Best Installment Loans for Bad Credit in the U.S.
Bad credit does not mean no options. It means fewer options — and more risk of being pushed toward lenders that make your situation worse, not better.
Installment loans for bad credit exist from legitimate, regulated lenders. Some charge high rates. Some charge reasonable ones. The difference between a loan that helps you and one that traps you is rarely obvious from the outside — which is exactly why predatory lenders thrive in this market.
An installment loan gives you a fixed amount of money upfront and a set repayment schedule — the same payment every month for a defined term. This predictability makes it more manageable than revolving debt. But the total cost can still be significant, especially at higher APRs. Understanding that cost before you sign is the most important thing you can do.
If you are unsure where to start, this guide will show you the safest options and how to choose.
How We Built This List
We researched installment loan lenders specifically for borrowers with bad credit — FICO scores below 580 — including immigrants, ITIN holders, and people with limited U.S. credit history.
We evaluated each lender on:
- Whether they approve borrowers with bad or no credit
- Transparency around APR, fees, and total repayment cost
- Whether they report payments to the credit bureaus — giving borrowers a path to rebuilding credit
- Whether pre-qualification is available without a hard credit pull
- Whether the lender is licensed, regulated, and legitimate
Any lender charging above 36% APR without clear disclosure, using deceptive fee structures, or with a pattern of trapping borrowers in repeat loan cycles was flagged or removed. Every lender on this list is a legitimate option — and we explain exactly who each one is best for.
Best Installment Loans for Bad Credit at a Glance
Best Overall: Upstart Best for ITIN Holders: Oportun Best for Rebuilding Credit: Self Best for Bad Credit With Income: Avant Best Nonprofit Option: Mission Asset Fund
Not Sure Which Loan Is Right for You?
Start here before reading anything else on this page.
If you have a credit score between 300 and 579 and a verifiable income, Upstart is one of the few mainstream lenders that evaluates employment and education alongside credit — giving thin-file and bad-credit borrowers a more realistic approval path than most standard lenders.
If you have an ITIN instead of an SSN, Oportun explicitly accepts ITIN, requires no credit history, and has served immigrant communities for nearly two decades. Rates are higher than prime lenders but the access is genuine.
If you do not need cash immediately and want to rebuild credit first, Self offers a credit-builder installment product that accepts ITIN, requires no credit history, and reports every payment to all three bureaus — building the foundation for better borrowing within 12 months.
If you have bad credit and stable income and need a larger loan amount, Avant specializes in serving borrowers in the 580 and below range and offers loan amounts up to $35,000 with transparent fee disclosure.
If you want to borrow at zero percent interest while rebuilding credit, Mission Asset Fund’s lending circles accept ITIN holders and report all payments to the bureaus — the most cost-effective option on this list for eligible borrowers.
Our Top Picks
👉 Best overall for bad credit: Upstart — considers employment and education alongside credit, accepts scores from 300, fast funding
👉 Best for ITIN holders: Oportun — explicit ITIN acceptance, no credit history required, nearly two decades serving immigrant communities
👉 Best for rebuilding credit: Self — credit-builder installment product, accepts ITIN, no credit required, reports to all three bureaus
Featured Pick: Upstart
For borrowers with bad credit who have stable employment and income, Upstart offers one of the most accessible paths to a legitimate installment loan from a regulated lender.
Most lenders with bad credit offerings rely heavily on credit scores and charge maximum rates across the board. Upstart’s AI-based model evaluates your education, employment history, and income alongside your score — meaning a borrower with a 520 score and stable employment has a meaningfully better chance of approval and a potentially better rate than at a traditional lender.
Funding is typically available within one business day. SSN is required. ITIN holders should start with Oportun instead.
Why Upstart stands out for bad credit borrowers:
- Evaluates employment and education, not just credit score
- Accepts scores as low as 300
- Fast funding — often next business day
- Transparent fee disclosure upfront
Best for: Bad credit borrowers with stable employment who want a regulated lender with fast funding
👉 Check Your Rate at Upstart No impact on your credit score. Takes about 2 minutes.
Quick Decision Guide
Before scrolling to the full table, here is the fastest way to find your option.
If you have bad credit and stable employment, start with Upstart — it evaluates your full financial picture, not just your score. If you have an ITIN and no SSN, Oportun is your most direct path — explicit ITIN acceptance with no credit history required. If you want to rebuild credit before taking on a larger loan, Self is the right first step — no cash upfront, but strong credit-building mechanics. If you need a larger loan amount and have bad credit with documented income, Avant is built for this profile. If you want to borrow at zero cost while rebuilding credit and qualify for a lending circle, Mission Asset Fund is the most financially sound option on the entire list.
