Best Unsecured Personal Loans in 2024
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An unsecured personal loan doesn’t require you to pledge an asset, such as a house or car, as collateral. Instead, approval is based primarily on your credit score and finances. Compare unsecured personal loans with potentially cheaper options, and make sure the monthly payments don’t stress your budget.
- 35+ personal loans reviewed and rated by our team of experts.
- 20+ years of combined experience covering personal loans and financial topics.
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- Governed by NerdWallet's strict guidelines for editorial integrity.
- 35+ personal loans reviewed and rated by our team of experts.
- 20+ years of combined experience covering personal loans and financial topics.
- Objective, comprehensive star rating system assessing 20+ categories and 70+ data points.
- Governed by NerdWallet's strict guidelines for editorial integrity.
Best Unsecured Personal Loans in 2024
6.99-25.29%
$5K-$100K
660
LightStream is a solid option for good-credit borrowers, with no fees and a promise to beat competitors’ rates.
- Minimum credit score: 660, but can vary depending on the loan purpose and amount.
- Maximum debt-to-income ratio: 50%.
- Minimum credit history: 3 years.
- Income sources accepted: Employment, retirement, rental income, alimony, child support, Social Security payments and disability benefits.
- Must be a U.S. citizen or permanent resident who is at least 18 years old and has a U.S. bank account.
- Origination fee: None.
- Late fee: None.
8.99-29.99%
$5K-$100K
None
SoFi offers online personal loans with consumer-friendly features for good- and excellent-credit borrowers.
- Must be at least 18 years old in most states.
- Must be a U.S. citizen, permanent or non-permanent resident, including DACA recipients and asylum seekers.
- Must be employed, have sufficient income from another source, or have an offer of employment to start within the next 90 days.
- Acceptable income sources: Employment, spouse’s income, retirement, alimony, child support, Social Security payments and disability benefits.
- Origination fee: 0% to 7%.
- Late fee: None.
7.99-24.99%
$2.5K-$40K
660
With competitive rates and no origination fees, Discover personal loans are good options for borrowers with good and excellent credit.
- Minimum credit score: 660.
- Minimum annual household income: $25,000. Income can come from employment, retirement, alimony, child support, Social Security payments and disability benefits.
- Must provide a valid U.S. address and email address.
- Must be 18 years old with a valid Social Security number.
- Origination fee: None.
- Late fee: $39.
7.80-35.99%
$1K-$50K
None
Upstart personal loans offer fast funding and may be an option for borrowers with low credit scores or thin credit histories. Upstart is a solid choice for financing large purchases.
- Must be a U.S. citizen or permanent resident living in the U.S.
- Must be at least 18 years old in most states.
- Must have a valid email address and Social Security number.
- Must have a full- or part-time job, a full-time job offer starting within six months or another source of regular income.
- Must have a personal bank account at a U.S. financial institution with a routing number.
- No bankruptcies in the last 12 months.
- No current delinquent accounts on your credit reports.
- Fewer than six hard inquiries on your credit report in the last six months, excluding student, auto and mortgage loans.
- Minimum credit score: None.
- Minimum annual income: $12,000.
- Origination: 0% to 12%.
- Late fee: 5% of the unpaid amount or $15, whichever is greater.
- Insufficient funds fee: $15.
Prosper accepts borrowers across the credit spectrum and offers competitive rates and fees, plus instant approval.
- Minimum credit score: 560; borrower average is 705.
- Minimum income: No minimum requirement; borrower average is $131,000.
- Maximum debt-to-income ratio: 50% (excluding mortgage); borrower average is 41.6% (including mortgage).
- Must be at least 18 years old.
- Must provide Social Security number and a U.S. bank account.
- Origination fee: 1% to 9.99%.
- Late fee: The greater of $15 or 5% of the unpaid amount.
- Insufficient funds fee: $15.
- Mailed-in payment fee: $5.
7.99-35.99%
$2K-$50K
600
Best Egg is worth considering for borrowers looking for a secured loan or to consolidate debt, but the loans come with an origination fee.
- Minimum credit score: 600.
- Maximum debt-to-income ratio: 70% including a mortgage.
- Minimum credit history: 3 years and 1 account.
- Acceptable income sources: Employment, household income, alimony, retirement, child support, Social Security payments and disability benefits.
- Must be a U.S. citizen or permanent resident and at least 18 years of age.
- Origination fee: 0.99% - 9.99%.
9.06-35.99%
$1K-$40K
600
LendingClub personal loans are a solid option for good- and fair-credit borrowers looking to consolidate debt and build their credit.
- Minimum credit score: 600; average borrower score is above 700.
- Minimum income: None; lender requires proof of income. Borrower average is $100,000 per year.
- Maximum DTI: 40%.
- Minimum credit history: 36 months and two accounts.
- Origination fee: 3% to 8%.
- Late fee: 5% of payment or $15 after 15-day grace period.
- Insufficient funds: $15.
9.99-35.99%
$1K-$50K
580
Upgrade personal loans come with multiple rate discounts and offer direct payment to creditors. This lender has a low minimum credit score requirement, making the perks stand out even more.
- Minimum credit score: 580.
- Minimum number of accounts on credit history: One account.
- Maximum debt-to-income ratio: 75%, including mortgage payments.
- Minimum length of credit history: Two years.
- Minimum income requirement: None. Lender accepts income from alimony, retirement, child support, Social Security, disability benefits and other sources.
- Origination fee: 1.85% to 9.99%.
- Late Fee: $10.
- Failed payment fee: $10.
Reach Financial personal loans are suitable for good-credit borrowers looking to consolidate debt. Loans are funded fast, but they lack some key features offered by other lenders.
- Minimum credit score: 660.
- Minimum credit history: 3 years and 1 account.
- Minimum net income: $1,000 left after monthly bills, such as rent and other debt installments, are paid.
- Acceptable income sources: Employment, alimony, retirement, child support, Social Security payments and disability benefits.
- Must be a U.S. resident who lives in one of the 41 states where the company does business, or Washington, D.C.
- Origination fee: 4% to 8%.
- Late fee: $15.
- Non-sufficient funds fee: $25.
LightStream is a solid option for good-credit borrowers, with no fees and a promise to beat competitors’ rates.
- Minimum credit score: 660, but can vary depending on the loan purpose and amount.
- Maximum debt-to-income ratio: 50%.
- Minimum credit history: 3 years.
- Income sources accepted: Employment, retirement, rental income, alimony, child support, Social Security payments and disability benefits.
- Must be a U.S. citizen or permanent resident who is at least 18 years old and has a U.S. bank account.
- Origination fee: None.
- Late fee: None.
SoFi offers online personal loans with consumer-friendly features for good- and excellent-credit borrowers.
- Must be at least 18 years old in most states.
- Must be a U.S. citizen, permanent or non-permanent resident, including DACA recipients and asylum seekers.
- Must be employed, have sufficient income from another source, or have an offer of employment to start within the next 90 days.
- Acceptable income sources: Employment, spouse’s income, retirement, alimony, child support, Social Security payments and disability benefits.
- Origination fee: 0% to 7%.
- Late fee: None.
With competitive rates and no origination fees, Discover personal loans are good options for borrowers with good and excellent credit.
- Minimum credit score: 660.
- Minimum annual household income: $25,000. Income can come from employment, retirement, alimony, child support, Social Security payments and disability benefits.
- Must provide a valid U.S. address and email address.
- Must be 18 years old with a valid Social Security number.
- Origination fee: None.
- Late fee: $39.
Upstart personal loans offer fast funding and may be an option for borrowers with low credit scores or thin credit histories. Upstart is a solid choice for financing large purchases.
- Must be a U.S. citizen or permanent resident living in the U.S.
- Must be at least 18 years old in most states.
- Must have a valid email address and Social Security number.
- Must have a full- or part-time job, a full-time job offer starting within six months or another source of regular income.
- Must have a personal bank account at a U.S. financial institution with a routing number.
- No bankruptcies in the last 12 months.
- No current delinquent accounts on your credit reports.
- Fewer than six hard inquiries on your credit report in the last six months, excluding student, auto and mortgage loans.
- Minimum credit score: None.
- Minimum annual income: $12,000.
- Origination: 0% to 12%.
- Late fee: 5% of the unpaid amount or $15, whichever is greater.
- Insufficient funds fee: $15.
Prosper accepts borrowers across the credit spectrum and offers competitive rates and fees, plus instant approval.
- Minimum credit score: 560; borrower average is 705.
- Minimum income: No minimum requirement; borrower average is $131,000.
- Maximum debt-to-income ratio: 50% (excluding mortgage); borrower average is 41.6% (including mortgage).
- Must be at least 18 years old.
- Must provide Social Security number and a U.S. bank account.
- Origination fee: 1% to 9.99%.
- Late fee: The greater of $15 or 5% of the unpaid amount.
- Insufficient funds fee: $15.
- Mailed-in payment fee: $5.
Best Egg is worth considering for borrowers looking for a secured loan or to consolidate debt, but the loans come with an origination fee.
- Minimum credit score: 600.
- Maximum debt-to-income ratio: 70% including a mortgage.
- Minimum credit history: 3 years and 1 account.
- Acceptable income sources: Employment, household income, alimony, retirement, child support, Social Security payments and disability benefits.
- Must be a U.S. citizen or permanent resident and at least 18 years of age.
- Origination fee: 0.99% - 9.99%.
LendingClub personal loans are a solid option for good- and fair-credit borrowers looking to consolidate debt and build their credit.
- Minimum credit score: 600; average borrower score is above 700.
- Minimum income: None; lender requires proof of income. Borrower average is $100,000 per year.
- Maximum DTI: 40%.
- Minimum credit history: 36 months and two accounts.
- Origination fee: 3% to 8%.
- Late fee: 5% of payment or $15 after 15-day grace period.
- Insufficient funds: $15.
Upgrade personal loans come with multiple rate discounts and offer direct payment to creditors. This lender has a low minimum credit score requirement, making the perks stand out even more.
- Minimum credit score: 580.
- Minimum number of accounts on credit history: One account.
- Maximum debt-to-income ratio: 75%, including mortgage payments.
- Minimum length of credit history: Two years.
- Minimum income requirement: None. Lender accepts income from alimony, retirement, child support, Social Security, disability benefits and other sources.
- Origination fee: 1.85% to 9.99%.
- Late Fee: $10.
- Failed payment fee: $10.
Reach Financial personal loans are suitable for good-credit borrowers looking to consolidate debt. Loans are funded fast, but they lack some key features offered by other lenders.
- Minimum credit score: 660.
- Minimum credit history: 3 years and 1 account.
- Minimum net income: $1,000 left after monthly bills, such as rent and other debt installments, are paid.
- Acceptable income sources: Employment, alimony, retirement, child support, Social Security payments and disability benefits.
- Must be a U.S. resident who lives in one of the 41 states where the company does business, or Washington, D.C.
- Origination fee: 4% to 8%.
- Late fee: $15.
- Non-sufficient funds fee: $25.
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.
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.
Nerdy Tip
You can use NerdWallet’s personal loan calculator to plug in your potential loan amount, repayment term and APR to see what your monthly personal loan payments would be.
Here’s a look at average personal loan interest rates, based on your credit bracket.
Borrower credit rating | Score range | Estimated APR |
Excellent | 720-850. | 11.11%. |
Good | 690-719. | 14.35%. |
Fair | 630-689. | 17.46%. |
Bad | 300-629. | 22.37%. |
Source: Average rates are based on aggregate, anonymized offer data from users who pre-qualified through NerdWallet from Oct. 1, 2024, through Oct. 31, 2024. Rates are estimates only and not specific to any lender. The lowest credit scores — usually below 500 — are unlikely to qualify. Information in this table applies only to lenders with maximum APRs below 36%.
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.
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.
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.
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.
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.
Home equity loans and HELOCs: These are good options for home renovations if you're comfortable using your home as collateral and have enough equity to qualify. A home equity loan can give you a longer repayment term and typically a lower rate than a personal loan. A home equity line of credit (HELOC) lets you use funds as needed, and you only pay interest on what you use.
Last updated on October 9, 2024
Frequently asked questions
- What does it mean when a loan is unsecured?
A loan that's unsecured is one you don't need collateral, like a car or savings account, to secure. Instead, a lender considers your credit score, existing debts, income and other factors about you on a personal loan application.
- How do I qualify for an unsecured personal loan?
Lenders vary in their requirements for borrowers. A good credit score (690 or higher), a low debt-to-income ratio and a credit history of at least a few years will help you qualify in most cases. Some lenders tailor their loans to bad- and fair-credit borrowers, so you may have options even with less-than-desirable credit. You can pre-qualify to see what loan rates and terms you could qualify for.
- Do unsecured loans affect your credit?
If you borrow an unsecured loan, your credit will be affected in two ways. When you formally apply for the loan (which is different from pre-qualifying), the lender will do a hard credit inquiry, which causes a temporary dip in your credit score. The lender will also report your monthly payments to the credit bureaus, which can help you build credit with on-time payments.
- Are unsecured loans safe?
Unsecured loans are safe when they come from reputable lenders. A lender should check your ability to repay the loan, be transparent about the loan's overall cost and help you build credit.
Methodology
NerdWallet’s review process evaluates and rates personal loan products from more than 35 financial technology companies and financial institutions. We collect over 50 data points and cross-check company websites, earnings reports and other public documents to confirm product details. We may also go through a lender’s pre-qualification flow and follow up with company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer consumer-friendly features, including: soft credit checks to pre-qualify, competitive interest rates and no fees, transparency of rates and terms, flexible payment options, fast funding times, accessible customer service, reporting of payments to credit bureaus and financial education. Our ratings award fewer points to lenders with practices that may make a loan difficult to repay on time, such as charging high annual percentage rates (above 36%), underwriting that does not adequately assess consumers’ ability to repay and lack of credit-building help. We also consider regulatory actions filed by agencies like the Consumer Financial Protection Bureau. We weigh these factors based on our assessment of which are the most important to consumers and how meaningfully they impact consumers’ experiences.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodologies for personal loans and our editorial guidelines.
NerdWallet's Best Unsecured Personal Loans in 2024
- LightStream: Best for Large unsecured loans
- SoFi Personal Loan: Best for Unsecured loans for good credit
- Discover® Personal Loans: Best for Unsecured loans with fast funding
- Upstart: Best for Unsecured loans for bad credit
- Prosper: Best for Unsecured loans with hardship support
- Best Egg: Best for Unsecured loans for debt consolidation
- LendingClub: Best for Unsecured joint loans
- Upgrade: Best for Unsecured loans with multiple rate discounts
- Reach Financial Personal Loans: Best for Unsecured loans with customizable repayment terms
