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Best installment loans in October 2024

Updated Oct 31, 2024

What to know first: An installment loan lets you borrow a fixed sum of money and pay it back over a set period. You can use personal loans if you need to finance a large-ticket item, pay for an emergency expense or have flexibility in the loan’s use.

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PERSONAL LOANS

LIGHTSTREAM: BEST FOR EXCELLENT CREDIT

4.7

Est. APR
6.94- 25.29%
* with AutoPay
Loan term
2-7 yrs*
Loan amount
$5k- $100K
Min credit score
695
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PERSONAL LOANS

Upstart: Best for bad credit

4.8

Est. APR
7.80- 35.99%
Loan term
3-5 yrs
Loan amount
$1k- $50K
Min credit score
300

PERSONAL LOANS

LENDINGCLUB: BEST FOR FAIR CREDIT DEBT CONSOLIDATION

4.5

Est. APR
9.06- 35.99%
Loan term
2-5 yrs
Loan amount
$1k- $40K
Min credit score
600
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PERSONAL LOANS

Happy Money: Best for credit card debt consolidation

4.6

Est. APR
11.72- 17.99%
Loan term
2-5 yrs
Loan amount
$5k- $40K
Min credit score
640
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PERSONAL LOANS

Citi: Best for multiple discounts

4.6

Est. APR
11.49- 20.49%
Loan term
1-5 yrs
Loan amount
$2k- $30K
Min credit score
720
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PERSONAL LOANS

Avant: Best for flexible terms and bad credit

4.7

Est. APR
9.95- 35.99%
Loan term
2-5 yrs
Loan amount
$2k- $35K
Min credit score
550

PERSONAL LOANS

SoFi: Best online lender

4.7

Est. APR
8.99- 29.49%
with all discounts
Loan term
2-7 yrs
Loan amount
$5k- $100K
Min credit score
300

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Compare online installment loan rates from Bankrate's top picks 

Our table offers a quick comparison view of the best installment loan lenders. You can view rates and loan offerings to find the best option for your financial situation. Skim and compare the lenders to find the top ones that interest you to learn more about them.

LENDER BEST FOR EST. APR LOAN AMOUNT LOAN TERM MIN CREDIT SCORE
LightStream Excellent credit 6.94%-25.29%* with AutoPay $5,000-$100,000 2 - 7 years 695
Upstart Bad or no credit 7.80%-35.99% $1,000-$50,000 3 or 5 years No Requirement
LendingClub Fair credit debt consolidation 9.06%-35.99% $1,000-$40,000 2 - 5 years 600
Happy Money Credit card debt consolidation 11.72%-17.99% $5,000-$40,000 2 - 5 years 640
Citi Multiple discounts 11.49%-20.49% $2,000-$30,000 1 - 5 years 720
Avant Flexible terms and bad credit 9.95%-35.99% $2,000-$35,000 2 - 5 years 550
SoFi Online experience 8.99%-29.49% $5,000-$100,000 2 - 7 years No requirement

A closer look at our top installment loan lenders 

These deeper dives will help you narrow your options by giving you extra insight into each lender and its products. You’ll even get an inside look at data on the credit profiles of actual Bankrate customers, the rates they received and how they’re using these loans.

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 loan industry.

Est. APR
6.94%–25.29%
Loan amount
$5k– $100k
Min credit score
695

Upstart: Best for bad credit

Upstart
Rating: 4.8 stars out of 5
4.8

Overview: Upstart approves loans based on more than just the borrower’s credit score and income. Its proprietary AI model considers factors like job history and educational background to make a decision, making its loan products accessible — even for those with little or no credit history.

Est. APR
7.80%–35.99%
Loan amount
$1k– $50k
Min credit score
300

LendingClub: Best for fair credit debt consolidation

LendingClub
Rating: 4.5 stars out of 5
4.5

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 and its lower-than-average credit score requirement make its loans more inclusive than most.

Est. APR
9.06%–35.99%
Loan amount
$1k– $40k
Min credit score
600

Happy Money: Best for credit card debt consolidation

Happy Money
Rating: 4.6 stars out of 5
4.6

Overview: Happy Money is unique because it only offers credit card debt consolidation loans. 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
640

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 a 0.5 percent rate reduction — one of the most generous discounts of the lenders we reviewed. Citigold and Citi Priority customers also qualify for an additional 0.25 percent rate discount.

