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Kiah Treece is a small business owner and personal finance expert with experience in loans, business and personal finance, insurance and real estate. Her focus is on demystifying debt to help individuals and business owners take control of their fina...
Kiah Treece is a small business owner and personal finance expert with experience in loans, business and personal finance, insurance and real estate. Her focus is on demystifying debt to help individuals and business owners take control of their fina...
Kiah Treece is a small business owner and personal finance expert with experience in loans, business and personal finance, insurance and real estate. Her focus is on demystifying debt to help individuals and business owners take control of their fina...
Kiah Treece is a small business owner and personal finance expert with experience in loans, business and personal finance, insurance and real estate. Her focus is on demystifying debt to help individuals and business owners take control of their fina...
Colin Beresford is a writer and editor experienced in helping people make the best decisions with their money, whether it's buying a car or taking on a loan. He has written for Bloomberg, The Associated Press, NerdWallet, Car and Driver magazine, amo...
Colin Beresford is a writer and editor experienced in helping people make the best decisions with their money, whether it's buying a car or taking on a loan. He has written for Bloomberg, The Associated Press, NerdWallet, Car and Driver magazine, amo...
Colin Beresford is a writer and editor experienced in helping people make the best decisions with their money, whether it's buying a car or taking on a loan. He has written for Bloomberg, The Associated Press, NerdWallet, Car and Driver magazine, amo...
Colin Beresford is a writer and editor experienced in helping people make the best decisions with their money, whether it's buying a car or taking on a loan. He has written for Bloomberg, The Associated Press, NerdWallet, Car and Driver magazine, amo...
Financial and loans expert Joel Larsgaard loves nerding out on the topic of personal finance with the mission of helping others improve their financial standing.
He has been in the money media space for almost 20 years. He produced "...
Financial and loans expert Joel Larsgaard loves nerding out on the topic of personal finance with the mission of helping others improve their financial standing.
He has been in the money media space for almost 20 years. He produced "...
Financial and loans expert Joel Larsgaard loves nerding out on the topic of personal finance with the mission of helping others improve their financial standing.
He has been in the money media space for almost 20 years. He produced "...
Financial and loans expert Joel Larsgaard loves nerding out on the topic of personal finance with the mission of helping others improve their financial standing.
He has been in the money media space for almost 20 years. He produced "...
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.
Installment loans for bad credit make it possible for borrowers with a poor or limited credit history to access the cash they need. If you have bad or poor credit as defined by FICO (a score of 350 to 579), it’s unlikely that you’ll be able to secure a personal loan. However, lenders on this list extend loans to prospective borrowers with credit scores between 580 and 600.
The interest rates you receive vary based on your credit score and the qualification requirements you meet. This means that you shouldn’t expect to receive the lowest and best rates with poor credit scores. Your goal should still be able to snag the most favorable terms you can. Just know that you won't qualify for the lowest advertised rates. Those are reserved for folks with top-notch credit scores.
Our editors are committed to bringing you unbiased ratings and information. Advertisers do not and cannot influence our ratings. We use data-driven methodologies to evaluate financial products and companies, so all are measured equally. You can read more about our editorial guidelines and the personal loans methodology for the ratings below.
29 nationwide lenders researched
16 data points evaluated and scored
Unbiased editorial team
No AI writing
Compare Personal Loan Rates
Best Installment Loans For Bad Credit in 2025
BEST BAD CREDIT INSTALLMENT LOANS FOR CO-BORROWERS
Upgrade
5.0
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
Minimum Credit Score
600
APR range
Personal loans made through Upgrade feature Annual Percentage Rates (APRs) of 7.99%-35.99%. All personal loans have a 1.85% to 9.99% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. Loans feature repayment terms of 24 to 84 months. For example, if you receive a $10,000 loan with a 36-month term and a 17.59% APR (which includes a 13.94% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $341.48. Over the life of the loan, your payments would total $12,293.46. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by Upgrade’s bank partners. Information on Upgrade’s bank partners can be found at https://www.upgrade.com/bank-partners/.
Personal loans made through Upgrade feature Annual Percentage Rates (APRs) of 7.99%-35.99%. All personal loans have a 1.85% to 9.99% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. Loans feature repayment terms of 24 to 84 months. For example, if you receive a $10,000 loan with a 36-month term and a 17.59% APR (which includes a 13.94% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $341.48. Over the life of the loan, your payments would total $12,293.46. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by Upgrade’s bank partners. Information on Upgrade’s bank partners can be found at https://www.upgrade.com/bank-partners/.
7.99% to 35.99%
$1,000 to $50,000
Editor’s Take
Upgrade sets a low minimum credit score requirement and allows for prospective borrowers to apply with a co-borrower.
