Unsecured personal loans don’t require collateral. Instead, approval is based on your credit score and finances. Check rates from multiple lenders to find the best loan for you.
Checking rates is free and won't impact your credit score.
Unsecured personal loans are available from many banks, credit unions and online lenders. If approved for one, you’ll receive the money in a lump sum in your bank account.
You’ll then repay the loan in monthly installments spread out over a set repayment term. Interest is fixed over the life of the loan, so you’ll make the same payment each month.
Loans range from $1,000 to $100,000, and terms typically range from one to seven years.
As you review the lenders below, narrow your choices by considering your credit score and the amount you need to borrow. Keep an eye on the annual percentage rate, or APR, which is the best way to compare costs among lenders.
Best for unsecured loans with multiple repayment terms
2026 NerdWallet award winner
7.74 - 35.99%
$1K - $50K
600
2 to 7 years
Best for unsecured loans for home improvement
2026 NerdWallet award winner
6.49 - 24.89%
$5K - $100K
660
2 to 7 years
Best for unsecured loans for thin credit
2026 NerdWallet award winner
6.70 - 35.99%
$1K - $75K
None
3 to 5 years
Best for unsecured loans with fast funding
7.99 - 24.99%
$2.5K - $40K
660
3 to 7 years
Best for unsecured loans for good credit
2026 NerdWallet award winner
7.74 - 35.49%
$5K - $100K
None
2 to 7 years
Best for unsecured loans for bad credit
8.99 - 35.99%
$2K - $50K
560
2 to 5 years
Best for unsecured loans with free financial tools
2026 NerdWallet award winner
6.99 - 35.99%
$2K - $50K
600
3 to 5 years
Best for unsecured loans for debt consolidation
2026 NerdWallet award winner
6.53 - 35.99%
$1K - $60K
600
2 to 7 years
Best for unsecured bank loans
9.99 - 19.49%
$2K - $30K
Undisclosed
1 to 5 years
Our team of consumer lending experts follows an objective and robust methodology to rate lenders and pick the best.
30+
Lenders reviewed
We review over 35 lenders, including major banks, top credit unions, leading digital platforms, and high interest installment lenders operating across multiple states.
25+
Categories assessed
Each lender is evaluated across five weighted categories and 27 subcategories, covering affordability, eligibility, consumer experience, flexibility, and application process.
60+
Data points analyzed
Our team tracks and reassesses hundreds of data points annually, including APR ranges, fees, credit requirements, and borrower tools, ensuring up to date, accurate comparisons.
We evaluate more categories than competitors and carefully weigh how each factor impacts your experience.
NerdWallet’s review process evaluates and rates personal loan products from more than 30 financial technology companies and financial institutions. We collect over 60 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.
Here’s a closer look at our top choices and what makes them stand out.
Upgrade offers many timelines to pay off your loan, including repayment terms of two, three, four or five years. If you need longer, you may also qualify for a six- or seven-year term for loans that are over $15,000 and secured by a home fixture for collateral.
Upgrade also shines for its multiple rate discounts and fast funding. The lender says it approves most applications within five minutes and can send the funds to your account in one business day.
The downside: Upgrade charges an origination fee of 1.85% to 9.99%, which isn’t uncommon among online lenders, but there are lenders that charge zero fees.
If your credit is strong and you need to borrow a large amount of money for a home project, LightStream is worth a look. Those who qualify can borrow up to $100,000 — more than most other lenders. LightStream also offers repayment terms of up to 20 years for loans of $25,000 or more that are used for home improvement projects.
LightStream also stands out for charging no fees, which is rare, and offering some of the lowest APRs among lenders (6.49% to 24.89%).
The downside: LightStream requires a minimum credit score of 660, which is steep among online lenders.
Upstart is unique in that it doesn’t have minimum requirements for credit score or credit history. Other lenders weigh those factors heavily when determining who qualifies for their loans, while Upstart considers additional data, such as college education and work history.
Upstart also offers fast funding and a wide range of loan amounts, from $1,000 to $75,000.
The downside: Upstart charges an origination fee up to 12%. While several other lenders charge origination fees, they’re typically under 10%.
Nerdy Tip
You’ll see that many lenders charge origination fees, which can be up to 10% of the loan amount and are typically taken from the loan proceeds. So say you get a $20,000 loan with a 5% origination fee. That 5% — or $1,000 — would be deducted from your loan and leave you with $19,000. And while you receive the lesser amount, you must still repay the higher amount.
Discover can get you funds fast. The lender says it makes same-day application decisions and sends funds to a Discover account that same day or the next business day for other accounts.
Discover also charges no origination fees, late fees or any other types of fees. And if you’re taking out a loan to consolidate debt, Discover will save you a step by sending funds directly to creditors.
The downside: Discover’s minimum credit score is high, at 660. The lender also doesn’t offer any rate discounts.
SoFi offers larger loans than most other lenders — up to $100,000 for those who qualify. SoFi also has joint loans, which may help you manage such a large loan. Discover allows you and someone else you live with to share responsibility for payments.
Adding a co-borrower with better credit or higher income may improve your chances of approval or getting a lower rate.
The downside: SoFi’s APR starts at 8.74%, which is higher than many other lenders on this list.
Prosper’s minimum credit score is 560, which is lower than the minimums for many other lenders. Prosper also says it uses factors beyond credit to determine who qualifies, like bank transactions and rental payment history.
Another bonus if your credit isn’t great: Prosper offers joint loans. Adding a co-borrower with better credit or higher income may help your chances at qualifying and getting a lower rate.
The downside: Prosper is pricey compared to the other lenders on this list. Its starting APR is higher, at 8.99%. It also charges fees for origination, late payments, insufficient funds and mailed checks.
A loan from Best Egg also comes with access to several tools designed to help you manage your overall financial picture. These features help you track your spending and saving, follow a budget, create a debt paydown plan and monitor your credit score. While some other lenders offer tools like this, Best Egg’s lineup is particularly robust.
Best Egg also directly pays creditors for debt consolidation loans, and offers secured loans that may be easier to qualify for.
The downside: Best Egg charges an origination fee up to 9.99%.
If you’re looking to consolidate debt, LendingClub sends loan proceeds to up to 12 creditors on your behalf and may offer a rate discount if you do so.
LendingClub also earns a 5-star rating in part because it has some of the lowest rates on this list, starting at 6.53% for those who qualify. Other perks include offering a joint loan option and allowing you to choose your repayment date and change that date later, which may help if your pay cycle changes.
The downside: LendingClub may charge an origination fee up to 8%.
If you would prefer to get your loan from a bank, rather than an online lender, Citibank is a solid option. It charges no origination fee or fees for late and missed payments, which is rare among lenders.
And, if you’re already a Citi customer, you can typically get your funds the same day you’re approved. (For other borrowers, direct deposit may take up to two business days.)
The downside: Citibank’s starting APR of 9.99% is higher than that of any other lender on this list. It’s also not the lender for you if you need to borrow a large sum. Its maximum loan amount is $30,000 for non-Citi customers, whereas other lenders offer higher loan amounts.
Though an unsecured personal loan can be used for almost any purpose, NerdWallet recommends using one when it can improve your finances. This may mean getting a loan to pay off debt or make important home repairs.
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 a clear end date to work toward.
» COMPARE: Best debt consolidation loans
An unsecured personal loan could help you finance important repairs or updates, potentially increasing the value of your home.
And unlike a secured loan, you won’t have to use your home as collateral to help guarantee the loan.
» COMPARE: Best home improvement loans
If you need to finance a large expense, like a wedding or a cross-country move, you may consider an unsecured personal loan. But compare other borrowing options first, such as a 0% APR credit card, home equity loan or HELOC. (More on those options later.)
Only choose a loan if it’s the method that charges you the least interest, and confirm that you can afford the monthly payments for the duration of the loan.
Plug your estimated APR into our personal loan calculator along with your desired loan amount and loan term to find out how much your monthly payments could be. A longer repayment term will give you lower monthly payments but will cost more in interest overall.
Estimated monthly payment
$309.92
Total interest over 3 years
$1,156.95
Total loan payment
$11,156.95
Loan amount
$10,000
Interest rate
7.25%
Loan term (years)
3
Before formally applying with a lender, shop around to find the best unsecured loan.
The easiest way to do this is by pre-qualifying, which involves filling out a short application on each lender’s website. Pre-qualification includes a soft credit check, which won’t hurt your credit score.
You can then see what loan amount and rate you may qualify for and compare offers between lenders. Though not all lenders offer pre-qualification, most online lenders do.
» MORE: Pre-qualify with multiple lenders for free on NerdWallet
Once you’ve settled on a lender, it’s time to formally submit your application.
Many applications are completely online and require you to list 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 offer an instant approval decision.
» MORE: How to apply for a personal loan
Once approved, you’ll sign the loan documents and receive the loan funds in your bank account.
Funding time varies by lender, but most send the loan funds within a week. Many online lenders can even fund loans the same or next business day after you’re approved.
Once you receive the funds in your account, you’re free to use them however you want, including paying off your creditors or applying them to a large expense.
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
You can still get an unsecured loan even if you have bad credit (any score in the high 500s or lower), and some lenders specifically offer loans to bad-credit borrowers.
Look for online lenders that let you pre-qualify, so you can check if you meet the lender’s requirements without hurting 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.
» COMPARE: The best personal loans for bad credit
Annual percentage rates on unsecured loans — which includes the loan’s interest and any fees — range from 7% to 36%. The lowest rates go to the best qualified applicants.
Here’s what lenders look for:
Good credit: Good- and excellent-credit borrowers (with scores in the mid-600s or higher) typically get the lowest APR on a personal loan. You can still qualify if you have fair or bad credit (a score between 300 and the low 600s), but rates may be higher.
Low debt-to-income ratio: Many lenders check whether your debt-to-income ratio is low enough to take on a personal loan. DTI refers to the percentage of your income already reserved for debt repayment. Most lenders prefer a DTI of 50% or less.
Stable credit history: Lenders favor borrowers who can show they’ve consistently made on-time payments across multiple accounts, like credit cards, auto loans or other installment loans. 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 personal loan approval
Here's an idea of what rate you can expect on an unsecured loan, based on your credit score.
Borrower credit rating | Score range | Estimated APR |
|---|---|---|
Excellent | 720-850. | 11.81%. |
Good | 690-719. | 14.48%. |
Fair | 630-689. | 17.93%. |
Bad | 300-629. | 21.65%. |
Source: Average rates are based on aggregate, anonymized offer data from users who pre-qualified through NerdWallet from January 1, 2024, through December 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%.
If you want to explore financing options outside of personal loans, consider these alternatives:
0% APR credit card: A 0% APR credit card lets you pay off your balance with no interest during the promotional period, which can last up to 21 months.
These credit cards work well if you need to finance a major expense or consolidate existing credit card debt with zero interest. You’ll need good or excellent credit to qualify.
Home equity loans and HELOCs: These are good options for home renovations if you're comfortable using your home as collateral and have equity to draw from. Equity is the portion of your home’s value that you own free and clear.
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.
A loan that's unsecured means you don't need collateral, like a car or savings account, to secure it. Instead, lenders consider your credit score, existing debts, income and other factors on your personal loan application.
Lenders vary in their requirements for borrowers. In most cases, a good credit score (a score in the mid-600s or higher), a low debt-to-income ratio and a credit history of at least a few years will help you qualify.
If you borrow an unsecured loan, your credit is affected in two ways. When you formally apply for the loan, the lender conducts a hard credit inquiry, which causes a temporary dip in your credit score. The lender also reports your monthly payments to the credit bureaus, which can help you build credit if you make on-time payments.
Unsecured loans are safe when they come from reputable lenders. A reputable lender should check your ability to repay the loan with a hard credit pull, be transparent about the loan's overall cost and help you build credit.
