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If you need money to cover an emergency expense or an important purchase that you don't have enough cash to afford immediately, you might consider taking out a personal loan. You can use a personal loan for debt consolidation, medical expenses, and home improvement projects, among many other purposes.
When shopping for a personal loan, you'll find two main types: secured and unsecured. Secured loans are backed by collateral, such as a house or a car, that the lender can take if you don't pay.
Unsecured loans don't require collateral and typically come with higher interest rates than secured loans. Most personal loans are unsecured, and the most popular loans offer a variety of term lengths and other features.
Best Unsecured Personal Loans of 2024 Summary
- Best for low interest rates: LightStream Personal Loan
- Best for small loan amounts: PenFed Credit Union Personal Loan
- Best for debt consolidation: Payoff Loan™
- Best brick-and-mortar lender: Wells Fargo Personal Loan
- Best for poor credit: Upstart Personal Loan
- Best for large loan amounts: SoFi Personal Loan
- Best for good credit: Discover Personal Loans
Compare Personal Loan Rates
Compare the Top Unsecured Personal Loans
6.99% to 25.49% (with AutoPay discount, rates vary by loan purpose)
$5,000 to $100,000
660
- Competitive APR
- Approval decisions should come shortly after applying
- Loans can be funded the same day
- Wide range of borrowing amounts and terms
- No fees
- Only available to people with good credit
- No pre-approval option
LightStream offers some of the lowest rates on personal loans out there, provided you have a great credit score. The lender also has loans of up to $100,000 and can supply you with funding on the same day you apply and are approved.
LightStream Personal Loan- Loan amounts range from $5,000 to $100,000
- Loan term lengths range from 2 to 12 years
- Apply online and you'll receive a response shortly during business hours.
- Receive your funds as soon as the same day
- Loans are made by Truist Bank, member FDIC
8.99% to 17.99%
$600 to $50,000
580
- Wide range of loan amounts
- Low minimum APR
- No origination fees or prepayment penalties
- Coborrowers allowed
- Need to be a member to get a loan
- Late fee
For borrowers with excellent credit, PenFed Credit Union has great minimum interest rates on its personal loans. The best personal loan for you depends on your credit score, which will determine what you qualify for and can lower your rate.
PenFed Credit Union Personal Loan- Loan amounts range from $600 to $50,000
- Term lengths between one to five years
- Loans originated by Pentagon Federal Credit Union
11.72% - 17.99% fixed
$5,000 to $40,000
640
- Competitive interest rates
- No prepayment or late fees
- Low minimum credit score requirement
- Origination fees
- Slow access to funds
- Limited loan purpose
- Not available in all states
A Happy Money Payoff Loan personal loan is a great option for those with good credit scores who are eligible for the lender's lowest APR. However, borrowers can only use the funds to consolidate credit card debt.
Happy Money Payoff Loan™- Loan amounts range from $5,000 to $40,000
- Loan term lengths range between 2 to 5 years
- Origination fee anywhere between 0% and 5%
- Won't be able to get a loan from Happy Money if you live in Maine, Massachusetts, Nebraska, or Nevada
- Can only use for credit card debt consolidation
- Loans made by one of Payoff's lending partners
7.49% to 24.99% (with relationship discount)
$3,000 to $100,000
Undisclosed
- Large maximum loan amounts
- Discounts for current customers
- Established brick-and-mortar lender
- No origination fee or prepayment penalty
- Significant late fees
- History of mismanaging customer information
- No online applications for non-customers
Wells Fargo Personal Loan are a good choice if you need a significant amount of cash, as you can borrow up to $100,000 with the lender. However, if you're not a current customer, you can't apply for a personal loan without visiting a branch.
Wells Fargo personal loan- Loan amounts range from $3,000 to $100,000
- Term lengths range from 1 to 7 years
- Rate discounts to customers who have a checking account with the bank and who make their loan payments automatically through that account
- Non-customers must apply by visiting a branch and talking with a banker
- Loans made by Wells Fargo, member FDIC
7.80% - 35.99% fixed
$1,000 to $50,000 (borrowers in four states are subject to higher minimum loan amounts: Massachusetts: $7,000, Ohio: $6,000, New Mexico: $5,100, Georgia: $3,100)
300
- Small minimum loan amounts
- No prepayment penalty
- Quick loan fund disbursement
- Only three and five year terms
- Potential for high origination fees
Upstart could be the right lender if you have a strong work and education history, but you have a low credit score or limited credit history. The best personal loan for you depends on your credit score, which will determine what you qualify for and can lower your rate.
