5 Best installment loans for bad credit

Installment loans give you something even more valuable than money — time. These loans give you a lump sum of cash and let you pay down your debt in regular, scheduled installments. But if you have bad credit, the peace of mind that comes with installment loans may seem out of reach. Fortunately, lenders exist with a reputation of extending good offers to borrowers with bad credit.

Below, CNBC Select rounded up five of the best installment loans for people with bad credit. Read on to see if there’s one that meets your needs. (Read more on our methodology below.)

Who’s this for? Upstart looks at more than your credit score and considers factors such as your education and work experience to help them decide on extending you a loan. This makes the lender appealing to applicants with low credit scores (it usually looks for a credit score of at least 300), but Upstart also considers applicants with insufficient credit history.

Standout benefits: Approved borrowers can receive funding as soon as the next business day if they accept the loan before 5 p.m. EST Monday through Friday.

[ Jump to more details ]

Who’s this for? Avant typically offers fast funding for borrowers who need cash in a pinch. The application takes just a few minutes to fill out and (according to Avant’s website) applicants get 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.

Standout benefits: Avant offers fixed interest rates so borrowers won’t be surprised by sudden rate changes.

[ Jump to more details ]

Who’s this for? MyAutoLoan is a good place to find an auto loan regardless of your credit, but if you have a low score you definitely want to make this your first stop on your car loan journey. This marketplace will match you with lenders based on the information you provide, which means you don’t have to wade through a pool of loans you’ll (probably) never qualify for before finding options right for you.

Standout benefits: MyAutoLoan performs a soft credit check that won’t damage your credit score to match you to up to four loan offers.

[ Jump to more details ]

Who’s this for? Navy Federal Credit Union is a financial services institution well-known among current or retired military members and their families. This lender doesn’t disclose their exact credit score requirements but it offers to work with potential borrowers to find loan terms they qualify for based on their credit circumstances.

Standout benefits: With Navy Federal Credit Union, private mortgage insurance isn’t required even if you make a low down payment on a mortgage.

[ Jump to more details ]

Who’s this for? Ascent considers borrowers with no credit history, making it 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.

Standout benefits: Ascent offers grace periods ranging from nine to 36 months. The typical grace period offered by most student loan lenders is only six months.

[ Jump to more details ]

Upstart offers loans for a variety of purposes including debt consolidation, auto loan refinance, wedding loans, home improvement loans, moving loans and more. Potential borrowers can go online to Upstart’s website and check their rate without their credit score taking a hit.

Loan amounts

$1,000 to $50,000

Loan terms

3 to 5 years

[ Return to summary ]

Avant has installment loans that can be used for just about anything, and the company even offers special-purpose loans like home improvement loans, emergency loans and debt consolidation loans.

Loan amounts

$2,000 to $35,000

Loan terms

24 to 60 months

[ Return to summary ]

MyAutoLoan is a lender marketplace for car loans. Borrowers have several options when it comes to the type of loan they can get matched for: They can choose from auto loans for new cars, loans for used cars, refinance loans, loans for private sales and lease buyout loans.

Loan amounts

Must apply for at least $8,000

Loan terms

24 to 72 months

[ Return to summary ]

Navy Federal Credit Union offers several appealing features on their VA home loan products, such as a no-down-payment option and no PMI requirements for low down payments. This lender also lets you 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

[ Return to summary ]

Ascent is a financial services provider focused on offering loan products geared toward students. In addition to student loans, Ascent also offers bootcamp loans, which help students interested in developing their coding skills 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

[ Return to summary ]

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

• APR: A higher rate means the loan is more expensive since you’ll have to pay back more money over the life of the loan. There are ways to try to get the lowest APR possible, including applying with a higher credit score and signing up for autopay for a discount.
• Fees: It’s normal for loan lenders to charge fees, including origination fees, application fees, late payment fees and even prepayment penalties. In many cases, you’ll be hard-pressed to find a lender that doesn’t charge any of these fees, but the goal is to find a good loan with the least amount.
• Loan term: A longer loan repayment term means smaller monthly payments while shorter repayment terms usually result in larger monthly payments (assuming all other loan factors remain the same). While longer repayment terms offer the flexibility of lower monthly payments, you’ll end up paying more in interest over the life of the loan so be sure to keep this in mind.
• Funding timeline: Funding timelines depend on the lender and type of installment loan you’re getting. For instance, most personal loan lenders can fund you within 3–5 business days. However, when it comes to other types of installment loans, like a mortgage, the process is far more complicated and will take longer.

Applying for an installment loan is a relatively simple process:

1. Figure out what type of loan you need and how much money you need to borrow. Remember that an installment loan isn’t free money and will always need to be paid back in full with interest. Always have a plan for how to pay for what you’re borrowing.
2. Prequalify and compare your offers. Most loan lenders run a soft credit check to help you figure out what rates and terms you qualify for without lowering your credit score. Use this to your advantage by shopping around for rates and terms before committing to one lender.
3. Gather the required documents and apply. The documents and information you’ll need to submit can depend on the loan you’re applying for. Be sure to discuss requirements with the lender and get a checklist of what you need so you can stay organized throughout the process. When submitting your application, make sure it’s error-free and accurate so you can avoid delays in the approval and funding process.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of loan products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best bad credit student loans.

To determine which installment loans are the best for borrowers with bad credit, CNBC Select narrowed down a list of lenders that offer loan options for those with low or no credit scores or insufficient credit history. We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.

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.

Catch up on CNBC Select’s in-depth coverage of credit cards, banking and money, and follow us on TikTok, Facebook, Instagram and Twitter to stay up to date.