10 Best Installment Loans 2023: Borrower’s Guide

Top 10 Installment Loan Providers in 2023 for Excellent and Poor Credit

Installment loans are short-term personal loans. These loans let customers repay them within a set time frame. Borrowers make equal installments monthly on loans. Lenders charge interest on the outstanding balance until it’s paid off. The amount of money borrowers get depends on their credit score and income level. They may qualify installment loans with no credit check for more than 5000 even with have bad credit. The best part about them is that borrowers don’t need to provide any collateral. It means there are no upfront fees or costs associated with applying.

Borrowers must evaluate a few things when choosing these loans. They must first look at the interest rates. Lower interest rates mean that borrowers get affordable loans. The second factor to consider is the loan terms. Longer terms mean that borrowers get the time to repay their loans. Another factor to consider is fees. Specific creditors demand prepayment fines or origination fees. These fees add to the cost of the loan, so it is vital to compare costs before picking a loan. Excellent installment loans offer adjustable repayment terms and reasonable rates. Borrowers must be able to repay it without incurring extra debt. Some creditors charge significant interest rates when borrowers use other forms of financing. It makes them less attractive options. The following are the best three installment loans.

 Marcus by Goldman Sachs (Best overall)

Marcus by Goldman Sachs is a loan company that offers various loan products and services. Its services include investment banking, asset management, private equity, and venture capital. Marcus by Goldman Sachs provides quality financial services to its clients. It has a reputation for being a reliable and trustworthy company. The company is great for those looking for a reliable loan company.

 Sofi

Sofi is an online lending platform that offers installment loans to qualified borrowers. The company is based in San Francisco, California, and was founded in 2011. Sofi strongly focuses on providing excellent customer service. It has an A+ rating with the Better Business Bureau. Sofi offers loans ranging from $5,000 to $100,000 and terms from two to seven years. Sofi offers a co-signing option for borrowers who may not qualify for a loan.

 Lendingclub

LendingClub is an online lending platform that offers installment loans to qualified borrowers. Borrowers apply for loans ranging from $1,000 to $40,000 and choose from various repayment terms. Once approved, borrowers receive their loan funds within three to five business days.

1. Marcus by Goldman Sachs (Best for Good Credit)

Marcus by Goldman Sachs is a financial institution that offers installment loan services. They are one of the most popular and well-known companies in this industry. It makes them an excellent choice for many people who need cash fast. The company has been around since 1999. They have become one of the largest providers of installment loans in the United States. People with good credit find it the best installment loan provider.

 Marcus by Goldman Sachs is a great option for those with good credit. The minimum credit score for Marcus is 660, and the fixed APR is 5.99%. Loan amounts range from $3,500 to $40,000, and term lengths are 36 or 60 months. Marcus is a good option for those needing a personal loan for a large buy or consolidating debt. To qualify for an installment loan, borrowers must have a minimum annual income of $40,000.

 Pros:

  • Goldman Sachs is a well-established and reputable financial institution.
  • Marcus by Goldman Sachs offers a wide range of banking products and services.
  • Customers enjoy the company’s extensive financial resources and expertise.

 Cons:

  • Several financial scandals in recent years have embroiled Goldman Sachs.
  • Marcus by Goldman Sachs is a new entrant to the consumer banking market.
  • Some customers may prefer to bank with a more traditional bank or credit union.

It takes 10 business days for borrowers to receive their Marcus by Goldman Sachs funds. Fees apply when borrowers wire money out of their accounts. There are limits on how much borrowers withdraw from their accounts daily. Opening an account requires being at least 18 years old and being a US citizen or permanent resident.

2. SoFi (Best for Unemployment Protection)

SoFi is a company that offers n installments over a set period. Unemployed individuals have a high chance of getting a loan from the company. Borrowers use the loans for various purposes. These include consolidating debt, financing a large purchase, or covering unexpected expenses. Sofi offers a variety of installment loan options. Borrowers have the freedom to choose the one that best fits their needs. The loans range from $5,000 to $100,000 and are repaid over 2 to 7 years. Borrowers must complete an online application to apply for a Sofi installment loan. They provide basic information about themselves and their finances. Once Sofi approves the loan, borrowers choose the loan amount and repayment term. Sofi funds the loan, and borrowers start using it immediately.

