Top 6 Best Installment Loans Direct Lenders | 2017 Ranking | Direct Lender Installment Loans (Reviews)

What Is an Installment Loan?

An installment loan is a loan that is paid back in a previously set number of payments over a determined period of time. For a loan to be considered an installment loan, it should be made up of more than two payments. This would disqualify small one-time loans or traditional payday loans as being considered installment loans. An installment loan does not need to be of any particular length; it can be as long as a 30-year mortgage or as short as a few months.

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Secured vs. Unsecured

Installment loans direct lenders only offer two kinds of installment loans in most cases. Loans can be secured or unsecured. An unsecured loan is made with no security deposit or collateral. Unsecured loans are offered to customers with sufficient credit and a history of making reliable payments.

Installment loans direct lenders only offer secured loans under some circumstances, so it is important to make sure that the lender offers secured loans before applying. A secured loan requires that the borrower present some form of collateral to cover the cost of the loan in the event that they are unable to pay.

This prevents circumstances where installment loans direct lenders only offer loans to customers with high credit since the deposit offers the protection necessary to allow customers with low credit to borrow.

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Detailed Review – Top Ranking Best Installment Loans Direct Lenders

Detailed reviews providing specific information regarding the benefits of each of the top raking installment loans direct lenders are included below. This list is designed to bring together all of the pertinent information so that each consumer can make the best choice to fit his or her own finances.

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ACE Cash Express Review

ACE Cash Express is an installment payday loans direct lender, meaning that it specializes in short-term, often emergent personal loans. This installment payday loans direct lender offers services both online and in person. This is a good option for customers who are more comfortable working face to face with a lending professional.

Image source: ACE Cash Express

Payday installment loans direct lenders, like this one, are designed to issue very short-term loans. Payday installment loans direct lenders offer small loans with high rates that last no longer than 9 months.

This means that rates are much less attractive but do not accrue as much interest because they are so short. For example, for customers in the state of California with bi-weekly payments, recurring payment authorization can expect a loan of $2,600 to have an APR of 209.27%.

Specialization

Different states have different financial regulations, meaning that loan limits and rates can vary depending on where you live, and services are only available in a few select states. For example, in the state of Missouri, this online installment loan direct lender only offers online loans between $200 and $2,000 and in-store loans between $100 and $2,000. However, in Colorado, only in-store loans are available, and they range between $100 and $500.

Benefits

This installment payday loans direct lender is able to approve applicants instantly, which allows customers to take out emergent loans. As primarily a payday installment loans direct lender, this company can offer customers flexibility with qualifying requirements. Customers of these installment loans direct lenders only need to have an income and an active checking or savings account for at least a month; they are not required to be employed. Customers are also offered the convenience of completing their application entirely online if they choose.

Avant Review

Avant is a relatively new installment loans direct lender, only having served around 450,000 customers so far. However, this installment loan lender has a very high rate of customer satisfaction, and 95% of surveyed customers were happy with their loan experience.

These direct lender installment loans offer various rates and terms depending on state regulations. Depending on these regulations, customers can apply for loans between $2,000 and $35,000 for 24-60 months, with administration fees at 4.75% and an APR between 9.95% and 35.99%.

Specialization

Avant is an online installment loans direct lender only able to offer loans through the Internet. While this may be attractive to many prospective customers, those who are more comfortable working face to face with their loan officer may view this as a drawback. Furthermore, Avant only offers direct lender installment loans with fixed rates and terms, which means that there is no room for negotiation if a customer’s finances suddenly change, though payments will be predictable. 

Benefits

This installment loan direct lender offers customers with low credit scores the opportunity to take out personal loans. According to The Simple Dollar, customers can expect to be approved for a loan with a credit score of 580 or higher. Since this is an online installment loan direct lender, customers can expect quick approval and funds as soon as the next business day. Customers can also access support seven days a week though the phone, email or chat.

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Lending Club Review

Lending Club is a direct lender for installment loans that works a little differently from other companies. Lending Club is an online lending market place designed to connect borrowers and investors. This is a form of peer-to-peer lending that is still considered to be a part of the direct lender installment loan market because each borrower and investor works directly with Lending Club with set rates and limits.

Image source: Lending Club

Lending Club has offered borrowers over $22 billion worth of loans including direct lender installment loans. This installment loan direct lender offers rates between 5.99% and 35.89% and loans limits between $1,000 and $40,000. This is an online installment loan direct lender that offers customers the convenience of online lending along with a mobile app.

Specialization

This online installment loan direct lender’s biggest limitation is that it takes an average of 7 days to complete the application, approval, and funding process. Once the direct lender installment loan is approved, funds are deposited directly into the borrower’s bank account. For some banks, this process can take longer and may add to the time it takes to access the funds.

Benefits

This direct installment loan lender offers customers many benefits. These benefits provide customer convenience, flexibility, and savings and specifically the following:

• Being an entirely online installment loan direct lender allows for cut costs that are passed as customer savings.

• The application process is quick and simple.

• Customers can view qualifying loans instantly.

• There are no application or broker fees.

• Customers can choose the best qualifying loan to fit their needs.

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One Main Financial Review

One Main Financial is a direct lender for installment loans that offers customers both secured and unsecured loan options. Depending on state restrictions, customers can apply for direct lender installment loans between $1,500 and $25,000. This direct installment loans lender does not openly display current APRs; customers must apply for prequalification to get an idea of their expected rate.

Specialization

Direct installment loan lenders that offer secured installment loans are good options for customers with bad credit. Customers with poor credit can present collateral to act as a security deposit for their installment loan. Customers can also present collateral to renegotiate terms if they are not approved for direct lender installments loans with a high enough limit.

The direct installment loan lenders will appraise all potential collateral to ensure that it has sufficient value to cover the cost of the loan. Customers can offer collateral in the form of:

• Cars
• Trucks
• Motorcycles
• Boats
• Campers
• RVs

Benefits

One of this installment loan lender’s biggest benefits is that it has a huge geographic range. There are over 1,800 locations in 44 states which have allowed it to serve over 10 million customers. Even though this is not an online installment loan direct lender, the application process is very quick and usually takes customers just 1 day to receive their funds.

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Prosper Review

Prosper is another installment loan lender that, like Lending Club, works with both borrowers and investors. Private individuals can either invest or borrow capital depending on their needs. However, clients work directly with Prosper to ensure that all of their direct lender installment loans are secure.

Image source: Prosper

This is an installment loan online direct lender that works with fixed rates and terms. Loan terms can be either 3 or 5 years. APRs range between 5.99% and 36.00%, and loan limits can be between $2,000 and $35,000.

Specialization

The largest limitation to this installment loan online direct lender is that the thorough verification process can take up to 7 business days to be completed. Also, customer eligibility for these direct lender installment loans is not guaranteed. Each loan must be matched with enough compatible investors, and customers must meet particular credit and financial qualifications.

Benefits

This is an installment loan online direct lender that values brevity. Customers can quickly receive their lowest possible rate in a matter of minutes after filling out a short application. After approval and verification, funds are deposited directly into a customer’s bank account.

Wells Fargo Review

Wells Fargo is an installment loans direct lender that offers both secured and unsecured installment loans. This installment loans direct lender only offers unsecured installment loans between $3,000 and $100,000 while secured loans must be between $3,000 and $250,000. Unsecured loans do not have origination fees; however, secured loans are subject to a $75 fee.

This installment loans direct lender offers loan terms that range from 12 to 60 months. It offers a wide range of APRs that are determined based on credit history and the approved loan limit.

Installment loans direct lenders are subject to state law, which means that limits and rates can vary depending on the borrowers’ geographic location. Many online installment loan direct lenders only offer loan services online; however, this company offers both in-person and online loan options.

Specialization

Some installment loans direct lenders only allow vehicles or real estate to be used as the collateral for a secured loan. With Wells Fargo, however, customers who already hold CDs or savings accounts with the company can use those as collateral. Maintaining a certain balance with this installment loans direct lender protects the company from potential loss.

Customers can enjoy lower APRs without diminishing the actual balance of the savings account or CD. However, it is important to keep in mind that the balance of the CD or savings account must remain equal to or greater than the amount of the loan as long as the loan is active with this direct lender for installment loans.  

Benefits

This installment loans direct lender only offers loans with fixed rates, terms, and monthly payments. While this does mean that customers cannot repay their loans early, it also means the payments are consistent and predictable.

This direct lender for installment loans can also save customers time because credit decisions can be returned in as little as 15 minutes and usually offer customers funds on the same day as the application submission.

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Conclusion – Top 6 Best Installment Loans Direct Lenders

All of these installment loan direct lender options have positive and negative aspects. Relative to the needs of individual customers, each of these lenders are reputable and have the potential to be a good choice.

Keep in mind the highlights from our comparison:

• ACE Cash Express: Offers instant, short-term installment loans

• Avant: Requires a credit score of 580 or higher

• Lending Club: Offers the lowest published overall APR

• One Main Financial: Offers secured and unsecured loan options

• Prosper: Presents the lowest approved APR in minutes

• Wells Fargo: Allows customers to use funds in their savings account as collateral

To choose the best lender for your finances, it is important to focus on the aspects that are most important to you.With the information provided in our comparison, you can weigh the top aspects of each option against potential drawbacks to determine the best fit for you.

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AdvisoryHQ (AHQ) Disclaimer:

Reasonable efforts have been made by AdvisoryHQ to present accurate information, however all info is presented without warranty. Review AdvisoryHQ’s Terms for details. Also review each firm’s site for the most updated data, rates and info.

Note: Firms and products, including the one(s) reviewed above, may be AdvisoryHQ's affiliates. Click to view AdvisoryHQ's advertiser disclosures.