Why We Like It
Upgrade imposes a minimum credit score requirement of 600, which is lower than what other lenders require. Upgrade also allows for co-borrowers, making it easier to qualify with bad credit.
What We Don’t Like
Upgrade’s loans come with annual percentage rates (APRs) of up to 35.99%, and origination fees range from 0% and 12% of the total loan amount.
Who It’s Best For
Upgrade personal loans are best for borrowers with bad to fair credit who want to apply with a co-borrower to increase their chances of loan approval.
Consumer Sentiment Index
5.4
5.4/10
Consumer Score
The Consumer Sentiment Index from Forbes Advisor uses a proprietary weighting system designed by our subject matter experts. It evaluates thousands of consumer insights and reviews from leading online forums to determine customer satisfaction at scale.
Consumer Sentiment Index
5,884
How do we calculate
We gather and analyze consumer sentiment from a range of sources to create the Consumer Sentiment Index to determine customer satisfaction levels for each feature outlined below. This data is designed to give you an idea of real consumer experience of the services and product we review. This data is currently separate from our overall rating out of 5
Insights Analyzed
#
Interest Rates and Fees
For Interest Rates and Fees
54% of people had positive sentiments
10% of people had neutral sentiments
36% of people had negative sentiments
54%
10%
36%
For Interest Rates and Fees
54% of people had positive sentiments
10% of people had neutral sentiments
36% of people had negative sentiments
#
Customer Service
For Customer Service
67% of people had positive sentiments
3% of people had neutral sentiments
30% of people had negative sentiments
67%
3%
30%
For Customer Service
67% of people had positive sentiments
3% of people had neutral sentiments
30% of people had negative sentiments
#
Loan Terms and Flexibility
For Loan Terms and Flexibility
74% of people had positive sentiments
10% of people had neutral sentiments
16% of people had negative sentiments
74%
10%
16%
For Loan Terms and Flexibility
74% of people had positive sentiments
10% of people had neutral sentiments
16% of people had negative sentiments
#
Ease of Approval and Process
For Ease of Approval and Process
94% of people had positive sentiments
2% of people had neutral sentiments
4% of people had negative sentiments
94%
2%
4%
For Ease of Approval and Process
94% of people had positive sentiments
2% of people had neutral sentiments
4% of people had negative sentiments
Upgrade customers report mixed experiences with its personal loan offerings. Some wins that jump out include the streamlined application process, easy approval and quick funding. But their experiences were not perfect. Some users are dissatisfied with the high APRs and loan fees that make working with Upstart costly.
Pros & Cons
Flexible eligibility requirements
Can pay off creditors directly
High loan amounts available
High APR range
Fees for late payments and insufficient funds
Charges origination fees from 0% and 12%
Details
Eligibility:
Minimum credit score. 600
Minimum income. None
Co-applicants. Permitted
Customer service
We called Upgrade to gauge the responsiveness of its customer service team and found it to be one of the most responsive lenders on our list. While we waited just over one minute for their team to answer our call—which is not the fastest time—they were transparent and knowledgeable about Upgrade’s loans.
We received information on loan amounts, required documentation, interest rate ranges, approval speed, fees and various perks, like hardship programs and autopay discounts. The representative also confirmed that they report payments to credit bureaus.
Disclosure
Personal loans made through Upgrade feature Annual Percentage Rates (APRs) of 7.99%-35.99%. All personal loans have a 1.85% to 9.99% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. Loans feature repayment terms of 24 to 84 months. For example, if you receive a $10,000 loan with a 36-month term and a 17.59% APR (which includes a 13.94% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $341.48. Over the life of the loan, your payments would total $12,293.46. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by Upgrade’s bank partners. Information on Upgrade’s bank partners can be found at https://www.upgrade.com/bank-partners/.
BEST BAD CREDIT INSTALLMENT LOANS FOR DEBT CONSOLIDATION
LendingClub
4.7
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
LendingClub offers online financial services, including loans, banking and investing.
Why We Like It
LendingClub offers debt consolidation loans with direct payments to creditors, which can streamline the consolidation process.
What We Don’t Like
LendingClub’s minimum APRs are high, starting at 8.99%, and origination fees between 3% to 8% are taken from the loan proceeds at funding.
Who It’s Best For
LendingClub personal loans are best for borrowers with bad to fair credit who want to streamline their debt payments with a debt consolidation loan.
Consumer Sentiment Index
6.0
6/10
Consumer Score
The Consumer Sentiment Index from Forbes Advisor uses a proprietary weighting system designed by our subject matter experts. It evaluates thousands of consumer insights and reviews from leading online forums to determine customer satisfaction at scale.