The minimum credit score for a Sofi loan is 640, and the fixed APR is from 5.99%-16.99%. Loan amounts range from $5,000 to $100,000, and term lengths are from 24 to 84 months. The minimum annual income requirement for a Sofi loan is $60,000.

Sofi installment loans are a great option for borrowers who need a large loan and have good credit. The minimum credit score for a Sofi loan is 640, and the fixed APR is from 5.99%-16.99%. Loan amounts range from $5,000 to $100,000, and term lengths are from 24 to 84 months. The minimum annual income for a Sofi loan is $60,000. Borrowers who have a credit score of 640 or higher and a yearly income of $60,000 or more qualify for a Sofi loan.

 Pros:

  • Sofi offers competitive rates that save borrowers money on interest charges.
  • Sofi funds its loans quickly, often within a few days. It is a major advantage if a borrower needs immediate access to funds.
  • Sofi loans have few fees and no prepayment penalties. They are a more affordable option than other loans.

 Cons

  • Sofi loans are only available to borrowers with excellent credit. Borrowers with bad credit cannot qualify for a Sofi loan.
  • Sofi loans are only available in some states. Borrowers who live in states that Sofi does not service cannot get a loan from them.
  • Sofi loans typically have high minimum loan amounts. Borrowers looking for small amounts do not find Sofi as a reliable lender.

The time to receive funds from Sofi is usually within 24 hours. No fees are associated with the loan, and the requirements are typical that the customer has a good credit score and a steady income.

3. LendingClub (Best for Peer-to-Peer Lending)

Lendingclub is an online lender offering these loans to borrowers. The company provides loans with terms of 3 to 5 years. Lendingclub is a good option for borrowers who need a loan for a specific purpose. These include house repairs or a significant purchase. The company provides competitive rates and terms. Applying online is quick and easy. It works by matching customers with creditors willing to fund their loans. It does not fund loans itself. It makes money by charging customers an origination fee and servicing fee. Lendingclub offers installment loans to customers who have credit scores of at least 600. Fixed APRs start at 9.95%, and loan amount brackets are 00 to $40000. Its term lengths are 24 to 60 months. There is no minimum yearly income requirement. Lendingclub is a good option for borrowers who need a loan for a large purchase. Those with poor credit need loans with fair interest rates than most credit cards qualify. Borrowers must be aware that they must make regular payments over several years to repay the loan.

PROS:

  • LendingClub offers competitive rates on installment loans, with rates starting as low as 6.95% APR.
  • Loan amounts range from $1,000 to $40,000, and terms range from 24 to 60 months.
  • Borrowers check their rates without impacting their credit scores.
  • There are no prepayment penalties.

CONS

  • LendingClub is not available in all states.
  • Borrowers are not eligible for a loan if they have a low credit score.
  • More than loan amounts may be required for some borrowers.
  • The application process is time-consuming. 

LendingClub funds loans within 5 business days. It charges origination fees ranging from 1% to 6% of the loan amount. To qualify for a LendingClub loan, borrowers must have a minimum credit score of 600. They must have a maximum debt-to-income ratio of 40% and a steady income.

4. LendingPoint

LendingPoint is an installment loan provider. The company provides loans to individuals with bad credit. They are the best for borrowers who need a small loan and can’t qualify for a traditional bank loan. LendingPoint loans have a fixed APR from 19.99% – 35.99%, and borrowers repay the loan over 24 to 48 months. The minimum credit score to qualify for a LendingPoint loan is 580. LendingPoint offers an easy online application process and quick approval decisions. Loan funds are deposited into a borrower’s bank account as soon as the next business day. LendingPoint has a flexible repayment schedule, which is tailored to a borrower’s individual needs. 

LendingPoint offers installment loans with loan amounts from $2,000 to $25,000. Term lengths are 24, 36, 48, or 60 months. The minimum annual income for eligibility is $20,000.

 Pros:

  • No prepayment penalties
  • Competitive rates
  • Flexible terms
  • The fast and easy application process

Cons:

  • An origination fee of 2.99% – 4.99%
  • A minimum credit score of 600
  • A maximum debt-to-income ratio of 40%

LendingPoint is a good option for borrowers who need a little extra money and have a good credit score. The application process is fast and easy, and the rates are competitive. However, there is an origination fee, and borrowers must have a minimum credit score of 600. LendingPoint funds its loans the next business day after approval. The company charges an origination fee of 2.99% – 6.99% of the loan amount. There are no other hidden fees or charges.