Upstart- Loan amounts range from $1,000 to $50,000. However, borrowers in four states are subject to higher minimum loan amounts: Massachusetts: $7,000, Ohio: $6,000, New Mexico: $5,100, Georgia: $3,100
- Loan term lengths are either 3 or 5 years
- Can have origination fees up to 8%
- Considers employment and education history when making loan approval decisions
- Loans are made through one of several Upstart-powered bank partners
8.99% - 29.99% fixed (with all discounts)
$5,000 to $100,000
680
- High maximum loan limit
- No fees required
- Competitive APR
- High minimum credit score requirement
- High minimum loan amount
- No in-person support
SoFi is a strong personal loan lender for those with high credit scores — you'll get perks like no fees required. The best personal loan for you depends on your credit score, which will determine what you qualify for and can lower your rate.
SoFi- Loan amounts range from $5,000 to $100,000
- Loan term lengths range from 2 to 7 years
- Usually receive your money in a few business days after your application is approved
- Loans are made by SoFi Lending Corp.
6.99% to 24.99%
$2,500 to $40,000
660
- 30-day money back guarantee
- Low minimum APR
- No origination fees
- Low maximum loan amount
- Late fees
- No co-borrowers allowed
Discover is a strong option for borrowers with good credit, and offers a 30-day money-back guarantee if you're dissatisfied with your loan or find a better rate. However, if you're late on making a payment, you may be charged a hefty $39 late fee.
Discover Personal Loans- Loan term lengths range between 36 to 84 months
Unsecured Loan FAQs
An unsecured personal loan is a loan that you don't need collateral to receive. With some other types of loans, like auto loans or mortgages, you need to put up a car or house in the event you don't pay the loan back.
Yes, you can get an unsecured loan without collateral. Unsecured loans are granted on the basis of the borrower's creditworthiness and not backed by any assets. Secured loans are loans that are backed by collateral, such as an automobile or a home, that the lender can seize in the event the loan is not paid.
You can borrow as much with an unsecured personal loan as you can qualify for and afford to repay. A $100,000 personal loan is typically the most you can get.
Lenders issue unsecured loans based on your creditworthiness. If you don't pay them back, it will damage your credit score, and your lender can sue you in court to recover the money.
Each lender has its own criteria, meaning there's no universal minimum credit score for unsecured personal loans. However, it's common for lenders to have a minimum credit score requirement in the mid-600s.
You can use an unsecured personal loan to pay for almost anything. It's generally advised that you use a personal loan for projects like home improvement or debt consolidation that could improve your financial health.
When you first apply for an unsecured personal loan, the lender will likely conduct a hard credit inquiry, which can cause a temporary decrease in your credit score. However, your credit score should increase as you make on-time payments to repay the loan.
Best Unsecured Personal Loan Company Reviews
Many personal loans are unsecured, meaning they don't require collateral such as a car or house to secure the loan. You'll generally get lower interest rates the higher your credit score is, though we also included an option for poor credit scores in our list.
Best Unsecured Personal Loan for Low Interest Rates: LightStream Personal Loan
LightStream has some of the lowest unsecured personal loan rates on the market, provided you have a credit score that is good enough to qualify for them. While the high end of its APR range is still competitive, you may get a better rate with a credit union if you have a lower credit score.
LightStream also doesn't charge any fees — unlike some of the other lenders on our list. If you qualify for an unsecured installment loan from the company, it's a great choice.
The biggest downside with LightStream is that there is no option for pre-approval. Borrowers looking to shop around for rates to get the best deal won't be able to get a rate from LightStream without going through the full application process. The complete process may temporarily lower your credit score, as LightStream will conduct a hard inquiry to make an approval decision.
LightStream Personal Loan Review
Best Unsecured Personal Loan for Small Loan Amounts: PenFed Credit Union Personal Loan
PenFed has the smallest minimum loan amount of any of the lenders on our list at $600. This is great for borrowers who only need a bit of cash to tide them over.
The credit union has no origination fees or prepayment penalties, and coborrowers are allowed. Coborrowers can help you get a better rate or qualify if you otherwise would not have.
