Best Installment Loans for 2020

Installment loans are a great financial tool for people who want to make a large purchase and don’t have the cash to do it. Unlike credit cards, which you might use to borrow revolving amounts and pay them back as you go, installment loans involve borrowing one single sum and repaying it over time in scheduled payments. Installment loans can be advantageous over credit cards because they’re more predictable and usually offer lower interest rates.

The best personal installment loans can finance the major purchases in your life, from home renovations to that really expensive vet bill after your dog ate a sock. We rated the best installment loan providers using our proprietary SimpleScore methodology to compare interest rates, loan amounts, customer satisfaction, support and fees.

Filter & Sort

Check Your Personal Loan Rates

with our trusted partners at Bankrate.com

Answer a few questions to see which personal loans you pre-qualify for. It's quick and easy, and it will not impact your credit score.

LENDING PARTNER
APR FROM
TERM
MAX LOAN AMOUNT

In this article

The 7 best installment loans of 2020

Installment loans at a glance

Lender APR Terms Loan Amount
LendingClub 10.68%–35.89% 3–5 years $1,000–$40,000
PersonalLoans.com 5.99%–35.99% 90 days–3 years $500–$35,000
Avant 9.95%–35.99% 2–5 years $2,000–$35,000
Prosper 7.95%–35.99% 3–5 years $2,000–$40,000
OneMain 18.00%–35.99% 2–5 years $1,500–$20,000
Best Egg 5.99%–29.99% 3–5 years $2,000–$35,000
LightStream 3.49%–19.99% 2–7 years $5,000–$100,000

Best peer-to-peer lender – LendingClub

LendingClub

LendingClub offers peer-to-peer loans up to 40% for borrowers with good credit.

APR
10.68%–35.89%
Terms
3 – 5 years
Loan amount
$1K–$40K
SimpleScore
3.2 / 5.0
close
SimpleScore
LendingClub
3.2
  • Rates
    2
  • Loan Size
    5
  • Customer Satisfaction
    3
  • Support
    3
  • Fees
    3
LendingClub is an online installment loan provider that connects borrowers with peers who are willing to provide loans. It’s a great way to get a loan without having to go through a bank. However, like other peer-to-peer lenders, you’ll have to keep in mind that LendingClub charges an origination fee of 1% to 6% on top of its APRs. LendingClub also has fairly strict credit requirements and won’t let you apply if your credit score is under 600. If you have a credit score on the higher end, you might be able to get a very competitive rate.
Full review

Our Two Cents — Joining the lending club with LendingClub, but be aware of origination fees and long funding times.

Best lending marketplace – PersonalLoans.com

PersonalLoans.com

Get the best installment loans rates when you compare lenders through the PersonalLoans.com marketplace.

APR
5.99%–35.99%
Terms
90 days 3 years
Loan amount
$500–$35K
SimpleScore
3.75 / 5.0
close
SimpleScore
PersonalLoans.com
3.75
  • Rates
    2
  • Loan Size
    5
  • Customer Satisfaction
    N/A
  • Support
    3
  • Fees
    5
If you’ve ever gotten advice on any type of loan, you’ve probably heard the same thing over and over again: shop around for the best rates. PersonalLoans.com makes the comparison process easy by providing an online installment loan marketplace where you can compare rates and terms from different lenders. Rates vary widely from 5.99% to 35.99% depending on your credit, and it’s important to remember that PersonalLoans.com doesn’t set these rates but receives them from each lender. Borrowers with credit scores as low as 580 can apply through PersonalLoans.com, although some lenders may set higher minimum requirements.
Full review

Our Two Cents — We appreciate how easy PersonalLoans.com makes the borrowing process by comparing rates for you. Just be sure to do thorough research on your chosen lender before signing anything.

Best for average credit – Avant

Avant

If you’ve been turned down by other installment loan providers, you may find success with Avant.

