Best Installment Loans 2021

ElitePersonalFinance
Last Update: April 22, 2021 Loan Reviews Loans

An online installment loan is one that is paid in fixed monthly payments. People often misunderstand the terms: personal loans and installment loans. All personal loans are indeed paid in installments, but these two are different things. An online personal loan, by definition, is one that is up to $100,000 and has an APR of 5.99% to 35.99%. An online installment loan is a loan that is paid in installments. Note that there are many installment payday loans these days, which we do not recommend. If you have bad credit, you can get a regular personal loan. In this case, you can read our article on installment loans for bad credit. Before we give valuable tips on choosing your installment, let us show you some of the best installment loans online.

Loan Company: Installments: APR: Amount:
EvenFinancial 24 – 84 months 2.49% – 35.99% $250,000
PersonalLoans 3 – 72 months 5.99% – 35.99% $35,000
Prosper 36 – 60 months 7.95% – 35.99% $40,000
LendingTree 12 – 60 months 3.99% – 35.99% $50,000
BadCreditLoans 3 – 36 months 5.99% – 35.99% $10,000
Upgrade 36 – 60 months 7.99% – 35.97% $35,000

PersonalLoans

Loan amounts $1,000 – $35,000
Typical APR 5.99% – 35.99%
Min Credit Score 580
Time to funding 1 Day
Loan terms 90 days – 72 months
Origination fee 1 – 5%
Debt-to-income ratio N/A
Check rates

PersonalLoans is a company that you can’t ignore while shopping around. If you meet their income criteria of a minimum of $1,000 a month and a minimum 580 credit score, you can apply. Many lenders will compete to give you a loan.

LendingTree

Loan amounts $1,000 – $50,000
Typical APR 3.99% – 35.99%
Min Credit Score 500
Time to funding 1 Day
Loan terms 1 – 5 years
Origination fee 0 – 3%
Debt-to-income ratio N/A
Check rates

This is another big site with deficient credit score requirements that helps people with bad credit to get a loan.

Prosper

Loan amounts $2,000 – $40,000
Typical APR 7.95% – 35.99%
Min Credit Score 640
Time to funding 1 – 3 Days
Loan terms 3 – 5 years
Origination fee 2.4% – 5%
Debt-to-income ratio 50%
Check rates

Prosper is one of the best peer-to-peer lending platforms. You have to have a slightly better credit score, but if you do, then offers from Prosper may be the best for you.

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Are You looking for:

When you choose your installment, you have to consider these factors:

  • The frequency of payment

Most loans come with monthly installment payments, but there are other options that you can discuss with your lender.

  • The total amount that you will pay every month

Make sure that you set an amount that you will actually be able to pay.

  • The payment date

Pick a date of the month that works best for you. This is typically the date of the salary or a few days after it.

  • Check for flexibility

This is an important factor that many people skip. What if one day you can’t make a payment? Many companies offer great flexibility options, like no late fee for a period of time, options to skip a payment, refinancing options, and so on. If the company is not so flexible, this can be a problem for you. Flexibility costs money. Loans with more flexibility come with a slightly higher APR, but we consider this an important factor. Make your decision based on your financial situation and the ability to pay the loan.

The most important tip regarding long-term extended installments that you have to understand is the fact that:

PRO TIP!

Longer payment plans increase the total interest amount. When you extend the payment period, your monthly payment will be lower, but you will pay more interest because of the longer period. Picking a long-term loan is good because you pay less money per month, which means more free cash and no risk of being unable to pay the amount. But the bad thing is that you pay more money in total.

How to Pick The Best Installment Loan?

Again, the term installment loan means nothing else than the fact it is repaid in installments. So, looking for the best installment loans is actually slightly wrong. Better search for the best online personal loans and find what works best for you based on your credit score. We have great articles on personal loans according to credit score. We invite you to read them.

  • Best personal loans for really bad credit

https://www.elitepersonalfinance.com/personal-loans-really-bad-credit

In this article, we do our best to help people with a bad credit score and those in a bad financial situation to avoid payday loans and get a regular online personal loan.

  • Best personal loans for fair credit

https://www.elitepersonalfinance.com/best-fair-credit-personal-loans/

Best personal loans for fair credit come with an APR of 10% to 20%. We are constantly updating our list of the best companies that help people with fair credit, so you will definitely find the best option for you.

  • Best personal loans for no credit history

https://www.elitepersonalfinance.com/best-personal-loans-no-credit/

No credit is better than bad credit. But still, lenders perceive this differently. Actually, no credit can mean different things: that the person is young, that they didn’t get a loan, or that they have had a credit card till now, which means they are in a great financial situation.

  • Best personal loans for bad credit

https://www.elitepersonalfinance.com/best-bad-credit-loans/

The best personal loans for bad credit are not payday loans. Personal loan lenders approve people with bad credit much more easily these days than in the past. Bad credit personal loans come with an APR of 15% to 35.99%, which is considered expensive, but it is still much less than payday loans, which come with an APR of 400%.

  • Best personal loans for good and excellent credit

https://www.elitepersonalfinance.com/best-personal-loans-good-excellent-credit/

If you have good or excellent credit, you can expect an APR of 5% – 10%. In this case, we have really great offers for you.

Types of Online Installment Loans

  • Unsecured online installment loans

These loans don’t require collateral or getting a co-signer. However, it would help if you showed that you have a great credit score and the ability to pay the installment on time. If you apply for a big loan amount, some lenders won’t approve you until you secure your loan.

  • Secured online installment loans

These require collateral that will guarantee that you will pay the loan on time. The advantage of this is that you will be approved easily, the APR will be less, and the amount you can get is higher than with unsecured loans. However, you have to be really sure that you will pay the loan on time because the lender can get the collateral if you don’t. Pro tip: If you go with secured loans, always look for flexibility. That factor is much more important than the actual APR. If you can’t pay the amount one day, you have to be sure that you will have some options like skipping payment or no late fee for a long time not to lose your collateral or get a mark on your credit report.

  • Installment loans for bad credit

These are definitely not payday loans. These days, the lending market is much more flexible, and people can get personal loans even with bad credit. Please see our guide on installment loans for bad credit.

https://www.elitepersonalfinance.com/best-installment-loans-for-bad-credit/

What Types of Installment Loans to Avoid?

  • Payday installment loans

These are slightly improved payday loans, but we still consider them very risky and don’t recommend them. You will pay much more interest, and you can get into a debt cycle.

  • Installment loans that won’t check your credit score

The fact that a lender won’t check your credit score means that they don’t care about it. In fact, they know very well that your credit score is not ok. What they do care about is getting you into a debt cycle. The fact that a lender won’t perform a credit check doesn’t always mean that the loan is predatory, but it is true in most cases.

  • Installment loans near me

Typically, people who are looking for loans near them will find payday loans.

Quick Guide on How to Find The Best Loan

  • Check your credit score and look for incorrect information

If you find any mistakes, report them to credit bureaus. This will lead to an instant credit increase. Also, look for other options to increase your credit score.

  • Shop around

Based on your score, find offers that are available to you. More offers to compare is always better.

  • Wait for a few days to receive a high number of offers
  • It’s not only about the APR

Consider factors like loan flexibility and carefully read the contract for any hidden fees.

  • Apply for the best offer.
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