An installment loan is any loan you repay in installments, usually with monthly payments and a fixed interest rate. However, the term “installment loan” usually refers to short-term financing without a credit check or lenient credit score requirements. These loans are typically less than 18 months long and catered for emergency situations.
Installment loans may come with fewer eligibility requirements than personal loans, but due to short terms and lack of credit checks, rates can be high. Compare rates, terms and fees to find the best lender for your situation.
OppLoans, by OppFi, boasts a fast turnaround time as soon as one business day. You also have the option to change your repayment date if it doesn't work with your schedule. OppLoans reports on-time repayments to the major credit bureaus — a benefit not many short-term lenders offer (just not in Texas or Ohio). APRs can reach up to 195%, which is expected with short-term financing, and it only does a soft credit check, which doesn't affect your FICO credit score.
Not available in: Colorado, Connecticut, Georgia, Iowa, Maryland, Massachusetts, New York, South Dakota, Vermont, West Virginia
CashUSA is a connection service that allows you to search for options specifically for debt consolidation, regardless of your credit score. While rates are high compared to personal loan providers, it could help you save on higher-interest installment loans or even some credit card debt, depending on the rate you qualify for. CashUSA's partners offer loan terms as short as 3 to 72 months and loan amounts from $500 to $10,000. Just be sure to research any lender you get connected with before you go through with the application.
Not available in: New York
Pros
Has partners specifically for debt consolidation
Few requirements to compare lenders
Free to use with soft credit check
Large variety of loan types
Cons
F rating with Better Business Bureau (BBB) and not accredited
For borrowers who stress about overdrafting their account and need cash advances frequently, Brigit is a solid app. It offers payday advances up to $250 and overdraft protection. There's no interest or late fees, and you can extend your due date up to three times. Brigit requires employment verification, an active bank account and a monthly membership that costs between $8.99 and $14.99. Funding time is usually two to three days, but you can get it the same day for a fee.
Available in all states
Pros
No interest or late fees
Cash advances and overdraft protection
Extend due date three times
Extra perks like credit-builder program
Cons
$8.99 to $14.99 monthly membership fee monthly membership fee
Low borrowing limit
Fees for instant transfers
Loan amount
$50 - $250
Interest rate type
Fixed
Loan Term
Until your next payday, but can extend
Turnaround time
2 to 3 business days or instant with a Premium subscription or for a fee.
Loan amount
$50 - $250
Turnaround time
2 to 3 business days or instant with a Premium subscription or for a fee.
Speedy Cash offers short-term and payday loans, with amounts starting as low as $50. It also has in-store locations in 15 states, so if you apply in person, you could get same-day funding. If you prefer online lending, Speedy Cash has an online application in 27 states. Fees and amounts depend on your state but plan on spending around $10 to $30 for every $100 borrowed. On the plus side, Speedy Cash is a transparent and reputable lender, offering examples of fees and typical APRs to expect on its website.
Available in: Alabama, Alaska, Arizona, California, Colorado, Delaware, Hawaii, Idaho, Illinois, Kansas, Louisiana, Mississippi, Missouri, Nevada, North Dakota, Ohio, Oklahoma, Rhode Island, Tennessee, Texas, Utah, Virginia, Wisconsin, Wyoming
LendYou is a loan connection service that matches borrowers with loans up to $2,500 and accepts poor credit. It also has a low minimum income requirement of only $1,000. The application process is fast and easy, and you can typically have your funds deposited on the next business day. Because it's not a direct lender, rates and terms vary by provider, but its website states that installment loan rates range from 6.63% to 485%. LendYou is not available in all states.
Not available in: Arkansas, New Hampshire, New York, Texas, Vermont, West Virginia
Short-term installment loans typically come with triple-digit interest rates, but NetCredit rates start as low as 34% — although they can also go as high as 99.99%. It offers loan amounts up to $10,000, which is higher than some similar lenders, and loan terms can extend up to five years. But it isn't available in every state and loan amounts may vary depending on where you live.
Not available in: Colorado, Connecticut, Iowa, Maine, Maryland, Massachusetts, Nevada, New Hampshire, New York, North Carolina, Pennsylvania, Vermont, Virginia, West Virginia
Pros
Rates start at 34%
Loan terms up to 5 years
Loans up to $10,000
Cons
Rates as high as 99.99%
Loan amounts vary by state
Not available in all states
Loan amount
$1,000 - $10,000
APR
34% to 99.99% (Varies by state)
Interest rate type
Variable
Loan Term
6 months to 5 years
Turnaround time
1-3 business days
Loan amount
$1,000 - $10,000
APR
34% to 99.99% (Varies by state)
Turnaround time
1-3 business days
Methodology: How we chose these lenders
We reviewed over 100 short-term loan providers to choose the best installment loans. We also regularly update and revise our best picks and consider factors that might be important for different types of borrowers, such as the ability to consolidate high-interest debt.
Each lender is weighed against 10 key metrics: Loan amounts, loan terms, APRs, fees, credit score requirements, income requirements, turnaround time, state availability, application ease and lender reputation. Customer reviews and ratings on Better Business Bureau and Trustpilot were also considered.
Compare more installment loan providers
Select your state to preview lenders in your area. Explore your options by loan amount, turnaround time and requirements. Select the Learn more button to go to its site or More Info to read a review.
The Finder Score crunches 3+ types of short-term loans across 65+ lenders. It takes into account the product's interest rate, fees and features, as well as the type of loan eg investor, variable, fixed rate - this gives you a simple score out of 10.
To provide a Score, we compare like-for-like loans. So if you're comparing the best short-term loans for all credit types, you can see how each short-term loan stacks up against other short-term loans with the same borrower type, rate type and repayment type.
You’ll likely find that an installment loan is easier to qualify for than more traditional lending options. Typical installment loan requirements include:
Full-time employment or enough monthly income to repay the loan
Active bank account with a positive balance
At least 18 years old, or age of majority in your state
No recent or active bankruptcies
US citizen or permanent resident
Keep in mind requirements vary by lenders. Many installment loans don’t require a credit check, some offer installment loans for bad credit and some lenders don’t require US citizenship. Just be sure to ask about lender requirements before applying to save your time.
Fees for installment loans
In addition to personal and financial requirements, some lenders may also require you to pay fees on top of interest, which increases the loan’s cost. One of the most common is an origination fee — also called an application or administrative fee — which may cost up to 10% of the loan amount and is often deducted from the loan proceeds. For example, if you get a $5,000 loan with a 10% origination fee, you’d only receive $4,500.
Not all lenders charge origination fees, such as OppLoans, but it’s something to watch out for. As you do your research, look for any type of additional fees so you understand the full cost of the loan before applying.
Can I get an installment loan without a bank account?
Possibly, but most lenders require an active bank account. Lenders that extend credit to borrowers without a bank account are rare, since lenders tend to prefer verifying income and assets through your bank account. And most lenders deposit funds into your bank account if you’re approved. See our top picks for no-bank-account loans to compare your options.
Red flags to watch out for with installment loan providers
Not all installment loan providers are legit lenders, and even some that are have predatory lending practices. Look out for these red flags:
Guarantees. Legit lenders won’t guarantee approval or certain rates before looking at your application.
Pushiness. Stay away from lenders that pressure you into borrowing more than you need.
Add-on insurance. Some lenders might encourage you to take out unnecessary insurance, such as a life insurance policy that names them as a beneficiary. This common tactic makes your loan more expensive while avoiding state APR regulations.
BBB alerts. You can look up a lender on Better Business Bureaus to see current or past alerts for a business. If a lender has an exorbitant amount of negative reviews or multiple past or ongoing lawsuits, it may be wise to go with another company.
Aside from short-term loans, there are several other types of installment loans. The following are some common types and their primary uses.
Personal loans. Personal loans are usually unsecured and are paid out in a lump sum that you’ll repay in equal monthly installments. Loan terms are usually around two to seven years, but some may go up to 10 years. Common uses for personal loans include funding home improvement projects, paying for a wedding, consolidating debts or making large purchases.
Auto loans. When you buy a car, you’ll typically take out a secured loan where the vehicle is the collateral. The loan proceeds are usually sent directly to the seller (or the seller handles the financing), and you’ll repay it in monthly installments over two to seven years. Auto loans can also be used to purchase trucks, RVs, boats, motorcycles and other types of vehicles.
Mortgages. Mortgages can be residential or commercial and are used to purchase real estate, such as a home or office building. The property secures the loan, and if you can’t make your payments, you can lose the property. Mortgages are usually paid off within 15 to 30 years.
Student loans. Student loans are unsecured and offered by the federal government or private financial institutions. They generally have lower rates than most other loan types, and some don’t require you to start making payments until after you’ve graduated or if you withdraw from school.
Buy now, pay later (BNPL) loans. Another type of short-term loan is a BNPL loan, where you can purchase something and then pay for it in four installments. Oftentimes, these loans don’t charge interest as long as you make your payments on time.
Alternatives to short-term installment loans
If you’d prefer something with possibly lower rates or longer loan terms or just want another option entirely, check out these alternatives:
Personal loans. These loans can be used for nearly anything, including large purchases, debt consolidation or vacations. Personal loan borrowing limits are often capped at $50,000, with some lenders offering up to $100,000. Rates tend to be lower than short-term borrowing methods, but you may need good credit to qualify.
Home equity products. If you own a home with at least 20% equity, you may qualify for a home equity loan or home equity line of credit (HELOC). Rates tend to be much lower than personal loans and installment loans, but repayment terms tend to be a long commitment.
Cash advance apps. We’ve already mentioned Brigit, but many cash advance apps offer low-dollar lending options. They don’t typically charge interest, but you may need a monthly subscription.
Payday loans. While often considered a last resort due to high rates and pesky late fees, payday loans could help you make ends meet until your next payday. Just watch out for predatory lending practices and extra high rates, and make sure you can repay the loan on time because the fees can get steep.
Lacey Stark is a freelance personal finance writer for Finder, specializing
in banking, loans, investing, estate planning, and more. She has 20
years of experience writing and editing for magazines, newspapers, and
online publications. A word nerd from childhood, Lacey officially got her
start reporting on live sporting events and moved on to cover topics
such as construction, technology, and travel before finding her niche in
personal finance. Originally from New England, she received her
bachelor’s degree from the University of Denver and completed a
postgraduate journalism program at Metropolitan State University also
in Denver. She currently lives in Chicagoland with her dog Chunk and
likes to read and play golf. See full bio
If you have bad credit and need cash fast, consider Speedy Cash for your next payday or installment loan.
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Finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which Finder receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. Finder compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
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These are the short-term loans which offer the lowest starting rates and fees, good range of loan amounts, excellent customer service and plenty of features, giving the best overall value.
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Great
These short-term loans may have slightly higher interest rates, maybe a fee or two, or fewer features, but overall, a competitive offering.
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Standard
These short-term loans usually offer above average rates and may still include some competitive features, but they're not the best value for the overall cost.
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Basic
These short-term loans have higher costs and/or fewer features than other short-term loans on the market.