While you must be a member to get a loan, eligibility requirements are fairly lax. Members of the military and employees of qualifying organizations will be eligible. But if you don't qualify, you can join by simply opening a savings account with a $5 minimum deposit.
PenFed Credit Union Personal Loan Review
Best Unsecured Personal Loan for Debt Consolidation: Payoff Loan™
Payoff Loan™ is an excellent choice for debt consolidation, as the company designs its personal loan offerings specifically for this purpose. You need a minimum credit score of 640 to be eligible for a Payoff personal loan, which is toward the lower end of the fair range of scores.
Happy Money charges an origination fee between 0% to 5%. However, some of the other lenders on our list don't charge these fees.
Borrowers need to watch out for this lender's limited loan usage restrictions. While a Payoff Loan™ is an excellent choice for consolidating debt, that's the only reason you can take out a loan from the company. If you have a different loan purpose, such as wedding expenses or home improvement, you can't get financing from the company.
Happy Money Personal Loan Review
Best Unsecured Personal Loan for Brick-and-Mortar Locations: Wells Fargo Personal Loan
Wells Fargo is the best brick-and-mortar lender on our list, with about 4,700 locations throughout the country. If you value in-person support, it may be a great choice.
You can borrow as much as $100,000 with the lender, making it a solid option for borrowers looking for large sums of money.
One thing to be aware of is that Wells Fargo has been at the heart of numerous scandals over the past several years. This includes creating fake bank accounts to meet sales goals, predatory lending practices to minorities, and overcharging customers on home and auto loans. Whichever lender you choose, do your own research before deciding so you have all the facts.
Wells Fargo Personal Loan Review
Best Unsecured Personal Loan for Poor Credit: Upstart Personal Loan
Upstart is the best lender on our list for borrowers with poor credit, as it has a minimum credit score of just 600. This makes it accessible to borrowers who have shakier credit histories. It also funds its unsecured loans the next business day after approval.
The lender also caters to borrowers looking for small unsecured loan amounts, with a minimum of just $1,000.
Borrowers need to keep in mind that Upstart's personal loans can have origination fees of up to 8%, which will take a big chunk out of your overall loan proceeds. You can avoid those fees with some of the other lenders on our list
Best Unsecured Personal Loan for Large Loan Amounts: SoFi Personal Loan
SoFi stands out from other lenders by offering unsecured personal loans of up to $100,000. It also charges no fees and offers flexible terms of 2-7 years.
The online application process is quick and easy — many borrowers receive their funds the same day they apply. Customers are generally pleased with the lender, giving SoFi an average of 4.5 stars on Trustpilot.
Best Unsecured Personal Loan for Good Credit: Discover Personal Loans
With no fees, flexible terms, and competitive interest rates, Discover offers some of the best unsecured personal loans on the market.
Loans of up to $40,000 are available, and you can receive your funds the next business day after your application is accepted. To be eligible for these borrower-friendly loans, you'll need a minimum credit score of 660.
Unsecured Loan Lender Trustworthiness
Whether you're interested in taking out a $5,000 loan or a $10,000 loan, finding the right provider can help with your loan approval experience. We've compared each institution's Better Business Bureau score to give you another piece of information to choose your lender. The BBB measures businesses based on factors like their responsiveness to customer complaints, honesty in advertising, and transparency about business practices. Here is each company's score:
| Lender | BBB Grade |
| LightStream Personal Loan | A |
| PayOff Personal Loan | A |
| Upstart Personal Loan | A+ |
| PenFed Credit Union Personal Loan | A+ |
| Wells Fargo Personal Loan | F |
| SoFi Personal Loan | A+ |
| Discover Personal Loan | A+ |
With the exception of Wells Fargo, our top picks are rated A or higher by the BBB. Know that a high BBB score does not ensure a positive relationship with a lender, and you should keep researching and talking with others who have used the company to get the most complete information possible.
Wells Fargo is currently rated F by the BBB due to government actions against the business and a failure to respond to 14 complaints. Most recently, in December 2022, the Consumer Financial Protection Bureau ordered Wells Fargo to return $2 billion to customers and pay a $1.7 billion penalty for legal violations involving auto loans, mortgages, and deposit accounts. The bank illegally charged fees and interest penalties on auto and mortgage loans. Additionally, it misapplied payments to those loans for many customers.
