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Best 5 Installment Loan Providers in 2020

Looking for an installment loan and don’t know where to start? Check out our selection of the five best installment loan providers on the market in 2020.
michaelgraw
Author: michaelgraw
Last Updated: March 3, 2020

If you’ve ever gotten a loan or looked into borrowing money in the past, you’ve probably come across a type of loan known as an “installment loan.” This is one of the most common types of loan.

With an installment loan, you borrow a set amount of money upfront, but then pay it back in a series of payments. These payments are called installments. Any loan that requires monthly payments could be considered an installment loan.

In this article, we’ll take a closer look at what installment loans are and how they work. Then we’ll highlight five of the top installment loan providers on the market right now. By the end, you’ll have everything you need in order to decide whether an installment loan is right for you and to make an informed choice about which lender to use.

On this Page:

    GreenlightCash

    Our Rating

    • Showcases a range of lenders
    • Fast responses and quick application
    • Credit score will not be affected by soft search

    Summary of the Best Installment Loan Providers

    Reviewers Choice
    Extra Lend
    Rating
    Rating
    Available Loan Amount
    $100 - $ 3,000
    Available Term Length
    6 months - 2 years
    Representative APR
    4.99% - 1386%
    Min Credit Score
    Nil (soft check)
    Maximus Money
    Rating
    Rating
    Available Loan Amount
    $100 - $5,000
    Available Term Length
    Up to 1 year
    Representative APR
    4.99% - 1386%
    Min Credit Score
    Nil (soft check)
    Loans Angel
    Rating
    Rating
    Available Loan Amount
    $100 - $5,000
    Available Term Length
    up to 1 year
    Representative APR
    4.99% - 1386%
    Min Credit Score
    Nil (does not check)
    GreenlightCash
    Rating
    Rating
    Available Loan Amount
    $200 - $5,000
    Available Term Length
    up to 1 year
    Representative APR
    4.99% - 1386%
    Min Credit Score
    poor to bad (lender dependent)
    FundsJoy Personal Loans - Best For High Limits
    Rating
    Rating
    Available Loan Amount
    $100 - $5,000
    Available Term Length
    2 weeks to 12 months
    Representative APR
    4.99% - 1386%
    Min Credit Score
    Nil (Does not check)

    Understanding Installment Loans

    When you get an installment loan, you’re given a lump sum of money upfront and then pay it back over time. Those payments, which are often weekly or monthly, are known as installments. Installment loans offer a contrasting mechanism to revolving credit, like credit cards, which simply put a maximum limit on your borrowing and then let you borrow on an as-needed basis.

    Advantages of Installment Loans

    The main advantage of an installment loan is predictability. You know each week or each month how much you owe, and you can budget ahead of time for your installment payment. Since installment loans come with a fixed term until it is fully paid back, you also know the date of the last payment you need to make.

    Along the same lines, you know exactly how much an installment loan will cost, including fees and interest, before you commit to it. You may be able to make your loan less expensive by requesting a shorter repayment period (with higher installment payments). Or, if you’re willing to pay more overall, you can lessen your weekly or monthly payments by looking for a loan with a longer term.

    Disadvantages of Installment Loans

    The disadvantage of installment loans is that you can’t simply keep borrowing more money as you need it. If you find that the original amount of your loan isn’t sufficient, you’ll have to take out an entirely new loan to get more money. That brings more fees along with it. So, before taking out an installment loan, make sure you know exactly how much you need to borrow.

    Another potential issue with installment loans is that the interest rate and how much you can borrow will depend a lot on your credit score. If you have a high credit score, you may be able to get a relatively low-interest rate on a large loan. If you have bad credit, you’re likely to face much higher interest rates and higher monthly payments.

    It’s also important to watch out for prepayment penalties when applying for an installment loan. With most installment loans, the monthly payment is a minimum. If you pay more than the minimum, you can pay off your loan faster than the set term and save yourself the cost of additional interest. This is a good thing, because you can request a longer loan term than you need and reduce your minimum monthly payments. If a financial emergency comes up, you’ll have plenty of breathing room to make your payment.

    However, some lenders charge prepayment penalties, which involve fees for paying off your loan early. If a loan comes with these fees, you cannot save any money by paying off your loan faster than expected. So, it’s in your best interest to get a loan term that sets your payments exactly at the level you can reasonably afford.

    Common Types of Installment Loans

    Some of the most popular types of loans are installment loans at heart. For example, personal loans, auto loans, and mortgages are all installment loans.

