Unsecured Personal Loans: Borrow With No Collateral
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.
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An unsecured loan is a loan that 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.
Unsecured loans can be used for almost any purpose. If you’re considering an unsecured personal loan, compare potentially cheaper options, and make sure the monthly payments don’t stress your budget.
Why trust NerdWallet? The personal loans editorial team at NerdWallet has objectively reviewed and compared more than 35 financial institutions to find the best unsecured personal loans. Our picks feature a variety of loan purposes, loan amounts and credit requirements. See our full methodology at the bottom of this page.
An unsecured loan is a loan that 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.
Unsecured loans can be used for almost any purpose. If you’re considering an unsecured personal loan, compare potentially cheaper options, and make sure the monthly payments don’t stress your budget.
Why trust NerdWallet? The personal loans editorial team at NerdWallet has objectively reviewed and compared more than 35 financial institutions to find the best unsecured personal loans. Our picks feature a variety of loan purposes, loan amounts and credit requirements. See our full methodology at the bottom of this page.
Unsecured Personal Loans: Borrow With No Collateral
Lender | NerdWallet rating | Est. APR | Loan amount | Min. credit score | Learn more |
---|---|---|---|---|---|
LightStream Get rate on LightStream's website | Best for Home improvement loans | 6.99- | $5,000- | 660 | Get rate on LightStream's website |
![]() SoFi Get rate on SoFi's website | Best for Home improvement loans | 8.99- | $5,000- | None | Get rate on SoFi's website |
![]() Rocket Loans Get rate on Rocket Loans' website | Best for Home improvement loans | 7.73- | $2,000- | 640 | Get rate on Rocket Loans' website |
![]() Achieve Personal Loans Get rate on Achieve's website | Best for Debt consolidation loans | 7.99- | $5,000- | 620 | Get rate on Achieve's website |
![]() Discover® Personal Loans Get rate on Discover's website | Best for Debt consolidation loans | 6.99- | $2,500- | 660 | Get rate on Discover's website |
Happy Money Get rate on Happy Money's website | Best for Debt consolidation loans | 10.50- | $5,000- | 640 | Get rate on Happy Money's website |
Best Egg Get rate on Best Egg's website | Best for Medical loans | 8.99- | $2,000- | 600 | Get rate on Best Egg's website |
Upstart Get rate on Upstart's website | Best for Medical loans | 6.50- | $1,000- | None | Get rate on Upstart's website |
LendingClub Get rate on LendingClub's website | Best for Wedding loans | 8.30- | $1,000- | 600 | Get rate on LendingClub's website |
![]() Laurel Road Personal Loan See my rates on NerdWallet's secure website | Best for Wedding loans | 8.99- | $5,000- | 660 | See my rates on NerdWallet's secure website |
![]() PenFed Credit Union Personal Loan See my rates on NerdWallet's secure website | Best for Boat loans | 7.74- | $600- | 700 | See my rates on NerdWallet's secure website |
Prosper See my rates on NerdWallet's secure website | Best for Boat loans | 6.99- | $2,000- | 560 | See my rates on NerdWallet's secure website |
![]() U.S. Bank Personal Loan See my rates on NerdWallet's secure website | Best for Boat loans | 8.99- | $1,000- | 680 | See my rates on NerdWallet's secure website |
![]() Upgrade Get rate on Upgrade's website | Best for Bad credit loans | 8.24- | $1,000- | 560 | Get rate on Upgrade's website |
Universal Credit Get rate on Universal Credit's website | Best for Bad credit loans | 11.69- | $1,000- | 560 | Get rate on Universal Credit's website |
Our pick for
Home improvement loans
These lenders offer low rates for borrowers looking to make home renovations.
Our pick for
Debt consolidation loans
These lenders offer consumer-friendly features for those looking to combine debts.
Our pick for
Medical loans
An unsecured loan from these lenders can be used for dental, cosmetic and medical procedures.
Our pick for
Wedding loans
An unsecured loan from one of these lenders can help cover the cost of a wedding.
Laurel Road Personal Loan

Est. APR
8.99-Loan amount
$5,000-Min. credit score
660on NerdWallet's secure website
Our pick for
Boat loans
These lenders offer a wide range of loan amounts and terms to help finance a boat purchase.
PenFed Credit Union Personal Loan

Est. APR
7.74-Loan amount
$600-Min. credit score
700on NerdWallet's secure website
Prosper
Est. APR
6.99-Loan amount
$2,000-Min. credit score
560on NerdWallet's secure website
U.S. Bank Personal Loan

Est. APR
8.99-Loan amount
$1,000-Min. credit score
680on NerdWallet's secure website
Our pick for
Bad credit loans
These lenders offer unsecured personal loans to borrowers with low credit scores.
What is an unsecured personal loan?
An unsecured personal loan is a loan from an online lender, bank or 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 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, which can increase the value of your home.
What is the difference between secured and unsecured loans?
A secured loan requires you to offer collateral as part of the loan agreement. Examples of collateral include your car, house, or a savings or retirement account.
Since secured loans are backed by an asset, borrowers who have lower credit scores may qualify for a better interest rate or higher loan amount compared with an unsecured loan. But there’s a catch — if you fail to repay a secured loan, the lender can seize your collateral.
With an unsecured loan, you don’t risk collateral, but it may be harder to qualify. Lenders look at credit score, credit history, income and existing debt when deciding whether to approve you.
Pros and cons of secured and unsecured loans
Pros | Cons | |
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Secured loans |
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Unsecured loans |
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How do unsecured loans work?
To get an unsecured loan, you’ll need to apply with a bank, credit union or 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.
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, or APR, and includes interest and any fees associated with the loan.
For example, if you apply for a $7,000 unsecured personal loan at 15.5% APR and choose a two-year repayment term, you’ll make monthly payments of $341. The loan will cost $1,186 in total interest.
Here’s a look at average personal loan interest rates, based on your credit bracket.
How's your credit? | Score range | Estimated APR |
Excellent | 720-850. | 11.3%. |
Good | 690-719. | 15.6%. |
Fair | 630-689. | 22.3%. |
Bad | 300-629. | 25.2%. |
Source: Average rates are based on aggregate, anonymized offer data from users who pre-qualified in NerdWallet’s lender marketplace from July 1, 2022, to Oct. 31, 2022. Rates are estimates only and not specific to any lender. The lowest credit scores — usually below a 500 credit score — are unlikely to qualify. Information in this table applies only to lenders with APRs below 36%.
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 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 to pay for medical expenses that aren’t covered by insurance or savings. However, it can be an expensive way to finance health-related expenses, 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 loans can also finance large purchases, such as a boat, motorcycle or RV, though these loans are often secured by the vehicle you’re buying.
How to qualify for an unsecured personal loan
Lenders may have different qualification requirements, but there are some general factors that help you qualify for low rates.
Good credit. Good- and excellent-credit borrowers (690 credit score or higher) 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 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.
How to apply for an unsecured personal loan
Pre-qualify: Make sure 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.
Apply: 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’ll also need to submit documentation — usually proof of identity, employment and income.
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.
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 cards work well if you need to finance a major expense, 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 interest-free promotional period, which can last 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 lets you use funds as needed, and you only pay interest on what you use.
Last updated on November 29, 2022
Methodology
NerdWallet’s review process evaluates and rates personal loan products from more than 35 financial institutions. We collect over 45 data points from each lender, interview company representatives and compare the lender with others that seek the same customer or offer a similar personal loan product. 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. 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.
This methodology applies only to lenders that cap interest rates at 36%, the maximum rate most financial experts and consumer advocates agree is the acceptable limit for a loan to be affordable. NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodologies for personal loans and our editorial guidelines.
To recap our selections...
NerdWallet's Unsecured Personal Loans: Borrow With No Collateral
- LightStream: Best for Home improvement loans
- SoFi: Best for Home improvement loans
- Rocket Loans: Best for Home improvement loans
- Achieve Personal Loans: Best for Debt consolidation loans
- Discover® Personal Loans: Best for Debt consolidation loans
- Happy Money: Best for Debt consolidation loans
- Best Egg: Best for Medical loans
- Upstart: Best for Medical loans
- LendingClub: Best for Wedding loans
- Laurel Road Personal Loan: Best for Wedding loans
- PenFed Credit Union Personal Loan: Best for Boat loans
- Prosper: Best for Boat loans
- U.S. Bank Personal Loan: Best for Boat loans
- Upgrade: Best for Bad credit loans
- Universal Credit: Best for Bad credit 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 (a 690 score 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.