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Best Unsecured Personal Loans in 2024

Last updated on October 9, 2024
Written by 
Annie Millerbernd
Assistant Assigning Editor
Kim Lowe
Edited by 
Kim Lowe
Lead Assigning Editor
Fact Checked
Jackie Veling
Co-written by 
Lead Writer
Annie Millerbernd
Written by 
Assistant Assigning Editor
Kim Lowe
Edited by 
Kim Lowe
Lead Assigning Editor
Fact Checked

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.

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Limited-Time Offer

Expires 01/06/25

EXCLUSIVE OFFER
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Don't miss out on a better rate

Get a 0.50% discount on your next loan from SoFi, NerdWallet's 2024 Best Personal Loan winner. Offer expires 01/06/25. Click on "View details" for offer terms*

SoFi
5.0
NerdWallet rating
SoFi
Est. APR
8.99-29.99%
Get a 0.50% discountLimited-time offer
Limited-time offer - Get a 0.50% discount
Loan amount
$5K-$100K
Min. credit score
None
on SoFi's website

Offer terms:

*NerdWallet Exclusive Offer (Rate Discount):Terms and conditions apply. Offer subject to lender approval. To receive the offer, you must: (1) register and apply through a Nerdwallet issued link by 01/06/25; (2) complete a loan application with SoFi within 45 days of your application submission date; (3) and meet SoFi's underwriting criteria. Once conditions are met and the loan has been disbursed, the interest rate shown in the Final Disclosure Statement will include an additional 0.50% rate discount. Cannot be combined with other offers, with the exception of the 0.25% AutoPay rate discount, 0.25% Direct Pay discount, and 0.25% Direct Deposit discount. SoFi reserves the right to change or terminate the Rate Discount Program to unenrolled participants at any time with or without notice. Fixed rates from 8.99% APR to 29.99% APR. APR reflects the 0.25% autopay discount and a 0.25% direct deposit discount. SoFi Platform personal loans are made either by SoFi Bank, N.A. or , Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender. SoFi may receive compensation if you take out a loan originated by Cross River Bank. These rate ranges are current as of 9/18/24 and are subject to change without notice. Not all rates and amounts available in all states. See SoFi Personal Loan eligibility details at https://www.sofi.com/eligibility-criteria/#eligibility-personal. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, income, and other factors. Loan amounts range from $5,000– $100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 9.99% of your loan amount for Cross River Bank originated loans which will be deducted from any loan proceeds you receive and for SoFi Bank originated loans have an origination fee of 0%-7%, will be deducted from any loan proceeds you receive. Autopay: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi. Direct Deposit Discount: To be eligible to potentially receive an additional (0.25%) interest rate reduction for setting up direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A. or eligible cash management account offered by SoFi Securities, LLC (“Direct Deposit Account”), you must have an open Direct Deposit Account within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled payroll direct deposits of at least $1,000/month to a Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion. This discount will be lost during periods in which SoFi determines you have turned off direct deposits to your Direct Deposit Account. You are not required to enroll in direct deposits to receive a Loan.
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LightStream: Best for Large unsecured loans

Lightstream
4.5

Est. APR

6.99-25.29%

Loan amount

$5K-$100K

Min. credit score

660

See Offers
on LightStream's website
on LightStream's website

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 years
Fees:
  • Origination fee: None.
  • Late fee: None.

SoFi Personal Loan: Best for Unsecured loans for good credit

SoFi

Est. APR

8.99-29.99%

Loan amount

$5K-$100K

Min. credit score

None

See Offers
on SoFi's website
on SoFi's website

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 years
Fees:
  • Origination fee: 0% to 7%.
  • Late fee: None.

Discover® Personal Loans: Best for Unsecured loans with fast funding

Discover

Est. APR

7.99-24.99%

Loan amount

$2.5K-$40K

Min. credit score

660

See Offers
on Discover's website
on Discover's website

Qualifications:

Key Facts:

With competitive rates and no origination fees, Discover personal loans are good options for borrowers with good and excellent credit.

Qualifications:
  • 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.
Available Term Lengths:3 to 7 years
Fees:
  • Origination fee: None.
  • Late fee: $39.

Upstart: Best for Unsecured loans for bad credit

Upstart

Est. APR

7.80-35.99%

Loan amount

$1K-$50K

Min. credit score

None

See Offers
on Upstart's website
on Upstart's website

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 7 years
Fees:
  • Origination: 0% to 12%.
  • Late fee: 5% of the unpaid amount or $15, whichever is greater.
  • Insufficient funds fee: $15.

Prosper: Best for Unsecured loans with hardship support

Prosper

Est. APR

8.99-35.99%

Loan amount

$2K-$50K

Min. credit score

560

See Offers
on NerdWallet
on NerdWallet

Qualifications:

Key Facts:

Prosper accepts borrowers across the credit spectrum and offers competitive rates and fees, plus instant approval.

Qualifications:
  • Minimum credit score: 560; borrower average is 709.
  • Minimum income: No minimum requirement; 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 years
Fees:
  • 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

BestEgg

Est. APR

7.99-35.99%

Loan amount

$2K-$50K

Min. credit score

600

See Offers
on Best Egg's website
on Best Egg's website

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 years
Fees:
  • Origination fee: 0.99% - 9.99%.

LendingClub: Best for Unsecured joint loans

Lending Club

Est. APR

8.91-35.99%

Loan amount

$1K-$40K

Min. credit score

600

See Offers
on LendingClub's website
on LendingClub's website

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 5 years
Fees:
  • Origination fee: 3% to 8%.
  • Late fee: 5% of payment or $15 after 15-day grace period.
  • Insufficient funds: $15.

Upgrade: Best for Unsecured loans with multiple rate discounts

Upgrade

Est. APR

9.99-35.99%

Loan amount

$1K-$50K

Min. credit score

580

See Offers
on Upgrade's website
on Upgrade's website

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 years
Fees:
  • Origination fee: 1.85% to 9.99%.
  • Late Fee: $10.
  • Failed payment fee: $10.

Reach Financial Personal Loans: Best for Unsecured loans with customizable repayment terms

Reach Financial Personal Loans

Est. APR

5.99-35.99%

Loan amount

$3.5K-$40K

Min. credit score

660

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 years
Fees:
  • Origination fee: 4% to 8%.
  • Late fee: $15.
  • Non-sufficient funds fee: $25.

LightStream: Best for Large unsecured loans

Lightstream

Est. APR

6.99-25.29%

Loan amount

$5K-$100K

Min. credit score

660
See Offers
on LightStream's website
on LightStream's website

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 years
Fees:
  • Origination fee: None.
  • Late fee: None.

SoFi Personal Loan: Best for Unsecured loans for good credit

SoFi

Est. APR

8.99-29.99%

Loan amount

$5K-$100K

Min. credit score

None
See Offers
on SoFi's website
on SoFi's website

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 years
Fees:
  • Origination fee: 0% to 7%.
  • Late fee: None.

Discover® Personal Loans: Best for Unsecured loans with fast funding

Discover

Est. APR

7.99-24.99%

Loan amount

$2.5K-$40K

Min. credit score

660
See Offers
on Discover's website
on Discover's website

Qualifications:

Key Facts:

With competitive rates and no origination fees, Discover personal loans are good options for borrowers with good and excellent credit.

Qualifications:
  • 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.
Available Term Lengths:3 to 7 years
Fees:
  • Origination fee: None.
  • Late fee: $39.

Upstart: Best for Unsecured loans for bad credit

Upstart

Est. APR

7.80-35.99%

Loan amount

$1K-$50K

Min. credit score

None
See Offers
on Upstart's website
on Upstart's website

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 7 years
Fees:
  • Origination: 0% to 12%.
  • Late fee: 5% of the unpaid amount or $15, whichever is greater.
  • Insufficient funds fee: $15.

Prosper: Best for Unsecured loans with hardship support

Prosper

Est. APR

8.99-35.99%

Loan amount

$2K-$50K

Min. credit score

560
See Offers
on NerdWallet
on NerdWallet

Qualifications:

Key Facts:

Prosper accepts borrowers across the credit spectrum and offers competitive rates and fees, plus instant approval.

Qualifications:
  • Minimum credit score: 560; borrower average is 709.
  • Minimum income: No minimum requirement; 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 years
Fees:
  • 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

BestEgg

Est. APR

7.99-35.99%

Loan amount

$2K-$50K

Min. credit score

600
See Offers
on Best Egg's website
on Best Egg's website

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 years
Fees:
  • Origination fee: 0.99% - 9.99%.

LendingClub: Best for Unsecured joint loans

Lending Club

Est. APR

8.91-35.99%

Loan amount

$1K-$40K

Min. credit score

600
See Offers
on LendingClub's website
on LendingClub's website

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 5 years
Fees:
  • Origination fee: 3% to 8%.
  • Late fee: 5% of payment or $15 after 15-day grace period.
  • Insufficient funds: $15.

Upgrade: Best for Unsecured loans with multiple rate discounts

Upgrade

Est. APR

9.99-35.99%

Loan amount

$1K-$50K

Min. credit score

580
See Offers
on Upgrade's website
on Upgrade's website

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 years
Fees:
  • Origination fee: 1.85% to 9.99%.
  • Late Fee: $10.
  • Failed payment fee: $10.

Reach Financial Personal Loans: Best for Unsecured loans with customizable repayment terms

Reach Financial Personal Loans

Est. APR

5.99-35.99%

Loan amount

$3.5K-$40K

Min. credit score

660

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 years
Fees:
  • 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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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

  • 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.

  • 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.

  • 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.

  • 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.

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To recap our selections...

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
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