APR
9.95%–35.99%
Terms
2–5 years
Loan amount
$2K–$35K
SimpleScore
3.2 / 5.0
close
SimpleScore
Avant
3.2
  • Rates
    2
  • Loan Size
    5
  • Customer Satisfaction
    2
  • Support
    4
  • Fees
    3
Avant is an online installment loan provider that services loans originated by WebBank, an FDIC-insured lender. The biggest draw to Avant is that there’s no official minimum credit requirement to apply, although those with poor credit will pay significantly higher interest rates. APRs start at 9.95% and go as high as 35.99%, and the platform charges an additional 4.75% origination fee. The minimum loan amount is $2,000, so borrowers who only need a small loan will need to look elsewhere.
Full review

Our Two Cents — You won’t be disqualified from applying for a loan through Avant solely based on your credit score. While this is good news for those with past financial struggles, borrowers with excellent credit can probably find a better rate elsewhere.

Best for joint applications – Prosper

Prosper

Prosper is a peer-to-peer lending network that accepts joint applications for installment loans.

APR
7.95%–35.99%
Terms
3–5 years
Loan amount
$2K–$40K
SimpleScore
3.2 / 5.0
close
SimpleScore
Prosper
3.2
  • Rates
    2
  • Loan Size
    5
  • Customer Satisfaction
    3
  • Support
    3
  • Fees
    3
Prosper is a peer-to-peer loan provider that loans amounts between $2,000 and $40,000. With a minimum credit score of 640, the application process is much stricter than with other peer-to-peer installment loan providers. However, Prosper is unique in that it offers joint loans, which allows you to apply with a friend or family member. Joint applications could increase the chance of approval for those with lower credit scores and even get you a better interest rate.
Full review

Our Two Cents — Prosper won’t issue loans to individual borrowers with credit scores under 640, but joint applicants might have better luck at getting approved – and getting a lower APR.

Best installment loan for emergencies – OneMain

OneMain

Have cash in your hands the same day you apply for a loan through OneMain.

APR
18%–35.99%
Terms
2–5 years
Loan amount
$1,500–$20K
SimpleScore
3 / 5.0
close
SimpleScore
OneMain
3
  • Rates
    2
  • Loan Size
    3
  • Customer Satisfaction
    N/A
  • Support
    5
  • Fees
    3
Sometimes emergencies come up that you simply can’t predict. If you need to pay for unforeseen expenses and can’t wait several days to get approved and receive your loan, OneMain is a great option. Applicants that are approved before noon can visit a OneMain branch and get their funds on the same business day. There’s no minimum credit score to apply, so even those with poor credit can get emergency cash in a pinch. However, you’ll pay for the convenience with extremely high APRs that start at 18.00%, so those who can afford to wait a few days may want to look at other lenders.
Full review

Our Two Cents — OneMain can give you access to emergency cash in a pinch, but you’re likely to end up with a higher interest rate than you would elsewhere.

Best debt consolidation installment loan – Best Egg

Best Egg

Best Egg’s debt consolidation loans come with interest rates as low as 5.99% for qualified borrowers.

APR
5.99%–29.99%
Terms
3–5 years
Loan amount
$2K–$35K
SimpleScore
3.75 / 5.0
close
SimpleScore
Best Egg
3.75
  • Rates
    4
  • Loan Size
    5
  • Customer Satisfaction
    N/A
  • Support
    4
  • Fees
    3
A common use of personal installment loans is consolidating debt with higher interest rates into a single monthly payment at a better rate. Best Egg offers debt consolidation loans for individuals with a credit score of at least 700 whose debt-to-income ratio is under 36%. Interest rates can be fairly low based on your creditworthiness with an APR range of 5.99% to 29.99%. You’ll also have to pay an origination fee between 0.99% and 6.99%.
Full review

Our Two Cents — Best Egg’s debt consolidation loans offer great terms, but you’ll need to have a good handle on your debt in order to qualify.