    • Personal Loans – Personal loans are loans of up to several thousand dollars that can be used for any purpose. They usually have repayment terms ranging from one year to five years. Personal loans don’t require collateral, so interest rates and monthly payments can be somewhat high. When talking about installment loans as a specific loan option, people are typically referring to personal loans.
    • Auto Loans – Auto loans are loans that you can use to buy a car. The car itself serves as collateral for these loans, which helps to keep interest rates down. Repayment plans can span from one year to eight years or more. Keep in mind that the length of the loan has a major impact on how much money you’ll pay in interest overall.
    • Mortgages – Home mortgages are also a type of installment loan, with the property as collateral. Mortgages commonly come with 15- to 30-year terms with payments made on a monthly basis. Since mortgages are repaid over such a long period, you can find loans that have a fixed interest rate and loans that have an interest rate that varies based on market conditions.

    Best Lenders for Installment Loans

    1. ExtraLend.com - Best for No-Obligation Offers

    ExtraLend.com has been in the lending business since 2005. The Oakland, California-based company serves as an online broker with a network of more than 300 lenders. That means the company is able to do an excellent job of finding you competitive loan offers. Loans range in size from $200 to $3,000.

    One of the things that helps ExtraLend.com stand out is that there’s no risk in exploring loan offers on the site. The platform itself doesn’t charge any fees for exploring options, and there’s no obligation to accept any of the loan offers you’re presented with. ExtraLend.com also doesn’t conduct a hard credit check, so you don’t have to worry about your credit score being affected.

    Unfortunately, interest rates on ExtraLend.com can be very high depending on your credit history. APRs start at 200% and go up to 1,386%.

    • APR: 200% to 1,386%
    • Loan Type: Installment Loan
    • Loan Amounts: $200 to $3,000
    • Minimum Credit Rating: None
    • Length: 1 to 24 months

    Our Rating

    • Large Network: This provider has a network of more than 300 competing lenders to find you the best offer
    • No Obligation: There’s no fee to get loan offers and no obligation to accept any offer
    • Short Loan Terms: Most loans on ExtraLend.com are limited to a term of 24 months or less
    • High Interest: APR for offers at ExtraLend.com typically start at 200% and go up from there
    • Small Loan Maximum: Loans are only available up to $3,000

    2. MaximusMoney.com - Best for Simplicity

    MaximusMoney.com is another Oakland, California-based lending service. The provider has a network of hundreds of individual lenders, but you don’t get hundreds of loan offers to sort through. Rather, the lender with the best offer will contact you directly within minutes of submitting your loan request to discuss potential terms.

    There’s no risk to using MaximumMoney.com, as you’re under no obligation to accept the offer from the lender that contacts you. The platform also conducts a soft credit check rather than a hard one, so your credit score won’t be affected.

    Another thing that makes MaximumMoney.com extremely simple is that if you do accept a loan, you don’t need to do anything to handle the repayments. Your lender will simply deduct your payment from your bank account on each payment date. The downside to this is that you don’t have the option to easily repay loans early if your financial situation allows. It also means that if you’re not careful, your lender could lead your bank account to be overdrawn on the payment day.

    • APR: 6.63% to 225%
    • Loan Type: Installment Loan
    • Loan Amounts: $200 to $5,000
    • Minimum Credit Rating: None
    • Length: 1 to 24 months

    Our Rating

    • Only One Offer: A single lender will get in touch with you so you don’t have to sort through dozens of offers
    • No Obligation: There’s no fee for checking loan offers and no impact on your credit score
    • High Maximum Loan Amounts: You can request loans up to $5,000
    • No Prepayment: Lenders take your minimum payment automatically, so it’s difficult to make extra payments
    • Potential for Overdraw: Lenders pull payments from your bank account directly

    3. LoansAngel.com - Best for Getting Money Quickly

    LoansAngel.com is perfect if you need a loan as quickly as possible. Lending decisions are made instantly after your application is submitted and a lender from the LoansAngel.com network will get in touch with you immediately. The service also promises that money will arrive by the end of the business day after you accept an offer. In many cases, the money is available the same day.

    LoansAngel.com uses a network of hundreds of lenders. But, like MaximusMoney.com, you’ll only hear from the lender with the best offer. That simplifies and speeds up the lending process, allowing you to get money in your account as quickly as possible.

    This provider also charges reasonable interest rates despite the speed at which it operates. People with good credit will find loan offers with APRs as low as 6.63%. Interest rates max out at 225%, which is very reasonable for uncollateralized installment loans. There’s no hard credit check when you apply for a loan offer either, so you don’t have to worry about taking a hit to your credit when requesting offers.

    • APR: 6.63% to 225%
    • Loan Type: Installment Loan
    • Loan Amounts: $200 to $5,000
    • Minimum Credit Rating: None
    • Length: 1 to 24 months

    • Speedy Service: Get money in your bank account the same day or by the end of the next business day
    • Only One Offer: You only receive the best offer, so you don’t have to sort through dozens of offers
    • Reasonable Interest Rates: Interest rates start as low as 6.63% APR and are capped at 225%
    • Income Qualification: Approval for a $5,000 loan will depend heavily on your income level

    4. GreenlightCash.com – Best for Bad Credit

    If you’ve got bad credit, GreenlightCash.com is a great option for getting an installment loan. The company doesn’t run a hard credit check when you apply for a loan, so there’s no impact on your credit score. On top of that, GreenlightCash.com’s network of lenders includes a number of providers willing to work with low credit scores.

