Best Signature Loans: What You Need to Know
Get up to $50,000 as soon as the same day with just your signature
| Lender | User rating | Best for | APR | Amount | Min. credit score | |
|---|---|---|---|---|---|---|
|
Payday loan alternative | 6.99% – 17.99% |
$600 – $50k |
Not specified | ||
|
Better odds of approval with peer-to-peer lending | 8.99% – 35.99% |
$2k – $50k |
560 | ||
|
Emergency signature loans | 8.74% – 35.49% (with discounts) |
$5k – $100k |
620 | ||
|
Debt consolidation | 7.74% – 35.99% (with discounts) |
$1k – $50k |
580 | ||
|
Bad or no credit | 6.50% – 35.99% |
$1k – $75k |
300 |
Signature loan lenders at a glance
Best for: Payday loan alternative – PenFed Credit Union
- APR
- 6.99% – 17.99%
- Quick cash: Get money as soon as the next day
- Small loans: Borrow as little as $600 (most loans start at $1,000 or more)
- Keep money in your pocket: Rates capped under 18% and no upfront fees
- Membership required: Need to become a PenFed member to get a loan
- Unclear eligibility: No info about minimum credit score or income necessary to qualify
If you need quick access to cash, turning to PenFed instead of a payday lender will almost certainly save you money. Your PenFed loan will likely be significantly cheaper because of PenFed’s low rates and lack of fees, compared to the predatory rates payday lenders charge. You can pay back the money in as few as 12 months — or even sooner, since PenFed doesn’t charge prepayment penalties.
Like other credit unions, PenFed does require that you join before letting you borrow money. The good news? PenFed membership is open to everyone, and you can apply for membership as part of your loan application process. Plus, PenFed membership comes with perks like cheap auto loans and a car-buying service.
To qualify for a PenFed loan, you must meet the following requirements:
- Membership: PenFed membership (anyone can join)
- Administrative: Open a PenFed savings account with a $5 deposit; may need to submit documents to verify your identity and income
Best for: Better odds of approval with peer-to-peer lending – Prosper
- APR
- 8.99% – 35.99%
- Better odds of getting a loan: Money comes from other people (“peers”) instead of a bank or lender
- Allows joint loans: Improve your chances of qualifying and getting low rates by applying with a co-borrower
- Fair credit OK: Many lenders require good credit or better, but Prosper’s minimum score is 560
- Charges fees: Prosper will keep 1.00% – 9.99% of your loan money before sending it to you
- Can take a long time: Loan review process can take five business days
If you have fair credit and are worried about qualifying for a loan, try Prosper. As a peer-to-peer lending platform, Prosper connects you with real people who invest in your loan. These loans can be easier to get, and you can further boost your chances by applying with a co-borrower with good or excellent credit.
Like many lenders, Prosper charges a one-time origination fee that’ll add to the cost of your loan. And if you need your money soon, check out lenders that offer quick loans — it can take Prosper five business days to approve your loan.
To get a loan with Prosper, you must meet the following requirements:
- Age: Be 18 or older
- Administrative: Have a U.S. bank account and Social Security number
- Residency: Not live in Iowa or West Virginia
- Credit score: 560+
Best for: Emergency loans – SoFi
- APR (with discounts)
- 8.74% – 35.49%
- Fast funding: Get your money as soon as the same day
- Boost your approval odds with a cosigner: Cosigners with excellent credit can help you qualify and get lower rates
- Optional fees: SoFi’s origination fee is optional, but this lender may offer you better rates if you pay it
- Not good for small loans: SoFi’s loans start at $5,000, while other lenders typically start at $1,000 to $2,000
- Won’t qualify with bad credit: SoFi requires a credit score of at least 620 to qualify
Since you could get your money as soon as the same day you sign and borrow up to $100,000, SoFi loans are great for financial emergencies. You can even boost your odds of getting lower rates by adding a cosigner, who’ll be responsible for payments if you miss them.
Still, SoFi loans aren’t for everyone. Look at the other lenders on this list if you need a small loan, since SoFi loans start at $5,000 . And if you have fair or poor credit, consider lenders like Prosper, Upgrade or Upstart .
