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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: April 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.

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    GreenlightCash

    Our Rating

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

    What is an installment loan?

    Installment loan is a loan product where the borrower receives a lumpsum cash advance and commits to repaying it in regular installments over a predetermined period of time. There often are no restrictions for the use of the loan and it can be used for personal or commercial purposes.

    The interest on the loan can be fixed or variable as well as simple or compounded. In most cases, and depending on your loan provider, the repayments maybe equal throughout the term of the loan or otherwise.

    This regular loan repayment amounts will often be determined by the loan amounts, the term of the loan (ranges from a few months to 30 years), the interest rate, and other loan costs. Note that loans with a relatively long repayment period are often characterized by higher interest and low monthly minimums while short-term installment loans are commensurate with low interest rates and higher monthly repayment amounts.

    What are the pros and cons of installment cons?

    Pros

    • They are predictable as you know how much you owe and when its due
    • The loans are highly versatile and can be used for multiple purposes
    • They attract lower interest rates than credit card and payday loans and thus suitable for debt consolidation
    • Creditworthy borrowers get to benefit from low interest rates and friendly loan terms
    • Installment loans have attractively high maximum limits

    Cons

    • Some come with high origination fees and other loan costs
    • Discriminate against low and bad credit borrowers
    • Most have hidden late and missed payment penalties
    • They can easily suck you into a debt cycle

    Summary of the Best Installment Loan Providers

    Reviewers Choice
    Extra lend
    Rating
    Available Loan Amount
    $100 - $ 3,000
    Available Term Length
    6 months - 2 years
    Representative APR
    4.99% - 1386%
    Rating
    Visit Now
    Maximus money
    Rating
    Available Loan Amount
    $100 - $5,000
    Available Term Length
    Up to 1 year
    Representative APR
    4.99% - 1386%
    Rating
    Visit Now
    Loans Angel
    Rating
    Available Loan Amount
    $100 - $5,000
    Available Term Length
    up to 1 year
    Representative APR
    4.99% - 1386%
    Rating
    Visit Now
    GreenlightCash
    Rating
    Available Loan Amount
    $200 - $5,000
    Available Term Length
    up to 1 year
    Representative APR
    4.99% - 1386%
    Rating
    Visit Now
    Fundsjoy – Personal Loans
    Rating
    Available Loan Amount
    $100 - $5,000
    Available Term Length
    2 weeks to 12 months
    Representative APR
    4.99% - 1386%
    Rating
    Visit Now

    Installment loan cost and fees

    The three most common types of costs and fees charged by most installment loan providers include:

    Interest rate: Interest rate refers to the cost of a loan. It is the fee charged by a loan provider to the borrower for the use of its loan. The rate is expressed as a percentage of the principal amount advanced and is paid back in installments together with the principal amounts.

    Origination fee: Origination fee is the amount charged by the lender, their agent, or a broker for processing the loan. It is a form of compensation for facilitating the loan.

    Penalties: Penalty is the fine charged for failing to comply with the installment loan repayment terms. You can, for instance, be penalized for missing a monthly payment or submitting your monthly payment late.

    Types of installment loans

    Some of the most popular types of loans have 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 installment loan providers

    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.

    Features:

    • 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 a
    • 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.

    Features:

    • 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.

    Features:

    • 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.

    Features:

    • 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 credit
    • 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.

    Features:

    • 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.

    Glossary of Loaning Terms

    A scale showing a high Credit Score
    Credit Score

    A credit score shows your creditworthiness. It's primarily based on how much money you owe to loan or credit card companies, if you have ever missed payments or if you have ever defaulted on a loan.

    A green tick stamp showing Guaranteed Approval
    Guaranteed Approval

    Guaranteed Approval is when, no matter how bad, your credit score its, your loan application will not get declined.

    A stack of coins and notes to show Cash Advance
    Cash Advance

    A Cash Advance is a short-term loan that has steep interest rates and fees.

    A secured padlock and document showing Collateral
    Collateral

    Collateral is when you put up an item against your loan such as your house or car. These can be reposessed if you miss payments.

    A scale with coins showing a high Credit Limit
    Credit Limit

    A Credit Limit is the highest amont of credit a lender will lend to the borrower.

    5 gold stars showing a high Credit Rating
    Credit Rating

    Your Credit Rating is how likely you are to fulfil your loan payments and how risky you are as a borrower.

    A silver cog with a gold star inside
    Default

    If you default on your loan it means you are unable to keep up with your payments and no longer pay back your loan.

    A coin with a green arrow showing Interest Rates
    Interest

    The Interest is a percentage based on the amount of your loan that you pay back to the lender for using their money.

    Piles of coins showing Fixed Interest Rate
    Fixed Interest Rate

    Fixed Interest Rate is when the interest rate of your loan will not change over the period you are paying off you loan.

    A calendar with an exclamation mark showing late payment
    Late Fee

    If you miss a payment the lender will charge you for being late, this is known as a late fee.

    A printed document with a crest showing a Principle
    Principle

    The Principle amount the borrower owes the lender, not including any interest or fees.

    A tag with a dollar symbol highlighting Prime Rate
    Prime Rate

    This is the Interest Rate used by banks for borrowers with good credit scores.

    A and holding a pile of green cash
    Secured Loan

    A Secured Loan is when you put collateral such as your house or car up against the amount you're borrowing.

    A hand holding cash with an unlocked padlock
    Unsecured Personal Loan

    An Unsecured Personal Loan is when you have a loan based soley on your creditworthliness without using collateral.

    Two hands holding an changing interest rate
    Variable Rate

    A Variable Rate is when the interest rate of you loan will change with inflation. Sometimes this will lower your interest rate, but other times it will increase.

    a credit card with gold coins
    AAA Credit

    Having an AAA Credit Rating is the highest rating you can have.

    A small bridge
    Bridge Loan

    A Bridge Loan is a short term loand that can last from 2 weeks up to 3 years dependant on lender.

    A calendar and tools to show an Installment Loan
    Installment Loan

    An Installment Loan is a loan that is paid back bi-weekly or monthly over the period in which the loan is borrowed for.

    A graduation cap and price tag
    Federal Student Loan

    If you obtain a Federal Student Loan to pay your way through College ten you loan is held with the U.S. Department of Education.

    A graph with a magnifying glass
    Financial Aid

    Financial Aid is funding available to post-secondary education students in America.

    A grey bank building with a green dollar symbol inside
    Guarantor

    A Guarantor co-signs on a loan stating the borrower is able to make the payments, but if they miss any or default the Guarantor will have to pay.

    Homes on scales balanced with money
    Home Equity Loans

    Home Equity Loans is where you borrow the equity from your property and pay it back with interest and fees over an agreed time period with the lender.

    London Inter Bank Offered Rate
    LIBOR

    LIBOR is the London Inter-Bank Offered Rate which is the benchmarker for

    Gold coins being fed into a larger doller weight
    Debt Consolidation

    Debt Consolidation is when you take out one loans to pay off all others. This leads to one monthyl payment, usually with a lower interest rate.

    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.

    Types of Loan
    All trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
    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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