    The process of applying for and receiving a loan is a bit more complicated than with other providers we looked at. You’re pre-approved and given offers through GreenlightCash.com’s online interface. But, in order to finalize your loan, you’ll be redirected to the individual lender’s website. GreenlightCash.com doesn’t actually have a role in your final loan, which can make it slightly more difficult to get help if you need it.

    That said, GreenlightCash.com offers installment loans up to $5,000 with reasonable interest rates. Like other providers, interest is capped at 225% APR regardless of your credit. Once you’ve agreed to a loan, the money will appear in your bank account by the end of the next business day.

    • APR: 6.63% to 225%
    • Loan Type: Installment Loan Loan Amounts: $200 to $5,000
    • Minimum Credit Rating: None
    • Length: 1 to 24 months

    Our Rating

    • Works with Bad Credit: GreenlightCash.com’s network includes many lenders who are willing to issue loans to people with bad credi
    • Fast Money: Money is deposited into your bank account by the end of the next business day
    • Large Loans Available: GreenlightCash.com will issue installment loans up to $5,000
    • Complicated Process: When you get an offer, you’re redirected to the individual lender’s website

    5. Fundsjoy.com - Best for Small Loans

    FundsJoy.com is similar to the other installment loan providers we looked at in many ways. The company offers loans from $200 to $5,000, depending on your income level and credit history. Interest rates are very reasonable, ranging from 6.63% to 225% APR. In addition, you can get money as soon as the next business day after you accept an offer.

    The process of signing up for a loan through FundsJoy.com is fairly simple. Just fill out an online form and the provider will connect you with one of its nationwide lenders within a few minutes. There’s no hard credit check during the process and no obligation to accept the loan you are offered.

    There’s no credit minimum for using FundsJoy.com. But, keep in mind that your debt-to-income ratio will be scrutinized when determining for how big a loan you can be approved. People with bad credit or relatively low income levels may not be able to get a $5,000 loan through FundsJoy.com.

    • APR: 6.63% to 225%
    • Loan Type: Installment Loan
    • Loan Amounts: $200 to $5,000
    • Minimum Credit Rating: None
    • Length: 1 to 24 months

    Our Rating

    • Reasonable Interest: Interest rates start as low as 6.63% APR and are capped at 225%
    • Quick Turnaround: Loan requests are preapproved instantly and money can be in your account within one business day
    • No Hard Credit Check: Your credit will not be affected when requesting loan offers
    • Income Qualifications: The size of loan you can be approved for will depend on your income level and existing debt

    Conclusion – Getting an Installment Loan

    With an installment loan, you know exactly how much your loan is going to cost and how many payments you’ll need to make before your debt is gone. It’s a terrific solution when you need money quickly and wants to repay it in monthly payments. In many cases, you can find a loan that matches your ability to make payments by making the loan term longer or shorter.

    Getting an installment loan is fast and straightforward. There are even several providers that cater to people with bad credit when applying for this type of loan. With our review of the top five installment loan providers, you can make an informed decision about whether this type of loan is right for you and apply for an installment loan today.

    FAQs

    How soon can I get money with an installment loan?

    Many lenders will approve you for an installment loan within a few minutes. You can get money by the end of the next business day or even the same day.

    Do I need collateral or a guarantor for an installment loan?

    Small installment loans of $5,000 or less do not typically require collateral or a guarantor. If you’re applying for a larger installment loan, like an auto loan or a mortgage, you may be required to put up your car or your home as collateral.

    Will a lender conduct a hard credit check before making an offer?

    In most cases, lenders will use a soft credit check to determine whether or not to approve you for an installment loan. A soft credit check will not impact your credit score like a hard credit check does.

    Will paying back an installment loan improve my credit?

    If you pay back your installment loan on time and in full, it will often improve your credit score. However, if you miss payments or fail to repay your loan, your credit score can drop. Be sure that you can make your monthly payments, even if unexpected expenses come up, before accepting an installment loan offer.

    What happens if I miss a payment on my installment loan?

    If you miss a payment on your installment loan, you should contact your lender immediately. Some lenders will allow you to renew your loan, which combines your debt into a new loan with a new payment plan. However, this comes with fees, and not all lenders will allow this. If you can’t renew your installment loan, you risk additional fees and a drop in your credit score when you miss a payment.

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    michaelgraw

    Michael is a writer covering finance, new markets, and business services in the US and UK. His work has been published in leading online outlets and magazines.

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