You must meet the requirements below to get a loan from SoFi:
- Age: Be the age of majority in your state (typically 18)
- Citizenship: Be a U.S. citizen, an eligible permanent resident or a nonpermanent resident (a DACA recipient or asylum-seeker, for instance)
- Employment: Have a job or job offer with a start date within 90 days, or have regular income from another source
- Credit score: 620+
Best for: Debt consolidation – Upgrade
- APR (with discounts)
- 7.74% – 35.99%
- Offers discounts: Get discounts for using the loan to pay off debt and for signing up for autopay
- Boost approval odds with co-borrower: Applying with another person can help you qualify and get better rates
- Fair credit OK: Some lenders require good or excellent credit, but Upgrade’s minimum score is 580
- Charges fees: Upgrade will keep 1.85% – 9.99% of your loan money before sending it to you
- Collateral discount: If you want a signature loan, you’ll miss out on Upgrade’s discount for offering collateral
Upgrade stands out as the best signature loan lender for debt consolidation, as it offers a discount for using your loan to pay off debt. You can get a lower rate by applying for a joint loan, but remember that your co-borrower would be equally responsible for making payments.
Upgrade does charge a one-time origination fee on every loan — it’ll keep 1.85% – 9.99% of your loan money before sending it to you. The better your credit, the lower this number will likely be.
To qualify for a loan through Upgrade, you must meet the requirements below:
- Age: Be at least 18 years old (19 in some states)
- Citizenship: Be a U.S. citizen or permanent resident, or live in the U.S. with a valid visa
- Administrative: Have a valid bank account and email address
- Credit score: 580+
Best for: Bad or no credit – Upstart
- APR
- 6.50% – 35.99%
- Bad credit OK: Minimum credit score of 300 is one of the lowest on the market
- Fast funding: Get your money as soon as the next day
- Skip the paperwork: Most people don’t have to upload documents as part of the approval process
- May charge fees: Upstart may keep 0.00% – 12.00% of your loan money before sending it to you
- Only two repayment terms: Upstart only offers loans with 36- or 60-month terms
Bad credit makes it hard to qualify for a loan, but lending platform Upstart partners with lenders that offer loans for bad credit at relatively affordable rates. Upstart also offers fast funding — you could see money in your account as soon as the next day — and a convenient application process for most borrowers.
However, if you have bad credit, you may need to submit additional paperwork to verify your identity, income, employment or education. You may also need to budget for a high one-time origination fee of 0.00% – 12.00%.
Upstart has transparent eligibility requirements, including:
- Age: Be 18 or older
- Administrative: Have a U.S. address, personal banking account, email address and Social Security number
- Employment: Have a job or job offer that starts within six months, or have regular income
- Income: Have a valid source of income, including a job, job offer or another regular income source
- Credit-related factors: No bankruptcies within the last three years, fewer than six inquiries on your credit report in the last six months and no current delinquencies
- Credit score: 300+ (unless you’re an eligible college student or graduate, in which case Upstart could approve you with no credit)
Read more about how we made our picks for best signature loans.
Estimate your payments
What is a signature loan?
Signature loans come in a lump sum of money that you pay back each month for a set term. Instead of collateral, signature loan lenders rely on the promise of your word — or your signature — that you’ll pay back the loan. Here’s what you need to know:
-
Approval
Lenders use your credit score, credit history and income to decide your rates — and whether to offer you a loan at all. You can get a signature loan for bad credit, but you’ll have limited options and your loan will be more expensive. -
Risks
Since your property isn’t up for grabs, your credit score suffers when you stop making payments or default on a loan. If your debt goes to collections, debt collectors can sue you. -
Cost
Signature loans typically have lower rates than credit cards, which can help you save money on interest when you’re consolidating debt or making a large purchase. -
Time
It’s possible to get same- or next-day funding when you apply for signature loans online. Still, in general, it can take anywhere from the same day up to five business days to get your personal loan money.
Signature loans come with fixed monthly payments and a set end date. You’ll know your monthly payment, how long you have to pay off your loan and the total loan cost upfront when you sign.
How to find a signature loan with LendingTree
Shopping around for a personal loan on LendingTree can save you an average of $1,659 over the life of your loan. Here’s how it works.
Tell us what you need
Take two minutes to tell us who you are and how much money you need. We’ll take care of the rest. It’s free, simple and secure.
Shop your offers
We’ll send you offers from up to five trusted lenders. Compare your offers side by side to see which one will save you the most money.
Get your money
Pick a lender and finalize your loan quickly. You could see money in your account in as soon as 24 hours, depending on the lender you choose.
Signature loan document checklist
Find these documents before you apply to save yourself time.
