You might consider taking out a personal loan if you need money to cover an emergency expense or an important purchase that you don't have enough cash to afford immediately. You can use a personal loan for debt consolidation, medical expenses, and home improvement projects, among many other purposes.
When shopping for a personal loan, you'll find two main types: secured and unsecured. Secured loans are backed by collateral, such as a house or a car, that the lender can take if you don't pay.
Unsecured loans don't require collateral and typically come with higher interest rates than secured loans. Most personal loans are unsecured, and the most popular loans offer a variety of term lengths and other features.
Best Unsecured Personal Loans
- Best for low interest rates: LightStream Personal Loan
- Best for small loan amounts: PenFed Credit Union Personal Loan
- Best for debt consolidation: Payoff Loan™
- Best brick-and-mortar lender: Wells Fargo Personal Loan
- Best for poor credit: Upstart Personal Loan
- Best for large loan amounts: SoFi® Personal Loan
- Best for good credit: Discover Personal Loans
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Best Unsecured Personal Loan for Low Interest Rates
6.49% to 25.29% (with AutoPay discount, rates vary by loan purpose)
$5,000 to $100,000
660
- Competitive APR
- Approval decisions should come shortly after applying
- Loans can be funded the same day
- Wide range of borrowing amounts and terms
- No fees
- Only available to people with good credit
- No pre-approval option
LightStream offers some of the lowest rates on personal loans out there, provided you have a great credit score. The lender also has loans of up to $100,000 and can supply you with funding on the same day you apply and are approved.
LightStream Personal Loan- Loan amounts range from $5,000 to $100,000
- Loan term lengths range from 2 to 12 years
- Apply online and you'll receive a response shortly during business hours.
- Receive your funds as soon as the same day
- Loans are made by Truist Bank, member FDIC
LightStream has some of the lowest unsecured personal loan rates on the market, provided you have a credit score that is good enough to qualify for them. While the high end of its APR range is still competitive, you may get a better rate with a credit union if you have a lower credit score.
LightStream also doesn't charge any fees — unlike some of the other lenders on our list. If you qualify for an unsecured installment loan from the company, it's a great choice.
The biggest downside with LightStream is that there is no option for pre-approval. Borrowers looking to shop around for rates to get the best deal won't be able to get a rate from LightStream without going through the full application process. The complete process may temporarily lower your credit score, as LightStream will conduct a hard inquiry to make an approval decision.
Best Unsecured Personal Loan for Small Loan Amounts
8.99% to 17.99%
$600 to $50,000
580
- Wide range of loan amounts
- Low minimum APR
- No origination fees or prepayment penalties
- Coborrowers allowed
- Need to be a member to get a loan
- Late fee
For borrowers with excellent credit, PenFed Credit Union has great minimum interest rates on its personal loans. The best personal loan for you depends on your credit score, which will determine what you qualify for and can lower your rate.
PenFed Credit Union Personal Loan- Loan amounts range from $600 to $50,000
- Term lengths between one to five years
- Loans originated by Pentagon Federal Credit Union
PenFed has the smallest minimum loan amount of any of the lenders on our list at $600. This is great for borrowers who only need a bit of cash to tide them over.
The credit union has no origination fees or prepayment penalties, and coborrowers are allowed. Coborrowers can help you get a better rate or qualify if you otherwise would not have.
While you must be a member to get a loan, eligibility requirements are fairly lax. Members of the military and employees of qualifying organizations will be eligible. But if you don't qualify, you can join by simply opening a savings account with a $5 minimum deposit.
Best Unsecured Personal Loan for Debt Consolidation
11.72% - 17.99% fixed
$5,000 to $40,000
640
- Competitive interest rates
- No prepayment or late fees
- Low minimum credit score requirement
- Origination fees
- Slow access to funds
- Limited loan purpose
- Not available in all states
A Happy Money Payoff Loan personal loan is a great option for those with good credit scores who are eligible for the lender's lowest APR. However, borrowers can only use the funds to consolidate credit card debt.
Happy Money Payoff Loan™- Loan amounts range from $5,000 to $40,000
- Loan term lengths range between 2 to 5 years
- Origination fee anywhere between 0% and 5%
- Won't be able to get a loan from Happy Money if you live in Maine, Massachusetts, Nebraska, or Nevada
- Can only use for credit card debt consolidation
- Loans made by one of Payoff's lending partners
Payoff Loan™ is an excellent choice for debt consolidation, as the company designs its personal loan offerings specifically for this purpose. You need a minimum credit score of 640 to be eligible for a Payoff personal loan, which is toward the lower end of the fair range of scores.
