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If you’re in the market for a personal loan — also called an installment loan — in 2022, expect to pay a higher interest rate than you would for a mortgage or auto loan.
At the beginning of 2022, personal loan rates averaged a little more than 10%. That’s still better than the average interest rate of a credit card, which WalletHub estimates at more than 18%.
In this article, we’ve highlighted the best installment loans available on the market, prioritizing those installment loans that had low annual percentage rates (APRs), affordable monthly payments, low credit score thresholds and flexible loan amounts and repayment terms.
What Is an Installation Loan?
At a high level, an installment loan is a lump sum of cash that you borrow from a lender for a specific project or opportunity, with clear stipulations for paying back that money, plus interest, over a set amount of time.
In that way, auto loans, mortgages and student loans are considered installment loans, but lenders typically offer specific programs for those kinds of loans. Instead, most borrowers equate installment loans with personal loans for things like home renovations, a wedding, an emergency or even debt consolidation.
Installment loans differ from credit cards (a form of revolving credit) in that you borrow a specific, one-time amount from the lender and agree upon a payoff term, meaning you will have set monthly payments (or installments) of a predictable amount until you have paid off the loan amount in full.
Though each loan is different, typical terms range from 12 months to 96 months — that’s one to eight years.
Best Installment Loans of April 2022
Marcus by Goldman Sachs
Best Overall Installment Loan
Key Features
- No late, prepayment or origination fees
- On-time payment reward
- Favorable APR range
Marcus by Goldman Sachs is the gold standard for personal loans. You don’t need to sweat origination fees, prepayment penalties or even late fees….
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