Comparison Table: Best Installment Loans for Bad Credit
| Lender | Loan Amount | APR Range | Credit Needed | Accepts ITIN | Funding Speed | Best For | Action |
|---|---|---|---|---|---|---|---|
Upstart | $1,000 – $50,000 | 7.80% – 35.99% | 580+ | No — SSN required | 1 day | Bad credit, stable employment | Check Your Rate |
Oportun | $300 – $10,000 | Up to 35.99% | None | Yes | Same day | ITIN, no credit | Check Your Rate |
Self | $600 – $1,800 | ~15% – 16% | None | Yes | Immediate setup | Credit building, no cash upfront | See Offers |
Avant | $2,000 – $35,000 | 9.95% – 35.99% | Below 580 | No — SSN required | Next day | Bad credit, larger amounts | Check Your Rate |
Mission Asset Fund | Up to $2,400 | 0% | None | Yes | Varies | Zero interest, ITIN, credit building | See Offers |
Lender Breakdowns
#1 — Upstart
Upstart’s approval model was built on the premise that a credit score alone is an incomplete picture of a borrower’s reliability. Employment history, income, and education are factored into every decision — which means a borrower with bad credit and stable employment has a more realistic approval path here than at most standard lenders.
Origination fees apply and vary by profile. Rates increase as credit scores decrease. Always calculate the total repayment cost — including the origination fee — before accepting any offer. SSN is required.
- Loan amount: $1,000 – $50,000
- APR range: 7.80% – 35.99%
- Credit score required: 300+
- Accepts ITIN: No — SSN required
Pros:
- Considers employment and education alongside credit
- Accepts scores from 300
- Fast funding — next business day
- Transparent pre-qualification with no credit score impact
Cons:
- SSN required
- Origination fees may apply
- Rates increase significantly for lower scores
Best for: Bad credit borrowers with verifiable income and stable employment
👉 Check Your Rate at Upstart No impact on your credit score. Takes about 2 minutes.
#2 — Oportun
Oportun is one of the very few legitimate lenders in the U.S. market that explicitly accepts ITIN and requires no credit history. It has operated in immigrant and low-income communities for nearly two decades, offers Spanish-language support, and has physical branch locations in several states.
Rates are higher than prime lenders. For borrowers with bad credit or no credit and an ITIN, that is the honest tradeoff for access. Every payment is reported to all three credit bureaus — making Oportun a genuine credit-rebuilding tool alongside a borrowing one.
- Loan amount: $300 – $10,000
- APR range: Up to 35.99% (varies by state)
- Credit score required: None
- Accepts ITIN: Yes
Pros:
- Explicit ITIN acceptance
- No credit history required
- Reports to all three bureaus
- Spanish-language support and physical locations
Cons:
- Higher rates
- Lower maximum loan amount
- Not available in all states
Best for: ITIN holders and immigrants with no or bad credit who need a regulated, community-focused lender
👉 Check Your Rate at Oportun No impact on your credit score. Takes about 2 minutes.
#3 — Self
Self is a credit-builder installment loan — not a standard personal loan. You make monthly payments into a secured account and receive the funds at the end of the term. No cash is provided upfront. If you need money now, this is not the right product.
What Self does exceptionally well is rebuild credit. ITIN holders are explicitly accepted. No credit history is required. Every payment goes to all three bureaus. For bad credit borrowers who want to repair their profile before taking on larger loans, Self is one of the lowest-risk tools available.
- Loan amount: $600 – $1,800
- APR range: Approximately 15% – 16%
- Credit score required: None
- Accepts ITIN: Yes
Pros:
- No credit history required
- Accepts ITIN
- Reports to all three bureaus
- Low monthly payment options
Cons:
- No cash upfront
- Small amounts only
- Interest adds to total cost
Best for: Bad credit borrowers who want to rebuild their credit profile before applying for larger loans
👉 See Offers at Self No impact on your credit score. Takes about 2 minutes.
#4 — Avant
Avant was built specifically for borrowers in the fair-to-bad credit range. It offers loan amounts up to $35,000, accepts scores well below 580, and discloses fees and rates transparently before you commit. An administration fee applies — typically up to 4.75% — which is deducted from your loan before you receive it.
Avant requires SSN and is not available to ITIN-only borrowers. For bad credit borrowers with documented income who need a larger installment loan than Oportun or Self can offer, Avant is one of the most legitimate options in this credit tier.
- Loan amount: $2,000 – $35,000
- APR range: 9.95% – 35.99%
- Credit score required: Accepts below 580
- Accepts ITIN: No — SSN required
Pros:
- Built for bad credit borrowers
- Larger loan amounts than most bad-credit lenders
- Transparent fee and rate disclosure
- Reports to credit bureaus
Cons:
- Administration fee up to 4.75%
- SSN required
- Rates near the top of the range for lowest scores
Best for: Bad credit borrowers with stable income who need a larger installment loan from a regulated lender
👉 Check Your Rate at Avant No impact on your credit score. Takes about 2 minutes.
