An installment loan lets you borrow money and then pay it back in regular, often monthly, payments (aka installments) over a period of years, such as one to 30 years, depending on the type of loan. Mortgages, auto loans, and personal loans are all types of installment loans. We focused on personal loans and found that LightStream offers the best installment loans, thanks to high loan amounts, zero fees, a wide range of loan uses, no collateral requirement, and long repayment terms. Other strong options include Upgrade, SoFi, and Universal Credit.
Why trust Credible
The Credible editorial team is independent and unbiased — lending partners do not influence our editorial content. From rates and fees to customer experience, our expert editorial staff analyzed 899 personal loan data points across 31 lenders to simplify comparing personal loans. Using data-driven methodologies, we scored criteria that are important to you. This approach allows us to objectively rank personal loans so you can find the best loan for your situation. To learn more, read our methodology below.
Compare rates on installment loans
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, often don't require collateral, and can be approved and funded within days. Personal loans meet all these criteria.
LightStream: Best overall
Loan Amount
$5,000 to $100,000
Same-day funding available
High maximum loan amount
No origination fee
Good credit required
No prequalification process
Not available in Vermont
Overview
Lightstream is one of three Credible partner lenders to offer loan amounts up to $100,000, which makes it ideal for financing large expenses like home improvements or weddings. Funds are available as soon as the same day you apply, and you'll have up to 20 years to repay certain types of loans, including home improvement loans, RV loans, and boat loans. There are no origination fees, and rates are low — Lightstream's lowest APR beats SoFi's advertised lowest APR by 1 percentage point. But you'll need good credit to qualify.
Unlike most lenders, Lightstream does not let you prequalify on its site. Nor does it provide a contact phone number next to its customer service hours on its website.
Repayment terms
2 - 20 years, depending on loan purpose
Eligibility
Available in all states except RI and VT
Time to get funds
As soon as the same business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Upgrade: Best for fair credit
Loan Amount
$1,000 to $50,000
Fair credit borrowers eligible
Autopay and direct pay discounts
Can fund in as little as 1 business day
Mobile app
Secured loans available
High maximum origination fee
Cosigners not accepted on home improvement loans
Low J.D. Power ranking
Overview
Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
SoFi: Best debt consolidation loans for very good credit
Loan Amount
$5,000 - $100,000
Min. Credit Score
Does not disclose
Large loan amounts available
Autopay and direct pay discounts
Same day funding
Long loan terms available
Not transparent about minimum credit score requirements
5,000 minimum loan amount
Overview
SoFi personal loans feature high loan amounts, competitive interest rates, same-day funding, and long loan terms, plus discounts for autopay and direct pay. Plus, SoFi offers live chat, a prequalification process that doesn't require your Social Security number, and free financial advice for customers. Unlike many other online lenders, SoFi is an FDIC-insured bank.
To qualify for an unsecured loan you may need to have good credit, but unlike other lenders, SoFi doesn't specify a credit score minimum. Minimum loan amounts start at $5,000.
Fees
Option to pay an origination fee in exchange for a lower rate
Time to get funds
Typically within a few days, given approval and bank account verification, but sometimes within the same day
Loan uses
Solely for personal, family, or household uses
Universal Credit: Best debt consolidation loans for bad credit
Loan Amount
$1,000 to $50,000
Borrowers with bad credit considered
$25,000 annual income requirement
Autopay and direct pay discounts available
Can fund in one business day
High APRs
Potentially high origination fees
Not available in Iowa
Overview
Universal Credit is one of a handful of lenders that offers personal loans for bad credit. If your FICO credit score is at least 560, you may be eligible for a Universal Credit personal loan. It offers loan amounts up to $50,000, repayment terms up to seven years, and discounts for direct pay and autopay. Funds are available as soon as the next business day after loan approval.
Note that rates and fees can be relatively high — you may pay an origination fee from 5.25% to 9.99%, and APRs start at 11.69%. If you get a loan with a high interest rate, consider refinancing your personal loan at a lower rate once you've improved your credit score.
Eligibility
A U.S. citizen or permanent resident; not available in DC, IA, SC, WV
Time to get funds
As soon as 1 business day after acceptance
Loan uses
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
Splash: Best quick loans for good credit
Loan Amount
$5,000 to $35,000
Excellent customer reviews on Trustpilot
Funding as soon as the next business day
Large loan amounts available
Possible origination fee up to 7.49% (through Credible)
Other lenders may have lower starting APRs
No cosigner option
Overview
It’s worth considering a personal loan through Splash if you have good credit (ideally, a FICO score above 700). The platform offers loans from a wide range of lenders, and next-day funding is available. Plus, Splash has a live chat feature so you can get real-time answers without having to wait on hold or for an email. Loans are available up to $100,000 if you apply via Splash’s website.
Rates are competitive, but borrowers with excellent credit may find lower APRs elsewhere. If you need a repayment term longer than five years, you’ll need to look elsewhere as well.
Loan amount
$5,000 - $100,000 (up to $35,000 on Credible)
Eligibility
Available in all states except VT. OH and NM net disbursed amount must be greater than $5,000. MA must be greater than $6,000
Loan uses
Debt consolidation, credit card refinancing, home improvement, major purchases
BHG Financial: Best for large personal loans
Loan Amount
$20,000 to $200,000
Eligible applicants can borrow up to $200,000
Considers borrowers with fair credit
Long repayment terms
Not available in IL, ND, and MT
No discounts
Minimum annual income requirement of $100,000
Funding takes at least five days
Overview
BHG Financial stands out for offering the largest loan amounts — up to $200,000 — of any Credible partner lenders. Simply put, if you need an unsecured personal loan over $100,000, there are very few places to look, but BHG is one. You'll have up to 10 years to repay the loan, but you'll need an annual income of at least $100,000 to qualify and a FICO score that's 660 or higher.
Loan amounts start at $20,000, so look elsewhere for small loans. And BHG charges a modest origination fee between 3% and 4%, depending on your financial profile. Loan funds are available within five to 14 days of loan approval.
Fees
Origination fees, late fees, other fees may apply
Eligibility
Available in all states except Illinois, North Dakota, and Montana
Loan uses
Debt consolidation, credit card refinancing
LendingClub: Best online experience
Loan Amount
$1,000 to $40,000
Mobile app
Low minimum income requirement
High close rate on loans made through Credible
Available in all states
Origination fee
No discounts
Funding not as fast as some competitors
Overview
LendingClub is a solid lender for good credit borrowers and some fair credit borrowers that apply directly on its website. It's easy to prequalify with LendingClub, especially if you're uncomfortable providing your Social Security number, as the company doesn't require it at the prequalification stage. (You will need to provide it if you move forward with a full application.)
While prequalification is not a guarantee that you'll be approved for a loan, LendingClub does a better job than most other Credible partner lenders at approving applicants that have successfully prequalified. In other words, you're less likely to have your application declined once you apply (if you've already prequalified). LendingClub may charge an origination fee between 3% and 8%.
Eligibility
Available in all 50 states
Loan uses
Debt consolidation, paying off credit cards
OneMain Financial: Best bad credit personal loans
Loan Amount
$1,500 to $20,000
Flexible eligibility requirements
Offers secured options
Competitive bad-credit loans
Physical presence
Availability
Origination fees
High starting APR
Low maximum loan amount
Overview
OneMain Financial has multiple options for bad-credit personal loans. There is no minimum credit score required (if you apply directly with OneMain), which means you could get a loan with bad credit (FICO below 580). Plus, cosigners are allowed — a cosigner is someone (ideally, with good credit) who promises to repay the loan if you can't, which can make it easier to qualify or lower your rate. And, secured personal loans are available. You secure a loan with collateral, which may also help you qualify or lower your rate.
Rates are higher than competitors and OneMain charges origination fees as either a flat fee up to $500, or a percentage from 1% to 10% (depending on your state of residence). Note that even if you prequalify for a personal loan with OneMain, getting approved isn't a given.
Fees
Origination fee, unsuccessful payment fee, late fee
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
Time to get funds
As soon as 1 to 2 days after acceptance
Loan use
All except business, and education
Upstart: Fast personal loans for all credit types
Loan Amount
$1,000 to $50,000
May fund in 1 business day
No minimum credit score requirement on lender site
Low minimum APR
Trustpilot score of 4.9/5 stars
May charge a high origination fee
No discounts offered
Overview
Upstart has one of the lowest available APRs of all Credible partner lenders and non-partners we reviewed, making it a good choice for well-qualified applicants. However, it's also one of few lenders that doesn't have a minimum credit score requirement (if you apply on the lender's website), which makes it an option if you have bad credit or no credit history. Upstart may charge an origination fee as high as 12%, but good-credit borrowers may not be charged one at all.
Trustpilot gives Upstart 4.9 stars, which is the highest of all lenders we reviewed.