To qualify for a LendingPoint personal loan, borrowers must have a minimum credit score of 580. They need a minimum annual income of $20,000 and an active checking account.

5. Happy Money

Happy Money is an installment loan company best for people who need a small amount. They use it to cover unexpected expenses. Borrowers apply for a Happy Money loan online or in person and must provide basic details about themselves. Once approved, they must sign a loan agreement, and the company deposits the money into their account. Borrowers must repay the loan in full, with interest, within a certain period. The minimum credit score for a Happy Money loan is 640, and the fixed APR is from 10.99% to 35.99%. The time to receive funds from this company is quick, and the fees are reasonable. The requirements to qualify for a loan from this company are not stringent. They make it a good option for those who need money quickly. 

The company offers installment loans with loan brackets of $2,600 to $5,000. Term lengths are 24 to 48 months. The minimum annual income required is $18,000. 

Pros

  • They offer a variety of loan amount brackets and term lengths to choose from.
  • They have a low minimum annual income requirement. 

Cons

  • They do not offer pre-qualification for loans, so borrowers only know if they are approved once they apply. 

6. Upstart

An upstart loan is an installment loan that is best for borrowers with limited credit history. Upstart loans have a fixed APR from 5.99% – 35.99%, and borrowers receive their funds as soon as one business day after approval. The minimum credit score for an upstart loan is 620.

To apply for an upstart loan, borrowers must complete an online application. Once the application is complete, Upstart uses its proprietary underwriting model to assess the borrower’s creditworthiness. The model takes into account factors such as education and employment history. Once the borrower is approved, they receive their loan funds within one business day.

The loan amount bracket is 00 to $50,000 with term lengths of 3 to 36 months. Borrowers need a minimum Annual Income of $12,000 to qualify.

Pros

  • Once approved, borrowers get their loan as soon as the next business day.
  • Upstart reports borrowers’ payments to credit bureaus, helping borrowers build their credit history.
  • Flexible payments: Borrowers choose their monthly payment date and even pay off their loans early without penalty.

Cons

  • Origination fee: Upstart charges a one-time origination fee of 2% to 8% of their loan amount
  • High APRs. Upstart’s APRs are much higher than those of traditional lenders. Borrowers pay more in interest if they take out a loan with them.
  • Upstart is a good option if borrowers need to get a loan quickly and don’t have great credit. 

An installment loan from Upstart may be a good option for borrowers needing quick cash. They deposit funds within one business day, and there are no hidden fees or prepayment penalties. To qualify, borrowers need a regular income source and a checking account. Upstart loans are available in amounts from $1,000 to $50,000, with three to five years of repayment terms.

7. LightStream

LightStream is an online lender that offers installment loans to consumers. These loans are best for people with good to excellent credit who need money for a major purchase or project. LightStream offers fixed APRs from 5.99% – 19.99%, and loans are for as much as $100,000. Borrowers need a good to excellent credit score (720 or above) to apply for a loan. Once approved, they’ll choose a loan amount and repayment term. LightStream then deposits the money into their account, and they use it for whatever they need. Repayment terms are flexible, and they make biweekly or monthly payments. There’s no prepayment penalty, so borrowers pay off their loans early.

Upstream loan amounts range from $5,000 to $100,000, and term lengths are two to seven years. The minimum annual income for LightStream loan applicants is $24,000.

Pros

  • There are no origination fees or prepayment penalties.
  • Borrowers choose their loan terms, including the length of the loan and the monthly payment amount.
  • Borrowers get their money as soon as the same day they apply.

 Cons

  • Since they are unsecured loans, they have a higher interest rate than secured loans.
  • Borrowers need a strong credit history to qualify.
  • LightStream is only available in some states. 

Borrowers receive their funds as soon as the next business day. To qualify for a LightStream loan, borrowers must have a good to excellent credit score. They must have a minimum income of $24,000 per year. There are no minimum credit scores or income requirements for co-applicants.

8. Upgrade

Upgrade is a website that offers installment loans to consumers. These loans are designed for various purposes. They include consolidating debt, financing a large purchase, or paying for unexpected expenses. Installment loans from Upgrade.com have a fixed APR of 5.99% – 35.89%. Borrowers choose to repay their loan over 3 to 60 months. No minimum credit score is required to apply for a loan from Upgrade.com, and the website offers a soft credit pull option to help borrowers get pre-qualified. Installment loans from Upgrade.com have a fixed APR, which means that the monthly payments stay the same for the life of the loan. Borrowers choose to repay their loan over 3 to 60 months, and there is no minimum credit score required to apply. Upgrade.com offers installment loans with loan brackets of $500-$5,000. Term lengths range from 3-36 months, with the minimum annual income required being $18,000. 

Pros

  • There are no origination fees,
  • Borrowers get their money as soon as the next day. 

Cons

  • APRs are on the high end,
  • Late payment fee of $15. 

It takes up to three business days to receive the funds from an installment loan through Upgrade. The fees for taking out the loan are disclosed before agreeing. Requirements for taking out a loan through Upgrade include having a regular source of income and a checking account.

9. Avant

Installment loans from Avant are excellent for customers with moderate credit scores (600-700). Loans from Avant have a fixed apr of 9.95% to 35.99%, and customers get their funds within one business day. To be eligible for an installment loan from Avant, customers need a minimum credit score of 580. They need a full debt-to-income percentage of 50. They offer amounts ranging from $2,000 to $35,000 and 24 to 60 months terms. There is no set yearly earnings condition to get a loan from Avant. 

Pros

  • Avant loans help to help improve credit scores. They report payments to the credit bureaus, and making timely payments helps to build a borrower’s credit history and improve their credit score.
  • Borrowers use the funds for any purpose – there are no restrictions on how they use the loan funds. 

Cons

  • The interest rates on Avant loans are higher than those offered by other lenders.
  • Avant only offers loans in some states. 

It takes up to three days to receive the funds from an Avant loan. There are no fees for taking out or repaying an Avant loan. The requirements for taking out an Avant loan are that the borrower must be 18 years old. They must have a regular source of income and a checking account.

10. Universal Credit

Universal Credit offers installment loans for individuals who need help covering unexpected expenses. It is a flexible loan used for a variety of purposes. It does not require a minimum credit score. The fixed APR from Universal Credit is 6%, and the loan is repaid over up to 12 months. No minimum credit score is required to qualify for Universal Credit. The fixed APR from Universal Credit is 6%, and the loan is repaid over up to 12 months.

Universal Credit offers installment loans with loan brackets of $500 to $5,000. The term lengths for these loans are between 6 and 60 months. The minimum annual income for these loans is $18,000. 

Pros

  • The loans are available to people with bad credit,
  • The loans have low-interest rates.
  • The loans have flexible repayment options. 

Cons

  • The loans have high fees.

What is an Installment Loan?

An installment loan is a type where borrowers repay lenders in periodic installments. These include weeks, months, or years. The repayment schedule may be weekly, biweekly, monthly, or other. The term of the loan may be a few months to several years. Borrowers use installment loans to purchase big-ticket items. These include automobiles, boats, RVs, or home improvements. The borrower makes a down payment on the purchase, and the lender finances the rest. The borrower then repays the lender in installments, typically over the years. Installment loans have lower interest rates than revolving credit products. Such products include credit cards. They allow the borrower to build up equity in the property or item purchased with the loan.

What is the Best Installment Loans for New Borrowers?

There are a few things to consider when looking for the best installment loans for new borrowers. The first is the interest rate. Many lenders offer different interest rates. It’s important to compare before choosing a loan, considering even tribal loans. The second is the repayment schedule. Some loans have a longer repayment period than others. Choosing a loan on which a borrower comfortably makes payments is important. The last thing to consider is the fees. Some lenders charge origination fees or prepayment penalties. It’s important to read the fine print before choosing a loan. Here is a top selection list of the best installment loans for new borrowers: 

  1. SoFi Personal Loans: SoFi offers competitive interest rates and flexible repayment terms. There are no origination fees or prepayment penalties.
  2. Prosper Personal Loans: Prosper offers competitive interest rates and flexible repayment terms. There are no origination fees or prepayment penalties.
  3. Avant Personal Loans: Avant offers competitive interest rates and flexible repayment terms. There are no origination fees or prepayment penalties.
  4. LendingClub Personal Loans: LendingClub offers competitive interest rates and flexible repayment terms. There are no origination fees or prepay

What is the Best Installment Loans for Bad Credit?

There are a few different types of installment loans for bad credit. The best type of loan for a borrower depends on their credit score, income, and other factors.

Here are a few installment loans that might be a good fit for you:

  1. A personal loan from a credit union. Credit unions are a good option for people with bad credit. They typically have more flexible lending criteria than banks. Personal loans from credit unions have lower interest rates than other types. They are a good option if customers borrow more money.
  2. A short-term loan from a payday lender. Payday loans are short-term loan that is a good option if borrowers need cash quickly. These loans have high-interest rates. Borrowers must only consider them if they repay the loan on time.
  3. A long-term loan from a lending company. Lending companies have more flexible lending criteria than banks. They are willing to work with borrowers even if they have bad credit. Long-term loans from lending companies have lower interest rates than payday loans. 

What are some Purposes for Installment Loans?

There are different purposes for which people may choose to take out installment loans. Some common reasons include consolidating debts, paying emergency expenses, and making large purchases. For many people, taking out an installment loan is a way to reduce the amount of interest on other debts. These include credit cards. By consolidating debts into one lower-interest-rate loan, people save money monthly. It helps them become debt-free more quickly. Unexpected expenses, such as car repair or medical bills, are another reason to take out an installment loan. These loans provide the funds needed to pay for the expense and then be paid back over time rather than all at once. It helps ease the financial burden and stress that comes with unexpected expenses. Making large purchases, such as a new car or furniture, is another common reason to take out an installment loan. These loans help people to make the purchase and then pay it back over time rather than all at once. It makes large purchases more affordable and manageable.

How to choose the Best Installment Loan?

There are many things to consider when choosing the best installment loan for you. Borrowers need to consider the interest rate, the length of the loan, monthly payments, and any fees associated with the loan. Borrowers need to consider their credit score and income. They won’t get the best interest rates with poor credit. To get the best loan, they must consider the purpose of the loan. Those looking for an emergency loan must choose a shorter loan with a higher interest rate. Those who want a loan for a long-term purchase must choose a longer loan with a lower interest rate. Borrowers must shop around and compare offers from multiple lenders. It helps to get the best interest rate and terms for their loan.

Do Installment Loans have any Benefits?

Yes, there are a few benefits to installment loans. One is that they help improve a borrower’s credit score. Once they make all their payments on time, it shows on their credit report and helps improve their score. Another benefit is that borrowers get a lower interest rate than other types of loans. Lenders see installment loans as less risky than other types of loans.

Another benefit is that borrowers make the payments automatically from their accounts. It helps to ensure that borrowers never miss a payment and help to keep their loan in good standing. Additionally, borrowers get a lower interest rate if they opt for automatic payments.

Are Installment Loans secured?

Yes, a secured installment loan is a loan backed by collateral. Borrowers agree to put up collateral if they default on the loan. The three best-secured installment loans are: 

  1. A home equity loan: These are loans secured by the equity in a borrower’s home. The equity is the portion of their home that they own outright. A borrower receives the portion if they sell their home and pay off their mortgage. Home equity loans have low-interest rates. Borrowers use them for various purposes. These include home improvements, debt consolidation, and emergency expenses.
  2. A car loan: Car loans are secured by a borrower’s vehicle. Once they default on the loan, the lender repossesses their car. Car loans have lower interest rates than unsecured loans. Borrowers use them for various purposes.
  3. Personal loans: These loans are secured by a borrower’s assets. These include savings accounts or pieces of jewelry. The loan amount is based on the value of the assets minus any outstanding debts.

 

 

 

 

Personal Finance Writer at Payday Champion

Kathy Jane Buchanan has more than 10 years of experience as an editor and writer. She currently worked as a full-time personal finance writer for PaydayChampion and has contributed work to a range of publications expert on loans. Kathy graduated in 2000 from Iowa State University with degree BSc in Finance.

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