Installment loans can both positively and negatively affect your credit score. Your lender will report your monthly payments to the credit bureaus. On-time payments can improve your credit, while missed or late payments can bring it down.
| Lender | User ratings | Best for… | APR range | Loan terms | Loan amounts | Minimum credit score |
|---|---|---|---|---|---|---|
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User Ratings & Reviews
Ratings and reviews are from real consumers who have used the lending partner’s services. | Interest rate discounts | 8.99% - 35.99% | 24 to 60 months | $5,000 - $50,000 | 620 |
 |
User Ratings & Reviews
Ratings and reviews are from real consumers who have used the lending partner’s services. | No origination fee | 7.99% - 24.99% | 36 to 84 months | $2,500 - $40,000 | 720 |
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User Ratings & Reviews
Ratings and reviews are from real consumers who have used the lending partner’s services. | Good credit borrowers | 7.99% - 35.99% | 24 to 72 months | $2,000 - $36,500 | 660 |
 | Loans with long repayment terms | 7.49% - 25.49% (with autopay) | 24 to 144 months | $5,000 - $100,000 | Not specified | |
 | Small loan amounts | 7.99% - 17.99% | 12 to 60 months | $600 - $50,000 | 700 | |
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User Ratings & Reviews
Ratings and reviews are from real consumers who have used the lending partner’s services. | Peer-to-peer loans | 6.99% - 35.99% | 24 to 60 months | $2,000 - $50,000 | 560 |
 | Debt consolidation | 5.99% - 35.99% | 24 to 60 months | $3,500 - $40,000 | 680 | |
 | Joint applications | 8.49% - 35.99% (with autopay) | 24 to 84 months | $1,000 - $50,000 | 580 | |
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User Ratings & Reviews
Ratings and reviews are from real consumers who have used the lending partner’s services. | Bad credit borrowers | 6.40% - 35.99% | 36 and 60 months | $1,000 - $50,000 | 300 |
| APR range | 8.99% - 35.99% |
| Loan terms | 24 to 60 months |
| Loan amounts | $5,000 - $50,000 |
| Origination fee | 1.99% - 6.99% |
| Minimum credit score | 620 |
| Pros | Cons |
|---|---|
Same-day credit approval Offers multiple opportunities for interest rate discounts Option to apply with a co-borrower | Can take up to 72 hours to fund loans Comes with an origination fee High minimum loan amount |
Achieve offers multiple routes to qualify for interest rate discounts. You can receive a discount for:
Achieve loans can take anywhere from 24 to 72 hours to fund. Be sure to also factor a one-time 1.99% - 6.99% origination fee, which will come out of the total amount of your installment loan.
Read our full Achieve personal loan review.
Achieve has a minimum credit score requirement of 620. Other than that, you’ll also need to provide the following:
| APR range | 7.99% - 24.99% |
| Loan terms | 36 to 84 months |
| Loan amounts | $2,500 - $40,000 |
| Origination fee | None |
| Minimum credit score | 720 |
| Pros | Cons |
|---|---|
| Can receive funds within next business day Low maximum APR of just 24.99% No origination fee | Low maximum borrowing amount Can’t apply for a loan with a cosigner Bad credit borrowers may not qualify |
Discover doesn’t charge upfront fees. This means no origination fee, which is a one-time administrative fee that some lenders charge.
However, Discover has a lower borrowing ceiling ($40,000) than some competitors on this list. Discover doesn’t allow for cosigners on its installment loans, so you’ll need to have strong credit to qualify on your own.
Read our full Discover personal loan review.
In addition to a credit score of 720, you’ll need to meet the following requirements to get a Discover installment loan:
| APR range | 7.99% - 35.99% |
| Loan terms | 24 to 72 months |
| Loan amounts | $2,000 - $36,500 |
| Origination fee | 0.00% - 10.00% |
| Minimum credit score | 660 |
| Pros | Cons |
|---|---|
Funding within one business day Flexible repayment terms Provides clear eligibility criteria | May charge an origination fee Low maximum borrowing amount High maximum APR |
LendingPoint has a minimum credit score of 660 and doesn’t offer joint loans. This makes this a lender more ideal for good-credit borrowers, who can more easily qualify for a loan and receive lower rates based on their individual credit profile.Keep in mind that LendingPoint may charge you an origination fee. It also has a lower borrowing limit than some other lenders. Borrowers could end up with an APR as high as 35.99% with LendingPoint.