Consumer Sentiment Index
10,607
How do we calculate
We gather and analyze consumer sentiment from a range of sources to create the Consumer Sentiment Index to determine customer satisfaction levels for each feature outlined below. This data is designed to give you an idea of real consumer experience of the services and product we review. This data is currently separate from our overall rating out of 5
Insights Analyzed
#
Interest Rates and Fees
For Interest Rates and Fees
64% of people had positive sentiments
13% of people had neutral sentiments
23% of people had negative sentiments
64%
13%
23%
For Interest Rates and Fees
64% of people had positive sentiments
13% of people had neutral sentiments
23% of people had negative sentiments
#
Customer Servic
For Customer Service
68% of people had positive sentiments
2% of people had neutral sentiments
30% of people had negative sentiments
68%
2%
30%
For Customer Service
68% of people had positive sentiments
2% of people had neutral sentiments
30% of people had negative sentiments
#
Loan Terms and Flexibility
For Loan Terms and Flexibility
84% of people had positive sentiments
7% of people had neutral sentiments
9% of people had negative sentiments
84%
7%
9%
For Loan Terms and Flexibility
84% of people had positive sentiments
7% of people had neutral sentiments
9% of people had negative sentiments
#
Ease of Approval and Process
For Ease of Approval and Process
95% of people had positive sentiments
2% of people had neutral sentiments
3% of people had negative sentiments
95%
2%
3%
For Ease of Approval and Process
95% of people had positive sentiments
2% of people had neutral sentiments
3% of people had negative sentiments
Borrowers are typically satisfied with LendingClub and value the competitive interest rates and efficient application process. However, some cite concerns about high origination fees and communication issues.
Pros & Cons
Directly pay off creditors with debt consolidation loans
Offers loans as small as $1,000 to $40,000
No minimum credit or income requirements
Charges origination fees
Terms available for two to five years
Details
Eligibility:
Minimum credit score. None
Minimum annual income. None
Co-borrowers. Permitted
Customer service
We tested LendingClub’s customer service to assess how helpful it is for prospective borrowers and found the representative could provide only surface-level answers. For example, after waiting just over one minute to connect with a rep, they confirmed you can set up autopay but did not confirm if any autopay discounts are available. In another case, they mentioned LendingClub charges an origination fee but didn’t disclose anything further like the amount.
However, this does not mean they were not responsive or able to provide helpful information. We connected with a rep in just over one minute. Through our evaluation, we gathered key information, including loan amounts, required documentation such as W-2s and bank statements, loan assistance options and funding turnaround times.
BEST BAD CREDIT INSTALLMENT LOANS FOR LIMITED CREDIT HISTORY
Upstart
4.6
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
Upstart has flexible credit requirements and accepts borrowers who don’t have enough credit history to have a credit score.
Why We Like It
Upstart’s credit score requirement starts at 620, making it a strong contender for borrowers who lack sufficient credit history to have a credit score.
What We Don’t Like
Like many online lenders, Upstart’s loans come with high origination fees up to 12% of the loan amount. Loans max out at $50,000 and repayment terms of three- or five-years.
Who It’s Best For
Upstart personal loans are best for borrowers with thin credit who may struggle to qualify for installment loans elsewhere.
Consumer Sentiment Index
3.4
3.4/10
Consumer Score
The Consumer Sentiment Index from Forbes Advisor uses a proprietary weighting system designed by our subject matter experts. It evaluates thousands of consumer insights and reviews from leading online forums to determine customer satisfaction at scale.
Consumer Sentiment Index
2,077
How do we calculate
We gather and analyze consumer sentiment from a range of sources to create the Consumer Sentiment Index to determine customer satisfaction levels for each feature outlined below. This data is designed to give you an idea of real consumer experience of the services and product we review. This data is currently separate from our overall rating out of 5
Insights Analyzed
#
Interest Rates and Fees
For Interest Rates and Fees
28% of people had positive sentiments
14% of people had neutral sentiments
58% of people had negative sentiments
28%
14%
58%
For Interest Rates and Fees
28% of people had positive sentiments
14% of people had neutral sentiments
58% of people had negative sentiments
#
Customer Service
For Customer Service
10% of people had positive sentiments
3% of people had neutral sentiments
87% of people had negative sentiments
10%
3%
87%
For Customer Service
10% of people had positive sentiments
3% of people had neutral sentiments
87% of people had negative sentiments
#
Loan Terms and Flexibility
For Loan Terms and Flexibility
56% of people had positive sentiments
16% of people had neutral sentiments
28% of people had negative sentiments
56%
16%
28%
For Loan Terms and Flexibility
56% of people had positive sentiments
16% of people had neutral sentiments
28% of people had negative sentiments
#
Ease of Approval and Process
For Ease of Approval and Process
66% of people had positive sentiments
8% of people had neutral sentiments
26% of people had negative sentiments
66%
8%
26%
For Ease of Approval and Process
66% of people had positive sentiments
8% of people had neutral sentiments
26% of people had negative sentiments
Upstart borrowers express frustration with high interest rates and origination fees that increase the cost of borrowing. While borrowers found Upstart’s borrowing process simple and quick, others reported issues with customer service, communication and lending practices.
