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Best installment loans in April 2025

Updated Apr 24, 2025

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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LightStream: Bankrate 2025 Award Winner For Best Home Improvement Loan

4.5
Est. APR
6.49- 25.29%
* with AutoPay
Loan term
2-7 yrs*
Loan amount
$5k-$100K
Min credit score
695

PERSONAL LOANS

Upstart: Best for bad credit

4.7
Est. APR
6.70- 35.99%
Loan term
3-5 yrs
Loan amount
$1k-$50K
Min credit score
300

LendingClub: Bankrate 2025 Award Winner For Best In An Emergency

4.7
Est. APR
7.90- 35.99%
Loan term
2-6 yrs
Loan amount
$1k-$40K
Min credit score
600

PERSONAL LOANS

Happy Money: Best for credit card debt consolidation

4.2
Est. APR
8.95- 29.99%
Loan term
2-5 yrs
Loan amount
$5k-$40K
Min credit score
640

PERSONAL LOANS

Citi: Best for quick payoff

4.6
Est. APR
11.49- 20.49%
Loan term
1-5 yrs
Loan amount
$2k-$30K
Min credit score
Not disclosed

PERSONAL LOANS

Avant: Best payday loan alternative

4.5
Est. APR
9.95- 35.99%
Loan term
2-5 yrs
Loan amount
$2k-$35K
Min credit score
550

SoFi: Bankrate 2025 Award Winner For 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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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.

LightStream: Best for excellent credit

Rating: 4.5 stars out of 5
4.5

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
6.49%–25.29%
Loan amount
$5k–$100k
Min credit score
695
Est. APR
6.49%–25.29%
Loan amount
$5k–$100k
Min credit score
695
Loan term
2-7 yrs
Origination fee
Not specified

Upstart: Best for bad credit

Rating: 4.7 stars out of 5
4.7

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
6.70%–35.99%
Loan amount
$1k–$50k
Min credit score
300
Est. APR
6.70%–35.99%
Loan amount
$1k–$50k
Min credit score
300
Loan term
3-5 yrs
Origination fee
Not specified

LendingClub: Best for fair credit debt consolidation

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

Est. APR
7.90%–35.99%
Loan amount
$1k–$40k
Min credit score
600
Est. APR
7.90%–35.99%
Loan amount
$1k–$40k
Min credit score
600
Loan term
2-6 yrs
Origination fee
Not specified

Happy Money: Best for credit card debt consolidation

Rating: 4.2 stars out of 5
4.2

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
8.95%–29.99%
Loan amount
$5k–$40k
Min credit score
640
Est. APR
8.95%–29.99%
Loan amount
$5k–$40k
Min credit score
640
Loan term
2-5 yrs
Origination fee
Not specified

Citi: Best for quick payoff

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
Not specified
Est. APR
11.49%–20.49%
Loan amount
$2k–$30k
Min credit score
Not specified
Loan term
1-5 yrs
Origination fee
Not specified

Avant: Best payday loan alternative

Rating: 4.5 stars out of 5
4.5

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
Est. APR
9.95%–35.99%
Loan amount
$2k–$35k
Min credit score
550
Loan term
2-5 yrs
Origination fee
Not specified

SoFi: Best online lender

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
Est. APR
8.99%–29.49%
Loan amount
$5k–$100k
Min credit score
300
Loan term
2-7 yrs
Origination fee
Not specified

Calculate your installment loan payment

Use Bankrate’s personal loan calculator to determine expected costs ahead of applying for an installment loan. You can estimate your monthly payment based off of average interest rates and your desired loan term.

Loan Calculator

Estimated monthly payment
$92.22
Total loan amount paid
$5,000.00
Total interest paid
$592.91
Total cost of loan
$5,592.91
Principal amount
Total interest paid

How to compare installment loans

When comparing installment loans side-by-side, consider the terms offered by each lender and previous borrowers' experiences.  

