Direct-Lender Installment Loans for Bad Credit
Discover how lending networks connect you with flexible loan options even when facing credit challenges.
Writer: Brittney Mayer
Editor: Lillian Guevara-Castro
Reviewer: Ashley Fricker
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At the most basic level, consumer loans can be placed into one of two categories: those that must be repaid in a single lump sum, and those that are repaid over time through multiple payments — also called installments.
Although lump-sum loans have their uses, installment loans are the go-to loan of choice for many in need of funds.
Installment loans typically come in three main types: personal loans, auto loans, and home loans (also known as mortgages). While some differences exist between the three types, such as unsecured versus secured loans, all installment loans will have a few things in common.
For instance, any installment loan will have specific loan terms, including the length of the loan and the repayment rate, which will establish the frequency and amount of each installment. They’ll also have credit and income requirements that vary by lender and the specific type of loan.
Direct Lenders vs. Networks | Personal Loans | Auto Loans | Home Loans
Lending Networks Work With Thousands of Direct Lenders
Decades ago, before the internet was commonplace, most loans came directly from lenders, like banks, credit unions, car dealerships, or specific mortgage providers. Because these lenders faced little competition, borrowers had to accept the rates, fees, and qualification standards set by the lenders.
Over the years, the world of lending has transformed, becoming digital just like many other facets of consumer finance. Today, you’re not stuck with just your local lenders. Instead, if you need a loan, you can hop online and receive offers from direct lenders nationwide.
How? Through the power of online lending networks.
Lending networks are a nexus of tens, hundreds, even thousands of direct lenders, connecting you with companies from all parts of the industry. No matter your credit situation or loan needs, lending networks are often the best place to find a variety of competitive loan offers.
The Best Providers for Personal Installment Loans
Personal loans are individual installment loans that can be used to finance just about anything you need, including consolidating other debt, paying medical (or veterinarian) bills, or furnishing your new apartment. These loans generally range from $1,000 to $35,000 and typically have terms of 12 to 60 months, dependent on the size of the loan.
Applicants will need to have a regular income to qualify for a personal loan, with minimum income requirements usually around $800 a month, though the requirement may increase for larger loan amounts.
Our top picks for personal loan networks have quick online applications and lending partners with flexible credit requirements.
 | Our Rating |
- Personal loans from $500 to $35,000
- All credit types are considered and welcome
- Simple, no credit impact form
- Helping consumers since 2001
- 4.7 out of 5 Trustpilot rating with 2,000+ reviews
- See official site, terms, and details »
| Loan Amount | $500 to $35,000 |
| Interest Rate | 5.99% - 35.99% |
| Loan Term | 60 Days to 72 Months |
| Loan Example | Representative example |
| Our Expert Review | 4.8/5.0 (see review) |
2. MoneyMutual
 | Our Rating |
- Short-term loans up to $5,000
- Online marketplace of lenders
- Funds available in as few as 24 hours
- Simple online form takes less than 5 minutes
- Trusted by more than 2 million customers
- See official site, terms, and details »
| Loan Amount | Up to $5,000 |
| Interest Rate | Varies |
| Loan Term | Varies |
| Loan Example | Representative example |
| Our Expert Review | 4.8/5.0 (see review) |
 | Our Rating |
- Personal loans from $100 to $20,000
- Receive an approval decision in as little as 2 minutes
- Funds can be deposited into your account in one business day and used for any purpose
- No hidden fees
- See official site, terms, and details »
| Loan Amount | $100 to $20,000 |
| Interest Rate | Varies |
| Loan Term | Varies |
| Loan Example | Representative example |
| Our Expert Review | 4.8/5.0 (see review) |
 | Our Rating |
- Personal loans of up to $50,000
- All credit types welcome
- Receive funds in as little as 24 hours
- Fast approval decision
- Safe and secure application
- See official site, terms, and details »
| Loan Amount | Up to $50,000 |
| Interest Rate | As low as 6.40% |
| Loan Term | Varies |
| Loan Example | Representative example |
| Our Expert Review | 4.8/5.0 (see review) |
5. Avant
 | Our Rating |
- Personal loans of $2,000 to $35,000
- Compare rates in 2 minutes without affecting your credit
- Best for low origination fees for bad credit
- 550 minimum credit score required
- Powered by Credible
- See official site, terms, and details »
| Loan Amount | $2,000 to $35,000 |
| Interest Rate | 9.95% - 35.99% |
| Loan Term | 12 to 60 Months |
| Loan Example | Representative example |
| Our Expert Review | 4.8/5.0 (see review) |
Although personal loans can technically be used for whatever you like, some uses are simply a bad idea. At the top of the bad-idea list is using a personal loan to purchase a home or vehicle.
Why? Because personal loans, particularly those for consumers with poor credit, will have significantly higher interest rates than either auto or home loans, with personal loan APRs typically exceeding auto loan APRs by 10 percentage points or more.
Why the difference in interest rates? The main reason is that personal loans are unsecured loans, meaning they have no collateral, such as a car title, to secure them against default. Consequently, the lender has no way — short of taking you to court, which is expensive — to recover their money if you can’t repay your loan.
To make up for the increased financial risk, lenders charge higher interest rates for personal loans than they do for other types. Of course, while interest rates will vary with your credit score, they’ll also vary based on the lender, so be sure to shop around to ensure you get the best possible rates.
