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Best installment loans in June 2025

Updated May 27, 2025

What to know first: An installment loan lets you borrow a fixed sum of money and pay it back over a set period. You can use personal loans if you need to finance a large-ticket item, pay for an emergency expense or have flexibility in the loan’s use.

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Best for excellent credit
PERSONAL LOAN
LightStream
4.5
6.49- 25.29%
* with AutoPay
Min credit score
695
$307
Loan amount
$5k-$100k
See offersArrow Right
See details
Best for bad credit
PERSONAL LOAN
Upstart
4.7
6.60- 35.99%
Min credit score
300
$307
Loan amount
$1k-$50k
See offersArrow Right
See details
|
Best for co-borrowers
PERSONAL LOAN
LendingClub
4.7
7.90- 35.99%
Min credit score
600
$313
Loan amount
$1k-$50k
See offersArrow Right
See details
Best for debt consolidation
PERSONAL LOAN
Happy Money
4.5
8.95- 29.99%
Min credit score
640
$318
Loan amount
$5k-$40k
See offersArrow Right
See details
Best for short repayment terms
PERSONAL LOAN
Citi® Personal Loan
4.6
8.99- 19.49%
Min credit score
Not disclosed
$318
Loan amount
$2k-$30k
See offersArrow Right
on Bankrate
See details
Best payday loan alternative
PERSONAL LOAN
Avant
4.5
9.95- 35.99%
Min credit score
550
$323
Loan amount
$2k-$35k
See offersArrow Right
See details
|
Best online lender
PERSONAL LOAN
SoFi
4.7
8.99- 35.49%
with all discounts
Min credit score
Not disclosed
$318
Loan amount
$5k-$100k
See offersArrow Right
See details
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A closer look at our top installment loan lenders 

These deeper dives will help you narrow your options by giving you extra insight into each lender and its products.

LightStream: Best for excellent credit

Rating: 4.5 stars out of 5
4.5
Est. APR
6.49%–25.29%
Loan amount
$5k–$100k
Min credit score
695
Loan term
2-20 yrs
Origination fee
None
Pros
  • Winner of Bankrate Award for best home improvement loan
  • High loan amount maximum and no fees
  • Offers a rate-matching program
Cons
  • High credit score minimum
  • No online prequalification
  • High minimum loan amount
WHO'S IT FOR:

Borrowers with excellent credit profiles made up about two-thirds of Bankrate users who chose a LightStream personal loan. It may also be a good option for excellent credit borrowers looking to finance a home renovation given the lender’s high maximum loan amount and longer-than-average repayment terms.

Upstart: Best for bad credit

Rating: 4.7 stars out of 5
4.7
Est. APR
6.60%–35.99%
Loan amount
$1k–$50k
Min credit score
300
Loan term
3-5 yrs
Origination fee
Up to 12%
Pros
  • No credit score minimum
  • Low minimum loan amount
  • May qualify on income or job instead of credit score
Cons
  • Origination fees as high as 12 percent of amount borrowed
  • Co-borrowers not allowed
  • Limited loan terms
WHO'S IT FOR:

Bad credit borrowers or those without credit histories who may have trouble qualifying for loans elsewhere. Due to the lender's low starting rate, it may also be a good option for excellent credit borrowers looking to consolidate debt.

LendingClub: Best for co-borrowers

Rating: 4.7 stars out of 5
4.7
Est. APR
7.90%–35.99%
Loan amount
$1k–$50k
Min credit score
600
Loan term
2-7 yrs
Origination fee
0%-8%
Pros
  • Funds may be available the day you apply
  • Joint loans allowed
  • Convenient mobile app
Cons
  • High origination fees
  • No autopay discount
  • High maximum rates
WHO'S IT FOR:

Borrowers with a fair credit score who may need a co-borrower to qualify for a more competitive rate.

Happy Money: Best for debt consolidation

Rating: 4.5 stars out of 5
4.5
Est. APR
8.95%–29.99%
Loan amount
$5k–$40k
Min credit score
640
Loan term
2-5 yrs
Origination fee
0.25%-10%
Pros
  • Specialized debt consolidation loan
  • Lower maximum APR than other lenders
  • Loan management tools on member portal and app
Cons
  • High minimum credit score
  • Longer funding turnaround
  • Can only be used for credit card debt consolidation
WHO'S IT FOR:

Borrowers with fair credit who are consolidating high-interest credit card debt. It may also benefit good credit borrowers looking to get out of credit card debt in under five years as it has terms starting at 24 months.