Best online installment loan – LightStream

LightStream

LightStream offers great loan terms and a convenient online interface for borrowers.

APR
3.49%–19.99%
Terms
2–7 years
Loan amount
$5K–$100K
SimpleScore
4.8 / 5.0
close
SimpleScore
LightStream
4.8
  • Rates
    5
  • Loan Size
    5
  • Customer Satisfaction
    4
  • Support
    5
  • Fees
    5
Nearly all lenders offer convenient web-based loan applications in today’s digital world, but LightStream offers the best installment loans online according to our analysis. You can borrow up to $100,000 with repayment terms as long as seven years, neither of which can be matched by most other online lenders. Interest rates are competitively low at 3.49%–19.99%, which you can reduce further by 0.50% if you sign up for automatic payments. There are no origination fees, late fees or any type of fees at all.
Full review

Our Two Cents — LightStream blows all other online installment loan providers out of the water with great loan terms and no fees.

What is an installment loan?

An installment loan is a broad type of loan that involves borrowing a lump sum and paying it back in regular payments — aka, installments — over a predetermined period of time, usually several years. Personal loans are a common and versatile type of installment loan, although mortgages, student loans and car loans are all types of installment loans.

Installment loans typically have a fixed interest rate that is determined at the time of application so you’ll always know exactly how much you need to pay back. Common uses of personal installment loans including debt consolidation, home remodeling and medical bills.

[Read: Best Personal Loans for 2020]

How installment loans work

When you take out an installment loan, you’ll tell the lender exactly how much you want to borrow and how much time you’d like to pay it back. Based on this information and your personal creditworthiness, the lender will issue you a loan with clearly laid out terms for repayment. You’ll be expected to make set monthly payments for the full duration of the agreed-upon time period until the loan is repaid in full. If you miss payments, you’ll be charged late fees and your credit score may be affected.

Terms

Installment loan terms work similarly to terms on other types of loans. Loan repayment terms specify the amount of time a borrower has to pay back the amount they borrowed plus interest; with personal installment loans, this can be anywhere from a few months to several years. Your loan terms will specify the APR, or the interest rate you’re charged based on your credit score. Late fees and any other types of fees are also considered terms of a loan.

Monthly payments


Although you’ll be given a set period of time to repay an installment loan in the loan’s terms, that doesn’t mean you can just make payments whenever you feel like it. Installment loan providers expect that borrowers will make monthly payments on time and in full every time. This monthly payment will go partially towards the principal balance, or the amount you initially borrowed, and will also cover some of the interest you owe.

How to choose the best installment loan for you

  1. Decide how much you need to borrow and for what purpose. Since installment loans are a one-time loan, you don’t want to underestimate the amount you need, but borrowing too much means you’ll have to pay more in interest. Try to get as accurate as you can.
  2. Check your credit. It’s always a good idea to look at your credit report before applying for any type of loan to make sure there aren’t any errors. Incorrect information could bring your credit score down and cause you to end up with less favorable loan terms.
  3. Shop around for loans. Different lenders will offer you varying rates depending on your creditworthiness. For installment loans, make sure you compare rates with a few different types of lenders, such as peer-to-peer networks and lender marketplaces.
  4. Choose a lender. You’ll have to submit a formal application to be approved for a loan, and this process can take anywhere from a couple seconds to several days. Once you’ve been approved, you should have your funds within a few business days.

Check Your Personal Loan Rates

Answer a few questions to see which personal loans you pre-qualify for. The process is quick and easy, and it will not impact your credit score.


Installment loans FAQs

When do I use an installment loan?

Installment loans are highly versatile and can be used for many purposes. People often use installment loans to buy cars, pay medical bills, consolidate other types of debt or cover unexpected major expenses. Some lenders may ask you what you intend to use your installment loan for.

Why does my credit matter?

