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Best Installment Loans For Bad Credit In 2025
Online installment loans act as quick alternatives to traditional personal loans that are available to borrowers with a limited income or bad credit. They can be obtained within just one business day.
Explore the best installment loan offers for bad credit borrowers in 2025 and choose an offer that aligns with your financial situation.
Top Picks For Bad Credit Installment Loan Lenders In 2024
- Be at least 18 years old
- Prove your US citizenship or permanent residence
- Provide your bank account information
- Show your monthly income by providing pay stubs, tax forms, or bank statements
- Provide an active email address and phone number
- Origination fees up to 12%
- $15 late fee
- $15 NSF fee
- Quick access to loan funds
- No prepayment penalties
- Flexible monthly payments
- Soft credit check when prequalifying
- Flexible loan amounts
- Origination fees up to 12%
- High maximum annual percentage rate
- Co-signers aren’t allowed
- Hard credit checks for final approval
- Limited repayment loan terms
One business day (same-day funding available)
Poor credit borrowers who can’t qualify for traditional personal loans
Upstart is a financial platform that enables borrowers with low credit to get personal loans with flexible payback options. Its key advantage is same-day funding.
Upstart does not do hard credit checks when you prequalify. In addition, customers can apply in the morning and receive their personal loan by the end of the day.
- Quick funding (same-day deposit available)
- Available to borrowers with poor credit
- Soft credit checks when viewing your rate
- You need a credit score of at least 620
- Provide proof of income
- Specify your Social Security number
- Provide proof of identity
- Specify your employment status
- Origination fees from 1.99% to 6.99%
- Discounts on interest rates
- Debt consolidation loans with direct payments to creditors
- Soft credit check at the prequalification stage
- Opportunity to get joint loans
- Origination fee from 1.99% to 6.99%
- High minimum loan amount
- No mobile app for Android or iOS
24 – 72 hours from approval
Fair or good credit borrowers who want to cover their credit card debt.
Achieve can approve loans on the same day, but it takes one to three days to get money. All personal loans offered by the company are subject to origination fees. Achieve’s minimum loan is $5,000. It may not work if you need a small personal loan.
Achieve’s personal loans offer competitive rates and adjustable terms. These loans could work well for people seeking high loan amounts who don’t mind an origination fee. The service also provides various interest rate discounts.
- Joint loan option
- Discounts on interest rates
- Be a U.S. citizen, a permanent resident, or living in the U.S. on a valid visa
- Be at least 18 years old (19 in Alabama and some other states)
- Give a working email address
- Provide valid bank account details
- Confirm a sufficient monthly income to cover your loan payments
- Origination fees: 1.85% to 9.99%
- Late payment fees: $10
- Non-sufficient funds fees: $10 per payment returned
- No prepayment penalties
- Multiple rate discounts
- Next-day funding
- The due date may be changed
- Direct payments for debt consolidation
- APRs may be high
- Origination fees are charged
- Late fees may be applied
As soon as one business day after clearing verification
Fair-credit borrowers who need the money quickly
Upgrade is an online financial service that offers up to $50,000 loans to borrowers with good to fair credit. It provides several interest rate reductions and allows you to add a co-applicant or collateral to your application. Choose it if you need money quickly and are not concerned about relatively high interest rates.
Upgrade offers convenient maximum and minimum loan amounts along with flexible repayment terms. It also accepts fair credit borrowers and provides several interest rate discounts.
- Rate discounts for auto pay, direct payment, and reward checking
- Allows to add a co-applicant
- Mobile app for managing your loan
- At least 18 years also
- Permanent US resident
- Income confirmation
- Valid bank account or debit card.
- Origination fees: 1% to 10%, or $25 to $500, depending on the state
- Late payment fees: $5 to $30, or 1.5% to 15% of your loan amount
- Non-sufficient funds fees: $10 to $50 per payment returned
- Joint and secured loans are available
- Wide range of loan options for low credit
- Pre-qualifying doesn’t affect your credit score
- Convenient options for debt consolidation
- Relatively high interest rates
- Charges origination fees
- APRs are not disclosed when pre-qualify
- Not available in all states
Within one business day of approval via a direct deposit. Funding within several hours may be offered if you receive the funds on your debit card.
Borrowers with credit issues who want to avoid predatory lenders.
OneMain Financial is a reliable financial service that offers personal loans between $1,500 and $20,000 without minimum credit score requirements. With its joint applications, flexible repayment terms, and soft credit checks for pre-qualifying, it can suit borrowers with bad credit. Interest rates are usually high, though.
The company offers a wide range of secured, unsecured, and joint loan options with flexible repayment terms. Its personal loans are available to underbanked borrowers.
- Direct payment to creditors for debt consolidation
- Loan cancellation within 7 days
- Fast funding
- Be at least 18 years old
- Prove your US citizenship or permanent residence
- Provide your bank account information
- Show your monthly income by providing pay stubs, tax forms, or bank statements
- Have fair credit (at least 640)
- Provide an active email address and phone number
- Origination fees of up to 9%
- $15 late fee
- $15 NSF fee
- Low annual percentage rate
- No prepayment penalties
- Wide range of available loan amounts
- Same-day funding under some circumstances
- Accessible for fair credit borrowers
- High origination fee (up to 9%)
- Hard credit checks when you select your loan to move forward
- No cosigners are allowed for joint loans
- It is not available in all states
- Limited repayment options set at either 36 or 60 months
One business day (same-day funding available)
Fair credit borrowers who need to cover various personal needs
Rocket Loans is a financial platform that allows bad credit borrowers to get personal loans with flexible repayment terms. The potential same-day funding is its main advantage and there is only a soft credit check performed during the prequalification process.
Rocket Loans has low APRs and no hidden fees. Also, consumers may apply earlier in the morning to receive the personal loan by the end of the same day.
- Easy loan application process
- Fast funding
- Low interest rates
- Be at least 18 years old
- Be a U.S. permanent resident
- Live in a qualifying area
- Have a valid bank or savings account
- Have a credit score of at least 550
- Provide income confirmation
- Origination fees: None
- Administration fees: 4.75%
- Late payment fees: May vary by state
- Prepayment penalties: None
- Dishonored payment fees: May vary by state
- Accepts borrowers with fair credit
- Next-day funding
- No prepayment fees
- Soft credit checks when pre-qualify
- Low minimum income requirement
- Convenient loan amounts and repayment terms
- Extra fees may be charged
- Relatively high maximum APRs
- No joint or secured loans
- Not available in all states
Next-day funding if you get approved before 4:30 pm Central Time Monday through Friday.
Borrowers with fair and good credit looking for fast loans
Avant is a trusted online service for borrowers with good to fair credit. The company offers unsecured personal loans with fast funding times, reasonable interest rates, lenient credit score and income requirements, and flexible repayment terms. However, it may charge extra fees and doesn’t offer joint and secured loans.
Avant provides a faster alternative to traditional bank loans and is available for borrowers with fair credit. It also offers reasonable interest rates and certain loan flexibility.
- Fast approval and funding
- The ability to change the due date
- Financial education tools
- Credit-building opportunities
- Be at least 18 years old
- Prove your US citizenship or permanent residence
- Provide your bank account information and social security number
- Show your monthly income by providing pay stubs, tax forms, or bank statements
- Provide an active email address and phone number
- Optional fees (up to 6%)
- Low interest rates
- Co-applicants are allowed
- No prepayment penalties
- Flexible loan amounts
- Interest rate discounts are available
- Multiple repayment options
- No origination fee
- Good credit is required for better loan terms
- Hard credit check if you continue your application
- Late fees might apply
- No co-signer option available
- No physical branches
One to three business days
Applicants with good to excellent credit scores who want to consolidate debt, make major purchases, or cover their long-term needs.
SoFi is a financial website that provides unsecured personal loans. The company doesn’t specify its minimum credit score requirements, but most of its borrowers have credit ratings of 680 and higher. Loans from SoFi are also accessible with a co-borrower with good to outstanding credit. Personal loan candidates need to have a sufficient income and a low debt-to-income ratio.
SoFi does not do credit checks on its customers when they prequalify for a loan. Instead, it examines applicants’ whole financial situation. The company offers reasonable interest rates and flexible repayment terms to qualified borrowers.
- No prepayment penalties
- No origination fees
- Low interest rates
- APR discounts
- Co-applicant option available
What Are Installment Loans For Bad Credit?
Bad credit installment loans are financial solutions for a wide range of personal needs that are available to borrowers with bad FICO scores. They have fixed APRs and are repaid in regular monthly installments over a set period, which is usually 12 to 84 months. With their help, you can borrow between $1,000 and $100,000, depending on the lender and your income.
How Do Bad Credit Installment Loans Work?
Installment loans consist of the principal amount and interest. You receive the principal as a lump sum deposit in your bank account and need to repay it with interest in fixed monthly payments. The interest rate is determined by your credit score, loan amount, repayment period, and state you live in.
The most significant advantage of installment loans is their predictability. Fixed payments give you a clear idea of how much you will have to pay each month.
Rates & Fees Examples
Bad credit installment loans usually come with higher APRs compared to conventional options. You can face an interest rate as high as 36%, with certain lenders offering loan deals with APRs of over 200%. In some cases, you may be asked to provide collateral or a co-signer to qualify for a loan at more favorable terms.
In addition to an interest rate, lenders may also charge extra fees for application, loan processing, late payments, or early loan repayment. They may be expressed either as a percentage of the due or borrowed amount or as a flat fee.
Besides the interest rates and fees, your repayment term also affects the total loan cost. It determines the period within which your interest will accumulate. The longer the term, the higher the total loan cost. Here’s a representative example for a loan of $5,000:
| APR | Repayment Term | Monthly Payment | Loan Cost | Total Interest |
|---|---|---|---|---|
| 25.4% | 18 months | $336.94 | $6,064.94 | $1,064.94 |
| 25.4% | 24 months | $267.86 | $6,428.69 | $1,428.69 |
| 32.8% | 18 months | $355.4 | $6,397.14 | $1,397.14 |
| 32.8% | 24 months | $286.82 | $6,883.7 | $1,883.7 |
Your particular loan terms may differ from the advertised ones provided above. The exact conditions depend on the lender and your creditworthiness. Complete our simple form, get your personalized offers, and use our calculator to determine the cost of your particular loan:
Loan calculator
ESTIMATED MONTHLY PAYMENT
TOTAL LOAN AMOUNT PAID
TOTAL INTEREST PAID
TOTAL COST OF LOAN
Where Can I Get An Installment Loan With Bad Credit?
You can obtain installment loans for bad credit from various sources:
Online installment loan lenders. Online lenders offer quick application processes and money transfers within a business day. Also, online platforms allow you to prequalify without hurting your credit and assess your potential loan terms. They are more likely to accept borrowers with bad or no credit, but an interest rate may be higher compared to traditional loan options.
Traditional banks. Traditional banks typically offer larger loan amounts for significant expenses and have reasonable interest rates. However, they are mainly focused on borrowers with strong credit histories.
Credit unions and community banks. Credit unions and local banks are focused on helping communities they serve, so they usually offer more competitive interest rates. However, they have limited accessibility due to the membership required and often offer fewer products compared to other options.
What Can I Use Installment Loan Funds For?
Lenders typically do not restrict how you can use your installment loan. You’re free to spend the funds in the way you need. People usually use installment loans for:
- Medical expenses;
- Debt consolidation;
- Utility bill payments;
- Vehicle loan payments or repair expenses;
- Rent and other housing-related expenses;
- Paying off student loans or handling educational expenditures;
- Addressing family financial needs;
- Funeral expenses;
- Childcare costs.
Pros and Cons of Online Bad Credit Installment Loans
Online bad credit installment loans have both advantages and drawbacks. Here’s what you need to know before applying.
Pros
- Funding times: If approved, you’ll likely get a loan within a few hours or a business day.
- No specific loan purpose: You can use the funds for any personal needs.
- Equal monthly payments: You will pay the same amount every month, making it easier to budget.
- Easy application process: You can complete the loan request process online via the lender’s website in a few minutes.
Cons
- Higher interest rates: Installment loans for bad credit cost more compared to traditional loan options.
- Stricter requirements: Borrowers with poor credit may need collateral or a co-signer to get an installment loan.
- Proof of income is needed: You have to prove you earn money regularly, and the sum is enough to cover your loan payments.
- Origination fees: Some lenders might charge up to 10% origination fees that will be deducted from your loan amount.
How To Apply For An Installment Loan With No Hard Credit Check?
The loan application process is usually the same for all types of loans.
- Understand your credit. Check your credit score by requesting free yearly credit reports from major credit bureaus. This way, you can see where you stand and what loans you can qualify for.
- Explore your options. Shop around and explore offers from various lenders. Most lenders now allow you to prequalify and get potential loan terms with no impact on your FICO score. Compare interest rates, fees, and payment terms to find the best fit.
- Apply. Choose a lender with terms that suit your needs and submit your application. Some might allow online applications, while others may require a personal visit.
- Wait for approval. Once applied, the approval time can range from a few hours to a few days, depending on the lender. Please note that some lenders may perform a hard credit check as part of the approval process.
- Review and sign an agreement. If approved, thoroughly read your loan agreement. Ensure all terms are clear and sign the documents to accept the offer.
- Get your funds. Some lenders may offer same-day funding, while others set longer disbursement times. On average, the funds will be transferred in your bank account within 1-3 business days.
Other Types Of Installment Loans For Bad Credit
Besides personal loans that are designed to cover a wide range of your individual needs, there are a few more types of installment loans.
Auto Loans
Auto loans are borrowing options used to finance a car purchase. Some of them may be obtained with bad credit, provided that you have a consistent income. Additionally, the vehicle you finance will be used as collateral, providing an extra guarantee for a lender.
Mortgages
A mortgage is a loan for purchasing a house. While conventional mortgages are only available to borrowers with good credit, some options still exist for those with bad FICO scores. They include FHA loans, VA loans, and USDA loans, all backed by the federal government. However, extra requirements may be set.
Home Equity Loans
You can use your home as collateral to borrow money with bad credit. Home equity loans can be easier to get because you provide substantial security. But is it worth it to put your home at risk?
Student Loans
Student loans assist with college expenses, including tuition and housing. Student loans are available from federal sources or private lenders. Federal loans (except for parent loans) have no minimum credit score requirements, allowing students with bad or no credit to qualify.
Conventional Installment Loan Alternatives
If installment loans for bad credit don’t suit your needs, there are many alternatives available online and in-store. Examine each type of loan and choose the one with the most suitable terms.
Payday Loans
Payday loans are convenient, yet they are small loans with very short repayment terms. You can get up to $1,000 in a day, even with poor credit. The repayment term is usually 2 to 4 weekends and often aligns with your next salary. Payday loans are easy to get, but they usually come with a high APR of over 400%.
Auto Title Loans
Auto title loans are a viable alternative for car owners with bad credit. Borrowers can get up to half of their auto cost. Car title loans come with notable drawbacks. You put your car at risk of losing in case of loan default. The repayment terms are usually up to 30 days. Additionally, these loans come with high interest rates.
Pawn Shop Loans
Use a pawn shop loan to borrow against the value of your items. Your credit score doesn’t matter since you provide valuable assets. You can typically get only a portion of the asset’s price and have up to 30 days to repay the funds. Once repaid, you get your asset back. In case of default, the pawnbroker sells it.
Credit Card Cash Advances
If you have a credit card with an available limit, head to the nearest ATM or the issuer’s branch and withdraw cash from the balance right away. However, credit card cash advances often possess higher interest rates than those applied to regular purchases, and interest starts accumulating immediately.
Hardship Programs
Look for local hardship programs in your city. Local food pantries can provide food for free if you cannot afford it. With documents proving your low-income status, these programs can also assist you with rent, utility bills, and healthcare costs.
Cash Advance Apps
These apps provide small advances till your next paycheck. They usually don’t charge interest, but there might be a small membership or express fee. Cash advance apps are intended for short-term financial emergencies.
Peer-To-Peer Loans
Peer-to-peer loans are funded by individual investors rather than by traditional financial institutions. P2P platforms connect borrowers with investors who might offer more flexible terms and lower interest rates than traditional bad credit loans.
Paycheck Advances
A paycheck advance could be a wise choice for accessing funds during an emergency. You may ask your employer for a part of your future paycheck beforehand. Be sure to assess if the remaining amount of your paycheck will be sufficient to handle your primary needs. It’s a zero-interest option that you won’t have to repay.
Borrow From Your Relatives
There’s nothing wrong with asking for financial help from your relatives. They likely won’t take fees from you. It’s an obvious one, but it can potentially save you from falling into a debt trap.
Factors To Consider When Choosing A Personal Installment Loan
Personal installment loans come with varying terms. Always spend some time comparing lenders, even if you’re in an urgent situation. Prioritize these factors when choosing:
- Total loan cost. The cost of your loan is usually expressed in an annual percentage rate (APR). An APR reflects how much you will pay for your loan annually. It consists of the interest rate and additional lender fees. Pre-qualify with various lenders and compare their APRs to find the best installment loans.
- Geographical availability. Make sure the lender is licensed to operate in your state. This way, your customer rights will be fully protected.
- Lender’s reputation and reliability. Research the lender’s track record and reputation. Review testimonials and check for regulatory actions or complaints against the lender.
- Repayment terms and conditions. The repayment schedule determines your monthly payments and the overall loan cost. Short repayment periods can hike up your monthly payments but result in less interest paid over the loan life.
- Eligibility criteria. Installment loans come with certain eligibility requirements you need to meet to qualify. They may include your income, credit score, and debt-to-income ratio. Ensure you meet them before applying.
- Money transferring time. When you resort to emergency loans, time is of the essence. Make sure to select a lender who can process your loan swiftly.
How Can I Improve My Approval Chances For An Installment Loan With Bad Credit?
You can still take out an installment loan with bad credit under certain circumstances. Here are a few ways to increase your chances of getting approved or obtaining better loan terms:
Explain your situation. Talk to your loan provider if you have some unique situation that requires a personalized approach. For example, if your bad credit is due to a specific event, such as a medical emergency or unexpected job loss, you may reach a compromise with a lender.
Include a co-signer with good credit. Choosing a co-signer who has a high credit score and a steady income can notably increase your likelihood of loan approval. Just note that a co-signer will be liable for repayment if you default.
Offer an asset as collateral. Using a valuable asset as collateral can help you secure a loan. Remember, failing to repay the loan puts your assets at risk.
Consider peer-to-peer lenders. P2P platforms can sometimes offer more favorable terms for bad credit borrowers compared to traditional financial institutions.
Reduce the loan amount. Applying for a smaller loan amount can increase your chances of approval. Lenders are often more lenient when it comes to small sums.
Why BadCredify?
BadCredify is a fintech company designed to help you find the right loan offer that aligns with your current needs, credit standing, and financial situation. To do this, we thoroughly study more than 40 loan products and choose those with the most favorable terms. Our team carefully assesses interest rates, fees, repayment schedules, funding speed, application steps, and the overall trustworthiness of each lender to provide you with accurate, comprehensive details.
Our reviews are unbiased, and we don’t receive compensation from the companies we evaluate. Our goal is to help individuals effortlessly navigate the borrowing process and quickly compare various loan deals with our innovative technologies. Simply fill out a short form, see the offers from legitimate lenders, and choose the one that suits you most.
FAQ
What is an installment loan?
An installment loan is a financial product you get in one lump sum and repay it in fixed installments over a set period.
How fast can I receive an installment loan with bad credit?
The funding time largely depends on the chosen option. Traditional financial institutions require 1-5 days to transfer money to your checking account. Some online personal loan lenders can provide same-day loans if you apply in the morning. On average, lenders need 1-3 days to transfer the loan funds to you.
Does a bad credit installment loan come with a fixed or variable interest rate?
Installment loans have a fixed interest rate over the loan life. Certain types of mortgages can have exceptions.
Do installment loans for bad credit appear in my credit history?
It depends on the lender. Installment loans typically leave a mark on your credit history, mainly because lenders perform hard credit inquiries. But it’s not all negative—making payments on time can actually improve your credit score. Some lenders may skip hard checks but offer considerably higher interest rates.
Can I get an installment loan for bad credit on a low income?
Yes, you can. Some lenders can approve your installment loan request on a low income. However, they might require you to have a co-signer or collateral as an additional security measure.
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