If you're uncomfortable with this history, you may want to use one of the other personal loan lenders on our list.
How to Qualify for an Unsecured Loan
There are several factors that go into qualifying for an unsecured installment loan, including your credit score, income, and credit history.
Generally, you'll need a credit score in the mid-600s to get a no-collateral loan. Some lenders, like Upstart, will accept borrowers with lower scores. However, when you have a lower credit score you'll often pay a higher interest rate.
In addition to a solid credit score, you'll need proof of your employment and ability to repay to determine eligibility. Lenders will check your debt-to-income ratio to ensure you haven't borrowed more than you can feasibly pay back.
Additionally, look into options for prequalifying for a personal loan to get a sense of what options are available to you.
How to Qualify for an Unsecured Personal Loan
Several factors go into qualifying for an unsecured installment loan, including your credit score, income, and credit history.
Generally, you'll need a credit score in the mid-600s to get a no-collateral loan. Some lenders, like Upstart, will accept borrowers with lower scores. However, when you have a lower credit score, you'll often pay a higher interest rate.
In addition to a solid credit score, you'll need proof of your employment and ability to repay to determine eligibility. Lenders will check your debt-to-income ratio to ensure you haven't borrowed more than you can feasibly pay back.
Additionally, look into options for prequalifying for a personal loan to get a sense of what options are available to you.
How to Choose the Best Unsecured Personal Loan
Here are factors to consider when comparing unsecured personal loan lenders:
- Interest rates and fees. These factors will determine the cost of the loan. Pay special attention to the annual percentage rate (APR), origination fees, late fees, and prepayment penalties.
- Loan amounts. Each lender has its own range of available loan amounts. Before applying for a loan, make sure the lender offers the amount of money you need.
- Repayment terms. The term of a loan tells you how much time you'll have to repay the loan. Longer terms give you lower monthly payments, while shorter terms mean you'll spend less in interest.
- Funding speed. Some lenders can deliver your funds the same day you apply, while others take longer. If you need money ASAP, look for a lender that promises fast funding.
- Credit requirements. Some lenders state the minimum credit score necessary to be eligible for a loan. Only apply with a lender if you meet their credit requirements.
- Customer service. When you accept a loan, you enter a long-term relationship with that lender. For that relationship to be a smooth one, you need to be able to count on excellent customer support. That's why it's best to read customer reviews and learn about each lender's reputation before signing a loan agreement.
Alternatives to Unsecured Personal Loans
While researching unsecured personal loans, consider other options for borrowing money. You might find some alternatives that are cheaper or more accessible.
Secured Personal Loans
Unlike unsecured personal loans, secured personal loans require some sort of collateral. One example is a home equity loan, in which your home equity acts as the collateral necessary to secure the loan. Secured personal loans often come with lower interest rates and longer loan terms — making them an appealing option for anyone who has collateral they can offer.
Credit Cards
Credit cards offer a convenient alternative to a personal loan. You just need to make sure the expenses you have in mind fall within the card's credit limit. It's also worth remembering that credit cards tend to charge high interest rates, making it expensive to maintain a balance. That's why a personal loan might be a more affordable option, especially if you don't think you would be able to pay off your credit card balance on time.
0% APR Credit Cards
Some 0% APR credit cards offer an introductory period of up to 21 months, during which you won't pay any interest. That means you can use the card to consolidate debt, fund a major purchase, and avoid interest payments by paying off the balance before the introductory period ends. Be aware that transferring a balance from another card to a 0% APR credit card might incur a fee.
Why You Should Trust Us: How We Chose the Best Unsecured Personal Loans
We rate all of the personal loan products in our reviews and guides on a 1-5 scale. The total rating is a weighted average that takes seven categories into consideration. Here are the different categories:
- Interest rate (20% of rating)
- Fees (20% of rating)
- Term lengths and loan amounts (15% of rating)
- Funding speed (15% of rating)
- Borrower accessibility (15% of rating)
- Customer support (7.5% of rating)
- Ethics (7.5% of rating)
Each of the seven categories is given a weighting based on its importance to your overall borrowing experience. For instance, interest rates and fees are weighted more heavily than company ethics.
Read more about our methodology for rating personal loans »