Your credit score tells lenders how likely you are to pay back your loan. Borrowers with a higher credit score will get better terms, but those with poor credit will have to pay more in interest. This is because lenders expected to get compensated for the amount of risk they take on in issuing you a loan.

Can I take out multiple installment loans?

There’s no limit to the number of installment loans you can have, although some lenders may discourage this practice by limiting you to a certain number of loans from their particular institution. Keep in mind that every time you apply for a new installment loan, the hard inquiry will show up on your credit report and bring your score down. It’s best to limit the number of loans you have at once.

Too long, didn’t read?

Installment loans are ideal for financing large purchases you don’t have the cash to cover. They offer steady, predictable repayment terms and lower interest rates than other types of loans, like credit cards and payday loans. As with any type of loan, make sure you shop around with several lenders to get the best rate.

Keep reading

Methodology

The SimpleScore is our proprietary scoring metric to compare products and services at The Simple Dollar in a transparent, evidence-based way. Our editorial team identifies five quantifiable aspects to compare for every brand, determines the rating criteria for each aspect score, then averages the five aspect scores to produce a single SimpleScore. For installment loans, we compared interest rates, loan amounts, customer satisfaction, support and fees for every major lender. Our ratings are meant to be a directional tool to help you in the process of choosing a personal installment loan provider. Be sure to continue your research and shop around for the best personal installment loan that fits your specific needs.

Last updated July 22, 2020 – Updated SimpleScore data.

We welcome your feedback on this article and would love to hear about your experience with the installment loans we recommend. Contact us at inquiries@thesimpledollar.com with comments or questions.

Advertiser Disclosure
Lisa Mellio
Lisa Mellio
Contributing Writer

Lisa Melillo is a freelance writer and entrepreneur with a background in personal finance, insurance, and international business. In addition to contributing to Bankrate, she has appeared in Money and Reviews.com and frequently ghostwrites for other entrepreneurs. Lisa's career has taken her around the globe; she has lived in four countries, speaks three languages, and holds two international degrees, including a Master's in International Business from Universitat Pompeu Fabra in Barcelona. She currently spends most of her time in Connecticut, where she lives with her husband and two dogs.

Reviewed by

  • Courtney Mihocik is an editor at The Simple Dollar who specializes in insurance, personal finance, and loans. Previously, she wrote and edited for Interest.com, PersonalLoans.org, Ballantyne Magazine, Thread Magazine, The Post, ACRN, The New Political, Columbus Alive and the Institute for International Journalism.

Best Installment Loans for 2020

Installment loans are a great financial tool for people who want to make a large purchase and don’t have the cash to do it. Unlike credit cards, which you might use to borrow revolving amounts and pay them back as you go, installment loans involve borrowing one single sum and repaying it over time in scheduled payments. Installment loans can be advantageous over credit cards because they’re more predictable and usually offer lower interest rates.

The best personal installment loans can finance the major purchases in your life, from home renovations to that really expensive vet bill after your dog ate a sock. We rated the best installment loan providers using our proprietary SimpleScore methodology to compare interest rates, loan amounts, customer satisfaction, support and fees.

Filter & Sort

Check Your Personal Loan Rates

with our trusted partners at Bankrate.com

Answer a few questions to see which personal loans you pre-qualify for. It's quick and easy, and it will not impact your credit score.

LENDING PARTNER
APR FROM
TERM
MAX LOAN AMOUNT

In this article

The 7 best installment loans of 2020

Installment loans at a glance

Lender APR Terms Loan Amount
LendingClub 10.68%–35.89% 3–5 years $1,000–$40,000
PersonalLoans.com 5.99%–35.99% 90 days–3 years $500–$35,000
Avant 9.95%–35.99% 2–5 years $2,000–$35,000
Prosper 7.95%–35.99% 3–5 years $2,000–$40,000
OneMain 18.00%–35.99% 2–5 years $1,500–$20,000
Best Egg 5.99%–29.99% 3–5 years $2,000–$35,000
LightStream 3.49%–19.99% 2–7 years $5,000–$100,000

Best peer-to-peer lender – LendingClub

LendingClub

LendingClub offers peer-to-peer loans up to 40% for borrowers with good credit.

