Unsecured Loans
The best unsecured personal loans and rates. Plus, get custom offers from up to 5 lenders in minutes.
| Lender | User rating | Best for | APR | Amount | Min. credit score | |
|---|---|---|---|---|---|---|
|
Large unsecured loans | 6.40% – 25.29% (with discounts) | Not specified | 499 |
Best for: Large unsecured personal loans – LightStream
- Offers unsecured loans up to Not specified
- Can apply for a loan with a co-borrower
- Doesn’t charge any fees
- May get loan funds the same day you’re approved
- Will have to go through hard credit pull to see rates
- Must have good or excellent credit to qualify
- Not good for small amounts — loans start at Not specified
With some of the lowest APRs on the market, there are many advantages to getting an unsecured loan through LightStream, including its high maximum loan amount of Not specified. Most lenders only offer up to $40,000 or $50,000, so if you need a large loan and have good credit, this may be a good choice for you.
This lender charges zero fees — that means no origination fees, prepayment fees or late fees. However, LightStream does not offer preapproval for loans, so you’ll have to go through a hard credit check to see what rates and terms you may qualify for. You also won’t qualify for a LightStream loan if you don’t have good credit.
LightStream doesn’t specify its exact credit score requirements, but you must have good to excellent credit to qualify. Most of the applicants that LightStream approves have the following in common:
- At least five years of on-time payments under a variety of accounts (credit cards, auto loans, etc.)
- Stable income and can handle paying their current debt obligations
- Savings, whether in a bank account, investment account or retirement account
You must also have a valid Visa or Mastercard credit card to accept your loan, but only for verification purposes. LightStream will not charge your card.
What is an unsecured loan?
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, such as two to five years.
They’re offered by banks, credit unions and online personal loan lenders.
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 carry fixed rates, may come with origination fees 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 like a line of credit and are a way for individuals to cover various costs and even earn rewards.
Some payday lenders will advertise unsecured loans with guaranteed approval. This is a risky path to take because these loans come with short terms and often incredibly high interest rates. It’s best to avoid unsecured loans with no credit check or guaranteed approval.
How do unsecured loans work?
To get an unsecured loan, you’ll have to start with a loan application. Lenders often allow you to prequalify for an unsecured loan, so you can see your rates 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 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.
Common uses of unsecured personal loans:
You should use a loan instead of a credit card when you know exactly how much money you need and want consistent monthly payments with a set end date. Credit cards are better for small, ongoing expenses like bills.
Why use LendingTree?
$2.8B in funding
In 2024 alone, LendingTree helped find funding for over $2.8 billion in personal loans.
309,000 loans
In 2024, LendingTree helped find funding for over 309,000 personal loans.
When banks compete, you win
You’d shop around for flights. Why not your loan? LendingTree makes it easy. Fill out one form and get lenders from the country’s largest network to compete for your business.
Tell us what you need
Take two minutes to tell us who you are and how much money you need. It’s free, simple and secure.
Shop your offers
Our users get 18 personal loan offers on average. Compare your offers side by side to get the best deal.
Get your money
Pick a lender and sign your loan paperwork. You could see money in your account in as soon as 24 hours.
How to get low 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, 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. That said, 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) when you have a cosigner for your loan.
- Apply for a secured loan instead. Secured personal loans require you to put up an asset you own, such as a vehicle, as collateral.
- Improve your credit and reapply. You can check and monitor your credit score for free with LendingTree Spring.
Average APRs by credit score
LendingTree customers can receive loan offers from our partners. Here’s the average APR offered to customers in the following credit bands:
| Credit score range | Average APR | Monthly payment | Interest | Total cost |
|---|---|---|---|---|
| 800-850 (excellent) | 12.50% | $132.90 | $1,379.20 | $6,379.20 |
| 740-799 (very good) | 15.74% | $141.04 | $1,769.75 | $6,769.75 |
| 670-739 (good) | 28.72% | $176.33 | $3,463.69 | $8,463.69 |
| 580-669 (fair) | 92.45% | $396.46 | $14,029.85 | $19,029.85 |
| 300-579 (poor) | 260.34% | $1,084.84 | $47,072.20 | $52,072.20 |
There is no universal minimum credit score for an unsecured personal loan. Every lender has its own eligibility requirements. Some lenders specialize in working with borrowers who have bad credit. .
Alternatives to unsecured loans
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 will 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 gain 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.
Frequently asked questions
Unsecured debt isn’t backed by 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.
Personal loans can be secured or unsecured, but they’re typically unsecured. Secured personal loans require some kind of collateral, such as a car or savings account.
Unsecured personal loans offered by banks, credit unions and other lenders can cover your short-term cash needs, but make sure you’re able to budget for the monthly payments. These loans are safe as long as you are able to make payments and understand that you could be paying a significant amount in interest, depending on your loan size and APR.
Our methodology
In order to find the best unsecured loans, we reviewed more than 30 lenders. We rated lenders on 19 individual criteria related to the following categories:
According to our standardized rating system, the best unsecured loans come from Best Egg, Discover, Happy Money, LendingPoint, LightStream, PenFed Credit Union, SoFi, Upgrade and Upstart.
Rates and terms: We prioritize lenders that offer competitive interest rates, valuable discounts and flexible loan terms and amounts.
Accessibility: We favor lenders who make their loans available to a wide range of people by having low credit score requirements or offering joint loans. Lenders also get points for making the application process as seamless as possible and for an easy (and quick) money transfer once you’re approved.
Repayment experience: We evaluate each lender’s reputation, awarding points for high consumer reviews and penalizing lenders with recent sanctions from the Consumer Financial Protection Bureau. Lenders with easy-to-use mobile apps and good customer service get additional points.
We review and fact check our picks regularly to ensure that you’re getting solid financial advice to make your next money move.