Best Installment Loans for Bad Credit in April 2024

To hone in on the best installment loans for bad credit, we identified five lenders that offer reasonably competitive interest rates and a generous selection of repayment term lengths and loan amounts.

• Upstart: Our top pick
• Upgrade: Best discounts
• Avant
• Universal Credit
• OneMain Financial

Upstart is a loan aggregator that connects interested borrowers to more than 100 potential lenders, including banks and credit unions. Instead of leaning into your credit score as a qualifying factor, Upstart leverages artificial intelligence to examine criteria such as your job, education and where you live. This model tends to be more generous to borrowers who may receive high interest rates or be rejected by more traditional lenders. And even though Upstart caters to borrowers with poor credit or no credit, its starting interest rate (7.80% as of this writing) is lower than many of the best lenders on the market.

Pros and Cons of Upstart

Upstart Installment Loans

Upstart offers personal loans ranging from $1,000 to $50,000. Borrowers can choose either a three- or five-year term. Interest rates depend on personal factors like your credit score and income, plus loan-specific details like the amount borrowed and repayment term. Upstart offers a wide range of interest rates and their lowest rate is similar to other top providers.

Upstart Eligibility Requirements

Upstart’s minimum credit score is 300. However, the company claims that it considers other factors besides income and credit score, such as your education level and your current job. It does not specifically state if there is a minimum required education level. You do need to be a U.S. citizen or permanent resident to qualify.

Upgrade offers personal loans with terms between 24 and 84 months, which is a wider range than what many lenders offer. Loan amounts vary between $1,000 and $50,000, but some states have different minimum personal loan amounts. 

The company stands out for its wealth of available discounts and bonuses, including for using autopay and for opening an Upgrade checking account. Upgrade also says that customers who choose to have the lender pay off their existing loan or credit card balances directly will get a discount on their interest rate.

Pros and Cons of Upgrade

Upgrade Installment Loans

Upgrade’s personal loans have a relatively high maximum amount of $50,000, which is comparable with some of the best personal loan companies. Upgrade charges an origination fee between 1.85% and 9.99%, which is on the higher end of the industry.

Upgrade Eligibility Requirements

Upgrade does not provide a minimum credit score or income requirement online. However, you must be the age of majority in your state (18 for most states), be a U.S. citizen, a permanent resident or be in the United States on a visa. You must also have a bank account and an email address.

Like other loan companies on this list, Avant is not a direct lender. As an aggregator, the company will try to match you with appropriate lenders. While this means you might be inundated with calls and emails from various lenders, you may find yourself with more choices.

Pros and Cons of Avant

Avant Installment Loans

Avant offers unsecured personal loans for eligible borrowers. The loan amount window is between $2,000 and $35,000, whereas many other companies offer up to $50,000 or more. Available terms are between 12 and 60 months, which is fairly standard in the industry.

Avant Eligibility Requirements

Avant’s minimum credit score requirement is 580 — one of the lowest credit score requirements among personal loan companies. You’ll need to provide income and employment verification to prove you can afford the loan.

Universal Credit offers a maximum loan amount of $50,000, and you can often get your loan money by the next day after you’re approved. However, the lender charges substantial origination fees and interest rates (11.69% to 35.99% as of this writing) are not very competitive.

Pros and Cons of Universal Credit

Universal Credit Installment Loans

Universal Credit offers loans between $1,000 and $50,000, which is on par with comparable lenders on this list. Repayment term options vary between 36 and 60 months. With a range between 5.25% and 9.99%, Universal Credit’s origination fee is higher than Upstart’s, for example, with an origination fee starting at 1.85%.

Universal Credit Eligibility Requirements

To be eligible for an installment loan through Universal Credit, you need to be at least 18 years old (or 19 in Alabama). You also need to be either a U.S. citizen, permanent resident, or have a valid visa. Other requirements include a bank account and an email address. Universal Credit does not publicly share its minimum credit score.

OneMain Financial is a lender that offers installment loans and credit cards to eligible borrowers. OneMain Financial’s qualification terms are more lenient than other lenders, but its interest rates are higher and available loan amounts are lower than those of some competitors.

Pros and Cons of OneMain Financial

OneMain Financial Installment Loans

The loan amount ranges from $1,500 to $20,000, which is almost half the upper limit of what the top lenders on this list offer. Borrowers can select a 24-, 36-, 48-, or 60-month loan term. You’re eligible to apply with a co-applicant, which may help you receive a larger loan amount. 

OneMain Financial charges an origination fee that may be either a flat amount or a percentage of the loan. The flat amount fee is between $25 and $500, while the percentage varies between 1% and 10%.

OneMain Financial Eligibility Requirements

To apply for a OneMain Financial loan, you’ll need to provide your Social Security Number, government-issued form of ID, proof of employment, income and residence.

Residents of the following states are not eligible for OneMain Financial loans:

• Alaska
• Arkansas
• Connecticut
• Massachusetts
• Rhode Island
• Vermont
• Washington D.C.
• U.S. territories

Before taking out an installment loan, consult with an expert like a financial planner or qualified credit counselor who can go over your other options. If you have emergency expenses, need to make timely home repairs or want to consolidate your debt, an installment loan may be a viable solution. 

Using an installment loan for unnecessary or discretionary expenses may not be a wise choice. Installment loans often have high interest rates and fees, especially if you have bad credit.

To pick the best installment loan from the right lender, figure out what monthly payment you can afford. Then, look for the lender that offers the lowest APR with that monthly payment. 

It’s crucial to compare the APR, not just the interest rate. 

The APR includes all non-negotiable fees, as well as the interest rate. By comparing the APRs, you’ll be able to choose the lender that offers the best combination of fees and interest.

There are plenty of installment loan options for borrowers with bad credit. Before picking a lender from our curated list, get preapproved to see what kind of APR you qualify for. Gather at least three quotes so you can compare your available options and never take on more than you can afford.

If you’re interested in getting a personal loan, check out our list of the best loans for bad credit.

Our team put together a comprehensive 100-point rating system to evaluate personal loan companies. We gathered data points from 28 of the most prominent lenders in the US and analyzed disclosures, licensing documents, sample loan agreements, marketing materials and websites. Our rating system takes into account four broad categories.

• Affordability (35%): How expensive each company’s loans are to pay back.
• Loan features (35%): The breadth of loan terms and features available to prospective customers.
• Customer experience (20%): Ease of application, prequalification and customer service interactions.
• Company reputation (10%): An exploration of lenders’ Better Business Bureau files, customer reviews and outstanding regulatory actions.

Our top-rated lenders may not be the best fit for all borrowers. To learn more, read our full personal loans methodology.

Editor’s Note: Before making significant financial decisions, consider reviewing your options with someone you trust, such as a financial adviser, credit counselor or financial professional, since every person’s situation and needs are different.