Read our full LendingPoint personal loan review.
To qualify for a LendingPoint installment loan, you must be at least 18 years old, have at least a 640 credit score and meet several other requirements.
| APR range | 7.49% - 25.49% (with autopay) |
| Loan terms | 24 to 144 months |
| Loan amounts | $5,000 - $100,000 |
| Origination fee | None |
| Minimum credit score | Not specified |
| Pros | Cons |
|---|---|
Long repayment terms Allows for joint-loan applications Doesn’t charge any fees | High minimum borrowing amounts Strict standards for credit profiles No preapprovals or prequalification |
LightStream offers some of the longest repayment terms on the market — 24 to 144 months. This lender also offers same-day funding, doesn’t charge its customers any fees and offers loan amounts as high as $100,000 — helpful for large purchases.LightStream only caters to good- to excellent-credit borrowers, so you’ll need to meet its steep loan requirements. LightStream also doesn’t allow consumers to prequalify or get preapproved for a loan.
Read our full LightStream personal loan review or LightStream auto loan review.
LightStream doesn’t list its minimum credit or income requirements, but it does state you must have the following:
| APR range | 7.99% - 17.99% |
| Loan terms | 12 to 60 months |
| Loan amounts | $600 - $50,000 |
| Origination fee | None |
| Minimum credit score | 700 |
| Pros | Cons |
|---|---|
Can borrow as little as $600 No origination fee Low maximum APR of just 17.99% | Bad-credit borrowers may not qualify Must become PenFed Credit Union member Unclear eligibility requirements |
| APR range | 6.99% - 35.99% |
| Loan terms | 24 to 60 months |
| Loan amounts | $2,000 - $50,000 |
| Origination fee | 1.00% - 7.99% |
| Minimum credit score | 560 |
| Pros | Cons |
|---|---|
Allows co-applicants May get funds in one business day Flexible borrowing amounts | Funding can take up to three days Charges an origination fee High maximum APR |
Prosper is a peer-to-peer lending marketplace, meaning it connects borrowers with both individual and commercial lenders. If your credit score isn’t great, Prosper allows you to use a co-applicant which could boost your approval odds.It can take anywhere from one to three days for your installment loan to be funded and you’ll also need to account for an origination fee.
Read our full Prosper personal loan review.
You’ll need a credit score of at least 560 to qualify for an individual loan with Prosper. A co-borrower will need a minimum credit score of 600. You’ll also need to meet the below criteria:
| APR range | 5.99% - 35.99% |
| Loan terms | 24 to 60 months |
| Loan amounts | $3,500 - $40,000 |
| Origination fee | 0.00% - 8.00% |
| Minimum credit score | 680 |
| Pros | Cons |
|---|---|
Offers access to your free credit score Funding within 24 hours Low annual income requirement | May charge an origination fee Can only be used for refinancing or consolidating debt No option for co-applicants |
Reach Financial only offers loans for the purposes of debt consolidation and credit card consolidation. This may help you save money, as long as you qualify for a lower APR than what you’re currently paying.If you don’t meet the credit score requirement (680), unfortunately, you won’t be able to apply with a co-borrower to improve your chances of approval. Reach Financial may also charge you an origination fee.
Read our full Reach Financial personal loan review.
| APR range | 8.49% - 35.99% (with autopay) |
| Loan terms | 24 to 84 months |
| Loan amounts | $1,000 - $50,000 |
| Origination fee | 1.85% - 9.99% |
| Minimum credit score | 580 |
| Pros | Cons |
|---|---|
Offers autopay discount Low credit score requirement Allows for co-applicants | Charges an origination fee High maximum APR Charges late fees |
Upgrade, which is a loan marketplace, has a low credit score requirement. So iif you apply as an individual, Upgrade may connect you with rates on the high end. However, if you file a joint application, you may increase your chances of approval and receive lower rates.Upgrade charges origination fees as high as 1.85% - 9.99% of your installment loan amount and APRs can get up to 35.99%.
Read our full Upgrade personal loan review.
