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Best Unsecured Personal Loans
If you need cash and you don’t want to give up collateral, an unsecured personal loan from an online lender might be the perfect fit. While secured loans sometimes come with lower rates, unsecured personal loans are faster and easier to obtain.
Written by:Lindsay Frankel
To get an unsecured personal loan, you don’t need to have
equity in your home or vehicle or money in a savings account. You’ll need good
credit for the best rates, but there are options for borrowers in every credit
tier. What’s more, you won’t risk losing your personal property if you default.
And you can use an unsecured personal loan for almost anything, from a large
purchase to auto repairs to debt consolidation. To help you narrow down your
choices, our team of financial experts reviewed and ranked more than 30 online
lenders. Read on for our top picks.
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Top Best Unsecured Personal Loans
- LightStream: Best for Low Rates
- SoFi — Best for Hardship Protection
- Upgrade - Best for Discounts
- Oportun — Best for Bad Credit
- Upstart — Best for No Credit History
- AmOne — Best for Loan Comparison
- Rocket Loans - Best for Instant Loan Offers
- PenFed: Best for a Credit Union Loan
- Marcus by Goldman Sachs — Best for Flexible Repayment Terms
- Discover — Best for Debt Consolidation
Best Unsecured Personal Loans for 2023 — Full Overview
LightStream: Best for Low Rates
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Lightstream is a great option for excellent credit borrowers, as the lender charges no origination fee, late fees, or prepayment penalties and offers some of the lowest rates in the industry. Lightstream is also ideal for anyone seeking a large home improvement loan with an extended term. However, the lender doesn’t offer a prequalification option, so you should be confident that you have excellent credit before applying.
Pros
Cons
You can borrow between $5,000 and $100,000 from Lightstream and have your money as soon as the same day. Terms range from 24 to 240 months, depending on the type of loan you choose, and APRs range from 3.49% to 19.99%, which includes an Autopay discount. There are no fees on Lightstream loans, including late fees. The lender doesn’t disclose minimum income requirements or a minimum credit score, but you’ll need good or excellent credit to apply. That means you’ll need several years of credit history with a variety of account types and few or no delinquencies. You’ll also need stable and sufficient income.
The Bottom Line
If you need a quick loan, a large loan, or just an inexpensive loan with no fees, Lightstream is a great option — but it’s only available to good and excellent credit borrowers. Since you can’t check your rate without hurting your credit, we don’t recommend applying with a credit score of less than 670.
Try LightStreamRead more in the full LightStream review.
SoFi — Best for Hardship Protection
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SoFi is one of the few lenders to offer a formal unemployment protection program along with the option to change your due date once per year. This flexibility can be helpful if you fall on hard times. As a SoFi member, you’ll also get access to free career coaching and financial guidance. What’s more, there are no fees to worry about. But you’ll need a credit score in the high 600’s to be approved.
Pros
Cons
You can borrow between $5,000 and $100,000 from SoFi and repay the loan over 24 to 84 months. APRs vary from 6.49% with all discounts to 21.78% and there are no fees to worry about. Funding can happen as quickly as the same day. While SoFi doesn’t disclose minimum income or credit score requirements, several third-party sources in addition to SoFi’s blog mention that a credit score in the high 600’s is typically needed for a personal loan from SoFi.
The Bottom Line
SoFi is a great option for good or excellent credit borrowers who want some payment flexibility and hardship protection on a personal loan with no collateral. SoFi loans come with a ton of perks that support your financial health as well. However, bad credit borrowers or those seeking small loans will need to look elsewhere.
Try SoFiRead more in the full SoFi review.
Upgrade - Best for Discounts
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Upgrade is more welcoming to fair credit borrowers than others on our list, and also offers a joint application option for its no collateral loans. This can help you get a lower rate if you apply with a creditworthy co-borrower. Furthermore, existing rewards checking customers qualify for a big discount.