- Proof of identity — Social Security number and government-issued IDs, like a driver’s license or passport
- Proof of income/employment — W-2s, tax returns, pay stubs
- Proof of address/residence — Lease, utility bill
Boost your chances of getting a signature loan
Apply with a cosigner
Cosigners with good or excellent credit can improve your odds of getting a loan — and getting lower rates. Learn more about the best personal loans with a cosigner.
Boost your credit
Improving your credit score will help you qualify for loans and save money. Raising a “fair” credit score to “very good” helped people save an average of $1,804 on personal loans.
Check your credit reports
Check your credit reports at AnnualCreditReport.com and take the time to dispute any errors that might bring down your score.
Signature loan risks: Expert insights
Watch out for high rates and fees as you could get stuck paying your lender hundreds or thousands of dollars in interest, costing you more in the long run.
Personal loans do come with risks, especially if you don’t understand the terms. Here are a few risks to watch out for:
-
Unexpected fees
If you don’t understand how origination fees work, you could be surprised to see that the amount of money you borrowed isn’t how much you ultimately get. Lenders typically take the origination fee off the top before sending you the loan money. In addition, some lenders charge late fees or fees for paying off your loan early. -
Expensive interest payments
Choosing a longer loan term can make your loan payments cheaper, but it’ll also make your loan more expensive overall. Choose the shortest loan term you can comfortably afford to make your loan as inexpensive as possible. -
Damage to your credit
If you miss a payment, your credit score can take a hit. If you default (which usually happens once you’re 90+ days late on a personal loan) your credit score can drop by more than 100 points. -
Legal consequences
Once your debt is sent to a debt collection agency, they can sue you for payment and even take you to court to garnish your wages.
The best ways to avoid the risks of taking out a personal loan are to make sure that you fully understand the fees, payments and terms of your loan, and that you can afford it.
Calculate your monthly payments with a personal loan calculator to make sure they fit into your budget.
How we chose the best signature loans
We reviewed more than 40 lenders and loan marketplaces to determine the overall best five signature loans. To make our list, lenders must offer competitive APRs and unsecured loans.
From there, we assessed each lender or marketplace across four categories: eligibility and access; cost to borrow; loan terms and options; repayment support and tools.
According to our systematic rating and review process, the best signature loans come from PenFed, Prosper, SoFi, Upgrade and Upstart.
Our categories
We assess how easy it is for people to qualify and apply. This includes state availability, soft-credit prequalification, membership requirements, funding speed and whether borrowers with less-than-excellent credit can get a loan.
We evaluate how affordable the loans are based on minimum and maximum APRs, loan fees and rate discounts. Lenders with unclear or potentially predatory costs receive lower scores.
We consider repayment term flexibility, loan amount ranges and whether options like secured loans, joint loans or direct-to-creditor payments are offered — plus whether the lender clearly communicates these options.
We evaluate borrower experience after funding: customer service access, hardship or forbearance programs, payment flexibility and digital tools like mobile apps or credit monitoring.
Our process
We gather data directly from lenders through their websites, disclosures and direct communication with company representatives. Our editorial team verifies and updates information regularly. We value transparency and award less favorable scores when lenders obscure or omit details.
Our editorial team applies the same scoring model and standards to every lender. Lenders cannot pay to influence our ratings.
Why trust LendingTree’s methodology?
Our writers and editors dig through the facts, contact lenders directly and even go through the application process ourselves if it helps better explain what you can expect. As a Certified Financial Education Instructor℠, I’m committed to breaking down complex financial details so people can make confident, informed decisions with their money.
Jessica’s experience in editing and financial education helps shape LendingTree articles that are clear, accurate and truly useful to readers. Her certification means our recommendations are built on a foundation of consumer-first financial knowledge — not just numbers.
Frequently asked questions
Signature loans can be a good idea, especially if you’re using them to consolidate debt or as an alternative to high-interest credit cards.
However, it’s a bad financial move to use a signature loan to pay for nonessential expenses, like a vacation or another luxury expense — especially if you can’t afford the monthly payments. This is a form of bad debt, the type of debt that doesn’t help you reach your financial goals.
Every lender has its own minimum credit score for a personal loan, though few lenders offer loans to people with credit scores below 580. Still, there are exceptions like Upstart, which requires a credit score of 300 .
It can be hard to get approved for a signature loan if you have bad credit, but there are lenders that specialize in offering poor credit signature loans. Keep in mind, though, that one of the consequences of bad credit is paying higher rates on loans, meaning you’ll pay more to borrow money.