Top 5 Installment Loans for Poor Credit Rating

With installment loans, you get more than just money; you get time to pay off your debt. These loans provide a lump sum of cash and allow you to pay it off in regular, scheduled installments. However, if you have bad credit, the peace of mind that comes with installment loans may seem unattainable. Fortunately, there are lenders who specialize in extending good offers to borrowers with bad credit.

Discover the top five installment loans for individuals with poor credit. Explore our methodology to find the perfect fit for your needs.

Compare loan offers

Best for insufficient credit history

Upstart takes into account more than just credit scores when evaluating loan applications. They consider factors such as education and work experience to make their lending decisions. This makes Upstart an attractive option for applicants with low credit scores (typically a credit score of at least 300), but they also consider those with limited credit history.

If approved borrowers accept the loan before 5 p.m. EST Monday through Friday, they can receive funding as soon as the next business day.

Best for quick funding

Avant provides fast funding for borrowers who need cash urgently. The application process is quick and easy, taking only a few minutes to complete. According to Avant's website, applicants receive a decision in real-time (as applicable by state law and based on credit determination). Once approved, borrowers can receive their funds as soon as the next business day.

Fixed interest rates from Avant ensure borrowers are not caught off guard by unexpected rate fluctuations.

Best for buying a car

If you have a low credit score, MyAutoLoan is the best place to start your car loan journey. This marketplace will match you with lenders based on the information you provide, eliminating the need to sift through a sea of loans you won't qualify for.

MyAutoLoan matches you to up to four loan offers by performing a soft credit check that won't harm your credit score.

Best for veterans buying a home

Navy Federal Credit Union is a financial services institution that caters to current or retired military members and their families. This lender does not disclose their exact credit score requirements but offers to work with potential borrowers to find loan terms they qualify for based on their credit circumstances.

Navy Federal Credit Union offers private mortgage insurance exemption for low down payment mortgages.

Best for student loans

Ascent is an attractive student loan lender for young borrowers who haven't built much credit history. While a co-signer isn't required, Ascent still allows you to apply with one to improve your odds of better loan terms.

Most student loan lenders offer a grace period of six months, while Ascent provides grace periods ranging from nine to 36 months.

Upstart

Upstart provides loans for various purposes such as debt consolidation, auto loan refinance, wedding loans, home improvement loans, and moving loans. Borrowers can check their rate on Upstart's website without affecting their credit score.

Loan amounts

$1,000 to $50,000

Loan terms

3 to 5 years

Avant

Avant offers a range of installment loans for various purposes, including home improvement, emergency, and debt consolidation.

Loan amounts

$2,000 to $35,000

Loan terms

24 to 60 months

MyAutoLoan

Car loan options abound for borrowers on MyAutoLoan, with selections ranging from loans for new and used cars, refinance loans, private sales loans, and lease buyout loans.

Loan amounts

Must apply for at least $8,000

Loan terms

24 to 72 months

Navy Federal Credit Union

Navy Federal Credit Union's VA home loan products come with several appealing features, including a no-down-payment option and no PMI requirements for low down payments. Additionally, this lender allows you to get pre-qualified for a loan in just a few seconds.

Loan amounts

Get pre-qualified to view your offer

Loan terms

10 to 30 years

Ascent

Ascent is a financial services provider that specializes in providing loan products for students, including bootcamp loans to help students pay for tuition and living expenses at coding bootcamps.

Loan amounts

Up to $200,000 for undergraduate; up to $400,000 for graduate loans

Loan terms

Range from 5 to 15 years

How to compare installment loans

When choosing an installment loan, you'll want to consider the following:

The higher the APR, the more expensive the loan becomes as you'll need to repay more money over the loan's duration. To obtain the lowest APR, you can apply with a higher credit score and opt for autopay to receive a discount.
Loan lenders typically charge fees such as origination fees, application fees, late payment fees, and prepayment penalties. While it may be difficult to find a lender that doesn't charge any of these fees, the goal is to find a loan with the lowest fees possible.
Prolonging the loan repayment period will reduce the monthly installments, but it will also increase the total interest paid over the loan's duration.
The duration of funding for an installment loan varies depending on the lender and loan type. Personal loans are typically funded within 3-5 business days, while mortgages may take longer due to their complexity.

How to apply for an installment loan

Applying for an installment loan is a relatively simple process:

Determine the type of loan you require and the amount of money you need to borrow. Keep in mind that an installment loan is not free money and will always need to be repaid in full with interest. Always have a plan in place for how to repay what you borrow.
Before settling on a loan lender, it's crucial to compare rates and terms by first undergoing a soft credit check, which won't negatively impact your credit score.
To ensure a smooth loan application process, it is crucial to gather all necessary documents and information beforehand. The specific documents and information required may vary depending on the loan type. It is recommended to consult with the lender and obtain a checklist to stay organized throughout the process. Additionally, it is important to ensure that the application is free of errors and accurately completed to avoid delays in the approval and funding process.

Frequently Asked Questions (FAQs)

Why trust CNBC Select?

Our mission at CNBC Select is to deliver top-notch service journalism and in-depth consumer advice to our readers, enabling them to make well-informed decisions when it comes to their finances. Each article is meticulously crafted by our team of expert writers and editors, who possess extensive knowledge of various loan products. While CNBC Select earns a commission from affiliate partners on many offers and links, our content is created independently by our team, without any input from our commercial team or external third parties. We uphold the highest journalistic standards and ethics in all that we do. For more information on how we select the best bad credit student loans, please refer to our methodology.

Our methodology

CNBC Select identified the top installment loans for borrowers with poor credit by evaluating lenders that provide loan options for individuals with low or no credit scores or limited credit history. Additionally, we took into account CNBC Select audience data, such as demographics and engagement with our content and tools, when available.

We then compared these loans based on the following factors:

What it takes to qualify
Loan amounts offered
Loan interest rates (fixed or variable)
Loan terms in years
Loan repayment options
Bonus features like autopay rate discounts

Interest rates offered vary and can change.

Stay up to date with CNBC Select's comprehensive coverage of credit cards, banking, and money by following us on TikTok, Facebook, Instagram, and Twitter.