Holly Johnson writes expert content on personal finance, credit cards, loyalty and insurance topics. In addition to writing for Bankrate and CreditCards.com, Johnson does ongoing work for clients that include CNN, Forbes Advisor, LendingTree, Time Magazine and more.
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Aylea WilkinsLoans Editor, Former Insurance Editor
Aylea Wilkins is an editor specializing in personal and home equity loans. She has previously worked for Bankrate editing content about auto, home and life insurance. She has been editing professionally for nearly a decade in a variety of fields with a primary focus on helping people make financial and purchasing decisions with confidence by providing clear and unbiased information.
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What To Know First
What to know first:
An installment loan lets you borrow a fixed sum of money and pay it back over a set period of time. It can be an attractive choice if you want to finance a large-ticket purchase or need flexibility in the loan’s use. Installment loans often have lower interest rates than credit cards and can be a far better choice than payday loans, which tend to charge very high interest rates and fees. Plus, you typically need to pay back a payday loan the next time you get paid.
While the borrower requirements and application process might vary depending on the lender, you’ll generally follow these steps to apply for an installment loan:
Gather personal information such as your government-issued ID, proof of income and Social Security number.
If a lender offers prequalification, it will do a soft pull on your credit to find out which rates and terms you qualify for. This won't ding your credit score.
Compare loan rates and terms from multiple lenders.
Once you apply for a loan, a lender will do a hard pull on your credit and verify the information you submitted.
Receive a loan decision. If you’re approved, you could get your funds as soon as the next business day, depending on the lender.
Methodology
To select the top personal loan lenders, Bankrate considered factors that help consumers decide whether a lender is a good fit for them, such as credit requirements and minimum APRs. We sought lenders with low fees and a range of loan amounts for borrowers with varying budgets and credit profiles. We also looked for conveniences like online applications and fast funding.
In addition, the lenders featured here were evaluated for notable features like customer discounts and flexible repayment options.
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*Your loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Excellent credit is required to qualify for lowest rates. Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay are .50% points higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $10,000 loan at 6.99% APR with a term of 3 years would result in 36 monthly payments of $308.73. 2022 Truist Financial Corporation. Truist, LightStream, and the LightStream logo are service marks of Truist Financial Corporation. All other trademarks are the property of their respective owners. Lending services provided by Truist Bank.
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Personal loans made through Upgrade feature Annual Percentage Rates (APRs) of 7.96%-35.97%. All personal loans have a 1.85% to 8.99% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. Loans feature repayment terms of 24 to 84 months. For example, if you receive a $10,000 loan with a 36-month term and a 17.59% APR (which includes a 13.94% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $341.48. Over the life of the loan, your payments would total $12,293.46. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by Upgrade's bank partners. Information on Upgrade's bank partners can be found at https://www.upgrade.com/bank-partners/.
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*Trustpilot TrustScore as of June 2020. Best Egg personal loans, including the Best Egg Secured Loan, are made by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender or Blue Ridge Bank, a Nationally Chartered Bank, Member FDIC, Equal Housing Lender. “Best Egg” is a trademark of Marlette Holdings, Inc., a Delaware corporation. All uses of “Best Egg” refer to “the Best Egg personal loan”, “the Best Egg Secured Loan”, and/or “Best Egg on behalf of Cross River Bank or Blue Ridge Bank, as originator of the Best Egg personal loan,” as applicable.
The term, amount, and APR of any loan we offer to you will depend on your credit sc¬ore, income, debt payment obligations, loan amount, credit history and other factors. Your loan agreement will contain specific terms and conditions. About half of our customers get their money the next day. After successful verification, your money can be deposited in your bank account within 1-3 business days. The timing of available funds upon loan approval may vary depending upon your bank’s policies. Loan amounts range from $2,000– $50,000. Residents of Massachusetts have a minimum loan amount of $6,500 ; New Mexico and Ohio, $5,000; and Georgia, $3,000. For a second Best Egg loan, your total existing Best Egg loan balances cannot exceed $100,000. Annual Percentage Rates (APRs) range from 8.99%–35.99%. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0.99%–8.99% of your loan amount, which will be deducted from any loan proceeds you receive. The origination fee on a loan term 4-years or longer will be at least 4.99%. Your loan term will impact your APR, which may be higher than our lowest advertised rate. You need a minimum 700 FICO® score and a minimum individual annual income of $100,000 to qualify for our lowest APR. For example: a 5‐year $10,000 loan with 9.99% APR has 60 scheduled monthly payments of $201.81, and a 3‐year $5,000 loan with 7.99% APR has 36 scheduled monthly payments of $155.12. To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. What this means for you: When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents. Best Egg products are not available if you live in Iowa, Vermont, West Virginia, the District of Columbia, or U.S. Territories.
