Best installment loans of April 2024
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BLUEPRINT
Updated 6:08 p.m. UTC April 22, 2024
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Whether you’re looking to renovate your home, consolidate debt, or cover another big purchase, a personal installment loan could help. With an installment loan, you receive a lump sum upfront and pay it back with fixed monthly payments—typically over one to seven years.
We reviewed many personal loan lenders based on flexible repayment terms, competitive interest rates, fast funding times and other factors. Here are some of the best installment loans of 2024, including the pros and cons of each.
Best installment loans
- SoFi: Best for large loan amounts.
- LendingPoint: Best for bad credit.
- Upgrade: Best for fair credit.
- LightStream: Best for fast funding.
- U.S. Bank: Best for existing U.S. Bank customers.
- TD Bank: Best for east coasters.
Compare the best installment loans
| INTEREST RATES | LOAN AMOUNTS | LOAN TERMS (YEARS) | MIN. CREDIT SCORE | |
|---|---|---|---|---|
SoFi
| 8.99% to 29.49%
| $5,000 to $100,000
| 2 to 7
| 680 |
LendingPoint
| 7.99% to 35.99%
| $2,000 to $36,500
| 2 to 5
| 660 |
Upgrade
| 8.49% to 35.99%
| $1,000 to $50,000
| 2 to 7
| 580 |
LightStream
| 6.99% to 25.99%
| $5,000 to $100,000
| 2 to 7
| Does not disclose
|
U.S. Bank
| 8.74% to 24.99%
| $1,000 to $50,000
| 1 to 7
| 660 |
TD Bank
| 8.99% to 23.99%
| $2,000 to $50,000
| 3 to 5
| Does not disclose
|
All rates include discounts where noted by the lender and are accurate as of April 22, 2024.
Methodology
Our expert writers and editors have reviewed and researched multiple lenders to help you find the best installment loan lenders. Out of all the lenders considered, the six that made our list excelled in areas across the following categories (with weightings): loan details (20%), loan cost (35%), eligibility and accessibility (20%), customer service (15%) and ease of application (10%).
Within each major category, we considered several characteristics, including APR ranges, loan amounts, maximum repayment terms, lender discounts, late payment and prepayment penalties, minimum credit score requirements and funding time as well as co-signer or co-borrower acceptance. We also evaluated each provider’s customer support options and customer reviews.
Why some lenders didn’t make the cut
Of the personal loan lenders that we reviewed, only a fraction made the cut. The lenders that didn’t have high enough scores to be included received lower ratings due to having higher interest rates, limited customer service options and poor customer reviews as well as not allowing co-signers.
Frequently asked questions (FAQs)
Installment loans come with flexible repayment terms that often span anywhere from one to seven years. Payday loans, on the other hand, typically require you to pay your loan back in full with your next paycheck. Plus, payday loans typically come with much higher interest rates and fees than installment loans, with APRs that can soar to 400% or higher. Installment loans typically have much more reasonable APRs starting around 6% and maxing out at 36%.
Installment loans can be secured or unsecured. Almost any loan that you pay back with monthly installments can be considered an installment loan, including personal loans, student loans, auto loans and mortgages. The lenders on this list, however, primarily offer unsecured personal installment loans that don’t require collateral.
Peer-to-peer (P2P) lending involves individual investors or businesses offering loans to borrowers. If you borrow a P2P loan, you’ll borrow from an individual investor rather than a traditional bank or online lender. P2P loans may have more flexible credit requirements than traditional installment loans.
“If the borrower has a fair credit score or short credit history, peer-to-peer or P2P lending can be a go-to option, as the borrower may have an easier time getting approved in comparison to a personal loan from a traditional bank,” says Ohan Kayikchyan, certified financial planner (CFP) .
However, P2P loans may come with higher interest rates and a lengthier application process than a traditional personal loan. That’s why it’s still a good idea to compare offers from multiple lenders.
It can be challenging to qualify for a personal installment loan with bad credit, but some lenders have more flexible borrowing requirements than others. LendingPoint, for example, accepts credit scores starting at 590. Some lenders also let you apply with a co-signer or co-applicant, which could boost your chances of approval—but this also means your co-applicant will be liable for repayment, as well.
Personal installment loans can be used for a wide variety of purposes, including home renovation, debt consolidation, medical bills, wedding expenses, travel and more. However, you typically can’t use a personal loan on higher education expenses, investing, or a down payment for a home.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