APR
10.68%–35.89%
Terms
3 – 5 years
Loan amount
$1K–$40K
SimpleScore
3.2 / 5.0
close
SimpleScore
LendingClub
3.2
  • Rates
    2
  • Loan Size
    5
  • Customer Satisfaction
    3
  • Support
    3
  • Fees
    3
LendingClub is an online installment loan provider that connects borrowers with peers who are willing to provide loans. It’s a great way to get a loan without having to go through a bank. However, like other peer-to-peer lenders, you’ll have to keep in mind that LendingClub charges an origination fee of 1% to 6% on top of its APRs. LendingClub also has fairly strict credit requirements and won’t let you apply if your credit score is under 600. If you have a credit score on the higher end, you might be able to get a very competitive rate.
Full review

Our Two Cents — Joining the lending club with LendingClub, but be aware of origination fees and long funding times.

Best lending marketplace – PersonalLoans.com

PersonalLoans.com

Get the best installment loans rates when you compare lenders through the PersonalLoans.com marketplace.

APR
5.99%–35.99%
Terms
90 days 3 years
Loan amount
$500–$35K
SimpleScore
3.75 / 5.0
close
SimpleScore
PersonalLoans.com
3.75
  • Rates
    2
  • Loan Size
    5
  • Customer Satisfaction
    N/A
  • Support
    3
  • Fees
    5
If you’ve ever gotten advice on any type of loan, you’ve probably heard the same thing over and over again: shop around for the best rates. PersonalLoans.com makes the comparison process easy by providing an online installment loan marketplace where you can compare rates and terms from different lenders. Rates vary widely from 5.99% to 35.99% depending on your credit, and it’s important to remember that PersonalLoans.com doesn’t set these rates but receives them from each lender. Borrowers with credit scores as low as 580 can apply through PersonalLoans.com, although some lenders may set higher minimum requirements.
Full review

Our Two Cents — We appreciate how easy PersonalLoans.com makes the borrowing process by comparing rates for you. Just be sure to do thorough research on your chosen lender before signing anything.

Best for average credit – Avant

Avant

If you’ve been turned down by other installment loan providers, you may find success with Avant.

APR
9.95%–35.99%
Terms
2–5 years
Loan amount
$2K–$35K
SimpleScore
3.2 / 5.0
close
SimpleScore
Avant
3.2
  • Rates
    2
  • Loan Size
    5
  • Customer Satisfaction
    2
  • Support
    4
  • Fees
    3
Avant is an online installment loan provider that services loans originated by WebBank, an FDIC-insured lender. The biggest draw to Avant is that there’s no official minimum credit requirement to apply, although those with poor credit will pay significantly higher interest rates. APRs start at 9.95% and go as high as 35.99%, and the platform charges an additional 4.75% origination fee. The minimum loan amount is $2,000, so borrowers who only need a small loan will need to look elsewhere.
Full review

Our Two Cents — You won’t be disqualified from applying for a loan through Avant solely based on your credit score. While this is good news for those with past financial struggles, borrowers with excellent credit can probably find a better rate elsewhere.

Best for joint applications – Prosper

Prosper

Prosper is a peer-to-peer lending network that accepts joint applications for installment loans.

APR
7.95%–35.99%
Terms
3–5 years
Loan amount
$2K–$40K
SimpleScore
3.2 / 5.0
close
SimpleScore
Prosper
3.2
  • Rates
    2
  • Loan Size
    5
  • Customer Satisfaction
    3
  • Support
    3
  • Fees
    3
Prosper is a peer-to-peer loan provider that loans amounts between $2,000 and $40,000. With a minimum credit score of 640, the application process is much stricter than with other peer-to-peer installment loan providers. However, Prosper is unique in that it offers joint loans, which allows you to apply with a friend or family member. Joint applications could increase the chance of approval for those with lower credit scores and even get you a better interest rate.
Full review

Our Two Cents — Prosper won’t issue loans to individual borrowers with credit scores under 640, but joint applicants might have better luck at getting approved – and getting a lower APR.