#5 — Mission Asset Fund
Mission Asset Fund operates lending circles — structured group savings programs where members contribute monthly and take turns receiving the pooled funds. Zero percent interest. All payments reported to the credit bureaus. ITIN holders fully eligible.
For bad credit borrowers who want to rebuild credit without paying any interest, this is the most cost-effective option on this entire list. It requires joining a group and committing to a payment schedule — and availability varies by location. But for those who qualify, it is genuinely the best financial deal available to someone rebuilding credit from a difficult position.
- Loan amount: Up to $2,400
- APR: 0%
- Credit score required: None
- Accepts ITIN: Yes
Pros:
- Zero percent interest
- Accepts ITIN
- Builds credit with every payment
- Nonprofit — mission-driven
Cons:
- Requires joining a lending circle
- Availability varies by location
- Not suitable for urgent or large cash needs
Best for: Bad credit borrowers and ITIN holders who want to borrow at zero cost while rebuilding credit
👉 See Offers at Mission Asset Fund No impact on your credit score. Takes about 2 minutes.
What Bad Credit Borrowers Need to Know
Bad credit is not permanent. A credit score below 580 is not a life sentence. It reflects past financial difficulty — and it responds to present financial behavior. Every on-time installment loan payment reported to the bureaus moves your score in the right direction. Borrowing responsibly now is one of the fastest legitimate paths to a better score.
The bad credit lending market is full of predatory products. Payday loans, cash advances, rent-to-own financing, and some online installment lenders specifically target people with bad credit because they have fewer alternatives. The warning signs are: APR above 36%, fees described in flat dollar amounts rather than APR, automatic rollover terms, and lenders who do not check your income before approving. Any of these is a reason to stop and look elsewhere.
APR is the only fair comparison tool. Monthly fees, weekly rates, and flat charges all disguise the true cost of borrowing. Always convert any loan cost to APR before comparing. A loan that costs $30 per $100 borrowed for two weeks has an APR of approximately 390%. That number should appear prominently — if it does not, the lender may be hiding it deliberately.
Not all bad credit lenders report to the bureaus. If you are going to pay a higher rate to borrow while rebuilding credit, the lender should at minimum be reporting your payments. Every lender on this list does. Always confirm this before signing with any lender not on this page.
Documents you will likely need:
- Government-issued ID — passport, state ID, or driver’s license
- SSN or ITIN (varies by lender)
- Proof of income — pay stubs, employment letter, or bank statements
- Proof of U.S. address — lease agreement or utility bill
- Bank account details for fund transfer
How Installment Loans Actually Work
An installment loan is a fixed amount of money borrowed and repaid in equal monthly payments over a set term — typically six months to five years.
APR: The true annual cost of borrowing, including interest and fees. The only number that allows fair comparison across lenders.
Monthly payments: Fixed amounts covering principal and interest. Missing a payment damages your credit score and triggers penalty fees. Multiple missed payments can lead to collections and legal action — making a bad credit situation significantly worse.
Origination fees: Some lenders deduct a fee of 1% to 8% from your loan before sending it. If you borrow $3,000 with a 5% origination fee, you receive $2,850 but owe $3,000. Always calculate the amount you actually receive versus the amount you owe.
Total repayment cost: Always higher than what you borrowed. For bad credit borrowers paying higher APRs, this difference is significant. Calculate it before signing.
For a plain-language explanation of how APR works, read our guide: What Is APR and Why It Matters More Than Your Monthly Payment.
Real Cost Example
Understanding what bad credit borrowing actually costs prevents surprises.
Borrow $2,000 at 20% APR over 24 months (fair rate for bad credit):
- Monthly payment: ~$102
- Total repaid: ~$2,448
- Interest paid: ~$448
Borrow the same $2,000 at 35% APR over 24 months (high rate for bad credit):
- Monthly payment: ~$114
- Total repaid: ~$2,736
- Interest paid: ~$736
Borrow $2,000 via a payday-style installment loan at 200% APR:
- Monthly payment: varies
- Total repaid: $4,000+
- Interest paid: $2,000+
The difference between a regulated bad credit lender and a predatory one is not a few extra dollars. It is the difference between paying $448 in interest and paying more than $2,000 on the same borrowed amount.
Warning: Products to Avoid Entirely
Some products are marketed as installment loans but function like predatory traps. Avoid any product that:
- Does not clearly disclose APR — or buries it in fine print
- Describes costs only in flat fees per period rather than annual rate
- Automatically rolls your loan over into a new term if you cannot repay on the original date
- Does not verify your income before approving you
- Requires access to your bank account as a condition of approval
- Charges a fee upfront before you receive any funds — this is always a scam
These warning signs appear most often in: payday loans, payday installment loans, tribal loans, and some online lenders operating through aggressive digital marketing. If you see any of these signs, stop and use the CFPB’s lender lookup tool to verify the lender’s legitimacy before proceeding.