  • Consider available terms. Check the minimum and maximum annual percentage rate (APR) offered by each lender along with its term lengths and potential fees.
  • Understand eligibility criteria. Lenders that offer installment loans tend to offer the best rates to those with good to excellent credit, high income and low debt. However, there are bad credit lenders that you can also explore.
  • Check funding speed. Many lenders are able to approve or deny your application within a few minutes of applying. If approved, you could be funded within one to two business days.
  • Read lender reviews. Before you apply, see what other people have to say about their loan experience and the lender's customer service.
  • Choose the right type of lender. Installment loans are offered by banks, credit unions and online lenders. You can also use options like Bankrate to quickly compare potential lenders and terms before you apply.

What are installment loans?

An installment loan allows you to borrow a fixed amount of money and pay it back over a set period, usually two to seven years. The main benefits of an installment loan are its predictable monthly payment and a set payoff date.

Installment loans can either be secured or unsecured. That said, most installment loans are unsecured personal loans that don't require you to pledge an asset like a home or car. They also feature lower average interest rates than credit cards, which could lead to significant interest savings.

Installment loans can be an excellent tool to improve your credit score if you use them to consolidate high-interest debt. Your credit utilization ratio drops when you pay off revolving credit like credit cards, which can boost your credit scores significantly.

Pros and cons of installment loans

Not all types of installment loans have the same benefits and drawbacks. For example, mortgages can take weeks or even months to close and can only be used to buy a home. If you're looking for the flexibility of a personal loan, here's what you can expect:

Green circle with a checkmark inside

Pros

  • You can typically get the funds quickly — sometimes even the same day you’re approved.
  • Payments are predictable because of fixed terms and interest rates.
  • Installment loan 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

  • Bad credit rates can be above 30 percent.
  • Personal loan lenders may charge origination fees as high as 12 percent of your loan amount.
  • There are no minimum payment options like you have with credit cards.
  • Personal loan limits with some lenders may not give you enough cash to meet your goals.
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BANKRATE EXPERT FAQ

How many installment loans should you have?


Bankrate Expert Contributor, Student Loans

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 writer, Loans

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 with Bankrate

You can use Bankrate's list of top lenders to start your search. Follow these steps to make the most out of your application process:

  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. You should compare at least three lenders before making a final decision. A comparison site like Bankrate is a useful way to check several lenders without a hard credit pull that could damage your credit.  
  5. Finalize your application. Compare lenders with the best personal loan rates and terms for your situation, then complete the application process and provide any necessary paperwork.
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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 or settle for a smaller amount to prove you can handle the payment. Check out secured personal loans backed by a car or home. Lenders consider them less risky, which could land you a lower rate than unsecured bad credit loans. Adding a cosigner could also help you qualify for a better rate or larger loan amount.

When to get an installment loan

While the term installment loan is most commonly used to refer to personal loans, any loan with a fixed term and interest rate is an installment loan. This includes auto loans, mortgages, student loans and a variety of other types of credit. To answer when you need an installment loan, you should know how much you need to borrow and what you need to spend your funds on. Processing times for smaller, unsecured loans are generally much quicker than large secured loans like mortgages.

Is now a good time to get an installment loan?

It largely depends on your personal finances and immediate needs. Personal loan interest rates have remained steady, but other types of installment loans — like mortgages and auto loans — have seen large fluctuations in average APR over the last year.

If you need a personal loan and have good to excellent credit, you may be able to take advantage of relatively competitive rates ahead of possible changes to the Fed funds rate. If you have fair or worse credit, it may be worth improving your credit score before you apply.

Frequently asked questions about installment loans 

How we made our picks for the best installment loans

Bankrate's trusted personal loans industry expertise

48

years in business

45

lenders reviewed

20

loan features weighed

900

data points collected

To select the best personal loans, Bankrate’s team of experts evaluated over 40 lenders. Each lender was ranked using a meticulous 20-point system, focusing on four main categories: