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Best installment loans in March 2024

Mar 18, 2024

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Personal loans

LENDINGCLUB: Best for joint applications

LendingClub
Rating: 4.7 stars out of 5
4.7
Est. APR
9.57%–35.99%
Loan term
2-5 yrs
Loan amount
$1k– $40k
Min credit score
600
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Personal loans

Citi: Best for multiple discounts

Citi® Personal Loan
Rating: 4.6 stars out of 5
4.6
Est. APR
10.49%–19.49%
Loan term
1-5 yrs
Loan amount
$2k– $30k
Min credit score
720

Personal loans

UPSTART: Best for bad credit

Upstart
Rating: 4.8 stars out of 5
4.8
Est. APR
7.80%–35.99%
Loan term
3-5 yrs
Loan amount
$1k– $50k
Min credit score
Not specified
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Personal loans

LIGHTSTREAM: Best for excellent credit

LightStream
Rating: 4.7 stars out of 5
4.7
Est. APR
7.99%–25.49%
* with AutoPay
Loan term
2-7 yrs
Loan amount
$5k– $100k
Min credit score
695
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Personal loans

HAPPYMONEY: Best for credit card debt consolidation

Happy Money
Rating: 4.6 stars out of 5
4.6
Est. APR
11.72%–17.99%
Loan term
2-5 yrs
Loan amount
$5k– $40k
Min credit score
Not specified
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Personal loans

AVANT: BEST FOR FLEXIBLE TERMS AND BAD CREDIT

Avant
Rating: 4.7 stars out of 5
4.7
Est. APR
9.95%–35.99%
Loan term
1-5 yrs
Loan amount
$2k– $35k
Min credit score
550
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Personal loans

SoFi: Best online lender

SoFi
Rating: 4.8 stars out of 5
4.8
Est. APR
8.99%–29.99%
with all discounts
Loan term
2-7 yrs
Loan amount
$5k– $100k
Min credit score
680

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How to compare installment loan lenders

Compare offers from at least three lenders before deciding on one. To choose the best installment loan, consider the following:

  1. Approval requirements: Each lender has its own loan approval requirements. They consider your credit score, debt-to-income (DTI) ratio and overall financial health. Some lenders also consider other factors, like your education and job history. 
  2. Interest rates: The lowest advertised interest rate is never guaranteed. Make sure you compare fees charged by each lender when reviewing their offers. 
  3. Loan amounts: Some lenders offer loan ranges better suited for small purchases, while others offer loans up to $100,000. Check the lender’s loan minimums and maximums before applying to make sure they offer the amount you need. 
  4. Repayment options: Personal loan lenders typically offer repayment term options ranging between one and seven years. A longer repayment period will decrease your monthly payment, but a shorter repayment period cuts down on overall interest.
  5. Unique features: Keep an eye out for perks offered by lenders, such as introductory APRs, discounts and online financial tools.
  6. Customer service: Different lenders provide different levels of customer service. If you are more comfortable with in-person service, choose a lender that offers that. Many lenders have online chat features and daily customer support phone hours.

Compare installment loan rates from Bankrate's top picks

LENDER BEST FOR EST. APR LOAN AMOUNT LOAN TERM MIN CREDIT SCORE
LendingClub Joint applications 9.57%-35.99% $1,000-$40,000 2-5 years 600
Citi Multiple discounts 10.49%-19.49% $2,000-$30,000 1-5 years 720
Upstart Bad or no credit 7.80%-35.99% $1,000-$50,000 3 or 5 years No requirement
LightStream Large loan amounts 7.49%-25.49%* with Autopay $5,000-$100,000 2-7 years 695
Happy Money Credit card debt consolidation 11.72%-17.99% $5,000-$40,000 2-5 years 640
Avant Flexible terms and bad credit 9.95%-35.99% $2,000-$35,000 1-5 years 550
SoFi Online lender 8.99%-29.99% $5,000-$100,000 2-7 years 680

A closer look at our top installment loan lenders

Here's a deep-dive into each lender, why it's the best in each category and specifically who would benefit most from borrowing from the lender.

LendingClub: Best for joint applications

LendingClub
Rating: 4.7 stars out of 5
4.7

Overview: Headquartered in San Francisco, California, LendingClub has served over 4.8 million customers nationwide. The lender offers a co-borrowing option — something less common in the personal loan industry. This, along with its lower-than-average credit score requirement makes its loans more inclusive than most.

Est. APR
9.57%–35.99%
Loan amount
$1k– $40k
Min credit score
600

Citi: Best for multiple discounts

Citi® Personal Loan
Rating: 4.6 stars out of 5
4.6

Overview: Citi is a global bank that offers a complete hub of financial products and services. Its personal loans feature a quick application process, same-day approval, fast funding and competitive interest rates. Borrowers who sign up for autopay, get access to a 0.5 percent rate reduction — one of the most generous in the industry. Citigold and Citi Priority customers also qualify for an additional .25 percent rate discount.

Est. APR
10.49%–19.49%
Loan amount
$2k– $30k
Min credit score
720

Upstart: Best for bad credit

Upstart
Rating: 4.8 stars out of 5
4.8

Overview: Upstart loans have revolutionized the personal loan market by approving loans based on more than just the borrower’s credit score and income. Its proprietary AI model looks at factors like job history and educational background to make a decision, making its loan products accessible — even for those with thin or no credit history.

Est. APR
7.80%–35.99%
Loan amount
$1k– $50k
Min credit score
Not specified

LightStream: Best for excellent credit

LightStream
Rating: 4.7 stars out of 5
4.7

Overview: LightStream is Truist Bank’s online lending platform. Its loans are capped at $100,000 — much higher than the industry average of $50,000. The lender also offers a rate beat program and a $100 satisfaction guarantee, two incentives that aren't common in the loans industry.

