Technically, an installment loan is any loan you repay in fixed, scheduled payments — which covers most personal loans, auto loans, mortgages and more. But “installment loan” is also used more narrowly to describe short-term, high-rate loans aimed at borrowers with bad credit who need fast cash.
Both definitions are valid, and both types of borrowers end up on this page. So we’ve included a mix: mainstream personal loan lenders for those who qualify, and short-term options for those who need a faster, more flexible path to funding.
Best for bad credit with lower short-term rates: NetCredit
Methodology: How we picked 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.
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How we picked these
What is the Finder Score?
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.
Most lenders let you check your rate without affecting your credit score. Here’s how to approach it:
Check your credit score first. Know where you stand. Your score affects the rate you’ll be offered and which lenders you’re likely to qualify with.
Gather your financial details. You’ll typically need your annual income, employment status, monthly housing payment and Social Security number.
Use prequalification tools. Visit lender websites directly, or use a marketplace like CashUSA to receive multiple offers with one form. Note that LightStream does not offer soft-pull prequalification — a full application is required. For more, see our guide on loans like plain green loans. For more, see our guide on loans like zocaloans. For more, see our guide on loans like crane finance.
Compare APRs, not just monthly payments. A lower monthly payment could mean a longer term and more interest paid over time. Focus on the total cost of the loan, including any origination fees.
Submit your full application to your preferred lender. A full application triggers a hard credit inquiry, which may cause a small, temporary dip in your score.
Review the final loan documents carefully. Confirm the APR, repayment schedule and any fees match what you were quoted before signing.
Alternatives to installment loans
Before borrowing, it’s worth exploring options that may cost less or avoid debt entirely:
0% intro APR credit cards. If you can repay what you borrow within 12 to 21 months, a 0% intro APR card can be significantly cheaper than a personal loan — as long as you pay off the balance before the promotional period ends.
Credit union loans. Federal credit unions cap personal loan APRs at 18% and often have more flexible qualification criteria than banks or online lenders. You’ll need to be a member to apply.
Buy now, pay later (BNPL). For specific purchases, BNPL services like Affirm or Klarna split the cost into installments — often interest-free if paid on time.
Employer-based payroll advances. Some employers offer paycheck advances or hardship loan programs through HR, sometimes at zero interest.
Local nonprofits and assistance programs. If the loan is meant to cover a hardship — utility shutoffs, medical bills, rent — government agencies and local nonprofits may offer grants or zero-interest emergency funds. For more, see our guide on alternatives to 5k funds.
Negotiate directly with your creditor. Many billers will set up a payment plan or extension without involving a third-party lender, often for free.
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.
Frequently asked questions
All personal loans are installment loans — you borrow a lump sum and repay it in fixed monthly payments over time. The term "installment loan" is sometimes used more narrowly to describe short-term, high-rate products aimed at bad-credit borrowers. In most everyday contexts, the two terms are interchangeable.
Yes. Lenders like OppLoans, NetCredit and Upgrade consider borrowers with low or limited credit history. Expect higher interest rates, and compare multiple offers before committing to one.
It depends on the lender and your credit profile. Short-term lenders like OppLoans typically offer $500 to $5,000. Mainstream lenders like SoFi or LightStream go up to $100,000 for qualified borrowers. LendingClub now goes up to $60,000.
Applying triggers a hard credit inquiry, which can cause a small, temporary dip. Making on-time payments can help your score over time, especially if your lender reports to all three credit bureaus.
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
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Advertiser disclosure
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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