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"This does not constitute an actual commitment to lend or an offer to extend credit. Upon submitting a loan application, you may be asked to provide additional documents to enable us to verify your income, assets, and financial condition. Your interest rate and terms for which you are approved will be shown to you as part of the online application process. Most applicants will receive a variety of loan offerings to choose from, with varying loan amounts and interest rates. Borrower subject to a loan origination fee, which is deducted from the loan proceeds. Refer to full borrower agreement for all terms, conditions and requirements."
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Loans from $3,500 to $40,000 and fixed rates from 6.99% to 24.99% APR. Only the most creditworthy applications qualify for the largest loan amounts and lowest rates.
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Your loan terms are not guaranteed and are subject to our verification of your identity and credit information. Rates range from 6.99% to 24.99% APR, and loan terms range from 36 to 72 months. For NY residents, rates range from 6.99%-24.74%. Only the most creditworthy applicants qualify for the lowest rates and longest loan terms. Rates will generally be higher for longer-term loans. To obtain a loan, you must submit additional documentation including an application that may affect your credit score. The availability of a loan offer and the terms of your actual offer will vary due to a number of factors, including your loan purpose and our evaluation of your creditworthiness. Rates will vary based on many factors, such as your creditworthiness (for example, credit score and credit history) and the length of your loan (for example, rates for 36 month loans are generally lower than rates for 72 month loans). Your maximum loan amount may vary depending on your loan purpose, income and creditworthiness. Your verifiable income must support your ability to repay your loan. Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA and all loans are issued by Goldman Sachs Bank USA, Salt Lake City Branch. Applications are subject to additional terms and conditions. Receive a 0.25% APR reduction when you enroll in AutoPay. This reduction will not be applied if AutoPay is not in effect. When enrolled, a larger portion of your monthly payment will be applied to your principal loan amount and less interest will accrue on your loan, which may result in a smaller final payment. See loan agreement for details
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Not all applicants will qualify for larger loan amounts or most favorable loan terms. Loan approval and actual loan terms depend on your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral). Larger loan amounts require a first lien on a motor vehicle no more than ten years old, that meets our value requirements, titled in your name with valid insurance. Maximum annual percentage rate (APR) is 35.99%, subject to state restrictions. APRs are generally higher on loans not secured by a vehicle. Depending on the state where you open your loan, the origination fee may be either a flat amount or a percentage of your loan amount. Flat fee amounts vary by state, ranging from $25 to $300. Percentage-based fees vary by state ranging from 1% to 10% of your loan amount subject to certain state limits on the fee amount. Active duty military, their spouse or dependents covered under the Military Lending Act may not pledge any vehicle as collateral for a loan. OneMain loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB’s Regulation Z, such as college, university or vocational expenses; for any business or commercial purpose; to purchase securities; or for gambling or illegal purposes.
Borrowers in these states are subject to these minimum loan sizes: Alabama: $2,100. California: $3,000. Georgia: Unless you are a present customer, $3,100 minimum loan amount. Ohio: $2,000. Virginia: $2,600.
Borrowers (other than present customers) in these states are subject to these maximum unsecured loan sizes: North Carolina: $7,500. New York: $20,000. An unsecured loan is a loan which does not require you to provide collateral (such as a motor vehicle) to the lender.
Personal loans are available through Achieve Personal Loans (NMLS ID #227977), originated by Cross River Bank, a New Jersey State Chartered Commercial Bank or Pathward N.A., Equal Housing Lenders and may not be available in all states. All loan and rate terms are subject to eligibility restrictions, application review, credit score, loan amount, loan term, lender approval, credit usage and history. Loans are not available to residents of all states. Minimum loan amounts vary due to state specific legal restrictions. Loan amounts generally range from $5,000 to $50,000 (including the origination fee) and are offered based on underwriting conditions and loan purpose. APRs range from 7.99 to 29.99% and include applicable origination fees. Repayment periods range from 24 to 60 months. For example: A four-year $20,000 loan with an APR of 18.34% would have an estimated monthly payment of $561.60 and total cost of $26,956.80. To qualify for a 7.99% APR loan, a borrower will need excellent credit, a loan amount of $12,000.00 or less, and a term of 24 months. Loan origination fees vary from 1.99%to 6.99%, most loans have a fee of 4.99%. Adding a co-borrower with sufficient income; using at least eighty-five percent (85%) of the loan proceeds to pay off qualifying existing debt directly; or showing proof of sufficient retirement savings, could help you also qualify for a lower rate. Average interest savings for personal loans range from 0% - 6% based on closed loans that qualified for one or more of our rate discounts in July 2022. †Times noted are estimates and can vary for a loan request from Achieve Personal Loans (NMLS #227977). Same day approvals assume that a fully completed application with all required supporting documentation is provided early enough on a day that our offices are open. Achieve Personal Loans consultants are available Monday–Friday 6AM to 8PM MST and Saturday–Sunday 7AM to 4PM MST.
