Best Unsecured Personal Loans in 2024

Best unsecured loan lenders

LightStream: Best for larger loans

Minimum credit score: 660.

Loan amounts: $5,000 to $100,000.

Repayment terms: 2 to 7 years.

Why we chose them: LightStream offers large unsecured loans for borrowers who need to finance a big expense and longer repayment terms that help keep payments manageable.

» MORE: Read our LightStream review

SoFi: Best for good credit

Minimum credit score: Undisclosed (likely good to excellent credit).

Loan amounts: $5,000 to $100,000.

Repayment terms: 2 to 7 years.

Why we chose them: SoFi’s combination of large loan amounts, flexible terms and unique perks, like free financial planning, make it a standout lender for good-credit borrowers.

» MORE: Read our SoFi review

Discover: Best for fast funding

Minimum credit score: 660.

Loan amounts: $2,500 to $40,000.

Repayment terms: 3 to 7 years.

Why we chose them: Discover can approve applicants the same day they apply for an unsecured loan and send the funds to their account as early as the next business day.

» MORE: Read our Discover review

Upstart: Best for bad credit

Minimum credit score: None.

Loan amounts: $1,000 to $50,000.

Repayment terms: 3, 5 or 7 years.

Why we chose them: Upstart unsecured loans are available to borrowers with bad credit scores and borrowers who don’t have enough credit history to generate a score.

» MORE: Read our Upstart review

Prosper: Best for hardship support

Minimum credit score: 560.

Loan amounts: $2,000 to $50,000.

Repayment terms: 2 to 5 years.

Why we chose them: Prosper offers hardship support for borrowers that fall on tough times. This may include reduced monthly payments or an extended loan term.

» MORE: Read our Prosper review

Best Egg: Best for debt consolidation

Minimum credit score: 600.

Loan amounts: $2,000 to $50,000.

Repayment terms: 3 to 5 years.

Why we chose them: If borrowers want to use an unsecured loan to consolidate debt, Best Egg will send the loan funds directly to up to 10 creditors, saving them that step.

» MORE: Read our Best Egg review

LendingClub: Best for joint loans

Minimum credit score: 600.

Loan amounts: $1,000 to $40,000.

Repayment terms: 2 to 6 years.

Why we chose them: LendingClub’s joint loans mean borrowers can add another person to their application, which may increase the chances of qualifying for an unsecured loan.

» MORE: Read our LendingClub review

Upgrade: Best for multiple rate discounts

Minimum credit score: 580.

Loan amounts: $1,000 to $50,000.

Repayment terms: 2 to 7 years.

Why we chose them: Upgrade offers multiple ways to get a lower rate on an unsecured loan, like through setting up autopay or using the loan to directly pay off creditors.

» MORE: Read our Upgrade review

Reach: Best for customizable repayment terms

Minimum credit score: 660.

Loan amounts: $3,500 to $40,000.

Repayment terms: 2 to 5 years.

Why we chose them: Reach offers unsecured consolidation loans with repayment terms in monthly increments — from 24 to 60 months — giving borrowers flexibility to customize their loan.

» MORE: Read our Reach review

What is an unsecured personal loan?

An unsecured personal loan is a loan from an online lender, a bank or a credit union that doesn’t require collateral to guarantee the loan. Loan amounts range from $1,000 to $100,000 and are paid back monthly in terms typically ranging from two to seven years.

The best use of an unsecured loan is one that improves your finances. This could mean getting a loan for debt consolidation, which can reduce your debt and help you pay it off faster, or for a home improvement project that increases the value of your home.

How do unsecured loans work?

To get an unsecured loan, you’ll need to apply with a bank, a credit union or an online lender that offers personal loans.

If you’re approved, you’ll receive the money in a lump sum in your account. You’ll then repay the loan in monthly installments spread out over a set repayment term.

Monthly payments are typically fixed, meaning they won’t change over the life of the loan.

Who is an unsecured loan best for?

Unsecured loans are best for borrowers who don’t want to pledge collateral, like their car, as part of the loan application. Though pledging collateral can help borrowers with lower credit scores qualify for a loan, you risk losing the collateral if you fail to repay for any reason.

» MORE: Secured vs. unsecured loan: What’s the difference?

Borrowers are a good fit for an unsecured loan if they can qualify based on their loan application and are confident they can make the monthly payments. Borrowers with good to excellent credit scores (690 score or higher) are most likely to qualify for an unsecured loan, but there are loan options for borrowers with bad credit, too. Learn more about how to qualify and bad-credit loan options lower down.