Est. APR
7.99%–25.49%
Loan amount
$5k– $100k
Min credit score
695

Happy Money: Best for credit card debt consolidation

Happy Money
Rating: 4.6 stars out of 5
4.6

Overview: Happy Money is unique in that it only offers loans for credit card debt consolidation. Its loans come with a competitive maximum APR, and it doesn’t charge any prepayment penalties or late fees, so borrowers can focus on getting out of debt and boosting their credit scores.

Est. APR
11.72%–17.99%
Loan amount
$5k– $40k
Min credit score
Not specified

Avant: Best for flexible terms and bad credit

Avant
Rating: 4.7 stars out of 5
4.7

Overview: Avant was founded in 2012 and is based in Chicago. It offers personal loans to fund small to midsize expenses, with amounts capped lower than the industry average. The lender has the one of the lowest FICO score requirements among the lenders profiled on this page, and it offers more flexible terms than other bad credit options.

Est. APR
9.95%–35.99%
Loan amount
$2k– $35k
Min credit score
550

SoFi: Best online lender

SoFi
Rating: 4.8 stars out of 5
4.8

Overview: SoFi is best known for its student loan refinancing products but it also has some of the best personal loans in the market. SoFi’s loans feature a fully online application, competitive APRs, no mandatory fees, flexible repayment terms and higher-than-average loan amounts.

Est. APR
8.99%–29.99%
Loan amount
$5k– $100k
Min credit score
680

How we made our picks for best installment loans

Bankrate's trusted personal loans industry expertise

57

years in business

30

lenders reviewed

20

loan features weighed

665

data points collected

To select the best personal loans, Bankrate’s team of experts evaluated over 30 lenders. Each lender was ranked using a meticulous 20-point system, focusing on four main categories:

What to know about installment loans

What is an installment loan?

Installment loans are a form of credit that allows you to borrow a fixed sum of money and pay it back over a set period. 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 can track when your final payment will be due.

Installment loans often have lower interest rates than credit cards, so they’re more affordable. They are a far better choice than payday loans, which come with triple-digit interest rates and high fees and must be repaid once you receive your paycheck.

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Where to get personal loans

You can get a personal loan from three types of lenders: banks, credit unions and online lenders. To get a personal loan, here's what to know.

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Types of installment loans

Some installment loans are restricted to a specific use, while others are more versatile. There are five common types of installment loans.

  • Personal loans: A personal loan is typically unsecured and paid out as a lump-sum — usually repaid in one to seven years. The money from the loan can be used to consolidate debt, fund home improvement projects, pay for a wedding, cover emergency expenses and more.
  • Mortgages: A mortgage is a secured loan that is used for a single purpose: to buy a house. The home serves as collateral and secures the loan, which is paid monthly over 15 to 30 year terms
  • Auto loans: An auto loan is a secured loan 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.
  • Student loans: A student loan is a type of unsecured loan that can be used to pay for education expenses, such as tuition, fees and room and board. These can be obtained through the federal government or through private lenders and have repayment terms ranging from five to 20 years.
  • Buy now, pay later (BNPL) loans: BNPL loans have payments that are usually split up into four installments. They have recently gained in popularity because they are usually interest-free if the payments are made on time and may come with the flexibility to change payment due dates.

Pros and cons of installment loans

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Pros

  • You can typically get the funds quickly — in some cases even the same day you’re approved.
  • Payments are predictable and have fixed terms and interest rates.
  • 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

  • A lower credit score means you could end up with an interest rate upwards of 30%.
  • Some lenders may charge origination fees as high as 10 percent.
  • Personal loan limits at some lenders may not give you enough cash for your goals.
  • Some lenders may charge a prepayment penalty for paying off your loan early.

How many installment loans should you have?


Nationally recognized student financial aid expert

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 Loans Writer

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

There are a handful of steps to follow to apply for and get an installment loan. 

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Bankrate tip: Getting an installment loan with bad credit.

While it’s possible to get a bad credit installment loan, you may need to shop around a bit more to find the best terms. You may want to check for secured personal loans to get lower rates. You may want to add a co-signer if you’re having trouble qualifying on your own. 

Alternatives to installment loans

If, after evaluating your options, you’re still wary about applying for an installment loan, here are some alternatives you can explore to get the funds you need:

  • Credit cards: Depending on the size of your expense, using a credit card to fund could be a great option for flexibility. That said, they tend to have higher interest rates than personal loans. If possible, try applying for a 0 percent introductory rate credit card, as this will give you more room to pay off your balance without accruing interest.
  • Money from your savings: If you have enough money saved to fund your expense without cutting yourself short, then it is a good option to explore. By using your savings, you avoid spending money on interest and fees.
  • Tap into your retirement account: Although not ideal, a 401 (k) loan is another choice to consider. However, not all plan administrators offer this option. You can also withdraw money from an IRA or a 401(k), but this is not advised, as you will be cutting into your retirement funds and may face tax penalties. 
  • Help from family or friends: If you only need to borrow a small amount, you can ask a family member or a friend to lend you money until you can get back on your feet.
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Expert Insight

“If you choose a 401(k) loan, make sure you budget for a smaller paycheck, since the payments will be withdrawn from your regular pay. Use bonuses or commissions to pay off your 401(k) balance early if you can so you have the full investing power of your retirement funds working for you.”

– Denny Ceizyk, Bankrate Senior Loans Writer

FAQs about installment loans