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Bankrate's guide to choosing the best installment loan
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When shopping for an installment loan, compare APRs across multiple lenders to make sure that you’re getting a competitive rate. Also look for lenders that keep fees to a minimum and offer repayment terms that fit your needs.
Loan details presented here are current as of the publish date, but you should check the lenders’ websites for more current information. The installment loan lenders listed here are selected based on factors such as APR, loan amounts, fees and credit requirements.
Overview:Marcus by Goldman Sachs offers installment loans with competitive interest rates and no fees. You can borrow up to $40,000 with a fixed interest rate and fixed repayment timeline, making it easy to budget for your loan payments over time.
Why Marcus by Goldman Sachs is the best for good credit: While Marcus doesn't list any specific credit score requirements, it's likely that you'll need a score of at least 660 to qualify. Interest rates are low for consumers with good or excellent credit.
Pros
0.25% discount with autopay
No fees
Option to directly pay creditors
Cons
No cosigners allowed
Requires higher credit scores
Specific eligibility requirements are not listed
Time to receive funds: One to five business days after approval.
Fees: There are no fees for these loans.
Additional requirements: None are specified.
Additional perks: Borrowers who have made their payments on time and in full for twelve consecutive months can skip a month of payments. No interest will be added, and the loan term will be extended for one month.
Overview:LendingClub is a peer-to-peer lender, meaning you receive your loan funds from individual investors instead of from a traditional bank. You can borrow money for nearly any reason, ranging from debt consolidation to home improvement projects.
Why LendingClub is the best peer-to-peer installment loan: While other peer-to-peer lenders have lower rates or higher borrowing limits, LendingClub has a lower minimum credit score than SoFi and a lower maximum origination fee than Upstart.
Pros
Offers loans to people with fair credit and above
Online prequalification
Optional joint applications
Cons
Few loan terms to choose from
High APRs
No discount for automatic payments
Time to receive funds: Funds generally arrive within five business days.
Fees: LendingClub has an origination fee. The amount will depend on the borrower's credit rating and is subtracted from the total funding the borrower receives. Origination fees can range from three to six percent of the total loan amount. Borrowers are also charged late fees, which are 5% of the late payment amount or $15, whichever is more.
Additional requirements: Applicants must submit proof of income.
Additional perks: Borrowers who have good standing with LendingClub can change their payment due date.
Overview:Upstart is an online installment loan lender that offers competitive loan products to borrowers with good or even fair credit. You can apply for your loan online and get your money as soon as the next business day.
Why Upstart is the best for fair credit: Upstart has no minimum credit score requirement.
Pros
AI system able to approve loans instantly
Custom payment dates
More than credit score used to determine eligibility
Cons
AI system able to approve loans instantly
Custom payment dates
More than credit score used to determine eligibility
Time to receive funds: Loans are generally funded the next business day, but there are exceptions based on the loan purpose and time of loan approval.
Fees: Upstart can charge origination loans up to eight percent. The fee is deducted from the loan amount before the funds are delivered. Late payments result in a late fee of 5% of the payment due or $15, whichever is greater.
Additional requirements: Upstart uses several criteria to determine if someone is eligible for a loan. The platform will consider factors such as the borrower's debt-to-income ratio, bankruptcies, delinquent accounts, credit inquiries and income level.
Additional perks: Borrowers can apply for a temporary suspension of loan payments during a time of financial difficulty such as the loss of a job. However, interest does still increase during the payment suspension.
Overview:LightStream offers installment loan amounts up to $100,000, as well as some of the lowest interest rates for consumers with excellent credit. You can also apply online and have access to your funds within the same day.
Why LightStream is the best for large loan amounts: You can borrow considerably more with this lender than you can with some competitors — up to $100,000.
Pros
Fast approval and funding
No fees
Rate discount with autopay
Cons
Loan uses are limited
No prequalification for a soft credit check
No payment date option
Time to receive funds: Same-day or next-day funding is available in many cases.
Fees: LightStream doesn't charge any fees.
Additional requirements: Borrowers need several years of credit history with more than one type of account and stable income. Income from the marijuana industry is not counted.
