Our experts answer readers' personal loan questions and write unbiased product reviews (here's how we assess personal loans). In some cases, we receive a commission from our partners; however, our opinions are our own.
If you need money to cover an expense or make a purchase that you don't have enough cash to immediately afford, you may 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.
Best Unsecured Personal Loans
- LightStream Personal Loan: Best for low interest rates
- PenFed Credit Union Personal Loan: Best for small loan amounts
- SoFi Personal Loan: Best for unemployment protection
- Payoff Loan™: Best for debt consolidation
- Wells Fargo Personal Loan: Best brick-and-mortar lender
- Upstart Personal Loan: Best for poor credit
Next Step: See if you're prequalified for a loan without impacting your credit score.
When shopping for a personal loan, you'll find there are 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 best personal loans offer a variety of term lengths and other features.
Compare the Best Unsecured Personal Loans
Unsecured Personal Loan Frequently Asked Questions
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.
You can borrow as much with an unsecured personal loan as you can qualify for and afford to repay. A $100,000 loan is typically the most you can get.
It depends on the lender. Some lenders have high minimum credit scores for their loans, while others are more generous with their minimums. On our list of the best unsecured installment loans, a great option for borrowers with bad credit is Upstart, which has a minimum requirement of just 600. To get a loan with bad credit, take a look at credit unions and secured loans.
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.
Unsecured loans can be used for many purposes, depending on the lender, including debt consolidation, home improvements, and moving expenses.
See our broader ratings methodology for personal loans »
Best Unsecured Loan Company Reviews
LightStream Personal Loan
LightStream has some of the lowest unsecured personal loan rates in the market, provided you have a good enough credit score 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 can qualify for an unsecured installment loan loan from the company, it's a great choice.
Watch out for: No loan preapproval. 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
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 co-borrowers are allowed. Co-borrowers can help you get a better rate or qualify if you otherwise would not have.
Watch out for: Membership requirements. While you need to 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
SoFi Personal Loan
SoFi has a high maximum loan amount of $100,000, so if you need to finance a large expense, you're in luck. However, its minimum loan amount is $5,000, making it a poor option for borrowers looking for just a bit of cash to tide them over.
The company also offers unemployment protection, meaning you'll receive forbearance if you lose your job during your loan repayment. This unique feature provides for as much as 12 months of forbearance that you apply for in three-month increments.
Watch out for: High credit score required. To get a no-collateral loan from SoFi, you'll need at least a 680 credit score. This puts the company out of reach for some borrowers. For those with lower credit scores, consider one of the other companies on our list of the best unsecured loans.
PayOff Personal Loan
Happy Money's Payoff loan is an excellent choice for debt consolidation, as the company designs its personal loan offerings specifically for this purpose. It's easier to qualify with worse credit. 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.
Unfortunately, you will pay an origination fee between 0% to 5% with Happy Money. Some of the other lenders on our list don't charge these fees.
Watch out for: Limited loan usage. 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
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 for you.
You can also borrow as much as $100,000 with the lender, making it a solid option for borrowers looking for large sums of money.
Watch out for: History of controversies. Wells Fargo has been at the heart of numerous scandals over the past several years, including creating fake bank accounts to meet sales goals, predatory lending practices to minorities, and overcharging customers on home and auto loans.
Wells Fargo Personal Loan Review
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.
Watch out for: Hefty origination fees. Upstart's personal loans can have origination fees 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 brick-and-mortar lender
Other Unsecured Personal Loan Lenders We Considered
- Best Egg Personal Loan. This lender has higher starting rates and maximum rates than most of the other lenders on our list. Additionally, its maximum loan amount is just $35,000.
- Discover Personal Loans. Discover also has a low maximum loan amount of $35,000, making it not the best option for borrowers looking to finance expensive purchases. The company also charges up to $39 in late fees.
- Avant Personal Loan. While Avant is a good option for borrowers with bad credit, it charges multiple types of fees and has high minimum and maximum APRs.
- Rocket Loans Personal Loan. You can only choose between a three- or five-year repayment term length with Rocket Loans. Other companies on our list offer you more options for repayment.
See our picks for the best low-interest personal loans »
Unsecured Loan Lender Trustworthiness
Whether you're interested in taking out a $5,000 loan or a $100,000 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 |
| SoFi Personal Loan | A+ |
| LightStream Personal Loan | A+ |
| PayOff Personal Loan | A+ |
| Upstart Personal Loan | A+ |
| PenFed Credit Union Personal Loan | A+ |
| Wells Fargo Personal Loan | F |
With the exception of Wells Fargo, our top picks are rated A+ 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 an F by the BBB due to government actions against the business and a failure to respond to 14 complaints. Most recently, the Consumer Financial Protection Bureau in December 2022 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.
Why You Should Trust Us: Our Methodology
We rate all personal loan products in our reviews and guides on a 1-5 scale. The overall rating is a weighted average that takes into account seven different categories, some of which are judged more heavily than others. They are:
- 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 category's weighting is based on its importance to your borrowing experience. Rates and fees have the most direct impact on the overall cost of your loan, so we weigh those the most heavily. Customer support and ethics are still very important parts of the borrowing experience, but do not directly tie to a personal loan's terms, so they have less of an impact on the overall rating.
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer. Read our editorial standards.
Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.
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