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What to know:
With some of the lowest APR rates on the market, there are many positives to getting an unsecured loan through Lightstream (Keep in mind, these low rates are typically reserved for those with excellent credit scores). This lender charges zero fees — this means no origination fees, prepayment fees or late fees. However, one down side of Lightstream is that the company does not offer preapproval services, so you’ll have to go through a hard-credit check to see what rates and terms you may qualify for.
To learn more, read our full Lightstream review.
What to know:
SoFi is another lender on our list that charges no fees. However, unlike Lightstream, SoFi does offer soft-credit inquiries so you can see what rates and terms you qualify for without putting a dent in your credit score. This company not only extends unemployment protection to borrowers so you can temporarily pause your loan payments, but it also offers $1,000 in crypto rewards with unsecured personal loans.
To learn more, read our full SoFi review.
What to know:
Unsecured loans from First Midwest Bank are often met with fast approval and funding — some borrowers may have their loan as quickly as the next business day. If you’re looking for a longer-term loan, First Midwest Bank offers unsecured personal loans for up to seven years — much longer than the typical 12 to 60 months most lenders offer. On the downside, however, First Midwest Bank charges application fees as well as $50 annual fees for Illinois residents and $15 for borrowers in Iowa.
To learn more, read our full First Midwest Bank review.
What to know:
According to its website, Payoff’s loans are specific to helping borrowers pay off high-interest credit cards. While Payoff does charge borrowers an origination fee for unsecured personal loans, the company does not charge application or late payment fees. In order to qualify for a Payoff unsecured loan, you’ll need to have a credit score of at least 600 and no unresolved payment delinquencies.
To learn more, read our full Payoff review.
What to know:
While PenFed Credit Union lets borrowers avoid prepayment, application and origination fees, the company does charge a $29 late payment fees. Once you’re approved for an unsecured personal loan, borrowers can expect to receive their funds within one to two business days via direct deposit. While you don’t have to become a PenFed member to apply for a loan, you will have to join if you accept a loan.
To learn more, read our full review on the best credit union to apply for personal loans.
What to know:
Not only do Wells Fargo Bank customers get to skip out on origination, closing and prepayment fees, but you may also get your funds as early as the same day you’re approved for an unsecured personal loan. Wells Fargo Bank may, however, charge you late or returned payment fees and has a high minimum loan amount. This company is among a handful of lenders on this list that offer funds up to $100,000, and offers the opportunity for up to 84-month terms.
To learn more, read our full Wells Fargo Bank review.
What to know:
Despite having one of the highest minimum loan amounts on our list at $5,000, Figure offers borrowers flexibility by offering multiple loan terms to choose from. This lender also offers soft-credit checks, but will have to do a hard-credit inquiry if you decide to proceed with the loan. Figure charges an origination fee of up to 3% that will be deducted from your lump sum, so be sure to include that when estimating how large of a loan you want to apply for.
What to know:
If you have a credit score of at least 600 and have a personal annual income of more than $100,00, you may qualify for Best Egg’s lowest APR rates. This lender charges an origination fee of 0.99% – 5.99%, but won’t penalize you with a fee should you prepay your loan. With Best Egg, you can also get quick results by finding out whether you qualify for a loan within just a few minutes.
To learn more, read our full Best Egg review.
What to know:
Upgrade not only has loan repayment terms of up to 84 months, but borrowers can also receive funding in as little as one day. While this lender doesn’t charge any prepayment fees, Upgrade borrowers will have to shell out for an origination fee as well as late payment penalties. Upgrade offers loans to refinance credit cards, debt consolidation, home improvement projects and large purchases.
To learn more, read our full Upgrade review.
What to know:
This lender provides a quick, easy online process for you to check whether you prequalify for an unsecured personal loan. Like many companies, Upstart does not charge prepayment fees; however, borrowers will have to budget for an origination fee that will be taken out of their total loan lump sum. Unlike some unsecured personal loan lenders, Upstart does not have a minimum level of education requirement in order for borrowers to be approved for a loan.
What to know:
Marcus by Goldman Sachs is all aboard the zero-fees train and even rewards its customers for on-time payments. Should you make payments on time for 12 straight months, Marcus by Goldman Sachs will allow you to skip a month. During this time, you won’t be charged any interest; however, your payments may be extended one month.
To learn more, read our full Marcus by Goldman Sachs review.
What to know:
LendingClub offers one of the lowest borrowing limits on our list. As a borrower with this company, you can receive your loan within two days of approval and can also skip application and prepayment fees. Many of LendingClub’s applicants find out whether they are approved for an unsecured personal loan within 24 hours. Keep in mind, however, that LendingClub does charge borrowers an origination fee.
To learn more, read our full LendingClub review.
Unsecured loans don’t require collateral, such as a home, vehicle or savings account. 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 typically 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 lenders.
Every lender will have varying 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 credit score of over 661 by VantageScore). So, your chances of getting a loan will be much lower if you have a credit score of 660 or less, 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.
If you have bad credit, you may still be able to find a reputable provider for a personal unsecured loan.
Be on the lookout for lenders advertising unsecured loans for bad credit or unsecured loans with no credit check — these aren’t standard personal loans. Most likely they are payday loans, which come with short repayment terms and high interest rates.
Average best offered APR by credit score
While unsecured loans may offer some borrowers financial relief, it’s not a one size fits all solution. If you’re unsure if 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.
Typically, when you use a credit card, if you don’t pay off the balance before the payment due date arrives, you’ll have to pay interest. However, some companies offer 0% intro credit card promotions to help borrowers get around that. 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 and can last anywhere from 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, a HELOC is dependent on the borrower’s home equity. When you buy a house, over time, as you pay it off, you’ll garner equity. 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.
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 as well as most credit cards and personal loans. These types of loans rely more so 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 or certificate of deposit (CD).
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.
Some payday lenders will advertise unsecured loans with guaranteed approval. This is a risky path to take, these loans come with short terms and often exceptionally high interest rates. It’s best to avoid unsecured loans with no credit check or guaranteed approval.
Why use LendingTree
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.