Additional perks: If the borrower received another loan offer from a competitor that has a lower APR than what LightStream offers, LightStream will beat the competitor's rate by 0.1%. Borrowers who are unhappy with their loan experience in the first 30 days may be eligible for $100 by filling out a survey.
Overview: Happy Money is an online lender that gears its installment loans toward consumers who need to consolidate high-interest credit card debt. Interest rates start at just 8.99 percent APR, and these loans don’t come with common fees like prepayment fees, application fees or even late fees.
Why Happy Money is the best for credit card debt consolidation: Because Happy Money offers loans solely for credit card debt consolidation, borrowers can focus on repaying existing debt and boosting their credit scores.
Pros
Borrower requirements are transparent
Flexible payment dates
Free FICO score updates
Cons
$40,000 maximum loan amount
Funds cannot be used for home improvements, large purchases or emergency expenses
Origination fee
Time to receive funds: Borrowers generally get the loan money within two to five business days.
Fees: Happy Money doesn't charge most fees, but it does charge zero to five percent as an origination fee.
Additional requirements: Borrowers can't have any delinquencies on their credit report and must have at least three years of credit history.
Additional perks: Borrowers have the option to change their payment date once every 12 months. Borrowers also get free monthly FICO updates and other free financial tools.
Overview: While SoFi is mostly known for its popular student loan refinancing products, it also offers installment loans with long repayment timelines.
Why SoFi is the best for unemployment protection: SoFi offers unemployment protection that allows you to temporarily pause your monthly payments for a total of up to 12 months in the event that you lose your job.
Pros
High loan amounts up to $100,000
No fees
Prequalification with soft credit check
Cons
Cosigners are not allowed
Higher income requirements
May be hard to qualify
Fees: SoFi does not charge fees.
Additional requirements: Borrowers must have at least $45,000 of income a year, and it is preferred that they have at least $1,500 in cash flow every month. SoFi prefers higher income levels and a strong debt-to-income ratio.
Additional perks: Borrowers can change their payment due date once a year and apply for forbearance if they prove that they are receiving unemployment benefits and are looking for a new job. During the forbearance, interest still applies. Borrowers can have three months of forbearance at a time up to twelve months in total over the lifetime of the loan.
Overview:Avant focuses on installment loans for consumers with fair and poor credit, so it may be a good option if your score falls in this range. Interest rates start at 9.95 percent APR, so it’s possible to get a reasonable rate and save money on debt consolidation or any other loan purpose.
Why Avant is the best for bad credit: Avant’s minimum FICO credit score is 580, the lowest among the lenders profiled on this page.
Pros
Low credit score requirement
Lower minimum credit score requirements than many competitors
Prequalification with a soft credit check
Cons
Interest rates up to 35.95%
No cosigners or coborrowers
Several fees
Time to receive funds: Loans are typically funded the next business day.
Fees: There is an administration fee up to 4.75%, a $25 late fee (except for Idaho and Oregon) and a $15 fee for dishonored payments.
Additional requirements: Borrowers need an income of at least $20,000, although Avant prefers to lend to people with higher incomes. Avant will consider alimony and child support as income.
Installment loans are financial products that let you borrow a fixed sum of money and pay it back slowly over time. These loans, which include personal loans, typically come with the benefit of fixed interest rates and fixed monthly payments, so you always know how much you owe each month and when your final payment will be due. Say you were to borrow $30,000 with a 10.99 percent APR and a 60-month repayment timeline. You would pay $652.12 a month for five years.
What can I use an installment loan for?
One of the attractive features of an installment loan is its versatility. You can get an installment loan to pay for a major purchase, such as a car or a home. A personal loan, which is a type of installment loan, can typically be used for a variety of purchases. They can be used to pay for:
There is a wide range of installment loans, all designed for specific purposes. Here are some of the most common:
Personal loan: A personal loan is a lump-sum loan that's usually repaid in two to five years. It's usually unsecured, and the money from the loan can be used in myriad ways: to consolidate debt, fund home improvement projects, pay for a wedding, cover emergency expenses, and more.
Mortgage: A mortgage is a secured loan that is used for a single purpose: to buy property, usually a house. The home serves as collateral and secures the loan, which is paid monthly over a long term, usually 15 or 30 years.
Auto loan: An auto loan is a secured loan that is used to buy a car, with the vehicle serving as collateral. The loan is paid monthly, typically in two to seven years. Use our auto loan calculator to determine what your monthly payment might be.
Can I get an installment loan if I have bad credit?
