Best Unsecured Personal Loans – No Collateral Needed
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When it comes to unsecured personal loans, you don’t provide a lender with collateral—just your promise to repay. And having a good credit score makes you seem more trustworthy to lenders, which can mean the difference between a yes and a no. For example, a credit card or student loan is considered unsecured. For other purposes, like medical debt, debt consolidation, home renovation, etc., a personal loan usually fits the bill. Here are the top companies to consider next time you apply for a personal loan.
In this article
Overview of the best unsecured personal loans
- Best for unemployment protection: SoFi
- Best for borrowers seeking a large amount: Lightstream
- Best for fast funding: Avant
- Best for wide loan options: Discover
- Best for consolidating debt: Best Egg
- Best for the ability to change payment dates: Upstart
- Best for matching your financial goals: LendingClub
Compare the best unsecured personal loans
Loan provider | FICO Score | Minimum loans | APR |
680 | $ 5,000 | 8.99% - 29.49% | |
660 | $ 5,000 | 6.99% - 25.99% | |
580 | $ 2,000 | 9.95% - 35.99% | |
720 | $ 2,500 | 7.99% - 24.99% | |
640 | $ 2,000 | 7.99% - 35.99% | |
300 | $ 1,000 | 7.8% - 35.99% | |
600 | $ 1,000 | 8.98% to 35.99% |
Use Quicken Loans to Get a Personal Loan
- If you're tight on cash right now, you may want to consider getting a personal loan. A personal loan is a loan that you can use for just about any purpose like: paying off other debt, renovating your home, or family needs like a wedding or adoption.
- TrustPilot Rating 4.6 out of 5
- Connect with lenders for $0
- 100% online experience.
Best for unemployment protection: SoFi
Pros & cons
Pros
- No fees.
- Quick approval.
- Same day funding.
- High loan amount.
Cons
- High interest rates.
- High minimum loan amount.
Loan amount: $5,000 - $100,000
APR: 8.99% - 29.49%
SoFi provides a wide range of loan offers and is best for anyone looking for a loan of at least $5,000. You can complete an online application and manage the loan (if approved) on SoFi’s website.
SoFi offers low interest rates, no fees, and same-day funding. Borrowers can apply for a maximum loan amount of up to $100,000. This comes with a fixed interest rate as low as an 8.99% annual percentage rate (APR). You could even qualify for multiple discounts, such as SoFi’s 0.25% point rate discount for setting up autopay.
What’s special about SoFi is its unemployment protection. If you lose your job, SoFi temporarily adjusts your payments so you can stay afloat. They can even help you find a new job through their Career Advisory Group.
Where SoFi falls short is its available loan offers. Considering their $5,000 minimum loan amount, consider looking elsewhere for a smaller loan. Also, if you prefer applying for and managing a loan in person, SoFi may not be your best match.
Visit SoFi
Or read Joywallet's review of SoFi.
Best for borrowers seeking a large amount: Lightstream
Pros & cons
Pros
- No fees.
- Quick loan approval.
- Loans as high as $100,000.
- Large selection of loans to choose from.
Cons
- Requires good to excellent credit.
- No soft credit check option.
Loan amount: $5,000 - $100,000
APR: 6.99% - 25.99%
If you have good to excellent credit and want a personal loan, consider Lightstream. Specifically, you’ll need a minimum credit score 660 and several years of credit history.
Lightstream’s main benefits are low starting rates and no loan origination, late payment, or prepayment fees. How low your loan interest rates are will depend on your credit score. Lower credit scores mean higher interest rates. Higher credit scores generally mean lower interest rates.
Lightstream also offers home improvement loans starting with an APR rate of 7.49% (with autopay and excellent credit). The minimum loan amount is $5,000, and the maximum is $100,000. Repayment terms are flexible, with term lengths up to 20 years, depending on your creditworthiness. You also won’t have to worry about home equity requirements or appraisals.
Where Lightstream falls short is its qualification and online application process. To see if you qualify, you’ll get a hard credit inquiry. In addition, you can’t get prequalified through their website. If you’re a beginning or younger investor, that hard hit on your credit report and lack of an online pre-qualification may pause you.
Visit Lightstream
Or read Joywallet's review of Lightstream.
Best for fast funding: Avant
Pros & cons
Pros
- Offers prequalification.
- Quick approval.
- No credit score requirement.
Cons
- High APR.
- Applies origination fees.
- Late fees.
Loan amount: $2,000 - $35,000
APR: 9.95% - 35.99%
Avant is an online lender that caters to those with bad, poor, or fair credit. Its APR is not great (estimated 9.95% to 35.99%). But while this range is typical for lenders within this market bracket, there is still hope.