Pros & Cons
Accessible to borrowers with no credit history
Prequalification with a soft credit check
Ability to choose a custom payment date
Charges an origination fee up to 12% of the loan amount
No co-signer option
Only offers three- or five-years terms
Details
Eligibility:
Minimum credit score. 620
Minimum income. No minimum but must have a source of income
Co-signers. Not permitted
Co-borrowers. Not permitted
Customer service
We tested Upstart’s customer service quality to evaluate its helpfulness. Through our research, we found Upstart’s team was one of the fastest to answer, as we waited only 39 seconds. However, once connected, the representative was vague. While they disclosed general loan details like loan amounts, fees and interest rate ranges, they were unclear about documentation requirements and approval times.
BEST BAD CREDIT INSTALLMENT LOANS FOR LONG REPAYMENT TERMS
LendingPoint
4.5
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
LendingPoint is an Atlanta-based online lender that offers installment loans with repayment terms ranging from 24 to 72 months—or two to six years.
Why We Like It
LendingPoint’s installment loans are available for $1,000 to $36,500 (depending on the state), and repayment terms are longer than those available from other bad credit lenders.
What We Don’t Like
LendingPoint charges APRs up to 35.99% and origination fees up to 10% of the total loan amount.
Who It’s Best For
LendingPoint personal loans are best for borrowers who want to keep their monthly payments low with lengthy loan terms.
Consumer Sentiment Index
6.0
6/10
Consumer Score
The Consumer Sentiment Index from Forbes Advisor uses a proprietary weighting system designed by our subject matter experts. It evaluates thousands of consumer insights and reviews from leading online forums to determine customer satisfaction at scale.
Consumer Sentiment Index
10,607
How do we calculate
We gather and analyze consumer sentiment from a range of sources to create the Consumer Sentiment Index to determine customer satisfaction levels for each feature outlined below. This data is designed to give you an idea of real consumer experience of the services and product we review. This data is currently separate from our overall rating out of 5
Insights Analyzed
#
Interest Rates and Fees
For Interest Rates and Fees
64% of people had positive sentiments
13% of people had neutral sentiments
23% of people had negative sentiments
64%
13%
23%
For Interest Rates and Fees
64% of people had positive sentiments
13% of people had neutral sentiments
23% of people had negative sentiments
#
Customer Service
For Customer Service
68% of people had positive sentiments
2% of people had neutral sentiments
30% of people had negative sentiments
68%
2%
30%
For Customer Service
68% of people had positive sentiments
2% of people had neutral sentiments
30% of people had negative sentiments
#
Loan Terms and Flexibility
For Loan Terms and Flexibility
84% of people had positive sentiments
7% of people had neutral sentiments
9% of people had negative sentiments
84%
7%
9%
For Loan Terms and Flexibility
84% of people had positive sentiments
7% of people had neutral sentiments
9% of people had negative sentiments
#
Ease of Approval and Process
For Ease of Approval and Process
95% of people had positive sentiments
2% of people had neutral sentiments
3% of people had negative sentiments
95%
2%
3%
For Ease of Approval and Process
95% of people had positive sentiments
2% of people had neutral sentiments
3% of people had negative sentiments
Borrowers appreciate the easy application process and robust customer service but criticize the high interest rates and misleading prequalification process. Some borrowers are concerned about LendingPoint’s perceived predatory practices and poor handling of loans post-approval.
Pros & Cons
Quick funding
Low credit score requirements
No prepayment penalty
Origination fee up to 10%
Co-signers or joint loans not permitted
Not available in Nevada and West Virginia
Details
Eligibility:
Minimum credit score. 600
Minimum annual income. $35,000
Co-signers. Not permitted
Customer service
After testing and evaluating LendingPoint’s customer service, we found it to be one of the most helpful and transparent lenders on our list after waiting only 46 seconds to be connected to a representative. The customer service representative we spoke with shared an in-depth perspective of their loan offers, including information about loan amounts, eligibility requirements, how interest rates are determined and prequalification.
LendingPoint’s team also disclosed late fees but didn’t confirm origination fees. While customer service didn’t share this information wasn’t, the lender discloses a fee of up to 10% on its website. LendingPoint was also one of few lenders that shared how they report payments to credit bureaus, which it typically does at the start of the month.