Best installment loan for emergencies – OneMain

OneMain

Have cash in your hands the same day you apply for a loan through OneMain.

APR
18%–35.99%
Terms
2–5 years
Loan amount
$1,500–$20K
SimpleScore
3 / 5.0
close
SimpleScore
OneMain
3
  • Rates
    2
  • Loan Size
    3
  • Customer Satisfaction
    N/A
  • Support
    5
  • Fees
    3
Sometimes emergencies come up that you simply can’t predict. If you need to pay for unforeseen expenses and can’t wait several days to get approved and receive your loan, OneMain is a great option. Applicants that are approved before noon can visit a OneMain branch and get their funds on the same business day. There’s no minimum credit score to apply, so even those with poor credit can get emergency cash in a pinch. However, you’ll pay for the convenience with extremely high APRs that start at 18.00%, so those who can afford to wait a few days may want to look at other lenders.
Full review

Our Two Cents — OneMain can give you access to emergency cash in a pinch, but you’re likely to end up with a higher interest rate than you would elsewhere.

Best debt consolidation installment loan – Best Egg

Best Egg

Best Egg’s debt consolidation loans come with interest rates as low as 5.99% for qualified borrowers.

APR
5.99%–29.99%
Terms
3–5 years
Loan amount
$2K–$35K
SimpleScore
3.75 / 5.0
close
SimpleScore
Best Egg
3.75
  • Rates
    4
  • Loan Size
    5
  • Customer Satisfaction
    N/A
  • Support
    4
  • Fees
    3
A common use of personal installment loans is consolidating debt with higher interest rates into a single monthly payment at a better rate. Best Egg offers debt consolidation loans for individuals with a credit score of at least 700 whose debt-to-income ratio is under 36%. Interest rates can be fairly low based on your creditworthiness with an APR range of 5.99% to 29.99%. You’ll also have to pay an origination fee between 0.99% and 6.99%.
Full review

Our Two Cents — Best Egg’s debt consolidation loans offer great terms, but you’ll need to have a good handle on your debt in order to qualify.

Best online installment loan – LightStream

LightStream

LightStream offers great loan terms and a convenient online interface for borrowers.

APR
3.49%–19.99%
Terms
2–7 years
Loan amount
$5K–$100K
SimpleScore
4.8 / 5.0
close
SimpleScore
LightStream
4.8
  • Rates
    5
  • Loan Size
    5
  • Customer Satisfaction
    4
  • Support
    5
  • Fees
    5
Nearly all lenders offer convenient web-based loan applications in today’s digital world, but LightStream offers the best installment loans online according to our analysis. You can borrow up to $100,000 with repayment terms as long as seven years, neither of which can be matched by most other online lenders. Interest rates are competitively low at 3.49%–19.99%, which you can reduce further by 0.50% if you sign up for automatic payments. There are no origination fees, late fees or any type of fees at all.
Full review

Our Two Cents — LightStream blows all other online installment loan providers out of the water with great loan terms and no fees.

What is an installment loan?

An installment loan is a broad type of loan that involves borrowing a lump sum and paying it back in regular payments — aka, installments — over a predetermined period of time, usually several years. Personal loans are a common and versatile type of installment loan, although mortgages, student loans and car loans are all types of installment loans.

Installment loans typically have a fixed interest rate that is determined at the time of application so you’ll always know exactly how much you need to pay back. Common uses of personal installment loans including debt consolidation, home remodeling and medical bills.