Citi: Best for short repayment terms

Rating: 4.6 stars out of 5
4.6
Est. APR
8.99%–19.49%
Loan amount
$2k–$30k
Min credit score
Not specified
Loan term
1-5 yrs
Origination fee
None
Pros
  • One-year terms available (the shortest among featured lenders)
  • Autopay discount
  • No fees
Cons
  • Limited loan amount range
  • No joint applications
  • High minimum APR
WHO'S IT FOR:

Citi is one of very few personal loan lenders that offers a one-year repayment term. If you want to minimize your interest charges and pay off a debt quickly, Citi may be a good match.  A bonus: You won't pay any fees.

Avant: Best payday loan alternative

Rating: 4.5 stars out of 5
4.5
Est. APR
9.95%–35.99%
Loan amount
$2k–$35k
Min credit score
550
Loan term
2-5 yrs
Origination fee
Up to 9.99%
Pros
  • Low credit score minimum
  • Seven-day-a-week customer service
  • Next-day funding possible
Cons
  • High fees and minimum APR
  • No cosigners allowed
  • Lower maximum amounts than other lenders
WHO'S IT FOR:

Avant's 550 minimum credit score is among the lowest of our featured lenders. Combined with terms between two and five years, it's a good alternative to payday loans that have to be repaid by your next paycheck.

SoFi: Best online lender

Rating: 4.7 stars out of 5
4.7
Est. APR
8.99%–35.49%
Loan amount
$5k–$100k
Min credit score
Not specified
Loan term
2-7 yrs
Origination fee
Optional fee up to 7%
Pros
  • Mobile app and seven-day-a-week customer service
  • Loan amounts as high as $100k
  • Joint applications allowed
Cons
  • High minimum loan amount
  • Minimum credit score not disclosed
  • Optional fees up to 7 percent
WHO'S IT FOR:

Borrowers who want to finance a large expense, such as a kitchen renovation or another home improvement project. It may be a good alternative for borrowers who need a large loan amount but don’t quite meet LightStream’s high credit score minimum.

Calculate your installment loan payment

Use Bankrate’s personal loan calculator to determine expected costs ahead of applying for an installment loan. You can estimate your monthly payment based off of average interest rates and your desired loan term.

How to compare installment loans

When comparing installment loans side-by-side, consider the terms offered by each lender and previous borrowers' experiences.  

  • Consider available terms. Check the minimum and maximum annual percentage rate (APR) offered by each lender along with its term lengths and potential fees.
  • Understand eligibility criteria. Lenders that offer installment loans tend to offer the best rates to those with good to excellent credit, high income and low debt. However, there are bad credit lenders that you can also explore.
  • Check funding speed. Many lenders are able to approve or deny your application within a few minutes of applying. If approved, you could be funded within one to two business days.
  • Read lender reviews. Before you apply, see what other people have to say about their loan experience and the lender's customer service.
  • Choose the right type of lender. Installment loans are offered by banks, credit unions and online lenders. You can also use options like Bankrate to quickly compare potential lenders and terms before you apply.

What are installment loans?

An installment loan allows you to borrow a fixed amount of money and pay it back over a set period, usually two to seven years. The main benefits of an installment loan are its predictable monthly payment and a set payoff date.

Installment loans can either be secured or unsecured. That said, most installment loans are unsecured personal loans that don't require you to pledge an asset like a home or car. They also feature lower average interest rates than credit cards, which could lead to significant interest savings.

Installment loans can be an excellent tool to improve your credit score if you use them to consolidate high-interest debt. Your credit utilization ratio drops when you pay off revolving credit like credit cards, which can boost your credit scores significantly.