Est. APR
11.49%–20.49%
Loan amount
$2k– $30k
Min credit score
720

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 one of the lowest FICO score requirements among the lenders profiled on this page, offering 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: 4.7 stars out of 5
4.7

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%–29.49%
Loan amount
$5k– $100k
Min credit score
300

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.

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 used to buy a house. The home serves as collateral and secures the loan, which is paid monthly over 15 to 30 years.
  • 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 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 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 — sometimes 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.
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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.

Where to get an installment loan

The source of your installment loan will vary depending on what you are borrowing for, but installment loans tend to come from one of the following sources:

  • Banks: Borrowing from a bank means working with a trusted financial institution and access to in-person support. This route is also an especially strong fit for current members, as some banks offer discounts. 
  • Credit unions: Like banks, credit unions offer in-person customer service and may provide discounts to current members. They may also be more flexible in their qualification requirements than a bank.
  • Online lenders: For those who feel comfortable navigating their finances on the web, online lenders tend to offer fast funding and the convenience of at-home lending. 

How to get an installment loan

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

  1. Decide how much money you need: The more you borrow, the higher your monthly payment will be. Using a personal loan calculator gives you an idea of the monthly payments. Experiment with longer terms for lower payments, but keep an eye on how much interest you’ll save with a shorter term. 
  2. Know your credit score: A credit score above 670 will get you competitive rates, while a fair credit score between 580 and 669 could result in double-digit interest rate offers. Also check your credit report with all three credit bureaus — Equifax, Transunion and Experian — to see if there are any errors. 
  3. Choose what type of personal loan to apply for: There are several different types of personal loans, ranging from debt consolidation loans you can use to pay off high-interest-rate credit cards to holiday loans to help you cover seasonal holiday expenses. 
  4. Shop for the best rate and terms: Personal loans are available at banks, credit unions and online lenders, and you should compare at least three lenders before making a final decision. Look for lenders that will prequalify you without a hard credit pull to avoid damaging your credit.  
  5. Pick a lender and finalize your application: Once you’ve chosen the lender with the best personal loan for your situation, complete the application process and provide any paperwork they ask for, like a photo ID or proof of income. The faster you provide information, the quicker you’ll receive your funds. 
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Bankrate tip: Getting an installment loan with bad credit

While getting a bad credit installment loan is possible, you may need to shop around a bit more to find the best terms. These tips might help you get a better bad-credit loan rate. 

  1. Check out secured loan options: Lenders consider it less risky to loan money to bad-credit borrowers if the loan is backed by an asset like a car or home. As a result, secured personal loans often come with lower rates. 
  2. Add a co-signer: If you’re having trouble qualifying on your own, some lenders allow you to add a co-signer or co-borrower. Your rate may be lower and you may qualify for a larger loan amount.
  3. Borrow less: You may need to prove yourself by paying off a smaller loan amount first. Lenders may approve you for more over time as you develop a history of repaying lower balances.

Alternatives to installment loans

If you’ve evaluated your options and aren’t convinced an installment loan is the best choice, here are some installment loan alternatives:

  • Credit cards: Depending on the size of your expense, using a credit card may give you more flexibility for payments. You’ll only make payments on what you charge, and can pay the balance in full and reuse the credit. That said, credit cards tend to have higher interest rates than personal loans. Try applying for a 0 percent introductory rate credit card. If you qualify you’ll have more room to pay off your balance without accruing interest.
  • Home equity line of credit: Homeowners may be able to tap a portion of their home’s equity with a home equity line of credit (HELOC). A HELOC works like a credit card at first, allowing you to use the funds, pay them off and re-use the line as needed. You may even get a tax write-off if the funds are used to spruce up your home. 
  • Personal line of credit: A personal line of credit may be secured or unsecured. During the draw period, you can borrow money and make interest-only repayments. Once the draw period ends, you’ll make payments as you would with an installment loan. 
  • 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 on 401(k) loans

“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

Frequently asked questions about installment loans 

How we made our picks for best installment loans

Bankrate's trusted personal loans industry expertise

48

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: