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Best unsecured loan options in 2022

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

LenderBest For...APRLoan AmountsMin. Credit Score
Best EggUnsecured personal loans for debt consolidation8.99% - 35.99%$2,000 to $50,000640
FigureUnsecured personal loans for refinancing5.75% - 22.94%$5,000 to $50,000660
Happy Money(formerly Payoff)Unsecured personal loans for credit card repayment7.99% - 29.99%$5,000 to $40,000640
LendingClubSmall unsecured personal loans8.30% - 36.00%$1,000 to $40,000Not specified
LightStreamLarge unsecured personal loans6.99% - 22.49%$5,000 to $100,000Not specified
Marcus by Goldman Sachs®Unsecured personal loans with a variety of terms6.99% - 24.99%$3,500 to $40,000720
Old National BankUnsecured personal loans with quick approval8.12% - 17.51%$5,000 to $25,000Not specified
PenFed Credit UnionUnsecured credit union personal loans7.74% - 17.99%$600 to $50,000Not specified
SoFiUnsecured personal loans for good credit7.99% - 23.43%$5,000 to $100,000680
UpgradeUnsecured personal loans for no prepayment fees7.96% - 35.97%$1,000 to $50,000620
UpstartUnsecured personal loans for bad credit6.50% - 35.99%$1,000 to $50,000600
Wells Fargo BankUnsecured personal loans from a bank5.99% - 21.74%$3,000 to $100,000620

*Annual percentage rate (APR) is a measure of your cost of borrowing and includes the interest rate plus other fees. Available APRs may differ based on your location. APR may include an autopay discount. Read our methodology.

Lender details

Best Egg – Best for unsecured personal loans for debt consolidation

Loan details:

  • APR: 8.99% – 35.99%
  • Min. credit score: 640
  • Loan term: 36 to 60 months
  • Loan amount: $2,000 to $50,000

What to know: If you have a credit score of at least 640 and a personal annual income of more than $100,000, you may qualify for Best Egg’s lowest APR rates. This lender charges an origination fee of 0.99% - 8.99% but won’t penalize you with a fee if 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 and receive your funds in one to three days.

To learn more, read our full Best Egg review.

Figure – Best for unsecured personal loans for refinancing

Loan details:

  • APR: 5.75% – 22.94%
  • Min. credit score: 660
  • Loan term: 36 or 60 months
  • Loan amount: $5,000 to $50,000

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 – checking your credit for preapproval without impacting your credit score – but they 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 is deducted from your lump sum, so be sure to include that when estimating how large of a loan you want to apply for. You can receive your funds from Figure within two days.

Happy Money – Best for unsecured personal loans for credit card repayment

Loan details:

  • APR: 7.99% – 29.99%
  • Min. credit score: 640
  • Loan term: 24 and 60 months
  • Loan amount: $5,000 to $40,000

What to know: According to its website, Happy Money (formerly Payoff) offers loans specifically (and only) to help borrowers pay off high-interest credit cards. While Happy Money does charge borrowers an origination fee (0.00% - 5.00%) for its unsecured personal loans, the company does not charge application or late payment fees. In order to qualify for a Happy Money unsecured loan, you’ll need to have a credit score of at least 640, a credit history of at least three years, a 50% or less debt-to-income ratio and no unresolved payment delinquencies.

To learn more, read our full Happy Money review.

LendingClub – Best for small unsecured personal loans

Loan details:

  • APR: 8.30% – 36.00%
  • Min. credit score: Not specified
  • Loan term: 36 to 60 months
  • Loan amount: $1,000 to $40,000

What to know: With a $1,000 minumim, LendingClub offers one of the lowest borrowing limits on our list. Borrowers may receive their loan disbursement within 24 hours of approval and can also skip application and prepayment fees. Many of LendingClub’s applicants find out whether they are preapproved for an unsecured personal loan within minutes. Keep in mind, however, that LendingClub does charge borrowers an origination fee (3.00% - 6.00%).

To learn more, read our full LendingClub review.

LightStream – Best for large unsecured personal loans

Loan details:

  • APR: 6.99% – 22.49%
  • Min. credit score: Not specified
  • Loan term: 24 to 144 months
  • Loan amount: $5,000 to $100,000

What to know: With some of the lowest APR rates on the market, there are many advantages to getting an unsecured loan through LightStream, including its unusually high maximum loan amount of $100,000. (Keep in mind that these low rates are typically reserved for those with excellent credit scores.)

This lender charges zero fees — that means no origination fees, prepayment fees or late fees. However, one downside 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.

Marcus by Goldman Sachs® – Best for unsecured personal loans with a variety of terms

Loan details:

  • APR: 6.99% – 24.99%
  • Min. credit score: 720
  • Loan term: 36 to 72 months
  • Loan amount: $3,500 to $40,000

What to know: Marcus by Goldman Sachs is all aboard the zero-fees train and even rewards its customers for on-time payments. If 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, but your payments may be extended one month.

To learn more, read our full Marcus by Goldman Sachs review.

Old National Bank – Best for unsecured personal loans with quick approval

Loan details:

  • APR: 8.12% – 17.51%
  • Min. credit score: Not specified
  • Loan term: Not specified months
  • Loan amount: $5,000 to $25,000

What to know: Unsecured loans from Old National Bank are capped at 25% APR, whereas some lenders have APRs that can go as high as 36%. On top of that, this lender also offers a 0.25 point discount on the interest rate if borrowers sign up for autopay with an Old National Bank checking account. Old National Bank does charge a $50 processing fee, however, which is incorporated into the loan.

To learn more, read our full Old National Bank review.

PenFed Credit Union – Best for unsecured credit union personal loans

Loan details:

  • APR: 7.74% – 17.99%
  • Min. credit score: Not specified
  • Loan term: 12 to 60 months
  • Loan amount: $600 to $50,000

What to know: While PenFed Credit Union lets borrowers avoid prepayment, application and origination fees, the company does charge a $29 late payment fee. 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 PenFed Credit Union review.

SoFi – Unsecured personal loans for good credit

Loan details:

  • APR: 7.99% – 23.43%
  • Min. credit score: 680
  • Loan term: 24 to 84 months
  • Loan amount: $5,000 to $100,000

What to know: SoFi is another lender 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 modify your loan payments, it also offers same-day funding once you’re approved for a loan.

To learn more, read our full SoFi review.

Upgrade – Best for unsecured personal loans for no prepayment fees

Loan details:

  • APR: 7.96% – 35.97%
  • Min. credit score: 620
  • Loan term: 24 to 84 months
  • Loan amount: $1,000 to $50,000

What to know: Upgrade not only has loan repayment terms of up to 24 to 84 months, 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 (1.85% - 8.99%) as well as late payment penalties. Upgrade offers loans to refinance credit cards, debt consolidation, home improvement projects and other large purchases.

To learn more, read our full Upgrade review.

Upstart – Best for unsecured personal loans for bad credit

Loan details:

  • APR: 6.50% – 35.99%
  • Min. credit score: 600
  • Loan term: 36 or 60 months
  • Loan amount: $1,000 to $50,000

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 (0.00% - 8.00%) that will be taken out of their total loan lump sum. Another positive to Upstart is that borrowers can receive their funds within one business day after they’re approved.

To learn more, read our full Upstart review.

Wells Fargo Bank – Best for unsecured personal loans from a bank

Loan details:

  • APR: 5.99% – 21.74%
  • Min. credit score: 620
  • Loan term: 12 to 84 months
  • Loan amount: $3,000 to $100,000

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. However, Wells Fargo Bank may charge you late or returned payment fees, and they have 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 loan terms up to 12 to 84 months.

To learn more, read our full Wells Fargo Bank review.

What is an unsecured loan? The basics

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 lenders.

Common uses of unsecured personal loans:

  • Debt consolidation
  • Credit card refinancing
  • Business expenses
  • Home improvements
  • Vehicle purchases
  • Moving expenses
  • Vacations
  • Medical expenses
  • Wedding expenses

How do unsecured loans work?

To get an unsecured loan, you’ll have to fill out an application. Oftentimes, lenders will allow you to prequalify for an unsecured loan so you can see the rates you qualify for without having to go through a hard-credit pull that would impact your credit score. Because you don’t need collateral for an unsecured loan, your approval will depend heavily on your creditworthiness—that is, a lender’s trust in your ability to pay back your debts.

If you choose to proceed with the loan, you’ll have to verify the information you provided, including your identity, income and residency.

Once you’re approved for a loan, you’ll pay it off in monthly installments with fixed-interest rates. Unsecured loans typically don’t have prepayment penalties, so you may be able to pay off the loan early without being charged extra, if you choose.

Types of unsecured loans

Some of the most common forms of unsecured loans are:

  • Personal loans
  • Student loans
  • Credit cards

Personal loans are lump sums provided by lenders that can be used for a variety of purposes. They may come with origination fees, carry fixed rates and are commonly repaid on a monthly basis.

While personal loans cannot be used for educational or business expenses, student loans are specifically offered to help cover post-secondary education expenses such as tuition, room and board and books. Credit cards, on the other hand, work similarly to a line of credit and are a way for individuals to cover various costs and even earn rewards.

Pros and cons of no-collateral loans

Pros

  • You don’t need to appraise or offer up an asset like your home or car.
  • Your application may be approved in minutes, and the quick loan funds may be deposited into your account as quickly as the same day or the following business day.
  • If you don’t finish repaying the loan, your property will not be repossessed.
  • Unsecured personal loans usually have fixed interest rates that don’t change for the life of the loan.

Cons

  • Higher credit scores are often required to qualify, since there is no collateral to offset risk for lenders.
  • Unsecured loans may come with higher interest rates than secured loans.
  • Approval process largely leans on borrowers’ credit profiles, such as score and history.
  • If you do not repay the loan, your credit score will be severely impacted, and your lender may send your debt to a collection agency.

How to get an unsecured loan

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.

  1. You will have a better chance of being approved if you have a higher credit score, and you’ll also have an easier time qualifying for a lender’s lowest APR rates. Unsecured personal loans are backed by a borrower’s promise to repay, so an applicant’s credit score and repayment history are important in determining eligibility and potential APRs.
  2. Shop around and compare the rates of several lenders before agreeing to go with a particular loan. Lenders will offer you rates, terms and amounts based on factors such as your credit score, debt-to-income ratio and annual income.
  3. While deciding between lenders, compare offers by checking to see if you prequalify for an unsecured loan. Many lenders offer prequalification services as a way to find out if you qualify for a loan without doing a hard credit check.

Average unsecured loan interest rates

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.

  • Enlist the help of a cosigner. If you have less-than-ideal credit, lenders might be more willing to work with you (as well as offer better loan terms) if you have a cosigner for your loan.
  • Opt for a secured loan instead. Secured personal loans require you to put up an asset you own, such as a vehicle, as collateral.
  • Raise your credit and reapply. You can check and monitor your credit score for free with LendingTree.

Average best offered APR by credit score

Credit scoreAverage APR
720+9.81%
680-71916.01%
660-67923.54%
640-65928.93%
620-63935.98%
580-61954.17%
560-57985.24%
Less than 560135.83%

Source: LendingTree Personal Loans Offers Report, June 2022

Who is an unsecured loan best for?

An unsecured loan can be a good option for many consumers, but they may be best for the following types of borrowers:

  • Borrowers with good credit: Because your credit score and history are heavily considered when it comes to getting approved for an unsecured loan, you’ll have a better chance of being accepted and qualifying for a lower APR if you have solid credit.
  • Borrowers with a steady income: If you’re going to apply for an unsecured loan, you’ll want to make sure you have the funds available to repay it. Defaulting on an unsecured loan can lead to getting sued by a lender, bankruptcy and a decreased credit score. Lenders will take your income and expenses into account when deciding whether to offer you a loan.
  • Borrowers who are planning to make a large purchase: Paying off medical bills or taking on a home improvement project can be expensive. An unsecured loan can help make those costs more manageable so you only have to pay those bills in smaller, monthly chunks.
  • Borrowers who are consolidating debt: According to a May 2022 study, LendingTree found that the most popular way to use an unsecured loan was to consolidate debt. Debt consolidation can be a way for consumers to get their current debts under control and roll them into a single loan. By applying for a debt consolidation loan, you may be able to receive a lower APR than what you’re currently paying.

Requirements for an unsecured loan

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.

Credit profile

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 checking your credit profile and disputing any errors can impact your credit score. You can review your credit profile at AnnualCreditReport.com.

Income

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.

Debt-to-income ratio

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.

How unsecured loans compare to other types of loans

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 loansSecured loansPayday loans
Loan amount$1,000 to $50,000$500 to $500,000Up to $500
Loan lengthThree to 7 years12 to 84 monthsTwo to four weeks
APR6% to 36% APR5% to 36% APR~400% APR
Credit checkYesYesNo
Collateral requiredNoYesNo
Best for…Borrowers with good credit and a steady incomeBorrowers with poor credit that have valuable collateralBorrowers who need quick cash and can afford to repay quickly
Bottom lineIf you’re considering a home improvement project 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.

Alternatives to unsecured loans

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.

Personal line of credit

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.

0% intro APR credit cards

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% intro 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.

Home equity line of credit

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.

Methodology: How we chose our unsecured loan lenders

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.

Frequently asked questions

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.

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.