- Best Unsecured Personal Loans in 2025
- Compare the best unsecured loan options
- How do unsecured loans work?
- How to get an unsecured loan
- How to get the best rate on an unsecured loan
- How to get an unsecured loan with bad credit
- Common uses for unsecured personal loans
- Unsecured personal loan alternatives
- What does it mean when a loan is unsecured?
- How do I qualify for an unsecured personal loan?
- Do unsecured loans affect your credit?
- Are unsecured loans safe?
- Methodology
- Recap
- About the authors
LightStream: Best for Large unsecured loans
Qualifications:
Key Facts:LightStream is a solid option for good-credit borrowers, with no fees and a promise to beat competitors’ rates.
Qualifications:- 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.
Available Term Lengths:2 to 7 yearsFees:- Origination fee: None.
- Late fee: None.
Upstart: Best for Unsecured loans for bad credit
Qualifications:
Key Facts: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.
Qualifications:- 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.
Available Term Lengths:3 to 5 yearsFees:- Origination: 0% to 12%.
- Late fee: 5% of the unpaid amount or $15, whichever is greater.
- Insufficient funds fee: $15.
Upgrade: Best for Unsecured loans with multiple rate discounts
Qualifications:
Key Facts: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.
Qualifications:- 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.
Available Term Lengths:2 to 7 yearsFees:- Origination fee: 1.85% to 9.99%.
- Late Fee: $10.
- Failed payment fee: $10.
SoFi Personal Loan: Best for Unsecured loans for good credit
Qualifications:
Key Facts:SoFi offers online personal loans with consumer-friendly features for good- and excellent-credit borrowers.
Qualifications:- 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.
Available Term Lengths:2 to 7 yearsFees:- Origination fee: 0% to 7%.
- Late fee: None.
Prosper: Best for Unsecured loans with hardship support
Qualifications:
Key Facts:Prosper accepts borrowers across the credit spectrum and offers competitive rates and fees, plus instant approval.
Qualifications:- Minimum credit score: 660; borrower average is 709.
- Minimum income: $15,000; borrower average is $137,000.
- Maximum debt-to-income ratio: 50% (excluding mortgage); borrower average is 41.05% (including mortgage).
- Must be at least 18 years old.
- Must provide Social Security number and a U.S. bank account.
Available Term Lengths:2 to 5 yearsFees:- 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: Best for Unsecured loans for debt consolidation
Qualifications:
Key Facts:Best Egg is worth considering for borrowers looking for a secured loan or to consolidate debt, but the loans come with an origination fee.
Qualifications:- 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.
Available Term Lengths:3 to 5 yearsFees:- Origination fee: 0.99% - 9.99%.
LendingClub: Best for Unsecured joint loans
Qualifications:
Key Facts:LendingClub personal loans are a solid option for good- and fair-credit borrowers looking to consolidate debt and build their credit.
Qualifications:- 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.
Available Term Lengths:2 to 6 yearsFees:- Origination fee: 0%-8%
- Late fee: 5% of payment or $15 after 15-day grace period.
- Insufficient funds: $15.
Reach Financial Personal Loans: Best for Unsecured loans with customizable repayment terms
Qualifications:
Key Facts: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.
Qualifications:- 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.
Available Term Lengths:2 to 5 yearsFees:- Origination fee: 4% to 8%.
- Late fee: $15.
- Non-sufficient funds fee: $25.
LightStream: Best for Large unsecured loans
Qualifications:
Key Facts:LightStream is a solid option for good-credit borrowers, with no fees and a promise to beat competitors’ rates.
Qualifications:- 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.
Available Term Lengths:2 to 7 yearsFees:- Origination fee: None.
- Late fee: None.
Upstart: Best for Unsecured loans for bad credit
Qualifications:
Key Facts: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.
Qualifications:- 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.
Available Term Lengths:3 to 5 yearsFees:- Origination: 0% to 12%.
- Late fee: 5% of the unpaid amount or $15, whichever is greater.
- Insufficient funds fee: $15.
Upgrade: Best for Unsecured loans with multiple rate discounts
Qualifications:
Key Facts: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.
Qualifications:- 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.
Available Term Lengths:2 to 7 yearsFees:- Origination fee: 1.85% to 9.99%.
- Late Fee: $10.
- Failed payment fee: $10.
SoFi Personal Loan: Best for Unsecured loans for good credit
Qualifications:
Key Facts:SoFi offers online personal loans with consumer-friendly features for good- and excellent-credit borrowers.
Qualifications:- 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.
Available Term Lengths:2 to 7 yearsFees:- Origination fee: 0% to 7%.
- Late fee: None.
Prosper: Best for Unsecured loans with hardship support
Qualifications:
Key Facts:Prosper accepts borrowers across the credit spectrum and offers competitive rates and fees, plus instant approval.
Qualifications:- Minimum credit score: 660; borrower average is 709.
- Minimum income: $15,000; borrower average is $137,000.
- Maximum debt-to-income ratio: 50% (excluding mortgage); borrower average is 41.05% (including mortgage).
- Must be at least 18 years old.
- Must provide Social Security number and a U.S. bank account.
Available Term Lengths:2 to 5 yearsFees:- 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: Best for Unsecured loans for debt consolidation
Qualifications:
Key Facts:Best Egg is worth considering for borrowers looking for a secured loan or to consolidate debt, but the loans come with an origination fee.
Qualifications:- 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.
Available Term Lengths:3 to 5 yearsFees:- Origination fee: 0.99% - 9.99%.
LendingClub: Best for Unsecured joint loans
Qualifications:
Key Facts:LendingClub personal loans are a solid option for good- and fair-credit borrowers looking to consolidate debt and build their credit.
Qualifications:- 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.
Available Term Lengths:2 to 6 yearsFees:- Origination fee: 0%-8%
- Late fee: 5% of payment or $15 after 15-day grace period.
- Insufficient funds: $15.
Reach Financial Personal Loans: Best for Unsecured loans with customizable repayment terms
Qualifications:
Key Facts: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.
Qualifications:- 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.
Available Term Lengths:2 to 5 yearsFees:- Origination fee: 4% to 8%.
- Late fee: $15.
- Non-sufficient funds fee: $25.
Compare the best unsecured loan options
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 LightStream: 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 SoFi: 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 Discover: 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 Upstart: 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 Prosper: 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 Best Egg: 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 LendingClub: 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 Upgrade: 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 Reach: 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
How do unsecured loans work?
An unsecured personal loan doesn’t require collateral to guarantee the loan, and you can use the money for almost any purpose.
To get an unsecured loan, you’ll need to apply with a bank, credit union or online lender that offers personal loans. If approved, 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.
Loan amounts range from $1,000 to $100,000 and are paid back in terms ranging from one to seven years.
How to get an unsecured loan
1. Pre-qualify with multiple lenders
Before formally applying with a lender, you’ll want to shop around to find the best unsecured loan. The easiest way to do this is by pre-qualifying with lenders, 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.
2. Apply for the loan
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 may offer an instant approval decision.
» MORE: How to apply for a personal loan
3. Get funded
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, 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 the best rate on an unsecured loan
Annual percentage rates on unsecured loans — which includes the loan’s interest and any fees — range from 6% to 36%. The lowest rates will go to the best qualified applicants. Here’s what lenders look for:
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.
Average interest rates on unsecured personal loans
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. | 13.31%. |
Good | 690-719. | 16.48%. |
Fair | 630-689. | 20.23%. |
Bad | 300-629. | 20.62%. |
Source: Average rates are based on aggregate, anonymized offer data from users who pre-qualified through NerdWallet from May 1, 2025, through May 31, 2025. 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%.
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.
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: The best personal loans for bad credit
Look for online lenders that let you pre-qualify, so you can check if you meet the lender’s requirements without risking 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.
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. 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.
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.
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.
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.
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 if you make 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.
Last updated on February 14, 2025
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NerdWallet's Best Unsecured Personal Loans in 2025
- LightStream: Best for Large unsecured loans
- Upstart: Best for Unsecured loans for bad credit
- Upgrade: Best for Unsecured loans with multiple rate discounts
- SoFi Personal Loan: Best for Unsecured loans for good credit
- Prosper: Best for Unsecured loans with hardship support
- Best Egg: Best for Unsecured loans for debt consolidation
- LendingClub: Best for Unsecured joint loans
- Reach Financial Personal Loans: Best for Unsecured loans with customizable repayment terms
