Annie Millerbernd
Jackie Veling
Kim Lowe
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.
This service is free and will not affect your credit score.
Best for unsecured loans with multiple rate discounts
2025 NerdWallet award winner
7.74 - 35.99%
$1K - $50K
600
2 to 7 years
Our take on Upgrade
Upgrade accepts lower credit scores than similar lenders, and it offers multiple rate discounts for its personal loans. Read our review of Upgrade
Best for large unsecured loans
2025 NerdWallet award winner
6.49 - 24.89%
$5K - $100K
660
2 to 7 years
Our take on LightStream
LightStream is a solid option for good- and excellent-credit borrowers, with no fees and a promise to beat competitors’ rates. Read our review of LightStream
Best for unsecured loans for bad credit
6.70 - 35.99%
$1K - $75K
None
3 to 5 years
Our take on Upstart
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 financing choice for large purchases. Read our review of Upstart
Best for unsecured loans with fast funding
2025 NerdWallet award winner
7.99 - 24.99%
$2.5K - $40K
660
3 to 7 years
Our take on Discover® Personal Loans
With competitive rates and no origination fees, Discover personal loans are good options for borrowers with good and excellent credit. Read our review of Discover® Personal Loans
Best for unsecured loans for good credit
2025 NerdWallet award winner
8.99 - 35.49%
$5K - $100K
None
2 to 7 years
Our take on SoFi Personal Loan
SoFi offers large online personal loans with consumer-friendly features for good- and excellent-credit borrowers. Read our review of SoFi Personal Loan
Best for unsecured loans with hardship support
8.99 - 35.99%
$2K - $50K
560
2 to 5 years
Our take on Prosper
Prosper is a peer-to-peer online lending platform that accepts borrowers across the credit spectrum. Read our review of Prosper
Best for unsecured loans for debt consolidation
6.99 - 35.99%
$2K - $50K
600
3 to 5 years
Our take on Best Egg
Best Egg is worth considering for borrowers looking for a secured loan or to consolidate debt. Read our review of Best Egg
Best for unsecured joint loans
2025 NerdWallet award winner
7.90 - 35.99%
$1K - $60K
600
2 to 7 years
Our take on LendingClub
A LendingClub personal loan is a standout option for qualified borrowers who want to pay off debt with flexible terms. Read our review of LendingClub
Best for unsecured loans with customizable repayment terms
7.99 - 35.99%
$3.5K - $40K
660
2 to 5 years
Our take on Reach Financial Personal Loans
Reach Financial provides credit card consolidation loans to borrowers with good credit. The lender offers customizable repayment terms, but lacks other flexible features and transparency. Read our review of Reach Financial Personal Loans
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.
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.
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.
» 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 may 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, such as 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
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 (with scores in the mid-600s or higher) typically get the lowest APR on a personal loan. Some lenders cater to fair- and bad-credit borrowers (with credit scores between 300 and the low 600s), 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.
» 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%.
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.
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.
» 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.
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.
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
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
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.
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. 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 in most cases.
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.
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.