The minimum FICO score Avant will accept is 580. Your debt-to-income ratio and annual income are also reviewed as part of Avant’s eligibility requirements. This grants opportunities to those who might not qualify for other loans.
For those searching for fast funding, Avant may be the solution. After your loan application is approved, funds for your loan purpose will be deposited into your account. This can be as soon as the next business day.
Avant’s lack of flexibility is kind of a bummer. Co-signers and those hoping for direct payments while consolidating debt are out of luck. Joint, co-signed, and secured loans are also unavailable loan options.
Visit Avant
Or read Joywallet's review of Avant.
Use Quicken Loans to Get a Personal Loan
- If you're tight on cash right now, you may want to consider getting a personal loan. A personal loan is a loan that you can use for just about any purpose like: paying off other debt, renovating your home, or family needs like a wedding or adoption.
- TrustPilot Rating 4.6 out of 5
- Connect with lenders for $0
- 100% online experience.
Best for a variety of loan options: Discover
Pros & cons
Pros
- Fixed-rate and fixed repayment plan.
- Quick approval.
- Competitive interest rates.
- No prepayment fees.
Cons
- Late fees applicable.
- No co-signer allowed.
- Does not offer a high loan amount.
Loan amount: $2,500 - $40,000
APR: 7.99 - 24.99%
Discover is a great place for borrowers with excellent credit. Specifically, you’re looking for a FICO score of 720 or above. Unlike Lightstream and Avant, Discover does offer debt consolidation options to creditors. It also assists those wishing to refinance high-interest debt. There is even a useful mobile app to help you keep track of credit card and loan payments.
Like Avant, Discover is another option for fast funding. Per the loan terms, you can receive funds for any approved loan on the next business day. Loans can be used for almost anything. Discover is a great place for those who want to open a line of credit for the first time. Currently, it offers unsecured and secured credit cards. For the secured card, there is a $200 minimum deposit. Once approved, beginners can build their credit history with regular monthly installments.
I don’t like Discover’s late fees and lack of an autopay discount. If you are late on any monthly payments, you will receive a late fee of up to $37. However, they offer a grace period of 23 to 25 days, depending on the billing period. Also, Discover will waive your first late payment as part of its late payment forgiveness program.
Visit Discover
Or read Joywallet's review of Discover.
Best for consolidating debt: Best Egg
Pros & cons
Pros
- No prepayment penalty.
- Offers a credit card at no fees.
- Loans available for multiple purposes.
Cons
- Limited loan amount.
- Origination fees.
- High APR.
- No co-signer allowed.
Loan amount: $2,000 - $50,000
APR: 7.99% - 35.99%
Best Egg wants borrowers with fair or good credit. You’ll want to have a FICO score of 640 or higher. Like Discover, Best Egg offers direct payments to creditors with debt consolidation loans. This frees borrowers from needing to pay back individual creditors manually.
Best of all, there is a wide range of loan amounts available. Loans can range anywhere from $2,000 to $50,000. This opens up the possibility for both small and large investments like weddings or moving to a new home.
Unlike Lightstream, Best Egg offers full transparency. You can pre-qualify with a soft credit check that doesn’t hurt your credit score. This will allow you to see rates, fees, and terms without suffering that hard hit.
Here’s where Best Egg falters compared to other online lenders: it charges an origination fee. The range is anywhere from 0.99% to 8.99%. Additionally, there is no mobile app to help with payment management or autopay discounts.
Visit Best Egg
Or read Joywallet's review of Best Egg.
Best for the ability to change payment dates: Upstart
Pros & cons
Pros
- Quick approval.
- Easy to use platform.
- Higher approval rate due to the use of AI.
Cons
- Origination fees.
- Only two repayment terms.
- No co-signer allowed.
- High minimum loan amount in specific states.
Loan amount: $1,000 - $50,000
APR: 7.8% - 35.99%
Upstart stands apart from other online lenders thanks to its underwriting model. It uses artificial intelligence and non-traditional data to determine borrower eligibility. This contrasts traditional methods of looking at a borrower’s credit report, assets, debts, etc.
Upstart is also unique thanks to its partnership with the financial institution Corning Credit Union. Credit unions allow members access to reasonable interest rates. These are rates traditional lenders may not offer. By partnering with Corning, Upstart increased its ability to provide the same access.
With Upstart, borrowers who are new to credit can be accepted. After you accept a loan offer, you can receive funds after one business day. Payment dates are flexible and can be changed if needed.
Unfortunately, Upstart has limited repayment term options—currently, only three. Also, there is a possible origination fee, ranging from 0% to 12%. Lastly, like Best Egg, there is no mobile app for payment management.
Visit Upstart
Or read Joywallet's review of Upstart.