Aside from a 580 credit score, Upgrade also looks for the following requirements:
| APR range | 6.40% - 35.99% |
| Loan terms | 36 and 60 months |
| Loan amounts | $1,000 - $50,000 |
| Origination fee | 0.00% - 12.00% |
| Minimum credit score | 300 |
| Pros | Cons |
|---|---|
Funding within one business day Low minimum credit score Can use funds to cover student debt | High maximum origination fee Limited loan-term options Maximum APR up to 35.99% |
At just 300, Upstart has the lowest credit score requirement on our list. This lender also can fund your installment loan within one business day and you can even use your loan funds to cover student debt.Upstart may charge you an origination fee, which can get as high as 10.00% - 12.00%. You’ll also only be able to choose between two repayment terms: 36 and 60 months.
Read our full Upstart personal loan review or Upstart auto loan review.
To get an installment loan with Upstart, you’ll need to meet the following criteria:
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An installment loan is typically offered from a lender in the form of a lump sum to a borrower. The borrower then repays the loan over a set period of time with recurring payments and fixed annual percentage rates (APRs).
It is an umbrella term that can refer to many types of loans, including car loans, mortgages, personal loans and student loans. Installment loans can come in the form of secured or unsecured debt.
This differs from revolving debt, such as credit cards or personal lines of credit, that typically come with variable interest rates. In the case of credit cards, there are also no set repayment terms in which borrowers must fully pay off the debt.
Installment loans work by allowing consumers to use borrowed money to finance many types of purchases. Here’s a few of the most common types of installment loans:
| Pros | Cons |
|---|---|
Fixed monthly payments and APRs Ability to refinance loans Could improve credit score over time if you pay back on time Fixed loan lengths | Typically comes with interest and occasional fees Lenders may charge prepayment penalties Only provided a fixed amount Could hurt credit score if you miss payments |
Most installment loans have fixed monthly payments, terms and APRs. This is advantageous for borrowers since they’ll know exactly when their loan will be paid off. This type of debt can also help improve your credit score as long as you pay on time.
However, installment loans may come with fees. For instance, some personal loan lenders charge an origination fee. On top of that, installment loans are funded with a fixed lump sum — if you need to borrow more money, you’ll need to take out another loan.
Installment loans are common at financial institutes such as banks, credit unions and online lenders. Here’s what you need to know about each one:
When shopping around for installment loans, there are several features you’ll need to keep in mind:
How you apply for an installment loan will depend both on the lender as well as the type of loan you’re looking to borrow. Here’s a general process you may follow:
If you find yourself in need of some extra funds and have bad credit, consider improving your credit score first. This can save you time and money as lenders are much more likely to approve you if you have good credit and you may receive offers for lower interest rates. If you aren’t able to take the time to boost your credit rating, instead, you may have to consider installment loans for bad credit.
A payday loan is a type of installment loan. However, unlike other types of installment loans, payday loans are often predatory due to their sky-high interest rates and fees. Payday loans are small — typically up to $500 — and can come with APRs as high as 400%. Payday loan lenders generally don’t run credit checks.
Borrowers are often given only a two- to four-week window to repay the loan. This can trap consumers in a cycle of debt as many borrowers end up having to take out more debt to cover the cost of the original loan.
Compare payday loans versus personal loans, which typically only have APRs up to 36% and much longer repayment terms.
We reviewed more than 25 lenders that offer installment loans to determine the overall best nine lenders. We focused our list of lenders on personal loan companies, since these types of loans offer the most flexible loan use. To make our list, lenders must offer competitive annual percentage rates (APRs). From there, we prioritize lenders based on the following factors:
LendingTree reviews and fact-checks our top lender picks on a monthly basis.
Installment loans can both positively and negatively affect your credit score. Your lender will report your monthly payments to the credit bureaus. On-time payments can improve your credit, while missed or late payments can bring it down.
A no-credit-check loan may be the easiest type of installment loan to get, but they typically come with high rates and fees.
Lenders typically require that you have a strong credit profile — meaning a good credit score, at least several years of credit experience, a consistent repayment history and a steady income.
Credit score requirements depend on the lender, but FICO Score defines bad credit as being below 580, while VantageScore labels it as 600 or lower. If you have a bad credit score, consider applying for an installment loan with a cosigner.
A trustworthy lender will require a credit check to ensure you are able to repay the loan. Credit pulls allows lenders to access your credit reports and see what kind of borrower you may be.