Time to get funds
As soon as 1 to 3 business days
Loan uses
Pay off credit cards, consolidate debt, relocate, make a large purchase, and other purposes
Avant: Best for all credit types
Loan Amount
$2,000 to $35,000
Borrowers with bad credit considered
Funds as soon as the next business day
2-year loan terms available
No discounts offered
Origination fee
Not available in HI, IA, MA, ME, NY, VT, WV, WA, AP, AE, and AA
Overview
Avant personal loans are a good choice for borrowers with bad credit looking for small- to moderate-sized personal loans. Loans are available up to $35,000 and you could get the money as soon as the next business day after approval. Plus, Avant is more likely than some lenders to approve the applications of borrowers who've prequalified with Avant. However, the lender charges an origination fee up to 9.99%, and its top-range interest rates are among the highest of the lenders we reviewed.
Fees
Origination fee, late fee, dishonored payment fee
Eligibility
Available in all states except HI, IA, MA, ME, NY, VT, WV, WA, AP, AE, and AA
Time to get funds
As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)
Loan uses
Debt consolidation, emergency expense, life event, home improvement, and other purposes
Methodology
Credible evaluated 31 lenders based on available loan amounts, funding times, customer experience, minimum and maximum fixed rates, available repayment terms, fees, discounts, minimum credit and income requirements, and whether cosigners or joint borrowers are accepted. We also considered internal proprietary data, such as how likely prequalified applicants were to be approved for loans.
Credible’s team of experts gathered information from lender websites, directly from our partners, and internally. Each data point was verified by a senior editor 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?
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 is typically deducted from the balance before you receive the cash. You're more likely to be charged an origination fee if you have fair credit or bad credit.
Check Out: Best Personal Loans With No Origination Fee
Important
If a lender charges an upfront origination fee, you'll receive less money than the amount you borrowed.
Repayment term
Most personal installment loans offer a range of repayment terms. The term you choose affects the monthly payment and the APR the lender offers. 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. For instance, personal loans for home improvement may have longer terms — up to 20 years with some lenders.
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, defined as a FICO score under 580, consider collateralized loans or lenders that allow a cosigner.
- Prequalify: Most lenders offer a prequalification process with a soft credit check — this won't hurt your credit and can give you an idea of the APRs and loan amounts you may be approved for. You can prequalify with direct lenders for installment loans, or you can use a loan aggregator site to prequalify with several lenders at once. 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
If you have bad credit, your options will be fewer. Still, you can often find installment loans for bad credit online. Online lenders sometimes have more flexible requirements than traditional banks. No-credit-check installment loans are also available, but note that they can have sky-high interest rates, often in the triple digits.
You might consider applying with a cosigner or getting a joint personal loan with someone who has good credit. They share responsibility for repaying the loan, and you're both held accountable for repayment. This gives the lender extra security, but means your cosigner’s or joint applicant's good credit could be damaged, possibly severely, if you miss payments.
Some lenders also offer secured loans, where you provide collateral, such as the title to your vehicle, to help you qualify. Though you risk losing your collateral if you default. If you still can’t qualify, consider a credit-builder loan — just know you'll need to wait to receive the entirety of the loan until you've made all payments on it.
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.
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
How many installment loans can you have?
Open
There’s no specific limit to how many installment loans you can have. Many people have a mortgage, auto loan, and personal loan at once.
However, lenders will consider your other debts when processing your loan application. If you don’t have sufficient funds to cover your current debts along with the new installment loan you’re applying for, your loan application may be denied.
Where can I get an installment loan with bad credit?
Open
You may be able to get an installment loan for bad credit from a bank, credit union, or online lender. Online lenders tend to offer faster funding and may use alternative criteria to approve more applicants.
But you may prefer the in-person experience of going to a bank or credit union, and you may find the best rates at a credit union, depending on your situation.
What is an installment loan credit card?
Open
A credit card is different from an installment loan. It provides a revolving line of credit and allows you to pay all or only a portion of what you spend after a grace period.
Installment loans, on the other hand, provide a lump sum that is typically repaid in predictable monthly payments.
What is a personal installment loan?
Open
A personal installment loan allows you to borrow an amount of money upfront and repay the sum with interest, typically in fixed monthly payments.
Unlike mortgages and auto loans, personal installment loans can be used for almost anything, from buying furniture or covering costly veterinary bills to paying off high-interest debt. Plus, they’re typically unsecured, meaning you don’t have to provide collateral like a house or car to secure the loan.
Meet the expert:
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.
