Unsecured personal loans let you borrow money without putting up collateral, making them a flexible option for expenses such as debt consolidation, home improvements, or unexpected bills. Because the lender relies on your creditworthiness rather than an asset, the best offers typically go to borrowers with strong credit, but we’ve found options for nearly every credit profile.
To help you compare lenders quickly, we reviewed dozens of personal loan providers and identified the best unsecured personal loans for different borrower needs. Our picks include top options for excellent credit, fair credit, and even borrowers with little to no credit history.
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Credible
Why Credible is the best marketplace
Credible is an online loan marketplace that enables you to check your personal loan offers with multiple lenders at once without affecting your credit score.
Because Credible has an expansive network of lenders, it can match borrowers with a wide range of credit scores to loan offers. Before you accept an offer, though, it’s still worth researching the individual lender to make sure it’s a good fit for you.
- Compare loans from multiple curated lenders
- Get prequalified loan offers in as little as 2 minutes
- Get funded within a few business days
- Origination fee of up to 12%
- No option to apply for joint loans
| Rates (APR) | 6.99% – 35.99% |
| Loan amounts | $1,000 – $200,000 |
| Repayment terms | 1 – 10 years |
Eligibility requirements
- Soft credit check? Yes
- Minimum credit score: Varies
- Minimum income: Not disclosed
- States: Loan partners may not be available in all states
Repayment terms
Credible loans have repayment terms ranging from one to 10 years. Some lenders may charge a prepayment penalty if you pay your loan off early.
Upgrade
Why Upgrade is the best unsecured personal loan for fair credit
It can be challenging to find lenders with fair credit, but if your credit score is at least 580, Upgrade might be a good fit. You may pay a higher APR with Upgrade due to the origination fee, but this lender offers loan options for borrowers with fair credit scores.
Consider the cost of Upgrade’s origination fee (1.85% to 9.99%) when comparing lenders.
- Choose your monthly payment and loan term
- Joint applications accepted
- Loan funds may be available in as little as 1 day
- Smaller loan maximum limit
- 1.85% to 9.99% origination fee
| Rates (APR) | 8.49% – 35.99% |
| Loan amounts | $1,000 – $50,000 |
| Repayment terms | 2 – 7 years |
Eligibility requirements
- Soft credit check? Yes
- Minimum credit score: 580
- Minimum income: Not disclosed
- States: All 50 states and Washington, D.C.
Repayment terms
Upgrade loans have repayment terms from two to seven years, and your monthly due date is adjustable to fit your budget. A short-term financial hardship program is available if you’re temporarily unable to manage payments.
Upstart
Why Upstart is the best unsecured personal loan for no credit history
Upstart is one of the top unsecured personal loans for bad credit or no credit because it uses a unique credit scoring model designed to provide funding to borrowers other lenders might overlook.
Instead of only considering credit score and payment history, Upstart looks at employment, education history, and other factors. As a result, Upstart offers 36% lower rates, making it a good fit if you have little to no credit.
- Funding is available as soon as the next business day
- Borrowers with little to no credit history can still get approved
- No prepayment penalty if you pay your loan off early
- Origination fee of up to 12%
- Limited repayment term options
| Rates (APR) | 7.80% – 35.99% |
| Loan amounts | $1,000 – $75,000 |
| Repayment terms | 3 or 5 years |
Eligibility requirements
- Soft credit check? Yes
- Minimum credit score: None
- Minimum income: Not disclosed
- States: All 50 states and Washington, D.C.
Repayment terms
Upstart doesn’t offer as many loan terms as other lenders; you’ll pay your loan off over three or five years. You have the option to change your monthly payment due date and prepay your loan in part or in whole at any time, with penalty fee.
SoFi
Why SoFi is the best unsecured personal loan for good credit
SoFi is a popular online lender offering unsecured personal loans. The repayment terms are flexible, but you need a good or excellent credit score to qualify.
SoFi doesn’t charge fees on its unsecured personal loans, though you can opt for a loan offer with an origination fee up to 7% in exchange for a better rate. Loan amounts range from $5,000 to $100,000, and you can get your funds the same day you finalize the paperwork.
- No required origination fees, late payment fees, or prepayment penalties
- Check rates in as little as 60 seconds
- Some borrowers may qualify for same-day funding
- Higher minimum loan amount
- Autopay discount is lower than what some lenders offer
| Fixed rates (APR) | 8.99% – 29.99% with all discounts |
| Loan amounts | $5,000 – $100,000 |
| Repayment terms | 2 – 7 years |
Eligibility requirements
- Soft credit check? Yes
- Minimum credit score: 660
- Minimum income: Not disclosed
- States: All 50 states and Washington, D.C.
Repayment terms
SoFi personal loans feature terms from two to seven years. If you enroll in autopay, you’ll get a 0.25% rate discount. There’s no penalty if you decide to pay your loan off early.
LightStream
Why LightStream is the best unsecured personal loan for excellent credit
LightStream offers competitive unsecured personal loans with interest rates that rival those of home equity loans and lines of credit. If you have excellent credit, you can enjoy accessible customer service support, same-day funding, and no fees.
You can view projected repayment terms before applying, but you can’t prequalify for a loan. A hard inquiry will appear on your credit score when you apply, which can lower your credit score by a few points.
We recommend this lender for borrowers with excellent credit who are confident they’ll be approved.
- Rate match guarantee ensures that you get the best rate possible
- Same-day funding may be available
- Take advantage of a longer repayment term if you need lower payments
- No option to prequalify or check rates with a soft credit pull
- Minimum loan amount is $5,000
| Rates (APR) | 7.49% – 25.49% |
| Loan amounts | $5,000 – $100,000 |
| Repayment terms | 2 – 12 years |
Eligibility requirements
- Soft credit check? No
- Minimum credit score: 660
- Minimum income: Not disclosed
- States: All 50 states and Washington, D.C.
Repayment terms
LightStream offers some of the longest repayment terms of any lender, giving you up to 12 years to repay your loan. You can pay your loan off early, without a prepayment penalty and rate discounts can help bring the cost of your loan down.
What are unsecured personal loans?
Unlike a secured loan, an unsecured personal loan doesn’t require collateral, meaning you don’t need to pledge an asset such as your home or car to qualify.
With a personal loan, you receive a lump sum upfront and repay it in fixed monthly payments over a set term. You can use the funds for almost any purpose, such as:
- Home renovations
- Debt consolidation
- Wedding expenses
- Fertility treatments
- Unexpected expenses or major purchases
Most personal loans are unsecured. Instead of collateral, lenders evaluate your credit score, income, and financial history to determine approval and interest rates. Borrowers with strong credit typically qualify for the lowest rates, but options exist for many credit profiles.
Personal loan rates are usually higher than secured loans, such as mortgages or auto loans, but lower than revolving debt, such as credit cards. Terms typically range from two to 10 years, with loan amounts commonly between $2,000 and $50,000, though some lenders offer as little as $1,000 or as much as $250,000.
Unsecured loans vs. secured personal loans: What’s the difference?
Here’s a look at how unsecured and secured loans compare. If the loan is for a specific purpose, you might be able to get a lower interest rate or more favorable terms with a secured loan. It might be wise to consider both depending on your needs.
| Feature | Secured personal loan | Unsecured personal loan |
|---|---|---|
| Collateral required | Yes, you must pledge an asset (e.g., savings, a vehicle, or other property) | None |
| Credit requirements | Often easier to qualify b/c loan is backed by collateral | Typically requires stronger credit and income |
| Interest rates | Usually lower b/c lender takes less risk | Usually higher b/c lender takes more risk |
| Loan amounts | May allow larger amounts depending on collateral | Commonly $1K – $100K, depending on lender |
| Risk to borrower | You could lose the pledged asset if you default | No asset at risk, but missed payments harm your credit |
| Common uses | Borrowers with weaker credit seeking lower rates | Debt consolidation, major expenses, or emergency costs |
When choosing between secured and unsecured loans, consider why you need the funds. If you are doing a home improvement project and own a home, a HELOC or home equity loan may be more advantageous, as it uses the home as collateral and offers potential tax benefits on the interest paid.
If you can use some collateral to get more favorable interest rates and plan around and budget for those expenses, that would be ideal. However, understand that if you default on the loan, your collateral will be removed.
Eric Kirste, CFP®
Pros and cons of unsecured personal loans
Pros
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No collateral necessary
If you default on your loan, your assets are not at risk.
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Use the loan for almost anything
With an unsecured loan, there are few restrictions on how you use the funds.
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Low minimum loan amounts
You might be able to get a smaller loan, which can be helpful if you don’t need a large amount.
Cons
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Higher interest rates
Depending on your credit score and other factors, you might pay a higher rate with an unsecured loan than you would on a secured loan.
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Stricter qualification requirements
Because there’s no collateral to guarantee the loan, the lender might require a higher credit score and/or income.
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Shorter repayment terms
Unsecured loans might have shorter repayment terms, which can mean the monthly payments are higher.
Are unsecured personal loans a good idea?
Unsecured personal loans are generally best for borrowers who:
- Don’t want to pledge collateral: When you take out a secured loan, you risk losing your collateral if you fall behind on payments. An unsecured loan may be better for borrowers uncomfortable backing a loan with their assets.
- Have a stable income: Although you don’t need to worry about losing collateral, missing payments on an unsecured loan still have consequences, including damage to your credit. Consider whether you have a reliable source of income and plan for repayment before you borrow.
- Have good or excellent credit: Although you can find unsecured personal loans for most credit tiers, you’ll access the best rates with strong credit.
- Want to avoid a payday loan: Even if you don’t have excellent credit, a personal loan is likely more affordable than a payday loan. Personal loan rates are generally capped at 36%, whereas payday loans can have APRs of 400%.
- Need to cover a big expense: An unsecured personal loan can be used for almost any purpose, including home renovations, medical bills, a wedding, or other costs.
- Want to consolidate high-interest debt: Some borrowers use an unsecured personal loan to consolidate and refinance other loans. Qualifying for a better interest rate can help you save money on your debt and potentially pay it off faster.
Before borrowing money, it’s always smart to compare your financing options to determine which one would be the best fit for your circumstances.
Can you get unsecured personal loans with bad credit?
Unsecured personal loans are available for almost every credit type, including bad credit. Fair credit is a score between 580 to 669. Thin or bad credit is a score between 300 and 579.
If you have a bad credit score, you might qualify for less favorable loan terms and pay a higher interest rate, so it’s important to consider the loan’s overall cost, including interest charges. Once you calculate the total cost, you can determine whether the loan makes sense for your finances.
How to apply for an unsecured personal loan
It’s quick and easy to apply for a personal loan. Most lenders, even those with physical locations, offer a straightforward online application process that only takes a few minutes to complete.
Here are the general steps you’ll need to take:
- Check your credit score: Your credit score plays a major role in getting approved for an unsecured personal loan. It also influences whether you get a rate on the low or high end of a lender’s range. Before applying, you can check yours at myFICO.com or by signing up for a free credit monitoring service. Some credit card companies can also provide your credit score.
- Research lenders: You can get a personal loan from a bank, credit union, or online lender. Researching lenders can help you find one with suitable loan amounts and eligibility requirements.
- Prequalify for loans: Many lenders let you check your rates through prequalification, a fast process that won’t ding your credit score. Although your prequalified offers aren’t guaranteed, they’ll give you a good sense of your final loan details.
- Compare rates and terms: Look for a loan with the lowest borrowing costs, including interest rates and fees. Compare repayment terms and monthly payments to ensure you can afford the loan.
- Submit your application: Once you’ve selected an offer, you’ll complete your loan application. Provide personal details and verification documents, such as your ID and pay stubs. At this point, the lender will likely run a hard inquiry into your credit report to verify your creditworthiness.
- Sign your final loan agreement: If the lender approves your application, you’ll sign your loan agreement and receive your funds. Then you’ll start paying back your personal loan according to the terms of your repayment schedule.
It’s important to be cautious when proceeding with a lender without prequalification. If you feel the lender offers benefits you can’t find elsewhere, then proceed.
The goal is not to have multiple hard inquiries on your credit report. If you already have a credit score on the cusp of one of the ranges, you should not do a hard inquiry until it’s necessary. Multiple hard inquiries can damage your credit score by up to 10 points each time they occur.
Eric Kirste, CFP®
Alternatives to unsecured personal loans
You might consider these alternatives if an unsecured loan doesn’t seem right:
- Personal line of credit
- 0% APR credit card
- Home equity loan or line of credit
Personal line of credit
With a personal line of credit, you don’t receive the money as a lump sum as you would with a personal loan. Instead, it’s available through a revolving line of credit, which you can draw on as needed. You’re only responsible for paying back the amount you borrow.
Because of their flexibility, personal lines of credit can be a good fit for projects with unpredictable costs, such as home renovations. However, the interest rate might be higher than what you’d get with a term loan, and you might have to pay monthly or annual maintenance fees.
0% APR credit card
Depending on your credit score, you might qualify for a credit card that offers a 0% introductory interest rate for 12 months or longer. If you pay off your balance before that period ends, you won’t have to pay interest on the amount. Some cards also offer 0% APR on balance transfers for a limited time, which could help you consolidate credit card debt.
However, after the 0% APR period ends, your card will switch to its regular rate, which may be high. According to the Federal Reserve, the average credit card APR is 21.47%.
Home equity loan or line of credit
If you’re a homeowner with equity in your home, you might consider a home equity loan or line of credit (HELOC). These are secured loans that use your house as collateral, so they can offer competitive interest rates and extended repayment terms.
However, the processing time is longer than personal loans, and you may have to pay closing costs. Plus, you risk losing your home to foreclosure if you default on your debt.
Recap of the best unsecured loans
About our contributors
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Written by Rebecca SafierRebecca Safier is a personal finance writer with years of experience writing about student loans, personal loans, budgeting, and related topics. She is certified as a student loan counselor through the National Association of Certified Credit Counselors.
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Edited by Amanda HankelAmanda Hankel is a managing editor at LendEDU. She has more than seven years of experience covering various finance-related topics and has worked for more than 15 years overall in writing, editing, and publishing.
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Reviewed by Eric Kirste, CFP®Eric Kirste, CFP®, CIMA®, AIF®, is a founding principal wealth manager for Savvy Wealth. Eric brings more than two decades of wealth management experience working with clients, families, and their businesses, and serving in different leadership capacities.