BEST BAD CREDIT INSTALLMENT LOANS FOR QUICK FUNDING
Avant
4.0
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
Minimum Credit Score
580
APR range
If approved, the actual loan terms that a customer qualifies for may vary based on credit determination, state law, and other factors. Minimum loan amounts vary by state.
9.95% to 35.99%
Loan amounts
Example: A $5,900 loan with an administration fee of 4.75% and an amount financed of $5,619.75, repayable in 36 monthly installments, with an APR of 29.95% would have monthly payments of $250.30. If approved, the actual loan terms that a customer qualifies for may vary based on credit determination, state law, and other factors. Minimum loan amounts vary by state.
If approved, the actual loan terms that a customer qualifies for may vary based on credit determination, state law, and other factors. Minimum loan amounts vary by state.
9.95% to 35.99%
Example: A $5,900 loan with an administration fee of 4.75% and an amount financed of $5,619.75, repayable in 36 monthly installments, with an APR of 29.95% would have monthly payments of $250.30. If approved, the actual loan terms that a customer qualifies for may vary based on credit determination, state law, and other factors. Minimum loan amounts vary by state.
$2,000 to $35,000
Editor’s Take
Avant is a consumer lending platform offering quick funding times to borrowers with less-than-stellar credit.
Why We Like It
Avant has a minimum credit requirement of 580, and funds can be available as soon as the next business day.
What We Don’t Like
In addition to charging an administrative fee of up to 9.99% of the loan amount, Avant’s APR range of 9.95% to 35.99% is higher than many other lenders.
Who It’s Best For
Avant’s personal loans are a good fit if you have fair credit and want to borrow between $2,000 to $35,000 and receive funds quickly.
Consumer Sentiment Index
4.6
4.6/10
Consumer Score
The Consumer Sentiment Index from Forbes Advisor uses a proprietary weighting system designed by our subject matter experts. It evaluates thousands of consumer insights and reviews from leading online forums to determine customer satisfaction at scale.
Consumer Sentiment Index
7,304
How do we calculate
We gather and analyze consumer sentiment from a range of sources to create the Consumer Sentiment Index to determine customer satisfaction levels for each feature outlined below. This data is designed to give you an idea of real consumer experience of the services and product we review. This data is currently separate from our overall rating out of 5
Insights Analyzed
#
Interest Rates and Fees
For Interest Rates and Fees
18% of people had positive sentiments
11% of people had neutral sentiments
71% of people had negative sentiments
18%
11%
71%
For Interest Rates and Fees
18% of people had positive sentiments
11% of people had neutral sentiments
71% of people had negative sentiments
#
Customer Service
For Customer Service
23% of people had positive sentiments
1% of people had neutral sentiments
76% of people had negative sentiments
23%
1%
76%
For Customer Service
23% of people had positive sentiments
1% of people had neutral sentiments
76% of people had negative sentiments
#
Loan Terms and Flexibility
For Loan Terms and Flexibility
67% of people had positive sentiments
12% of people had neutral sentiments
21% of people had negative sentiments
67%
12%
21%
For Loan Terms and Flexibility
67% of people had positive sentiments
12% of people had neutral sentiments
21% of people had negative sentiments
#
Ease of Approval and Process
For Ease of Approval and Process
87% of people had positive sentiments
2% of people had neutral sentiments
11% of people had negative sentiments
87%
2%
11%
For Ease of Approval and Process
87% of people had positive sentiments
2% of people had neutral sentiments
11% of people had negative sentiments
While some borrowers praise Avant’s user-friendly app and fast approval process, others comment negatively about customer service quality, unexplained fees and high interest rates. However, many borrowers appreciate quick loan decisions and funding turnaround times.
Pros & Cons
Secured and unsecured loan options available
Low credit score requirement of 580
Loan terms available up to 60 months
Charges an upfront administrative fee
High minimum APR
Co-signers and co-applicants not allowed
Details
Eligibility:
Minimum credit score. 580
Minimum income. Does not disclose
Co-borrowers. Not permitted
Co-signers. Not permitted
BEST BAD CREDIT INSTALLMENT LOANS FOR SMALL AMOUNTS
OneMain Financial
4.4
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
Minimum Credit Score
OneMain Financial does not disclose this information
OneMain Financial does not disclose this information
18.00% to 35.99%
$1,500 to $20,000
Editor’s Take
OneMain Financial offers small-installment loans, allowing consumers to borrow only what they need.
Why We Like It
OneMain Financial’s installment loans start at just $1,500 and max out at $20,000, and funds can be available in as little as one hour.
What We Don’t Like
OneMain Financial borrowing costs include a 1% to 10% loan origination fee or a $25 to $500 flat fee.
