Best Installment Loans | ACFA
You may need to borrow money in the event of an unexpected or large purchase. An installment loans is a best option to consider when looking at your options. You’ll be able to pay your loan off in fixed monthly installments. This means that you won’t have to pay the same amount each month. They also offer lower interest rates so that you will pay less than with a credit card.
These are the best installment loans for 2020
- Best for low-interest rates
- SoFi – Best for member perks
- Marcus – Best without any fees
- Best Egg – The best egg for high-income earners
- Upstart – Best for average credit
- Upgrade – The best credit tools for improving your credit health
- OneMain Financial – Best for Same-Day Funding
- Earnest – Best for flexible terms
LightStream – Low-interest Rates – The Best Installment Loans Options
LightStream may be the right choice for you if you have excellent credit. You can get the cash you need with an interest rate of 3.49% APR and automatic payment.
It also offers the greatest flexibility for lenders. You can borrow as little as $5,000 up to $100,000. LightStream is ideal for many purposes, including financing a wedding or paying off student loans.
You also have the option of repaying the loan over between 2 and 12 years. This allows you more flexibility in paying it off. The longer your repayment term, the higher the interest rate. It’s important to find the right balance between the low interest rates and debt to reap the benefits.
SoFi – Best for member benefits
SoFi is a lender that cares about its members’ financial choices. You become a member when you borrow with SoFi. This comes with its fair share of rewards.
SoFi offers financial planning by accredited counselors. You can speak to a financial expert who can help plan for the future and maximize savings. SoFi is an excellent choice if you are looking for a new perspective on your finances.
Members receive cash bonuses for referring their friends and families to SoFi in addition to counseling. You could be eligible for a discount on future loans if you are a member. You or your loved one may be interested in a resource guide to help you plan how to pay for college.
Last but not least, SoFi offers unemployment protection. If you lose your job and your loan is still in good standing, you may be eligible for forbearance in three-month increments. SoFi can even offer job assistance to assist you in finding a job.
Marcus – Best without any fees
Fees are something to be aware of when using an installment loan. Origination fees are a small portion of the loan amount that some lenders charge. A 3% fee for a loan of $10,000 is $300 more than you would have to pay.
Has eliminated these fees. Marcus will not charge you an origination fee or penalize you for early repayment. This could save you hundreds of money compared to loan origination fees charged by other lenders.
Marcus makes it easy and risk-free for you to find out if your application is approved. Visit its website to fill out the Prequalification Form. You’ll be able to see your terms and the maximum amount you can borrow without having your credit history reported.
Best Egg – The best egg for high-income earners
The best egg is a good choice if you have more income and can pay off the loan quickly. BestEgg has a much shorter repayment period than other lenders, allowing borrowers to pay off the loan in as little as seven years.
This is, in many ways, an excellent differentiation for the lender. The faster you pay off the balance, the lower your interest rates. Best Egg offers competitive rates starting at 5.99% APR.
These factors are important to remember. Best Egg is an excellent fit for those who earn more and have excellent credit. The repayment terms are shorter and offer exceptional rates. However, you still have flexibility despite the higher loan cost.
Upstart – Best for average credit
The start is different than other lenders because it takes into account your entire financial picture. Many lenders will look at your income and credit history before making a decision based on that information.
Upstart takes into consideration your work history, education, and area of study. Upstart loans require a minimum credit score of at least 620 to be eligible. This is lower than the requirements for other top installment loan lenders.
Remember that Upstart is a peer-to-peer lending institution that allows investors the opportunity to fund the funds needed to make loans to borrowers.
Upgrade – The best credit tools for improving your credit health
Upgrade gives you an overview of how much you might be eligible for without asking about your credit history. To find out if you qualify for a loan, visit Upgrade’s website and fill out the form.
It will then pull your TransUnion credit report to verify your information. Once you are approved, you will know the terms of your loan and the amount you borrowed.
Upgrade gives borrowers free access to credit monitoring tools so they can build and improve their credit scores. Trend-tracking and weekly credit updates make it easier for borrowers to increase credit scores and understand their past.
OneMain Financial – Best for Same-Day Funding
Unexpected expenses can arise, and you may need cash fast to pay them. While some lenders may require you to wait several days before approving your loan, OneMain Finance does things differently.
Its website allows you to apply for a personal loan. If you require cash fast, you can visit any of their locations to verify your income and identity. OneMain Financial will review your options, and you can leave one of their branches with the check that day.
OoneMain is a great option for those who need money to quickly pay for emergency expenses or car repairs. It is important to have all the documentation you need to confirm your identities, such as a copy or your government I.D. To speed up the process, you will need to have your pay stub.
Earnest – Best for flexible terms
Earnest offers flexibility whether you are looking to consolidate high-interest credit cards debt, pay off medical bills, or finance a wedding. It provides a range of borrowing limits, from $5,000 to $75,000, making it an excellent choice for many purposes.
Earnest also offers flexible repayment terms, ranging from three to five years. You can borrow money and repay the loan quickly if you wish. It also offers up to five-year terms for those who require it.
Earnest offers borrowers the freedom to choose the personal loan that is best for them. It is important to remember that it takes between 5 and 10 business days for a lender to respond to your application. If you need cash fast, then you should consider another option.
What is an installment loan?
An installment loan allows you to borrow money, then pay it back monthly at a fixed interest and payment. Installment loans usually have a fixed monthly payment and a clear payoff date.
Installment loans are better than other types of loans
Installment loans vs. lines of credit
Installment loans allow borrowers to borrow one lump sum of cash for a specific purpose, such as buying a car or paying an emergency medical bill. Lines of credit, on the other hand, are similar to credit cards.
Borrowers can only draw a certain amount of cash from their accounts. They must also repay any interest and pay any cash they have borrowed. Any cash not used during the draw period can remain in history without interest charges or repayment.
Payday loans vs. installment loans
You have two to five years to pay off the loan balance. Sometimes, you may be able to repay it in seven years. Installment loans can be a predatory lending method with high interest rates up to 400% and very short repayment terms, usually just a few weeks to a month.
Payday loans are a last-resort option when you need emergency funds. Because of the high interest rates and short repayment terms, payday loans can be complicated to repay.
Secured loans vs. unsecured loans
Secured loans require collateral to guarantee the borrower’s promise of repayment. Mortgages and auto loans are two common types of fast loans. They use the car or house as collateral. If the borrower cannot repay the loan, the lender may seize the car or house as a form of repayment.
Unsecured loans do not require collateral like student loans or personal loans. If the borrower cannot repay the loan, it’s common for the lender to take legal action and count the account as delinquent.