Happy Money charges an origination fee between 0% to 5%. However, some of the other lenders on our list don't charge these fees.
Borrowers need to watch out for this lender's limited loan usage restrictions. While a Payoff Loan™ is an excellent choice for consolidating debt, that's the only reason you can take out a loan from the company. If you have a different loan purpose, such as wedding expenses or home improvement, you can't get financing from the company.
Best Unsecured Personal Loan for Brick-and-Mortar Locations
6.99% to 24.49% (with relationship discount)
$3,000 to $100,000
Undisclosed
- Large maximum loan amounts
- Discounts for current customers
- Established brick-and-mortar lender
- No origination fee or prepayment penalty
- Significant late fees
- History of mismanaging customer information
- No online applications for non-customers
Wells Fargo Personal Loan are a good choice if you need a significant amount of cash, as you can borrow up to $100,000 with the lender. However, if you're not a current customer, you can't apply for a personal loan without visiting a branch.
Wells Fargo personal loan- Loan amounts range from $3,000 to $100,000
- Term lengths range from 1 to 7 years
- Rate discounts to customers who have a checking account with the bank and who make their loan payments automatically through that account
- Non-customers must apply by visiting a branch and talking with a banker
- Loans made by Wells Fargo, member FDIC
Wells Fargo is the best brick-and-mortar lender on our list, with about 4,700 locations throughout the country. If you value in-person support, it may be a great choice.
You can borrow as much as $100,000 with the lender, making it a solid option for borrowers looking for large sums of money.
One thing to be aware of is that Wells Fargo has been at the heart of numerous scandals over the past several years. This includes creating fake bank accounts to meet sales goals, predatory lending practices to minorities, and overcharging customers on home and auto loans. Whichever lender you choose, do your own research before deciding so you have all the facts.
Best Unsecured Personal Loan for Poor Credit
6.70% to 35.99% fixed
$1,000 to $50,000 (borrowers in four states are subject to higher minimum loan amounts: Massachusetts: $7,000, Ohio: $6,000, New Mexico: $5,100, Georgia: $3,100)
300
- Small minimum loan amounts
- No prepayment penalty
- Quick loan fund disbursement
- Only three and five year terms
- Potential for high origination fees
Upstart could be the right lender if you have a strong work and education history, but you have a low credit score or limited credit history. The best personal loan for you depends on your credit score, which will determine what you qualify for and can lower your rate.
Upstart- Loan amounts range from $1,000 to $50,000. However, borrowers in four states are subject to higher minimum loan amounts: Massachusetts: $7,000, Ohio: $6,000, New Mexico: $5,100, Georgia: $3,100
- Loan term lengths are either 3 or 5 years
- Can have origination fees up to 8%
- Considers employment and education history when making loan approval decisions
- Loans are made through one of several Upstart-powered bank partners
Upstart is the best lender on our list for borrowers with poor credit, as it has a minimum credit score of just 300. This makes it accessible to borrowers who have shakier credit histories. It also funds its unsecured loans the next business day after approval.
The lender also caters to borrowers looking for small unsecured loan amounts, with a minimum of just $1,000.
Borrowers need to keep in mind that Upstart's personal loans can have origination fees of up to 12%, which will take a big chunk out of your overall loan proceeds. You can avoid those fees with some of the other lenders on our list
Best Unsecured Personal Loan for Large Loan Amounts
8.99% - 29.99% fixed (with all discounts)
$5,000 to $100,000
680
- High maximum loan limit
- No fees required
- Competitive APR
- High minimum credit score requirement
- High minimum loan amount
- No in-person support
SoFi is a strong personal loan lender for those with high credit scores — you'll get perks like no fees required. The best personal loan for you depends on your credit score, which will determine what you qualify for and can lower your rate.
SoFi- Loan amounts range from $5,000 to $100,000
- Loan term lengths range from 2 to 7 years
- Usually receive your money in a few business days after your application is approved
- Loans are made by SoFi Lending Corp.
SoFi stands out from other lenders by offering unsecured personal loans of up to $100,000. It also charges no fees and offers flexible terms of 2-7 years.
Customers are generally pleased with the lender, giving SoFi an average of 4.4 stars on Trustpilot.
Best Unsecured Personal Loan for Good Credit
With no fees, flexible terms, and competitive interest rates, Discover offers some of the best unsecured personal loans on the market.
7.99% to 24.99%
$2,500 to $40,000
660
- 30-day money back guarantee
- Low minimum APR
- No origination fees
- Low maximum loan amount
- Late fees
- No co-borrowers allowed
Discover is a strong option for borrowers with good credit, and offers a 30-day money-back guarantee if you're dissatisfied with your loan or find a better rate. However, if you're late on making a payment, you may be charged a hefty $39 late fee.
Discover Personal Loans- Loan term lengths range between 36 to 84 months
Loans of up to $40,000 are available, and you can receive your funds the next business day after your application is accepted. To be eligible for these borrower-friendly loans, you'll need a minimum credit score of 660.
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Unsecured Loan Lender Trustworthiness
Whether you're interested in taking out a $5,000 loan or a $10,000 loan, finding the right provider can help with your loan approval experience. We've compared each institution's Better Business Bureau score to give you another piece of information to choose your lender. The BBB measures businesses based on factors like their responsiveness to customer complaints, honesty in advertising, and transparency about business practices. Here is each company's score:
| Lender | BBB Grade |
| LightStream Personal Loan | A |
| PayOff Personal Loan | A |
| Upstart Personal Loan | A+ |
| PenFed Credit Union Personal Loan | A+ |
| Wells Fargo Personal Loan | F |
| SoFi Personal Loan | A+ |
| Discover Personal Loan | A+ |
With the exception of Wells Fargo, our top picks are rated A or higher by the BBB. Know that a high BBB score does not ensure a positive relationship with a lender, and you should keep researching and talking with others who have used the company to get the most complete information possible.
Wells Fargo is currently rated F by the BBB due to government actions against the business and a failure to respond to 27 complaints. Most recently, in December 2022, the Consumer Financial Protection Bureau ordered Wells Fargo to return $2 billion to customers and pay a $1.7 billion penalty for legal violations involving auto loans, mortgages, and deposit accounts. The bank illegally charged fees and interest penalties on auto and mortgage loans. Additionally, it misapplied payments to those loans for many customers.
If you're uncomfortable with this history, you may want to use one of the other personal loan lenders on our list.
How to Qualify for an Unsecured Personal Loan
Several factors go into qualifying for an unsecured installment loan, including your credit score, income, and credit history.
Generally, you'll need a credit score in the mid-600s to get a no-collateral loan. Some lenders, like Upstart, will accept borrowers with lower scores. However, when you have a lower credit score, you'll often pay a higher interest rate.
In addition to a solid credit score, you'll need proof of your employment and ability to repay to determine eligibility. Lenders will check your debt-to-income ratio to ensure you haven't borrowed more than you can feasibly pay back.
Additionally, look into options for prequalifying for a personal loan to get a sense of what options are available to you.
How to Choose the Best Unsecured Personal Loan
Here are factors to consider when comparing unsecured personal loan lenders:
- Interest rates and fees. These factors will determine the cost of the loan. Pay special attention to the annual percentage rate (APR), origination fees, late fees, and prepayment penalties.
- Loan amounts. Each lender has its own range of available loan amounts. Before applying for a loan, make sure the lender offers the amount of money you need.
- Repayment terms. The term of a loan tells you how much time you'll have to repay the loan. Longer terms give you lower monthly payments, while shorter terms mean you'll spend less in interest.
- Funding speed. Some lenders can deliver your funds the same day you apply, while others take longer. If you need money ASAP, look for a lender that promises fast funding.
- Credit requirements. Some lenders state the minimum credit score necessary to be eligible for a loan. Only apply with a lender if you meet their credit requirements.
- Customer service. When you accept a loan, you enter a long-term relationship with that lender. For that relationship to be a smooth one, you need to be able to count on excellent customer support. That's why it's best to read customer reviews and learn about each lender's reputation before signing a loan agreement.
Alternatives to Unsecured Personal Loans
While researching unsecured personal loans, consider other options for borrowing money. You might find some alternatives that are cheaper or more accessible.
Secured Personal Loans
Unlike unsecured personal loans, secured personal loans require some sort of collateral. One example is a home equity loan, in which your home equity acts as the collateral necessary to secure the loan. Secured personal loans often come with lower interest rates and longer loan terms — making them an appealing option for anyone who has collateral they can offer.
Credit Cards
Credit cards offer a convenient alternative to a personal loan. You just need to make sure the expenses you have in mind fall within the card's credit limit. It's also worth remembering that credit cards tend to charge high interest rates, making it expensive to maintain a balance. That's why a personal loan might be a more affordable option, especially if you don't think you would be able to pay off your credit card balance on time.
0% APR Credit Cards
Some 0% APR credit cards offer an introductory period of up to 21 months, during which you won't pay any interest. That means you can use the card to consolidate debt, fund a major purchase, and avoid interest payments by paying off the balance before the introductory period ends. Be aware that transferring a balance from another card to a 0% APR credit card might incur a fee.
Why You Should Trust Us: How We Chose the Best Unsecured Personal Loans
We rate all of the personal loan products in our reviews and guides on a 1-5 scale. The total rating is a weighted average that takes seven categories into consideration. Here are the different categories:
- Interest rate (20% of rating)
- Fees (20% of rating)
- Term lengths and loan amounts (15% of rating)
- Funding speed (15% of rating)
- Borrower accessibility (15% of rating)
- Customer support (7.5% of rating)
- Ethics (7.5% of rating)
Each of the seven categories is given a weighting based on its importance to your overall borrowing experience. For instance, interest rates and fees are weighted more heavily than company ethics.
Read more about our methodology for rating personal loans »
FAQs
What is an unsecured personal loan?
An unsecured personal loan is a loan that you don't need collateral to receive. With some other types of loans, like auto loans or mortgages, you need to put up a car or house in the event you don't pay the loan back.
What happens if I don't repay an unsecured personal loan?
Lenders issue unsecured loans based on your creditworthiness. If you don't pay them back, it will damage your credit score, and your lender can sue you in court to recover the money.
Can I get an unsecured loan without collateral?
Yes, you can get an unsecured loan without collateral. Unsecured loans are granted on the basis of the borrower's creditworthiness and not backed by any assets. Secured loans are loans that are backed by collateral, such as an automobile or a home, that the lender can seize in the event the loan is not paid.
How much can I borrow with an unsecured personal loan?
You can borrow as much with an unsecured personal loan as you can qualify for and afford to repay. A $100,000 loan is typically the most you can get.
Can I get an unsecured loan with bad credit?
Some lenders have high minimum credit scores for their loans, while others aren't as strict. On our list of the best unsecured installment loans, a great option for borrowers with bad credit is Upstart, which has a minimum requirement of just 600. To get a loan with bad credit, take a look at credit unions and secured loans.
SoFi Personal Loan Disclosures: Fixed rates from 8.99% APR to 29.99% APR. APR reflects the 0.25% autopay discount and a 0.25% direct deposit discount. SoFi Platform personal loans are made either by SoFi Bank, N.A. or , Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender. SoFi may receive compensation if you take out a loan originated by Cross River Bank. These rate ranges are current as of 09/18/24 and are subject to change without notice. Not all rates and amounts available in all states. See SoFi Personal Loan eligibility details at https://www.sofi.com/eligibility-criteria/#eligibility-personal. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, income, and other factors. Loan amounts range from $5,000— $100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 9.99% of your loan amount for Cross River Bank originated loans which will be deducted from any loan proceeds you receive and for SoFi Bank originated loans have an origination fee of 0%-7%, will be deducted from any loan proceeds you receive.
The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi.
Direct Deposit Discount: To be eligible to receive an additional (0.25%) interest rate reduction on your Personal Loan (your "Loan"), you must set up Direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A., or enroll in SoFi Plus by paying the SoFi Plus Subscription Fee, all within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled Direct Deposit to an eligible Direct Deposit Account in accordance with SoFi's reasonable procedures and requirements to be determined at SoFi's sole discretion, or during periods in which SoFi successfully receives payment of the SoFi Plus Subscription Fee. This discount will be lost during periods in which SoFi determines you have turned off Direct Deposit to your Checking and Savings account or in which you have not paid for the SoFi Plus Subscription Fee. You are not required to enroll in Direct Deposit or to pay the SoFi Plus Subscription Fee to receive a Loan.
Terms and conditions apply. Offer good for personal loan customers with credit cards and personal loans in their name only and subject to lender approval. To receive the offer, you must: (1) register and/or apply through this landing page; (2) complete a loan application with SoFi within 90 days of your application submit date; (3) meet SoFi's underwriting criteria; (4) apply 50% or more of your loan proceeds directly to your lenders/creditors. Once conditions are met and the loan has been disbursed, the interest rate shown in the Final Disclosure Statement will include an additional 0.25% rate discount. SoFi reserves the right to change or terminate the Direct Pay Rate Discount Program to unenrolled participants at any time with or without notice. It takes about 3 business days for your creditor/lender to receive payment after your loan is signed. You will be responsible for making all required payments to avoid credit card and other loan fees.