[Read: Best Personal Loans for 2020]

How installment loans work

When you take out an installment loan, you’ll tell the lender exactly how much you want to borrow and how much time you’d like to pay it back. Based on this information and your personal creditworthiness, the lender will issue you a loan with clearly laid out terms for repayment. You’ll be expected to make set monthly payments for the full duration of the agreed-upon time period until the loan is repaid in full. If you miss payments, you’ll be charged late fees and your credit score may be affected.

Terms

Installment loan terms work similarly to terms on other types of loans. Loan repayment terms specify the amount of time a borrower has to pay back the amount they borrowed plus interest; with personal installment loans, this can be anywhere from a few months to several years. Your loan terms will specify the APR, or the interest rate you’re charged based on your credit score. Late fees and any other types of fees are also considered terms of a loan.

Monthly payments


Although you’ll be given a set period of time to repay an installment loan in the loan’s terms, that doesn’t mean you can just make payments whenever you feel like it. Installment loan providers expect that borrowers will make monthly payments on time and in full every time. This monthly payment will go partially towards the principal balance, or the amount you initially borrowed, and will also cover some of the interest you owe.

How to choose the best installment loan for you

  1. Decide how much you need to borrow and for what purpose. Since installment loans are a one-time loan, you don’t want to underestimate the amount you need, but borrowing too much means you’ll have to pay more in interest. Try to get as accurate as you can.
  2. Check your credit. It’s always a good idea to look at your credit report before applying for any type of loan to make sure there aren’t any errors. Incorrect information could bring your credit score down and cause you to end up with less favorable loan terms.
  3. Shop around for loans. Different lenders will offer you varying rates depending on your creditworthiness. For installment loans, make sure you compare rates with a few different types of lenders, such as peer-to-peer networks and lender marketplaces.
  4. Choose a lender. You’ll have to submit a formal application to be approved for a loan, and this process can take anywhere from a couple seconds to several days. Once you’ve been approved, you should have your funds within a few business days.

Check Your Personal Loan Rates

Answer a few questions to see which personal loans you pre-qualify for. The process is quick and easy, and it will not impact your credit score.


Installment loans FAQs

When do I use an installment loan?

Installment loans are highly versatile and can be used for many purposes. People often use installment loans to buy cars, pay medical bills, consolidate other types of debt or cover unexpected major expenses. Some lenders may ask you what you intend to use your installment loan for.

Why does my credit matter?

Your credit score tells lenders how likely you are to pay back your loan. Borrowers with a higher credit score will get better terms, but those with poor credit will have to pay more in interest. This is because lenders expected to get compensated for the amount of risk they take on in issuing you a loan.

Can I take out multiple installment loans?

There’s no limit to the number of installment loans you can have, although some lenders may discourage this practice by limiting you to a certain number of loans from their particular institution. Keep in mind that every time you apply for a new installment loan, the hard inquiry will show up on your credit report and bring your score down. It’s best to limit the number of loans you have at once.

Too long, didn’t read?

Installment loans are ideal for financing large purchases you don’t have the cash to cover. They offer steady, predictable repayment terms and lower interest rates than other types of loans, like credit cards and payday loans. As with any type of loan, make sure you shop around with several lenders to get the best rate.

Keep reading

Methodology

The SimpleScore is our proprietary scoring metric to compare products and services at The Simple Dollar in a transparent, evidence-based way. Our editorial team identifies five quantifiable aspects to compare for every brand, determines the rating criteria for each aspect score, then averages the five aspect scores to produce a single SimpleScore. For installment loans, we compared interest rates, loan amounts, customer satisfaction, support and fees for every major lender. Our ratings are meant to be a directional tool to help you in the process of choosing a personal installment loan provider. Be sure to continue your research and shop around for the best personal installment loan that fits your specific needs.

Last updated July 22, 2020 – Updated SimpleScore data.

We welcome your feedback on this article and would love to hear about your experience with the installment loans we recommend. Contact us at inquiries@thesimpledollar.com with comments or questions.

Advertiser Disclosure