Pros
Cons
Upgrade offers personal unsecured loans in amounts ranging from $1,000 to $50,000 with flexible repayment terms from 24 to 84 months. APRs start at just 5.94% with all discounts but go up to 35.97%. There’s an origination fee of between 2.9% and 8% of the loan amount and a late fee of up to $10. Funds are available the next business day. Upgrade doesn’t specify a minimum credit score or minimum income requirements, but the lender will evaluate your individual income along with your co-borrower’s income should you choose to apply with one. You’ll likely need fair credit to be approved, but you can check your rate without hurting your score.
The Bottom Line
Upgrade is a great option for fair credit borrowers who want to apply on their own or with a co-borrower. It’s an especially good deal for existing rewards checking customers. However, if you have excellent credit, you might find fewer fees and lower rates elsewhere.
Try UpgradeRead more in the full Upgrade review.
Oportun — Best for Bad Credit
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Oportun reports that they are open to borrowers with all different financial backgrounds, including those who have faced bankruptcy, and you can prequalify without hurting your credit. At the same time, the lender offers a 35.99% rate cap, which is much lower than most no credit check lenders can provide. Small loans are also available, but the maximum borrowing amount is $10,000.
Pros
Cons
Oportun offers loans without collateral in amounts ranging from $300 to $10,000. Terms vary by state but range from 12 to 48 months, and APRs vary from 7.99% to 35.99%. There is an origination fee that will depend on your state, and the lender charges a late payment fee and returned check fee. There are no minimum credit score or income requirements, and people with bad credit are invited to apply. Most applicants receive their funding the same day.
The Bottom Line
If you’ve made credit mistakes in the past and you need an unsecured loan, Oportun may be your best bet for getting a reasonable APR. Though borrowing amounts and flexibility are limited, an unsecured personal loan from Oportun is much safer than many other options available to bad credit borrowers.
Try OportunRead more in the full Oportun review.
Upstart — Best for No Credit History
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If you don’t have sufficient credit history to generate a credit score, Upstart may still consider you eligible for a loan, since the lender uses a variety of information to evaluate you. The minimum credit score required for application is also 300. You can check your rate without hurting your credit, and APRs are capped at 35.89%.
Pros
Cons
You can borrow between $1,000 and $50,000 from Upstart and repay the loan in 36 or 60 months. APRs vary depending on the lending partner but are capped at 35.99%. Depending on your creditworthiness, you may also be charged an origination fee of up to 8%. There’s also a late payment fee costing the greater of $15 or 5% of the past due amount. To qualify, you must have a minimum credit score of 300 or insufficient history to generate a score. You also can’t have a debt-to-income ratio of more than 50% (45% in some states), but there are no specific minimum income requirements.
The Bottom Line
If you’re looking for an online unsecured loan and you’re new to building credit, Upstart will likely be your best option for getting approved at a reasonable rate. Borrowers with excellent credit will find fewer fees elsewhere, and fair credit borrowers who want more flexibility may be better served by another lender.
Try UpstartRead more in the full Upstart review.
AmOne — Best for Loan Comparison
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If you want to compare rates from top lenders in one spot, AmOne is our top pick of the loan comparison platforms. You’ll find unsecured loan options for different credit tiers, and you can speak with a U.S.-based support specialist if you need assistance. AmOne has excellent customer service reviews on Trustpilot. However, be aware that you may receive calls from multiple lenders even after you have chosen a loan.
Pros
Cons
With AmOne, one simple application gets you access to loan offers from multiple lenders. You can borrow between $1,000 and $50,000 with APRs ranging from 2.49% to 35.99%, depending on the lender. Some lenders on the platform may charge an origination fee or other fees. Terms of up to 72 months are available. AmOne doesn’t specify a minimum credit score, but notes that there are products for borrowers with scores as low as 500. There’s also no minimum income requirement to use the platform.
The Bottom Line
AmOne is a great option for finding the lowest rate from a top lender without submitting your info for rate checks on each lender’s website. You can save time with the streamlined application. Just be aware that lenders may contact you after you check your rate.
Try AmOneRead more in the full AmOne review.