Use AmONE to Get a Personal Loan
- If you're tight on cash right now, you may want to consider getting a personal loan. A personal loan is a loan that you can use for just about any purpose like: paying off other debt, renovating your home, or family needs like a wedding or adoption.
- With personal loan interest rates rising, now could be a great time to find a personal loan. Through our partner AmONE, you could get matched to a lender who could offer as much as a $50k loan with rates as low as 5.99% APR.
- Approval and loan terms vary based on applicant qualifications. Not all applicants will qualify for the full amount or lowest available rates. It takes minutes to see your results. And don't worry- filling out the form won't hurt your credit score and is free, so why not give it a try?
Best for matching your financial goals: Lending Club
Pros & cons
Pros
- Accepts fair credit.
- No application fees.
- Pre-qualification does not impact credit score.
- No prepayment penalty.
Cons
- High APR.
- Origination fees.
Loan amount: $1,000 - $40,000
APR: 8.98% - 35.99%
With Lending Club, you can apply for a personal loan for an amount ranging from $1,000 to $40,000. The APRs for the loan range from 8.98% to 35.99% and the exact APR will depend on your credit score. As far as the interest rates go, Lending Club is expensive as compared to several lenders mentioned here. Lowest APR is available to borrowers with an excellent credit.
You can find personal loans that match with your financial goals. You can apply for a balance transfer loan, home improvement loan, debt consolidation loans or credit card consolidation loan. It also offers joint loans. However, Lending Club charges an origination fee ranging between 1% to 8% and the loan terms range between 3 years to 5 years.
If your loan application is approved, you can receive the funds within three business days. There are no prepayment penalties which means you can prepay your loan if you have cash on hand.
Visit Lending Club
Or read Joywallet's review of Lending Club.
Difference between a secured and an unsecured personal loan
The main difference between secured and unsecured personal loans is the requirement of collateral. Secured loans require the borrower to offer an asset, such as a car or home, as collateral, which the lender can seize if the loan is not repaid. Because this reduces the lender's risk, secured loans typically have lower interest rates and can allow for larger loan amounts. In contrast, unsecured loans do not require collateral, so approval is based primarily on the borrower's creditworthiness. As a result, unsecured loans usually have higher interest rates and may come with lower loan limits, but they pose no risk to personal assets.
Why you should use an unsecured personal loan
Taking out a loan is a big decision. Loans are not free money, and the collector will come calling eventually. Making a smart financial decision means being realistic about the future. If you think you can repay the loan when the time comes, this may be the right path. SoFi is best for online-savvy customers. If you’re interested in home improvement, your best bet is to look at Lifestream. Avant and Upstart may have possible solutions if you’re worried about your lower credit score.
Banks compete, you enjoy low rates
- APR: 6.99% - 35.99%
- Loan Term: 12-144 months
- Credit Score: Poor, Fair, Good, Excellent
FAQs
Do I need to have good credit to get a loan?
Yes and no. The better the score, the better offers you’ll receive. Still, there are a few options designed for poor credit and bad credit. Avant and Upstart are two examples. However, watch out for higher interest rates.
Are these online lenders trustworthy?
When shopping online for a trustworthy lender, it’s important to check a couple of things. First, will your loan be funded by a lender with a banking charter and FDIC insurance? (You can usually check the footer for these details, like the below snippet from Upstart’s website.) You should also check to make sure the website and application itself are secure. (You can check the URL for a lock icon or the letters “https” at the beginning, like the below snippet from Upstart’s URL.) You should also search for any consumer alerts on the Federal Trade Commission’s website regarding that company so you know what to look out for.
Are there risks?
With any online loan, there’s always going to be some risk. After all, you’re putting your personal information out there, and you should be careful about who gets a hold of it. The biggest question you need to ask yourself before taking on a loan is “Can I afford my monthly payments?” After all, if you can’t afford your monthly payments, you risk defaulting on your loan and getting sent to collections or filing for bankruptcy, which damages your credit. You should also be wary of a lender if you see lots of over-promising or deceptive advertising (which is illegal). If you do get a loan with a company you think broke the law, you can report it to the FTC at ftc.gov/complaint. And you always read up on recent scams on the Consumer Financial Protection Bureau’s website at www.consumerfinance.gov.
The bottom line
A loan can help with many different things. School, a new business, cars. It’s important to be careful with any action that can land you in debt. But if you’re smart, do your research, and realistically plan for the future, taking out a loan may be a good choice.
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Writer
A veteran wordsmith and research nerd, Brittany Wren spent a decade working in higher education where she helped people overcome challenges to chart a path forward. These days, she writes about personal finance, careers, parenting and education. Her content has been published by a wide variety of brands including T-Mobile, Intuit, LifeLock, Reliant Fund Administration and CURO Financial Technologies Corp.
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