Who It’s Best For
OneMain Financial’s personal loans are ideal for borrowers with bad credit who want access to small loan amounts with short funding times.
Consumer Sentiment Index
6.2
6.2/10
Consumer Score
The Consumer Sentiment Index from Forbes Advisor uses a proprietary weighting system designed by our subject matter experts. It evaluates thousands of consumer insights and reviews from leading online forums to determine customer satisfaction at scale.
Consumer Sentiment Index
5,106
How do we calculate
We gather and analyze consumer sentiment from a range of sources to create the Consumer Sentiment Index to determine customer satisfaction levels for each feature outlined below. This data is designed to give you an idea of real consumer experience of the services and product we review. This data is currently separate from our overall rating out of 5
Insights Analyzed
#
Interest Rates and Fees
For Interest Rates and Fees
13% of people had positive sentiments
14% of people had neutral sentiments
73% of people had negative sentiments
13%
14%
73%
For Interest Rates and Fees
13% of people had positive sentiments
14% of people had neutral sentiments
73% of people had negative sentiments
#
Customer Service
For Customer Service
81% of people had positive sentiments
1% of people had neutral sentiments
18% of people had negative sentiments
81%
1%
18%
For Customer Service
81% of people had positive sentiments
1% of people had neutral sentiments
18% of people had negative sentiments
#
Loan Terms and Flexibility
For Loan Terms and Flexibility
36% of people had positive sentiments
31% of people had neutral sentiments
33% of people had negative sentiments
36%
31%
33%
For Loan Terms and Flexibility
36% of people had positive sentiments
31% of people had neutral sentiments
33% of people had negative sentiments
#
Ease of Approval and Process
For Ease of Approval and Process
86% of people had positive sentiments
3% of people had neutral sentiments
11% of people had negative sentiments
86%
3%
11%
For Ease of Approval and Process
86% of people had positive sentiments
3% of people had neutral sentiments
11% of people had negative sentiments
Borrowers appreciate the knowledge of customer representatives and the streamlined loan process. However, some borrowers are upset about high interest rates and poor communication. While the customer sentiment trends toward being satisfied, OneMain Financial receives mixed reviews from its borrowers.
Pros & Cons
Designed for borrowers with low credit scores
Offers secured loan options
Evaluates entire credit and income history instead of credit score
Limits only up to $20,000
Can’t be used for business purposes
Charges high APRs
Details
Eligibility:
Minimum credit score required. No minimum credit score requirement
Minimum annual income. No minimum income requirement
We reviewed 31 popular lenders based on 14 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We chose lenders that have a minimum credit score requirement of 600 or lower and ranked them based on the weighting assigned to each category:
Loan details. 20%
Loan cost. 25%
Eligibility and accessibility. 30%
Customer experience. 15%
Application process. 10%
Within each category, we also considered several characteristics, including loan amounts, repayment terms, APR ranges and applicable fees. We also looked at whether each lender accepts co-signers or joint applications and the geographic availability of the lender. Finally, we evaluated each provider’s customer support tools, borrower perks and features that simplify the borrowing process—like prequalification and mobile apps.
Where appropriate, we awarded partial points depending on how well a lender met each criterion.
Tips for Comparing Installment Loans for Bad Credit
As you consider different installment loans for bad credit, these tips can help you narrow down your options:
Find competitive interest rates. Compare the interest rates from various lenders. A lower interest rate can significantly reduce the total amount you’ll repay over the life of the loan.
Choose a loan term that works for your budget. Look at the terms of each loan, including the repayment period. A longer loan term may result in lower monthly payments, but it can also lead to paying more interest overall. A loan calculator can help you estimate loan payments.
Calculate fees and additional charges. Examine additional loan fees, including origination fees, prepayment penalties and late payment fees. Understanding the total cost of borrowing will help you avoid unexpected expenses during repayment.
Evaluate each lender’s reputation. A lender with a strong track record of customer service and transparency can help ensure a smoother borrowing experience. This can be particularly important when applying for loans with bad credit.
Choose a flexible lender with well-rated customer service. Consider the lender’s policies on payment flexibility and its customer service responsiveness. A lender that offers assistance or options for adjusting payments in times of hardship can provide an added layer of security.
What Are Installment Loans for Bad Credit?
Installment loans for bad credit are secured or unsecured loans specifically designed for consumers with damaged credit scores. The loans are also suitable for prospective borrowers who do not yet have an established credit history. Because of the risk posed by less qualified borrowers, these installment loans typically come with higher interest rates, lower loan amounts and shorter repayment terms.
As with all installment loans, funds are disbursed as a lump sum and interest begins accruing on the balance in the first month. Borrowers must make equal monthly payments until the loan term is over and the balance is repaid. The most common types of installment loans include personal loans, auto loans and mortgages.
