7 Bad Credit Installment Loans That Actually Get You Approved (Ranked by Real Conditions)

2025-12-26 08:32:46

Trying to find an installment loan when your credit score is below 600? Here’s what most guides won’t tell you straight: most lenders still run a credit check (sorry, no magic workaround there), but plenty of them don’t care as much about your FICO score as you think.

The real question isn’t whether you can get approved—it’s which lender actually fits your situation. Some will fund you in hours, others let you skip origination fees, and a few don’t even have a minimum credit score requirement.

Quick Comparison: What Each Lender Actually Offers

Need cash today? Rocket Loans processes approvals in seconds and funds same-day if you sign before 1 p.m. EST on weekdays. Minimum credit score: 580. Loan range: $2,000–$45,000.

Military or government employee? Navy Federal Credit Union charges zero origination fees and has no minimum credit score requirement. Borrow $500–$50,000 over 36–60 months. The catch: membership only.

Want to include someone else’s income? LendingClub lets you apply with a co-borrower, which can bump your approval odds and lower your APR. They recommend a 630+ credit score and lend $1,000–$40,000.

Hate paying fees? Happy Money has zero late fees, zero prepayment penalties, and typically charges 5% or less origination fee (sometimes zero). Minimum loan: $5,000. Credit score needed: 640.

Just starting out with credit? Upgrade reportedly lends to people with credit histories as short as two years. Loan amounts go from $1,000–$50,000, and they offer multiple ways to lower your APR.

Need approval in literally seconds? LendingPoint claims instant approval decisions after you apply, with funding possibly within one business day. They look beyond your credit score and consider income and employment history. Loans: $2,000–$36,500. Minimum income: $35,000/year.

Want maximum flexibility on payments? OneMain Financial offers four different repayment schedules (24, 36, 48, or 60 months) with no minimum credit score requirement. Loan cap: $20,000.

Breaking Down Bad Credit Installment Loans: What You Actually Need to Know

The Real Cost Difference

Here’s what changes your monthly payment: APR, loan amount, and repayment length. A $10,000 loan at 15% APR over 60 months costs way less per month than over 36 months—but you’ll pay more interest overall. Most lenders let you choose between 24–60 months.

Origination fees are where you’ll see the biggest variation. Navy Federal charges zero. Rocket Loans might charge up to 7%. LendingPoint ranges 0–7%. OneMain charges $25–$500 flat or 1–10% depending on your state. That fee gets subtracted from what you actually receive.

Credit Score: Important, But Not Everything

Most bad credit lenders have minimums around 580–640. But here’s the thing—several lenders (Navy Federal, OneMain, Upgrade, LendingPoint) will consider you without a minimum score at all. They’re looking at your income, employment stability, debt-to-income ratio, and payment history patterns, not just the three-digit number.

If you’re unsure whether you’d qualify, prequalify with a soft credit inquiry first. It won’t hurt your score.

When Bad Credit Installment Loans Make Sense

Personal installment loans work for debt consolidation, emergency expenses, home repairs—basically whatever you need. Unlike payday loans (which are predatory garbage with 400% APRs), installment loans spread payments over years at fixed rates.

Unsecured loans have stricter requirements but don’t require collateral. Secured loans (backed by savings or a car) are easier to get with bad credit but riskier if you default.

The Three Scenarios: Which Lender Wins

Scenario 1: You need money in the next 24 hours → Rocket Loans (same-day funding if you close documents before 1 p.m. EST on weekdays)

Scenario 2: Your credit score is really, really low (or you have little credit history) → Navy Federal (no minimum requirement) or LendingPoint (looks beyond credit score) or OneMain (no minimum requirement)

Scenario 3: You want the lowest total cost → Happy Money (fewest fees) or LendingClub (direct payment to creditors can lower APR)

What to Actually Do Before You Apply

Pull your credit score – Many lenders let you prequalify without a hard inquiry. This gives you a real sense of which ones will work.
List your actual needs – How much do you need? When? Can you handle a $300/month payment or do you need $150/month? This narrows everything down fast.
Compare APRs, not just lender names – Two lenders might both approve you at totally different rates. The difference between 18% and 28% APR is thousands of dollars over the loan term.
Check if there are APR discounts – Auto-pay, debt consolidation, direct creditor payment—some lenders knock 1–2% off your APR for these.
Read the fine print on fees – Origination fees, prepayment penalties (or lack thereof), late fees. These add up.
Don’t apply to too many at once – Each application triggers a hard inquiry on your credit report. Space them out by a few days if you’re shopping around.

The Bottom Line on Bad Credit Installment Loans

You can get approved for a decent installment loan even with bad credit. You just need to know which lender matches your specific situation—speed, fees, flexibility, or credit requirements.

Most of these lenders cap their maximum APR around 36%, which keeps them in the “acceptable” range according to financial experts. Anything higher and you’re probably looking at predatory lending.

Pick the one that solves your actual problem, not the one with the flashiest marketing.

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.