Pros and cons of installment loans

Not all types of installment loans have the same benefits and drawbacks. For example, mortgages can take weeks or even months to close and can only be used to buy a home. If you're looking for the flexibility of a personal loan, here's what you can expect:

Green circle with a checkmark inside

Pros

  • You can typically get the funds quickly — sometimes even the same day you’re approved.
  • Payments are predictable because of fixed terms and interest rates.
  • Installment loan interest rates tend to be lower than credit card interest rates.
  • You can use installment loans to cover just about any expense.
Red circle with an X inside

Cons

  • Bad credit rates can be above 30 percent.
  • Personal loan lenders may charge origination fees as high as 12 percent of your loan amount.
  • There are no minimum payment options like you have with credit cards.
  • Personal loan limits with some lenders may not give you enough cash to meet your goals.
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BANKRATE EXPERT FAQ

How many installment loans should you have?


Bankrate Expert Contributor, Student Loans

Installment loans are best for major purchases, such as buying a home or car. Examples include mortgages and auto loans. Installment loans let you spread out the cost over several years, so you don’t have to pay for a big expense all at once. Most people do not have enough money saved to buy big ticket items with cash. You should devote no more than a third of your income to repaying debt, so you have enough money to cover your living expenses and pay your taxes. Installment loans can also help you build good credit if you make the monthly payments on time every time.

Senior writer, Loans

The answer to this depends on why you’re getting the installment loans in the first place. One installment loan is enough if it’s used to replace a handful of revolving debt like credit cards. You may need an additional one to finance a car if you don’t have cash to pay for it. However, there’s no flexibility when it comes to your monthly payment on an installment loan. There’s no minimum monthly payment and you can’t re-use any balance you’ve paid off like you can with a credit card. Financial experts often suggest you spend no more than a third of your take home pay on monthly debt. That’s good advice, but you also need to look at your lifestyle spending. If you spend a lot on eating out, entertainment or expensive hobbies like golfing, you should limit the number of installment loans you take out.

How to get an installment loan with Bankrate

You can use Bankrate's list of top lenders to start your search. Follow these steps to make the most out of your application process:

  1. Decide how much money you need. The more you borrow, the higher your monthly payment will be. Using a personal loan calculator gives you an idea of the monthly payments. Experiment with longer terms for lower payments, but keep an eye on how much interest you’ll save with a shorter term. 
  2. Know your credit score. A credit score above 670 will get you competitive rates, while a fair credit score between 580 and 669 could result in double-digit interest rate offers. Also check your credit report with all three credit bureaus — Equifax, Transunion and Experian — to see if there are any errors. 
  3. Choose what type of personal loan to apply for. There are several different types of personal loans, ranging from debt consolidation loans you can use to pay off high-interest-rate credit cards to holiday loans to help you cover seasonal holiday expenses. 
  4. Shop for the best rate and terms. You should compare at least three lenders before making a final decision. A comparison site like Bankrate is a useful way to check several lenders without a hard credit pull that could damage your credit.  
  5. Finalize your application. Compare lenders with the best personal loan rates and terms for your situation, then complete the application process and provide any necessary paperwork.
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Bankrate tip: Getting an installment loan with bad credit

While getting a bad credit installment loan is possible, you may need to shop around a bit more to find the best terms or settle for a smaller amount to prove you can handle the payment. Check out secured personal loans backed by a car or home. Lenders consider them less risky, which could land you a lower rate than unsecured bad credit loans. Adding a cosigner could also help you qualify for a better rate or larger loan amount.

When to get an installment loan

While the term installment loan is most commonly used to refer to personal loans, any loan with a fixed term and interest rate is an installment loan. This includes auto loans, mortgages, student loans and a variety of other types of credit. To answer when you need an installment loan, you should know how much you need to borrow and what you need to spend your funds on. Processing times for smaller, unsecured loans are generally much quicker than large secured loans like mortgages.

Is now a good time to get an installment loan?

It largely depends on your personal finances and immediate needs. Personal loan interest rates have remained steady, but other types of installment loans — like mortgages and auto loans — have seen large fluctuations in average APR over the last year.

If you need a personal loan and have good to excellent credit, you may be able to take advantage of relatively competitive rates ahead of possible changes to the Fed funds rate. If you have fair or worse credit, it may be worth improving your credit score before you apply.

Frequently asked questions about installment loans 

How we made our picks for the best installment loans

Bankrate's trusted personal loans industry expertise

48

years in business

45

lenders reviewed

20

loan features weighed

900

data points collected

To select the best personal loans, Bankrate’s team of experts evaluated over 40 lenders. Each lender was ranked using a meticulous 20-point system, focusing on four main categories: