Unsecured debt isn’t backed by a form of collateral. For example, your typical credit card debt is unsecured — if you default, nothing is seized. Mortgage debt, on the other hand, is secured debt. If you default, you could lose your home.
| Lender | Best for... | APR range | Loan amounts | Min. credit score | |
|---|---|---|---|---|---|
 | Unsecured personal loans for debt consolidation | 8.99% - 35.99% | $2,000 to $50,000 | 600 | See Personalized Results |
 | Unsecured personal loans for credit card repayment | 11.72% - 17.99% | $5,000 to $40,000 | 640 | See Personalized Results |
 | Small unsecured personal loans | 9.57% - 35.99% | $1,000 to $40,000 | Not specified | See Personalized Results |
 | Large unsecured personal loans | 7.49% - 25.49% (with autopay) | $5,000 to $100,000 | Not specified | See Personalized Results |
 | Unsecured personal loans with quick approval | 9.22% - 25.00% | $2,500 to $25,000 | Not specified | See Personalized Results |
 | Unsecured credit union personal loans | 7.99% - 17.99% | $600 to $50,000 | Not specified | See Personalized Results |
 | Unsecured personal loans for good credit | 8.99% - 29.99% (with discounts)* | $5,000 to $100,000 | 680 | See Personalized Results |
 | Unsecured personal loans for no prepayment fees | 8.49% - 35.99% (with autopay) | $1,000 to $50,000 | 580 | See Personalized Results |
 | Unsecured personal loans for bad credit | 7.80% - 35.99% | $1,000 to $50,000 | 300 | See Personalized Results |
 | Unsecured personal loans from a bank | 7.49% - 23.24% | $3,000 to $100,000 | Not specified | See Personalized Results |
| APR: | 8.99% - 35.99% |
| Minimum credit score: | 600 |
| Loan term: | 36 to 60 months |
| Loan amount: | $2,000 to $50,000 |
| APR: | 11.72% - 17.99% |
| Minimum credit score: | 640 |
| Loan term: | 24 to 60 months |
| Loan amount: | $5,000 to $40,000 |
| APR: | 9.57% - 35.99% |
| Minimum credit score: | Not specified |
| Loan term: | 24 to 60 months |
| Loan amount: | $1,000 to $40,000 |
| APR: | 7.49% - 25.49% (with autopay) |
| Minimum credit score: | Not specified |
| Loan term: | 24 to 144 months |
| Loan amount: | $5,000 to $100,000 |
| APR: | 9.22% - 25.00% |
| Minimum credit score: | Not specified |
| Loan term: | 36 to 84 months |
| Loan amount: | $2,500 to $25,000 |
| APR: | 7.99% - 17.99% |
| Minimum credit score: | Not specified |
| Loan term: | 12 to 60 months |
| Loan amount: | $600 to $50,000 |
| APR: | 8.99% - 29.99% (with discounts)* |
| Minimum credit score: | 680 |
| Loan term: | 24 to 84 months |
| Loan amount: | $5,000 to $100,000 |
| APR: | 8.49% - 35.99% (with autopay) |
| Minimum credit score: | 580 |
| Loan term: | 24 to 84 months |
| Loan amount: | $1,000 to $50,000 |
| APR: | 7.80% - 35.99% |
| Minimum credit score: | 300 |
| Loan term: | 36 and 60 months |
| Loan amount: | $1,000 to $50,000 |
| APR: | 7.49% - 23.24% |
| Minimum credit score: | 620 |
| Loan term: | 12 to 84 months |
| Loan amount: | $3,000 to $100,000 |
Unsecured loans don’t require collateral, such as a home, vehicle or savings account, to back the loan. Instead, they are backed only by the borrower’s creditworthiness and promise to repay the loan. A common type of unsecured loan is a personal loan.
Unsecured personal loans generally range from about $1,000 to $50,000. They’re typically repaid in fixed monthly payments over a set period of time, typically two to five years. They’re offered by banks, credit unions and online personal loan lenders.
Every lender will have their own qualifications you’ll be required to meet in order to be approved for a loan. However, there are several common threads that many lenders typically follow.
Interest rates on unsecured personal loans can vary widely depending on the credit rating of the borrower as well as the loan terms, such as loan amount and length.
Most unsecured personal loan lenders require borrowers to have good or excellent credit (defined as a FICO score of 670 or above, or a VantageScore of 661 or higher). Your chances of qualifying for a loan will be much lower if you have fair or poor credit, or a history of missed payments, debt collections or charge-offs by lenders for debt you were unable to pay.
It’s possible for consumers with good or excellent credit to get a personal loan with a low interest rate, but bad-credit applicants will have a hard time qualifying for an affordable personal loan — if they receive any offers at all. Although, you still may be able to find a reputable provider for a personal loan with bad credit.
Be on the lookout for lenders advertising unsecured loans for bad credit or unsecured loans with no credit check — these often aren’t standard personal loans. Most likely, they are payday loans, which are often predatory and come with short repayment terms and high interest rates.
| Credit score | Average lowest APR offered |
|---|---|
| 760+ | 13.47% |
| 720-759 | 16.96% |
| 680-719 | 21.39% |
| 640-679 | 25.37% |
| 639 and below | 28.91% |
An unsecured loan can be a good option for many consumers, but they may be best for the following types of borrowers:
While personal loan requirements vary from lender to lender, to evaluate your creditworthiness, lenders will typically take your credit profile, income and debt-to-income ratio into consideration.
Your credit score, usage and history are some of the largest determining factors during the unsecured loan approval process. These details will also impact the loan amounts, terms and rates that lenders may offer you. If you have a low credit score, it may be wise to work on improving your credit score before applying for an unsecured loan. You can check your credit score for free with LendingTree.
Checking your credit profile is also an important part of maintaining your credit score. Your credit score is calculated based on activity on your credit profile, so check and dispute credit report errors that can impact your credit score. You can review your credit report at AnnualCreditReport.com.
When evaluating your unsecured loan application, lenders want to be sure that you’ll be able to repay the loan. That’s why your income level is important to disclose. Your income may determine what kind of rates you are eligible for. For example, Best Egg reserves its lowest rates for borrowers who have a credit score of at least 700 and an income of over $100,000.
Your income may also play a role in determining how much some lenders are willing to let you borrow. For instance, larger personal loans may require you to have a larger income, depending on the lender.
Not only may your income be evaluated for an unsecured loan, but your level of debt compared to your income will also be taken into consideration. This is known as debt-to-income ratio (DTI). The lower your DTI ratio is, the better you look in the eyes of lenders. Some lenders, like Happy Money, require that your DTI ratio be below 50% before approving you for a loan.
While unsecured loans are a popular form of personal loans, it’s not the only type of loan available to consumers. For instance, you may want to consider a secured vs. unsecured loan. Here’s how unsecured loans compare to secured and payday loans.
| Unsecured loans | Secured loans | Payday loans | |
|---|---|---|---|
| Loan amount | $1,000 to $50,000 | $500 to $500,000 | Up to $500 |
| Loan length | Three to 7 years | 12 to 84 months | Two to four weeks |
| APR | 6% to 36% APR | 5% to 36% APR | ~400% APR |
| Credit check | Yes | Yes | No |
| Collateral required | No | Yes | No |
| Best for… | Borrowers with good credit and a steady income | Borrowers with poor credit that have valuable collateral | Borrowers who need quick cash and can afford to repay quickly |
| Bottom line | If you’re considering a home improvement loan or debt consolidation, an unsecured loan may be a good option if you have good credit and can afford to repay it. | While secured loans are not without their risks, this may be a good alternative for someone trying to build their credit. Keep in mind that you’ll lose your collateral if you can’t repay. | Payday loans tend to be predatory and have exorbitant fees and interest rates (sometimes up to 400%). These types of loans are best avoided. |
While unsecured loans may offer some borrowers financial relief, it’s not a one-size-fits-all solution. If you’re unsure whether an unsecured loan is the best financial choice for you, you may want to consider a few alternative options.
A personal line of credit is a type of revolving credit account that allows you to borrow a sum of money (up to a certain amount) and pay it off over time. Unlike a loan, you do not have to borrow the entire lump sum all at once. You can choose how much you want to borrow at a given time, and interest will only be charged on the amount of money you borrow. A personal line of credit does not come with fixed rates like personal loans do, so your payments may vary month to month.
When you use a credit card, you’ll typically have to pay interest if you don’t pay off the balance before the payment due date arrives. However, some companies offer 0% introductory APR credit card promotions to help borrowers avoid interest charges. With this approach, customers can avoid paying interest on their purchases even when the payment due date arrives. However, the 0% APR generally only lasts for a certain period of time, often 12 to 21 months.
Like a personal line of credit, a home equity line of credit (HELOC) is also a type of credit account that revolves. The difference is that a HELOC is dependent on the borrower’s home equity. When you buy a house, you’ll garner equity as you pay it off (or if the value of your home increases). With a HELOC, you can borrow against that equity up to a determined amount. Like a personal line of credit, a HELOC typically does not come with fixed rates. Instead, these rates tend to rise and fall with the financial market.
By offering a detailed and objective account of each lender’s rates and terms, LendingTree’s goal is provide you with all the information you need to make a financially sound decision specific to your situation. Our team of experts thoroughly vets and weighs each option — recommendations are not based on advertisers but rather an honest review of each lender’s offerings. By providing a full picture of what each lender has, we hope to leave you with peace of mind about your financial future. Lenders were chosen based on factors such as APR rates, loan amounts, terms, fees and credit requirements.
Unsecured debt isn’t backed by a form of collateral. For example, your typical credit card debt is unsecured — if you default, nothing is seized. Mortgage debt, on the other hand, is secured debt. If you default, you could lose your home.
Unsecured loans can come in many shapes and sizes and are not limited to one type of credit. Some common examples of unsecured loans are student loans, most credit cards and personal loans. These types of loans rely more on your creditworthiness than other financial factors.
Personal loans can be secured or unsecured, but they’re typically unsecured. Secured personal loans require some kind of collateral, such as a vehicle or savings account.
If you default on an unsecured personal loan, your credit score will take a major hit. Lenders might sell your debt to a third-party collection agency in an attempt to recover some of it, alert credit bureaus to the default or take you to court. These actions could negatively impact your credit for years.