BEST OF
Unsecured Loans With No Collateral: Shop and Apply
Unsecured loans don’t require collateral and can be used for just about any purpose. Compare loans from multiple lenders that offer unsecured personal loans.
Unsecured loans don’t require you to pledge an asset such as a house or car. Instead, borrowers qualify for unsecured loans based primarily on their credit scores and finances.
The best unsecured loan helps you achieve a goal that can benefit you financially. That could mean getting a loan for debt consolidation, which can reduce your debt and help you pay it off faster. Another good use is for home improvements that increase the value of your home.
If you’re considering an unsecured personal loan, compare other, potentially cheaper options, and make sure the monthly payments don’t stress your budget.
Here are some of the top reasons people get unsecured personal loans, plus lenders that offer those loans.
Unsecured loans don’t require you to pledge an asset such as a house or car. Instead, borrowers qualify for unsecured loans based primarily on their credit scores and finances.
The best unsecured loan helps you achieve a goal that can benefit you financially. That could mean getting a loan for debt consolidation, which can reduce your debt and help you pay it off faster. Another good use is for home improvements that increase the value of your home.
If you’re considering an unsecured personal loan, compare other, potentially cheaper options, and make sure the monthly payments don’t stress your budget.
Here are some of the top reasons people get unsecured personal loans, plus lenders that offer those loans.
Summary of Unsecured Loans With No Collateral: Shop and Apply
Lender | NerdWallet Rating | Est. APR | Min. Credit Score | Learn More |
---|---|---|---|---|
Best for Debt consolidation loans | 5.99 - 24.99% | 640 | on Payoff's website | |
Best for Debt consolidation loans | 6.94 - 35.97% | 580 | on Upgrade's website | |
Best for Debt consolidation loans | 6.99 - 19.99% | 660 | on Goldman Sachs's website | |
Best for Debt consolidation loans | 6.99 - 24.99% | 660 | See my rates on NerdWallet's secure website | |
Best for Home improvement loans | 4.49 - 20.49% | 660 | on LightStream's website | |
Best for Home improvement loans | 10.68 - 35.89% | 600 | on LendingClub's website | |
Best for Home improvement loans | 5.99 - 20.69% | 680 | on SoFi's website | |
Best for Wedding loans | 18.00 - 35.99% | None | on OneMain Financial's website | |
Best for Wedding loans | 7.95 - 35.99% | 640 | on Prosper's website | |
Best for Boat loans | 5.99 - 24.49% | None | See my rates on NerdWallet's secure website | |
Best for Boat loans | 6.70 - 18.00% | None | See my rates on NerdWallet's secure website | |
Best for Medical loans | 6.16 - 35.99% | 580 | on Upstart's website | |
Best for Medical loans | 9.95 - 35.99% | 550 | on Avant's website |
Our picks for
Debt consolidation loans
These lenders offer consumer-friendly features for those looking to combine debts.
on Payoff's website
Payoff
Min. Credit Score
Est. APR
Loan Amount
on Payoff's website
on Upgrade's website
Upgrade
Min. Credit Score
Est. APR
Loan Amount
on Upgrade's website
on Goldman Sachs's website
Marcus by Goldman Sachs
Min. Credit Score
Est. APR
Loan Amount
on Goldman Sachs's website
on NerdWallet's secure website
Discover® Personal Loans
Min. Credit Score
Est. APR
Loan Amount
on NerdWallet's secure website
Our picks for
Home improvement loans
These lenders offer low rates for good-credit borrowers looking to make home renovations.
on LightStream's website
LightStream
Min. Credit Score
Est. APR
Loan Amount
on LightStream's website
on LendingClub's website
LendingClub
Min. Credit Score
Est. APR
Loan Amount
on LendingClub's website
on SoFi's website
SoFi

Min. Credit Score
Est. APR
Loan Amount
on SoFi's website
Our picks for
Wedding loans
on OneMain Financial's website
OneMain Financial
Min. Credit Score
Est. APR
Loan Amount
on OneMain Financial's website
on Prosper's website
Prosper
Min. Credit Score
Est. APR
Loan Amount
on Prosper's website
Our picks for
Boat loans

on NerdWallet's secure website
Wells Fargo Personal Loan

Min. Credit Score
Est. APR
Loan Amount
on NerdWallet's secure website

on NerdWallet's secure website
First Tech Credit Union Personal Loan

Min. Credit Score
Est. APR
Loan Amount
on NerdWallet's secure website
Our picks for
Medical loans
An unsecured loan from any of these lenders can be used for dental, cosmetic and medical procedures.
on Upstart's website
Upstart
Min. Credit Score
Est. APR
Loan Amount
on Upstart's website
on Avant's website
Avant
Min. Credit Score
Est. APR
Loan Amount
on Avant's website
Common uses for unsecured personal loans
Most financial experts advise against borrowing for discretionary purposes, like weddings or vacations, for which there can be less expensive options. At the same time, some people prefer the fixed payments and terms associated with personal loans.
Here are NerdWallet’s recommendations, based on what you plan to use the loan for.
Why choose an unsecured loan: Debt consolidation involves combining debt from multiple sources into a single monthly payment, ideally at a lower interest rate. Using a personal loan to consolidate means one payment over a fixed period, giving you an end date to work toward.
Why choose an unsecured loan: A home improvement loan is a good idea if you don’t have a lot of equity in your home or want to avoid using your home to secure the loan. Unsecured home improvement loans typically have higher, fixed interest rates but shorter repayment terms than home equity loans and lines of credit.
» MORE: Ways to use a personal loan
Why choose an unsecured loan: A personal loan for a wedding is a good option if you’re going to borrow anyway and can get a lower rate than you would on a credit card. Because you borrow a set amount, you’ll also avoid the temptation of overspending.
Why choose an unsecured loan: Some unsecured loans come with the benefits of online pre-qualification and fast funding. They also don’t require a down payment, but they can have higher rates since you’re not using collateral.
Why choose an unsecured loan: Whether you’re looking to finance a dental, medical or cosmetic procedure, a personal loan can help with expenses not covered by insurance or savings. It can be an expensive way to finance health-related expenses, and you may have cheaper options, so shop around before you apply.
» MORE: How to pay your medical bills
How to compare unsecured loans
Here are some features of unsecured loans you can compare across lenders.
Annual percentage rate. The APR represents the entire cost of the loan, including the interest rate and any fees the lender tacks onto the loan. Many lenders offer APRs between 6% and 36% and should let you know APR ranges upfront.
Fixed or variable rate. Many unsecured loans have fixed rates, meaning the interest rate you’re approved for is the one you’ll pay for the entire loan term. Some lenders offer a variable-rate option, which is subject to change over the life of the loan.
Monthly payments. Your APR and repayment term translates to a monthly payment. Review that amount and compare it across lenders to understand how the loan could fit into your budget.
Time to fund. Some lenders can fund a loan the same business day you apply for it, while others fund it by the next business day. You can help move the application process along by being prepared with the appropriate documentation and responding promptly to lender questions.
Loan features. Some lenders offer perks like free access to your credit score, financial education resources or networking opportunities.
How to qualify for a personal loan
Lenders may have different qualification requirements, and they all weigh those requirements differently, but there are some general factors that help you qualify for low rates.
Good credit. Good- and excellent-credit borrowers (above 689 FICO) typically get the lowest APR on a personal loan. Some lenders cater to fair- and poor-credit borrowers (300-689 FICO), but the best terms and rates are reserved for those with high credit scores.
» MORE: Not sure if you qualify for a loan? See what credit score you need to get one
Low debt-to-income ratio. Many lenders check if your debt-to-income ratio is low enough to support monthly repayments. Some say borrowers need a 40% 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.
Pre-qualifying for a personal loan with an online lender lets you see potential loan terms, including the loan’s interest rate, loan amount and payments. You can then compare offers to find the loan that gives you an amount you need and a payment you can afford.
Applying for an unsecured loan
Once you've pre-qualified, the application process can vary by lender. Online lenders, bank lenders and credit unions have different application processes.
Online applications: If you're applying for a loan online, you can typically complete the entire process without having to make a phone call. In some cases, your loan can be funded the same or next business day.
Bank applications: Some banks have online applications, but many require an in-person visit to complete the process. Banks may also require you have an existing account before you apply.
Credit union applications: You usually need to be a member of a credit union to borrow money from it. Membership is often tied to where you live or work, or organizations you're involved with, but some credit unions allow anyone to be a member.
Here's what you usually need for an unsecured loan application:
Phone number.
Social Security number.
Employer information.
Education history.
Financial information, like retirement assets, home equity and bank account information.
» MORE: Apply for a loan in three steps
Unsecured loan alternatives
You may want to consider alternatives along with a personal loan. There are a variety of personal loan alternatives, depending on what you're financing.
0% APR credit card: These cards work well if you need to finance a wedding, repay medical bills or consolidate debt. You need good or excellent credit to qualify and debt small enough to be repaid in the card's 12- to 18-month, interest-free period.
Credit unions: Credit unions tend to offer lower interest rates to members with fair or poor credit (a score under 690) than banks or online lenders do. Federal credit unions cap their APRs at 18%.
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 lets you use funds as needed, and you only pay interest on what you use.
» MORE: Decide how to fund a renovation with our home improvement loan tool
Last updated on January 20, 2021
Methodology
NerdWallet's ratings for personal loans award points to lenders that offer consumer-friendly features, including soft credit checks, no fees, transparency of loan rates and terms, flexible payment options, accessible customer service, reporting of payments to credit bureaus and financial education. We also consider the number of complaints filed with agencies like the Consumer Financial Protection Bureau. This methodology applies only to lenders that cap interest rates at 36%, the maximum rate financial experts and consumer advocates agree is the acceptable limit for a loan to be affordable. NerdWallet does not receive compensation of any sort for our reviews.
To recap our selections...
NerdWallet's Unsecured Loans With No Collateral: Shop and Apply
- Payoff: Best for Debt consolidation loans
- Upgrade: Best for Debt consolidation loans
- Marcus by Goldman Sachs: Best for Debt consolidation loans
- Discover® Personal Loans: Best for Debt consolidation loans
- LightStream: Best for Home improvement loans
- LendingClub: Best for Home improvement loans
- SoFi: Best for Home improvement loans
- OneMain Financial : Best for Wedding loans
- Prosper: Best for Wedding loans
- Wells Fargo Personal Loan: Best for Boat loans
- First Tech Credit Union Personal Loan: Best for Boat loans
- Upstart: Best for Medical loans
- Avant: Best for Medical loans
Frequently asked questions
A loan that's unsecured is one that you don't need collateral, like a car or savings account, to get. 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 (above 689 FICO), 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.
» MORE: Learn about safe unsecured loans