you apply, the lender will conduct a hard credit pull which could temporarily lower your score by a few points. 
  • Sign your loan agreement: Review the agreement carefully before signing. Once that’s taken care of, you can receive your funds.

Learn More: How To Get a Personal Loan

Installment loans for bad credit

Bad-credit installment loans are few and far between, but it is possible to find online installment loans for bad credit. Online lenders sometimes have more flexible requirements than traditional banks. No-credit-check installment loans are also available, but note that they come with sky-high interest rates, often in the triple digits. 

If you have bad credit, you have a couple of other options as well. You can apply with a cosigner who has good credit. They share responsibility for repaying the loan, and will be held accountable if you miss payments or default. This gives the lender extra security, but means your cosigner’s good credit could be damaged, possibly severely, if you miss payments. 

You can also provide collateral, such as the title to your vehicle, to qualify for an online installment loan with some lenders, though you risk losing it if you default. If you still can’t qualify, consider a credit-builder loan — some programs even offer access to credit while you save money and build credit. 

How to compare installment loans

Start by comparing eligibility requirements, like minimum FICO score and income requirements, to find lenders you qualify for. Next, compare loan amounts and funding times to find a loan that meets your funding needs. 

After you’ve prequalified, compare personal loan offers. It’s most important that your monthly payment is manageable, but you should also make sure the term fits and that the APR is competitive.

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Tip

If you can afford a higher payment and shorter term, you may pay less over the long run than you will with a lower payment and longer term.

Once you’ve found lenders that fit your basic criteria, narrow your options further by reading customer reviews and checking the availability of customer support and other features. For example:

  • Does the lender have a mobile app? 
  • Does the lender offer a discount for automatic payments? 
  • Will you be able to skip a payment due to hardship? 
  • Can you change your due date? 
  • Does the lender offer refinancing? 

Get into the details so you can choose the best installment loan for you. 

FAQ

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Meet the expert:
Lindsay Frankel
Lindsay Frankel

Lindsay Frankel has been in personal finance for over eight years. Her work has been featured by MSN, CNN, FinanceBuzz, and The Balance.