The Best Providers for Auto Installment Loans
For most people, a car is a necessity, not an option, and when one falls apart, it needs to be replaced. Given that even used cars now have an average price of $33,000, replacing your old vehicle often means taking on an auto loan.
Similar to personal loans, auto loans are installment loans. But, unlike personal loans, auto loans are secured installment loans, meaning the vehicle you purchase secures the loan; if you default, your vehicle goes to the lender.
The length of a typical auto loan is fairly similar to that of a personal loan, generally ranging between 24 and 72 months. The size of the loan you are offered will depend heavily on your creditworthiness, as will the specific requirements, including the required minimum income to qualify. Our top auto loan providers include lenders who specialize in borrowers with rocky credit histories.
 | Our Rating |
- Network of dealer partners has closed $1 billion in bad credit auto loans
- Specializes in bad credit, no credit, bankruptcy, and repossession
- In business since 1999
- Easy, 30-second pre-qualification form
- Bad credit applicants must have $1500/month income to qualify
- See official site, terms, and details »
| Interest Rate | 3.99% - 29.99% |
| In Business Since | 1999 |
| Application Length | 3 minutes |
| Reputation Score | 9.5/10 |
| Our Expert Review | 4.9/5.0 (see review) |
7. LendingTree
 | Our Rating |
- Auto loans for purchase, refinance, and lease buyouts
- Nationwide lender network
- Get matched with up to 5 lenders that fit your financial profile
- It only takes a few minutes and is free with no obligation
- See official site, terms, and details »
| Interest Rate | Varies |
| In Business Since | 1998 |
| Application Length | 4 minutes |
| Reputation Score | 9.5/10 |
| Our Expert Review | 4.7/5.0 (see review) |
 | Our Rating |
- Free, no-obligation application
- Specializes in auto loans for bankruptcy, bad credit, first-time buyer, and subprime
- Affordable payments and no application fees
- Same-day approval available
- Connects thousands of car buyers daily with auto financing
- See official site, terms, and details »
| Interest Rate | Varies |
| In Business Since | 1994 |
| Application Length | 3 minutes |
| Reputation Score | 9.0/10 |
| Our Expert Review | 4.5/5.0 (see review) |
Unlike personal loans, which can be acquired and used for just about anything, auto loans require that you have a specific vehicle in mind before you apply. You will need to provide information about the vehicle at the time that you apply, and your ability to qualify for the loan will depend on the specific financials of the vehicle as well as your own creditworthiness.
The Best Providers for Home Installment Loans
Home loans often have the longest terms of any installment loan, typically offered as either 15-year or 30-year loans. As with auto loans, home loans are secured loans, with the property itself standing as surety against default.
Whether you dream of buying your first home or seek to refinance your current mortgage, having poor credit can make it much more difficult to find a lender — but not necessarily impossible. Our top-rated providers have large networks of partners to help those with poor credit find the best lenders for their circumstances.
 | Our Rating |
- America's largest mortgage lender
- The entire process is completed online
- Options for new mortgages and refinancing existing mortgages
- Award-winning customer service and cutting-edge digital platforms
- More than 90% of our clients would recommend us
- See official site, terms, and details »
| Interest Rate | Varies |
| In Business Since | 1985 |
| Application Length | 5 minutes |
| Reputation Score | 9.5/10 |
 | Our Rating |
- Buy a home or refinance your existing mortgage
- Cash-out refis and HELOCs available
- Flexible credit requirements
- Up to $8,000 in down payment assistance, see terms.
- Popular with first-time homebuyers
- See official site, terms, and details »
| Interest Rate | Varies |
| In Business Since | 2003 |
| Application Length | 5 minutes |
| Reputation Score | 9.5/10 |
11. Unlock
 | Our Rating |
- Access up to $500,000 in home equity with NO monthly payments
- Ability to use funds for any reason
- Minimum 500 FICO required — no impact on your credit score
- No age or income restrictions
- Not available in every state; terms and conditions apply
- See official site, terms, and details »
| Interest Rate | No Interest |
| In Business Since | 2020 |
| Application Length | 10 minutes |
| Reputation Score | 9.0/10 |
As with secured auto loans, home loans require applicants to have a specific home selected when they apply. Furthermore, your chosen property may have to meet certain requirements — beyond your own creditworthiness and down payment — when going through the mortgage process, with specific requirements varying with the type of mortgage.
For instance, when applying for an FHA loan, you will likely need to have an appraisal performed on the property to determine its actual value. This is to ensure that the property you purchase, which will act as collateral for the secured home loans, is actually worth the amount the lender is offering you.
If the house is not worth the loan for which you are applying, you will likely be rejected for the loan or be required to provide a larger down payment amount. Some loans may also require that certain repairs be made to the property before the loan can be completed.
The Right Network Can Make All the Difference
No matter how efficient a saver you are, some purchases require the ability to pay over time rather than having to scrounge up a large lump sum. Whether you need to consolidate your bills, get back on the road, or refinance your home, the help of a good lender can make these important long-term purchases possible.
Finding the right lender can be tricky when your credit isn’t great, but there are options if you’re willing to do a bit of research. A quality lending network can simplify the process by connecting you with numerous lending partners from across the country, making it easier to find a flexible lender.
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