Some lenders specifically focus on loans for borrowers with bad credit and impose less rigorous qualifications on applicants. Likewise, lenders may look at alternative credit data like that available through specific credit companies. Other financial institutions may have lower credit score requirements, while also offering the ability to apply with a co-signer or co-borrower. Secured loans, which require collateral, may also come with less rigorous credit score requirements because they pose less risk to lenders.
How Do They Work?
Bad credit installment loans are typically available from credit unions and online lenders. You apply for a loan, accept an offer and then wait for the approval and verification process. Funds are disbursed to your bank account as a lump sum, and interest starts to accrue as soon as you receive the money. Loan payments are typically made monthly over the loan term—usually between one and seven years.
Pros And Cons
Installment loans for bad credit come with a variety of benefits, including:
Available to borrowers with damaged or limited credit
Fixed monthly payments
Can consolidate other debts like unpaid credit cards
Funds can cover just about any legal personal expense
Fast approval and funding times
Variety of loan amounts and repayment options
Streamlined online applications
Can help improve your credit if you regularly make on-time payments
There are cons to getting an installment loan for bad credit, including:
High interest rates
Limited loan amounts
Potential for predatory lending practices
Shorter repayment terms can lead to high monthly payments
Risk of falling into a debt cycle if payments are missed
Negative marks on your credit report if payments are not made on time
When To Consider an Installment Loan for Bad Credit
Consider an installment loan for bad credit if you have a FICO score between 580 and 600. Likewise, if you have a limited credit profile—or no credit history at all—you may still qualify for a bad credit installment loan.
To qualify for and repay a loan, you should have enough monthly cash flow to cover the necessary payments, including interest and applicable fees. Use the Forbes Advisor personal loan calculator to estimate monthly payments and determine whether an installment loan is a responsible choice.
It can be more difficult to qualify for an installment loan if you have bad credit, but there are still ways to qualify. Follow these general steps to make the approval process smoother:
Check your credit report. According to the FTC, one in four people have errors on their credit report that can affect their score. Check your credit report and contact the credit bureaus if there are any discrepancies.
Determine your budget. Before you start applying for loans, determine your budget and what payments you can afford. A loan calculator can help you estimate potential monthly payments for various loan amounts.
Shop around. Look for lenders that offer loans to applicants with bad credit and prequalify to see which terms and rates you qualify for without impacting your score.
Choose the best lender. Look for the lender with the lowest APR, which includes both the interest rate and fees. Also, consider other loan features, such as customer service or speed of funding, depending on your needs.
Finish the application. Fill out the final application for your chosen lender and submit any requested documentation. Look for any communication from the lender in case they need additional information.
Receive funds and begin repayment. Once you’re approved and receive the funds, sign up for autopay to avoid late payments and build your credit.
Where To Get an Installment Loan With Bad Credit
Various types of financial institutions cater to individuals with less-than-perfect credit histories. Here’s where you can get an installment loan with bad credit:
Traditional banks. Many traditional banks offer installment loans, but they typically have stricter credit requirements than other lenders. If you have a long-standing relationship with your bank, you may have a better chance of securing a loan even with bad credit.
Credit unions. Credit unions often provide more favorable terms compared to traditional banks, and are typically more lenient with credit scores and can offer lower interest rates. Payday alternative loans are offered by credit unions and can be a good option if you need a small loan amount.
Online lenders. Online lenders are a popular option and can provide quick access to funds. They often have more flexible eligibility criteria, making it easier to obtain an installment loan with bad credit.
How To Choose an Installment Loan for Bad Credit
Consumers with bad credit generally have fewer borrowing options than those with more competitive credit profiles. However, there are a number of lending options for people with bad credit, and it’s still essential to compare lenders to find the best offer available. Take these steps before choosing a lender:
Evaluate minimum qualifications. Most lenders impose minimum credit score requirements that make it difficult for borrowers with bad credit to qualify. If you have a low credit score or a limited credit profile, choose a lender that imposes less rigorous qualifications.
Compare interest rates. Borrowers with poor credit are less likely to qualify for low interest rates from a traditional lender, and lenders that specialize in less qualified borrowers typically offer less competitive rates. Still, some lenders are willing to extend lower interest rates than others. When comparing installment loans for bad credit, identify lenders with the lowest annual percentage rates (APRs) available based on your creditworthiness.
Prequalify. Many online lenders provide prospective borrowers the ability to see what APR they’re likely to qualify for without a hard credit inquiry. When choosing an installment loan with bad credit, prequalify with several lenders to ensure you get the best deal available.