Common uses for unsecured personal loans

Though an unsecured personal loan can be used for almost any purpose, NerdWallet recommends using one when it can improve your finances. Debt consolidation and home improvement are two common examples.

Unsecured personal loans for debt consolidation

Debt consolidation involves combining debt from multiple sources into a single monthly payment, ideally at a lower interest rate. Using an unsecured personal loan to consolidate debts can save money on interest and give you an end date to work toward.

» COMPARE: Best debt consolidation loans

Unsecured personal loans for home improvement

Using an unsecured personal loan for home improvement is an option if you don’t have a lot of equity in your home or want to avoid using your home to secure the loan. By financing important repairs or updates, you can potentially increase the value of your home.

» COMPARE: Best home improvement loans

Other ways to use unsecured personal loans

You can use an unsecured personal loan to pay for medical expenses or car repairs that aren’t covered by insurance or savings. However, it can be an expensive way to finance these costs, and you may have cheaper options, so shop around before you apply.

You can also use an unsecured loan to fund a one-time, big expense like a move, wedding or vacation, though we recommend paying with savings whenever possible to avoid finance charges.

What is the interest rate on an unsecured personal loan?

The interest rate on an unsecured personal loan typically ranges from 6% to 36%. It’s expressed as an annual percentage rate (APR) and includes interest and any fees associated with the loan.

For example, if you apply for a $7,000 unsecured personal loan at 15% APR and choose a two-year repayment term, you’ll make monthly payments of $339. The loan will cost $1,146 in total interest.

Here’s a look at average personal loan interest rates, based on your credit bracket.

How to qualify for an unsecured personal loan

Lenders may have different qualification requirements, but there are some general factors.

Good credit: Good- and excellent-credit borrowers typically get the lowest APR on a personal loan. Some lenders cater to fair- and bad-credit borrowers (689 credit score or lower), but the best terms and rates are reserved for those with high credit scores.

Low debt-to-income ratio: Many lenders check whether your debt-to-income ratio is low enough to support monthly repayments. Some say borrowers need a 36% DTI or lower to qualify, but others have higher limits.

Stable credit history: Lenders favor borrowers who can show that they’ve consistently made on-time payments across multiple accounts — which can be credit cards, auto loans or other installment loans — over a number of years. Aim for at least two or three years of credit history across two or three accounts.

Steady income: Having a steady income can signal to a lender that you'll have the funds available to repay your loan.

» MORE: Tips to boost your chances of qualifying for a loan

How to get an unsecured personal loan

1. Pre-qualify with lenders

Before formally applying with a lender, you’ll want to shop around for the best unsecured personal loan. An easy way to do this is by pre-qualifying with multiple lenders, which allows you to see your potential loan amount and rate without affecting your credit score. Though not all lenders offer pre-qualification, most online lenders do.

» MORE: Pre-qualify with lenders for free on NerdWallet

2. Apply for the loan

Once you’ve chosen a lender, it’s time to apply for the loan. Many applications are completely online and require you to submit personal details, such as your name, address, contact details and Social Security number.

You may also need to provide additional documentation, like proof of identity, employment and income. After you submit your application, you should hear from the lender within a few days. Some lenders may offer an instant approval decision.

» MORE: How to apply for a personal loan in five steps

3. Get funded

Once you’re approved, funding time can vary by lender. But in some cases, your loan can be funded the same or next business day after you’re approved. Most lenders will send the loan funds within a week.

Once you receive the funds in your account, you’re free to use them however you want, such as paying off your creditors or applying them to a large expense.

4. Plan for regular monthly payments

Your first payment generally comes due 30 days after closing your loan. Take time to adjust your budget to ensure on-time monthly payments. This can help you avoid late fees and hits to your credit.

» MORE: How to successfully manage your personal loan

How to get an unsecured loan with bad credit

You can still get an unsecured loan even if you have bad credit (629 credit score or lower), and some lenders specifically offer loans to bad-credit borrowers.

» COMPARE: Best personal loans for bad credit

Look for online lenders that let you pre-qualify with a soft credit check, so you can check if you meet the lender’s requirements without taking a hit to your credit score. If you don’t qualify on your own, you can also consider adding a co-borrower or co-signer with a higher credit score to your loan application.

Your neighborhood credit union may also lend to borrowers with bad credit, but you’ll need to become a member first. Credit union membership is typically quick and affordable.

Unsecured personal loan alternatives

You may want to consider alternatives along with a personal loan, depending on what you're financing.

0% APR credit card: These credit cards work well if you want to finance a major expense or consolidate debt with zero interest. You’ll need good or excellent credit to qualify, and you’ll want to make sure you can pay off the card during the 0% promotional period, which can extend up to 21 months.