Installment loans for bad credit are certainly out there. But you’ll need to do your due diligence, shop around and compare several options. Every lender has different eligibility requirements, so check to see which you might qualify for with shaky credit. You can also expect your installment loan to have a higher interest rate, and possibly more loan fees, such as origination fees.
How an installment loan affects your credit
The strength of your credit impacts the loan amounts, rates and terms you qualify for. Once you get an installment loan, here's how it can impact your credit:
Making on-time payments could boost your credit score. As payment history makes up 35 percent of your score, being on time with your monthly payments can help your credit. On the flip side, being late or having missed payments could negatively impact your score.
Paying the loan in full can improve your credit. While paying the loan off on time and in full can bump up your score, paying it off early most likely won't have a huge impact over paying it off on the agreed-upon schedule.
It'll stay on your credit report for 10 years. Once your loan is paid off, it's considered a closed account. Closed accounts that are in good standing could do good for your credit, as they stay on your credit file for 10 years.
How to find the best installment loan rates
Finding an installment loan with the best rates largely hinges on factors such as your credit and finances. It's also a matter of knowing what to look for when shopping. Here's what you can do to find the installment loans with the most favorable rates:
Check your credit. Review your credit to make sure there aren't any errors. Certain types of discrepancies, such as whether you were late on a payment, could ding your score.
Practice healthy habits for maintaining a good score. If your credit file is thin or you're working on building good credit, be sure to make on-time payments, keep your debt-to-income ratio low and consider having a mix of credit.
Research eligibility requirements: While your credit score is one of the most important factors in determining your eligibility, lenders may also look at your income and debt-to-income ratio. If your credit is fair or bad, look for lenders that don't weigh credit scores as heavily and that might look at your income to determine your creditworthiness.
Look at repayment terms: Most personal loan lenders set repayment terms at two to five years, although some offer terms as long as 10 years. Choosing a shorter repayment term will increase your monthly payment but will decrease the interest you’ll pay overall. If you can't snag the best interest rates because of your credit score, shortening the time you take to pay your loan off could help you save money.
Frequently asked questions about installment loans
Are there no-credit-check installment loans?
There are lenders that offer long-term installment loans with no hard pull on your credit report. But note that obtaining financing from a lender that doesn't check your credit isn't typically a good idea. Without credit checks, lenders can't gauge your creditworthiness and ability to repay.
No-credit-check lenders may bill themselves as alternatives to other last-resort sources of cash, such as payday loans and car title loans, but consumers should proceed with great caution. "Applicants who are looking for lenders who aren't going to check their credit are doing so because they either have lousy credit or they have no credit," says John Ulzheimer, an Atlanta-based expert on credit reports and identity theft. "Either way, they're high-risk borrowers. As such, the terms they'll be paying are going to be punitive when compared to normally underwritten installment loans."
He continues: "If lenders cannot access your credit reports and scores, then they're going to subsidize their risk some other way. That means lower loan amounts and higher rates." If you have your credit checked with a mainstream lender, you'll likely find higher loan amounts, longer repayment timelines and better rates.
The installment loans we profiled here are unsecured, meaning you don’t have to provide any collateral to qualify. With that being said, secured loans, which require collateral, are also available and may be your best option if you have poor credit.
How do installment loans work for debt consolidation?
Installment loans are popular for debt consolidation due to the fact that they tend to offer lower interest rates than credit cards. For example, if you have multiple lines of credit card debt at an 18 percent APR, you can save money by transferring that debt to an installment loan at a 9 percent APR. That way, you pay less in interest and can focus on paying one fixed bill instead of several.
How are installment loans different from payday loans?
Payday loans are secured by your paycheck. When you get a payday loan, you give the lender a postdated check to deposit on your next payday, or the lender may require authorization to directly withdraw the money from your bank account after you get paid. Payday lenders charge exorbitant fees and can send the borrower into an endless cycle of mounting debt.
Can you have multiple installment loans?
Having multiple installment loans is not only possible, but also fairly common. If you're paying a mortgage and making car payments, that's already two installment loans.
What happens if I default on an installment loan?
If you default on an installment loan, your credit score will take a hit. When your credit score tumbles, lenders see you as being riskier. In turn, you might not qualify for the most favorable rates and terms on future loans — if you can even qualify for another loan. If you happen to secure your installment loan with something of value, the lender may have the ability to seize the collateral you provided.
2022 Truist Financial Corporation. Truist, LightStream, and the LightStream logo are service marks of Truist Financial Corporation. All other trademarks are the property of their respective owners. Lending services provided by Truist Bank..png?optimize=medium&width=120&format=pjpg&auto=webp)