Consider fees and other costs. In addition to a loan’s APR, compare lenders based on whether they charge additional fees like prepayment penalties or late payment fees. Bad credit loans often come with higher fees, and these costs can add to the overall cost of borrowing.
Calculate monthly payments. Use a personal loan calculator to determine the monthly payment for various loan offers based on available loan amounts, APRs and repayment terms. This can help you compare loan offers while ensuring a loan payment fits comfortably within your monthly budget.
Read customer reviews. Before committing to a lender, read online reviews from past and current borrowers. Websites like Better Business Bureau (BBB) and Trustpilot can help identify red flags like a lengthy or difficult approval process, high APRs or poor customer support.
Will Your Credit Score Be Impacted?
Lenders typically report payments to the three main credit bureaus—Equifax, Experian and TransUnion. Because of this, making consistent, on-time payments can help you improve your credit score. In fact, payment history accounts for 35% of your FICO score. However, missing payments or defaulting on a loan can negatively impact your score. To help with this, many lenders offer an autopay option that allows you to schedule payments.
Installment loans can also improve your credit score by adding variety to your credit mix, which accounts for 10% of your FICO score. Likewise, getting an installment loan can help build your credit history, which accounts for 15% of your FICO score. So, while these factors aren’t as impactful as payment history, they can help build credit over time.
Alternatives to Consider
Payday Alternative Loans
Payday Alternative Loans (PALs) are similar to payday loans, but they offer lower interest rates and are only offered by federal credit unions. To be eligible for a PAL, you must be a member of a federal credit union for at least one month.
Loan amounts range from $200 to $1,000 and terms range from one month to six months. The maximum interest rate for a PAL is 28%, which may be similar to an installment loan for bad credit. While you can’t roll over a PAL or take one out while still repaying another, you can take out up to three PALs within a six-month period.
Crowdfunding
If you have a strong social circle, setting up a fundraiser on a crowdfunding site can be a good way to get the money you need. Sites like GoFundMe are free to use, and there’s no penalty if you don’t meet your goal.
Crowdfunding isn’t a guaranteed way to raise money—and you may earn far below your total goal—but every donation is money that you don’t have to repay.
You can use a bad installment loan for nearly any legal personal expense, including emergencies or home repairs and upgrades.
If you have bad credit, you may already have high-interest debt—and an installment loan can help consolidate that debt at a lower rate, making it easier to pay off.
Can you get a loan with a 550 credit score?
It is possible to get a loan with a 550 credit score, but most lenders impose higher score requirements. To qualify for an installment loan with a 550 credit score, focus on a lender that specializes in borrowers with poor credit. These institutions often consider a wider range of qualification factors, including alternative financial data available through Clarity Services.
What credit score do you need to get an installment loan?
FICO score requirements vary by lender and loan type but typically range from 550 to 720. Some lenders have lower score requirements or do not require a traditional credit check at all. While borrowers with bad credit can qualify for an installment loan, these less qualified applicants face much higher interest rates than consumers with a FICO score closer to 720.
How hard is it to get approved for an installment loan?
It can be hard to get approval for an installment loan, but it depends on your application. If you have a steady income and a good credit score, it’s likely you’d be approved for a loan. On the other hand, if you have an inconsistent income or bad credit, it can be difficult to find a lender willing to work with you.
What is the easiest type of installment loan to get?
Smaller, short-term installment loans (typically a year or less) are easier to get if you have bad credit because they’re less risky for the lender. Although secured loans, or loans backed by collateral, can be easier to get, if you fail to repay these loans, your lender can take possession of the collateral.
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Kiah Treece is a small business owner and personal finance expert with experience in loans, business and personal finance, insurance and real estate. Her focus is on demystifying debt to help individuals and business owners take control of their finances. She has also been featured by Investopedia, Los Angeles Times, Money.com and other financial publications.
Colin Beresford is a writer and editor experienced in helping people make the best decisions with their money, whether it's buying a car or taking on a loan. He has written for Bloomberg, The Associated Press, NerdWallet, Car and Driver magazine, among many others covering various financial topics.
Financial and loans expert Joel Larsgaard loves nerding out on the topic of personal finance with the mission of helping others improve their financial standing.
He has been in the money media space for almost 20 years. He produced "The Clark Howard Show" for 14 of those years and has been hosting the "How To Money" podcast for six years. He currently hosts “How To Money”—which has covered debt, loan options and related subjects—three times a week, and a personal finance radio show on KFI radio in Los Angeles on Sunday afternoons. Basically, he's been marinating in all things personal finance for a long time.
His goal is to help his cadre of listeners live a balanced life, saving and investing for their future while simultaneously enjoying the here and now. Joel's other passions include sipping delicious craft beer, riding bikes, and exploring Atlanta with his wife and three kids.
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