When You Should Wait Before Taking an Installment Loan
Bad credit borrowing is sometimes necessary. But pause and reconsider if:
- The APR offered to you is above 36%. The cost of borrowing at that level can worsen your financial position even if you repay on time.
- You are not confident you can make every monthly payment. Missing payments on an installment loan when your credit is already damaged can push your score lower and make future borrowing more expensive or unavailable.
- You could realistically save the amount you need within four to six weeks. Avoiding the loan entirely is always cheaper.
- You are already carrying multiple high-interest debts. Adding another loan to an existing debt load rarely improves the situation.
- You are borrowing to cover recurring expenses rather than a one-time need. This is a sign that a budget review — not more borrowing — is what is actually needed.
Read our guide: How to Avoid Predatory Loans as an Immigrant.
Common Mistakes to Avoid
Accepting the first approval. Lenders who specialize in bad credit know their borrowers have fewer alternatives. The first approval is rarely the best one. Use pre-qualification tools at multiple lenders before committing — none of them affect your credit score.
Ignoring the origination fee. A 5% origination fee on a $3,000 loan means you receive $2,850 but owe $3,000. That fee is part of the cost of the loan. Always calculate the amount you actually receive versus what you are obligated to repay.
Focusing on monthly payment instead of APR. The monthly payment on a bad credit loan feels manageable. The total repayment cost over the full term can be twice what you borrowed. Calculate the full cost before signing.
Not verifying the lender. Before applying anywhere, confirm the lender is licensed in your state at the Consumer Financial Protection Bureau website or Better Business Bureau. Never pay any fee to receive a loan. That is always a scam.
Borrowing more than the specific need requires. Being approved for $5,000 when you need $1,500 is not an opportunity — it is a larger debt at a high interest rate. Borrow only what the expense actually requires.
Missing the credit-building opportunity. If you are paying above-market rates because of bad credit, ensure the lender reports your payments to the bureaus. On-time payments now are the fastest legitimate path to lower rates on future loans.
Frequently Asked Questions
Can I get an installment loan with bad credit? Yes. Lenders like Upstart, Oportun, and Avant specifically serve borrowers with bad or no credit. Rates will be higher than prime lenders, and loan amounts may be more limited. As you repay and rebuild your credit profile, better options become available.
Can I get an installment loan with an ITIN? Yes — with the right lender. Oportun, Self, and Mission Asset Fund all explicitly accept ITIN. Most mainstream lenders require SSN.
What is the difference between a payday loan and an installment loan? A payday loan is typically due in full on your next payday — two to four weeks. An installment loan is repaid in fixed monthly payments over a set term, typically six months to five years. Installment loans are almost always cheaper and more manageable than payday loans. Some predatory lenders market their products as installment loans while building in rollover mechanics that function like payday traps — always read the full loan agreement.
Do bad credit installment loans help rebuild my credit? Yes — if the lender reports to the credit bureaus. Every lender on this list does. Consistent on-time payments over 12 to 18 months will measurably improve your credit score and expand your access to better loan products.
What credit score do I need? Upstart accepts from 300. Oportun and Self require no score. Avant accepts well below 580. Mission Asset Fund has no score requirement.
Will applying affect my credit score? Pre-qualification uses a soft pull and has no impact on your score. A formal application uses a hard pull and may lower your score temporarily. Loans repaid on time improve your score over time.
What is the fastest way to get funded? Upstart typically funds within one business day. Avant is often next day as well. Oportun offers same-day funding at physical branch locations in some states.
Your Final Decision Guide
If you have bad credit and stable employment, start with Upstart — it looks beyond your score and funds quickly. If you have an ITIN and no SSN, Oportun is your clearest path — no credit required, ITIN accepted, same-day funding at some locations. If you want to rebuild credit before taking on a larger loan, Self is the right first step. If you need a larger installment loan with bad credit and verifiable income, Avant is built specifically for this profile. If you qualify for a lending circle and want to borrow at zero cost while rebuilding credit, Mission Asset Fund is the most financially sound choice on this entire list.
Before signing with any lender, confirm the APR, calculate the total repayment amount including any origination fee, and make sure the monthly payment fits your budget with room to spare.
Bad credit is a starting point — not a permanent ceiling. Every on-time payment you make from this point forward is a step toward lower rates, better options, and a stronger financial position in the United States.
This page is for informational purposes only and does not constitute financial advice. Loan terms, rates, and eligibility vary by lender, state, and individual circumstances. Always verify details directly with the lender before applying.