Rocket Loans - Best for Instant Loan Offers
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With Rocket Loans, you can check your rate for an unsecured personal loan in seconds without hurting your credit, apply online, and receive your funding the same day. It’s a great option for borrowers who want a quick personal loan without collateral, but excellent credit borrowers may find fewer fees elsewhere.
Pros
Cons
With Rocket Loans, if you sign your loan documents by 1:00 pm ET on a business day, the funds will be transferred into your bank account on the same day. You can borrow between $2,000 and $45,000 with APRs ranging from 5.97% with Autopay to a maximum of 29.99%. There’s a 1% to 6% origination fee that will be deducted from the loan proceeds. In addition, Rocket Loans charges late fees and return check fees. You can choose a 36 or 60-month term. Rocket Loans does not disclose a minimum credit score but notes that you’ll typically need a score between 600 and 700 for approval. While Rocket Loans evaluates your income, there’s no specific minimum requirement.
The Bottom Line
Rocket Loans is best for people who have good credit and want to receive cash the same day. While excellent credit borrowers may find better options without fees, Rocket Loans is a great fit for borrowers with a good FICO score, and is one of our top picks for emergency loans.
Try RocketLoansRead more in the full RocketLoans review.
PenFed: Best for a Credit Union Loan
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PenFed is ideal for borrowers who want low rates and the option of in-person support. You don’t need to be a member to apply, but if you choose to accept your loan offer, you’ll need to sign up. However, the process is fast and straightforward. PenFed has excellent customer service reviews and caps rates at 17.99%. However, you’ll likely need good credit or a creditworthy co-borrower to be approved.
Pros
Cons
PenFed offers loan amounts between $600 and $50,000 with terms ranging from 12 to 60 months. APRs vary from 5.49% to 17.99%, and there are no origination fees or early payoff penalties. You may be charged a late fee of $29 for each late payment, however. PenFed funds are available within 48 hours after accepting your loan offer. PenFed doesn’t disclose minimum income or credit score requirements, but several sources report that you’ll need good credit to work with the credit union. Applying with a co-borrower may increase your chances of approval.
The Bottom Line
PenFed is ideal for borrowers who want a small loan or anyone seeking low rates who does not mind becoming a PenFed member. If you have credit issues, you may still be approved with a co-borrower. It’s a good idea to check your APR with PenFed before deciding if you want to become a member.
Try PenFedRead more in the full PenFed review.
Marcus by Goldman Sachs — Best for Flexible Repayment Terms
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Marcus by Goldman Sachs offers nine term options so you can customize your monthly payment. Choosing the term that most closely matches the monthly payment you can afford may help save you money on interest when compared to another lender. Furthermore, Marcus offers loans without any fees whatsoever. And if you pay on-time 12 months in a row, you’ll have the option to defer a payment. However, you’ll likely need good credit to be approved, and Marcus doesn’t allow co-signers or co-borrowers.
Pros
Cons
Marcus by Goldman Sachs offers loans from $2,000 to $45,000 with no fees of any kind. There are no origination fees, prepayment fees, or even late fees. APRs range from 6.99% to 19.99% and terms range from 36 to 72 months, with nine specific options. Marcus doesn’t have minimum income or credit score requirements, but we don’t recommend applying unless you have good credit. Once you sign and accept your loan offer, it will take one to four business days to receive your funds.
The Bottom Line
Marcus by Goldman Sachs is great for good credit borrowers who want flexibility with repayment. Between the nine term options, the on-time payment reward, and the ability to change your due date, Marcus offers the most flexibility of any of the lenders on our list.
Try MarcusRead more in the full Marcus review.
Discover — Best for Debt Consolidation
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If you’re looking to consolidate high-interest debt, Discover is one of the unsecured lenders that offers direct payment to your creditors. And with free access to your FICO score, you can monitor your progress. Plus, there’s no origination fee or prepayment penalties.
Pros
Cons
Discover offers loans between $2,500 and $35,000 with flexible terms ranging from 36 to 84 months. Fixed APRs range from 5.99% to 24.99% and there is no origination fee. You won’t have to worry about prepayment penalties, either, but there is a $39 late payment fee. Discover’s debt consolidation loans can’t be used for educational purposes or to pay off a secured loan or directly pay a Discover credit card. To be eligible for a loan from Discover, you need at least $25,000 in annual income. While Discover doesn’t disclose a minimum credit score, several sources report that you’ll need good credit to be approved.
The Bottom Line
If you need to consolidate debt and you have good credit, Discover is one of the best unsecured loan options. Just make sure your estimated rate is lower than what you’re currently paying on your debts before you apply.
Try DiscoverRead more in the full Discover review.
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How to Choose the Best Unsecured Personal Loan
Our experts considered the following parameters when evaluating lenders. As you compare your options, you may want to pay attention to these factors, which will influence the cost of borrowing and your experience with the loan process.
- Loan features: Ensure the lender offers a term with a monthly payment you can afford and can offer you the amount you need. Also make sure there are no restrictions that would prevent you from using the funds.
- Interest rates and fees: Choose the lender with the lowest rates and the fewest fees that you can qualify for based on your creditworthiness. You should always avoid lenders that charge prepayment penalties.
- Application process: Make sure you understand when a soft credit pull occurs versus a hard credit check. If you need quick cash, choose a lender that offers an easy online application with fast funding.
- Qualification process: Some lenders are more lenient with bad credit borrowers than others. Some lenders, such as many credit unions, also have membership requirements. Narrow down your options to lenders you can qualify for.
- Online user reviews: Look for patterns in customer complaints on sites like Trustpilot and ConsumerAffairs to identify potential issues with customer service.
- Perks and bonuses: Some lenders offer perks like payment flexibility, unemployment protection, mobile app management, and more. If there’s a special feature that’s important to you, prioritize those lenders that offer it.
Best Unsecured Personal Loans — Feature Comparison
| Company Name | Est. APR | Est. Credit Score Needed | Loan Amount | Loan Term |
| SoFi | 6.49% to 21.78% | Good | $5,000 to $100,000 | 24 to 84 months |
| LightStream | 3.49% to 19.99% | Good | $5,000 to $100,000 | 24 to 240 months |
| Upgrade | 5.94% to 35.97% | Fair | $1,000 to $50,000 | 24 to 84 months |
| Oportun | 7.99% to 35.99% | Poor | $300 to $10,000 | 12 to 48 months |
| Upstart | Up to 35.99% | 300 | $1,000 to $50,000 | 36 or 60 months |
| AmOne | 2.49% to 35.99% | Poor | $1,000 to $50,000 | Up to 72 months |
| Rocket Loans | 5.97% to 29.99% | Good | $2,000 to $45,000 | 36 or 60 months |
| PenFed | 5.49% to 17.99% | Good | $600 to $50,000 | 12 to 60 months |
| Marcus by Goldman Sachs | 6.99% to 19.99% | Good | $2,000 to $45,000 | 36 to 72 months |
| Discover | 5.99% to 24.99% | Good | $2,500 to $35,000 | 36 to 84 months |
What Is an Unsecured Personal Loan
An unsecured personal loan is a fixed rate loan, provided in a lump sum and repaid in installments with interest, which does not require the borrower to offer collateral. While home and auto loans are secured by an asset, unsecured personal loans are not.
How Do Unsecured Personal Loans Work?
When you apply for an unsecured personal loan, you tell the lender how much you need to borrow and provide your income information. The lender will run a hard credit check, which will cause a small dip in your score. If you’re approved, the money can be deposited into your bank account within a few days. You’ll then pay back the loan in bi-weekly or monthly payments of principal plus interest. Over time, you’ll pay back more than you originally borrowed for the privilege of getting the lump sum at one time.
Reasons to Get an Unsecured Personal Loan
A personal loan without collateral can be used for almost anything, but you should avoid using a personal loan to purchase something you don’t need. Some good reasons to get a personal loan include:
- Home improvement projects
- Auto repairs
- Debt consolidation
- Medical bills
- Emergency travel
- Appliance replacement
- Planning a wedding
- Relocation
Veterinary bills
How to Get an Unsecured Personal Loan
While the process varies by lender, here’s what you can typically expect.
- Check your credit so you know where you stand and can dispute any errors
- Prequalify with a few lenders that offer a soft credit pull
- Choose the loan offer with the best rates and terms you can qualify for
- Formally apply for the loan by uploading the required documents
- Review your final offer and sign and accept your loan documents
- Wait for the funds to be transferred to your bank account
- Set up one-time or ongoing repayments through the lender’s online portal
Unsecured Personal Loan Interest Rates
Below are the average APRs on unsecured loans by credit tier, according to data from online loan marketplace Credible. The overall average APR across 24-month personal loans from commercial banks is 9.41%, according to The Fed.
| Credit Score | 3-Year APR | 5-Year APR |
| Less than 600 | 30.64% | 29.32% |
| 600 to 639 | 26.62% | 28.19% |
| 640 to 679 | 22.06% | 22.17% |
| 680 to 719 | 16.35% | 17.84% |
| 720 to 779 | 12.02% | 14.01% |
| 780 or above | 8.89% | 11.38% |
Pros and Cons of Unsecured Personal Loans
| Pros | Cons |
Doesn’t require the risk of losing an asset Faster access to funds Fixed APRs | More difficult to qualify for Higher rates than secured loans Doesn’t provide a grace period like credit cards |
Alternatives to Unsecured Personal Loans
If an unsecured personal loan isn’t quite the right fit but you’re still looking for an unsecured product, you might consider the following:
- Paycheck Advance: If you just need a small loan, your employer may provide you with an advance on your paycheck, or you can request the money through a paycheck advance app.
- Crowdfunding: You might try a crowdfunding campaign to raise money for your financial need, especially if it is medical or veterinary-related.
- 401(k) Loan: You can borrow money from your 401(k) without a credit check and without collateral. Just be sure to pay the money back with interest to avoid penalties, and don’t choose this option if you’re planning to leave your current job.
- Friends and Family: While it can be tough to ask for help, a loan from friends or family will come with a lower rate (if any) and more flexibility than an unsecured personal loan. Just be sure you have a plan for repayment so you don’t destroy your relationships.
- Credit Card: A credit card can help you manage cash flow issues without paying interest. If you can qualify for a 0% introductory APR card, you may also use it for a large purchase or to pay down debt faster with a balance transfer.
- Secured Options: If you’re not worried about default and don’t mind putting forth collateral, you might consider a home equity loan, HELOC, auto equity loan, or cash-out refinance.
Conclusion
No matter your financial need, your budget, and your credit score, you have options when it comes to personal loans with no collateral. Aim for the fewest fees and the lowest rates you can qualify for while ensuring the lender offers a monthly payment that fits into your budget. Once your loan is paid off, you’ll want to focus on building an emergency fund so you can avoid needing to borrow in the future.
Frequently Asked Questions(FAQ)
How Much Money Can You Borrow on an Unsecured Loan?
Different lenders offer different amounts, and your
creditworthiness will determine how much you’re eligible to borrow. However,
the most you can borrow from an unsecured personal loan lender is typically
$100,000.
What Is a Good Reason to Get an Unsecured Personal Loan?
Unsecured personal loans are best for debt consolidation and
pressing financial needs. For example, if you have an emergency home or auto
repair, medical or veterinary bill, or relocation or travel need, you can get
the cash you need quickly with an unsecured personal loan.
Do Unsecured Loans Affect Your Credit Score?
An unsecured personal loan will impact your credit score in
a few ways. First, the hard credit check required for the application will
cause a temporary decrease in your credit score. But as you repay your personal
loan, your credit score may improve with your on-time payments. Additionally,
if you use an unsecured loan to consolidate credit card debt, you’ll lower your
debt utilization ratio, which will positively impact your credit. However, if
you miss a payment or default on your personal loan, that can have a
devastatingly negative effect on your credit.
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