Jessica Walrack is an experienced freelance writer who has spent more than 11 years in personal finance, with expertise on loans, insurance, banking, mortgages, credit cards, budgeting, and taxes. Her work has been published by CNN, CBS MoneyWatch, U.S. News & World Report, and USA Today.
Meredith Mangan is a senior editor at Fox Money and expert on personal loans.
Updated October 2, 2024
Editorial disclosure: Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. Credible Operations, Inc. NMLS # 1681276, is referred to here as “Credible.”
Most installment loans, including student loans, personal loans, and revolving credit, like credit cards, are unsecured. Eligibility varies among lenders, but typically, you will need good-to-excellent credit (a FICO score of 670 or higher) and a stable income to qualify for the best rates. We'll cover how unsecured loans work, where you can find an unsecured loan, what types are available, and how to qualify.
How do unsecured loans work?
No collateral required
Lenders offering unsecured loans don't require you to pledge collateral to get approved. Instead, they review your credit, employment situation, income, debt, and other factors to determine the likelihood that you'll be able to repay the loan amount. They're also called “signature loans” because the loan is guaranteed by your signature, or promise to repay, as opposed to an asset serving as collateral.
Interest rates are based on income and credit
If you present a higher-than-average risk, you'll likely find it more difficult to get approved for an unsecured loan, and will have to pay a higher interest rate and possible fees if you are approved. Conversely, if you present very little risk, you may get approved easily with competitive rates and terms. Exceptions to this are federal student loans (rates are set, regardless of credit) and short-term BNPL loans.
The mechanics of how an unsecured loan works depends on the specific type you get. Generally, most are installment loans, which provide a lump sum of money that may be sent to you or the company you're buying a product or service from.
Unsecured personal loans are installment loans that allow you to borrow a lump sum of money, which you can use to cover a range of personal expenses.
Interest rates: Lenders communicate the cost of a personal loan via its annual percentage rate (APR). APR is the annualized cost of a loan's interest and any upfront fees. Interest rates and payments are typically fixed, meaning they won't change once you take out the loan. Depending on the lender and your financial profile, rates typically range between 7% and 36%.
Loan purpose: There are few limits regarding what you can use a personal loan for. For example, many lenders offer loans for debt consolidation, home improvements, vacations, moving, weddings, and emergency costs.
Funding times: Funding times are relatively quick, with some lenders offering same-day funding.
Loan amounts: Loan amounts can range from $500 to over $50,000, depending on the lender and the loans' purpose
Loan terms: Repayment periods often range from two to seven years, though this can vary by lender and the loan's purpose.
Origination fees: Origination fees, when applicable, are taken out of the loan balance before you receive it, and can be up to 12% of the loan amount, depending on the lender.
Some lenders offer unsecured loans for bad credit (a FICO score below 580), but these generally have higher rates and origination fees. A secured personal loan may be a better option if you have bad credit.
2. Student loans
Student loans are also unsecured; both private and federal student loans are available. Similar to personal loans, they provide you with a lump sum upfront that you repay, plus interest, through payments over a set term. Federal student loans offer repayment perks like income-driven repayment plans and loan forgiveness.
Interest rates:Private student loan interest rates depend on your credit score and financial profile. Federal student loans offer the same interest rate to all borrowers, regardless of credit score. Rates may be fixed or variable with either loan type. Private student loan rates range between around 4% APR and 18% APR, depending on whether the loan is fixed or variable. Federal student loan rates range between 6.53% and 9.08% for loans disbursed on or After July 1, 2024, and Before July 1, 2025, depending on the loan type.
Loan purpose: Unlike personal loans, the proceeds of a student loan must be used to cover eligible costs associated with attending an approved higher education institution.
Funding times:
Loan amounts: Borrowing limits are typically much larger for private student loans, which may cap the amount you can borrow at the cost to attend your school. Federal student loan limits vary depending on your year in school and the type of loan.
Loan terms: You could have up to 30 years to repay a student loan, depending on the lender and whether the loan is used to consolidate existing student loan debt. Many private student loan lenders offer repayment terms between 5 and 20 years.
If you have a federal student loan and refinance with a private lender, you will lose any federal benefits you may qualify for.
3. Credit cards
Unsecured credit cards provide a revolving credit line that you can use, pay off, and use again. If you carry a balance beyond a billing cycle, you'll be charged interest on the balance according to the card's APR.
Interest rates: Most credit cards charge a variable interest rate, which can increase if interest rates rise. Plus, they also charge compound interest daily, as opposed to simple interest (on personal loans, for example). What this means is that if you carry a balance, you'll be charged interest on any interest charges you haven't paid off yet. The average credit card interest rate was 21.51% APR, according to the Federal Reserve, but APRs can run over 30%, especially if you don't have good credit.
Loan purpose: Credit cards are the ultimate in flexibility and can be used for just about anything.
Funding times: Instant.
Loan amounts: The amount you can borrow with a credit card is determined by your credit limit. Credit cards typically have lower credit limits than the amount you can borrow with an installment loan like a personal loan.
Loan terms: You're only required to make the minimum payment each month, which is usually a small percentage of your balance. But interest is often charged daily on your remaining balance, which is one reason why credit card balances can quickly accumulate if you don't pay them off each month.
If you're eligible for a 0% APR card, you could pay no interest on purchases for an introductory period and only a balance transfer fee (often 3% to 5%) on balance transfers. If you're able to pay off the balance before the 0% introductory period ends, you could save a lot in interest. Introductory periods can last up to 21 months or more.
Buy now, pay later (BNPL) loans are installment loans that allow you to break up retail purchases over time. You may see these from companies like Affirm or Afterpay as you check out online.
Interest rates: Typically, 0% for short-term loans paid in four installments over a period of 6 weeks. Longer loan terms may carry interest rates similar to personal loans.
Loan purpose: Retail purchases.
Funding times: Since funds are routed to the retailer, you can use BNPL to purchase a product the same day you apply.
Loan amounts: Loan amounts are limited to the cost of the item you want to buy.
Loan terms: In most cases, you can opt to split up a purchase into four biweekly, interest-free payments, or a longer payment plan with interest. If you need more than six weeks to pay off a purchase, compare BNPL rates with personal rates to make sure you're getting the best terms.
Notably, short-term BNPL loans may not be reported to the credit bureaus.
Warning
If you fail to make your payments on time, you may be subject to high late-payment fees, sometimes up to $30 or more.
Difference between secured and unsecured loans
The main differences between secured and unsecured loans are:
Collateral requirement: A secured loan requires you to pledge collateral while an unsecured loan doesn't.
Interest rates: Rates are often lower on secured loans like a mortgage or auto loan because the lender can recoup your collateral if you default.
Time to fund: With secured loans, lenders have to appraise the fair market value of the asset you're pledging. The process could take weeks as opposed to days or even same-day funding for some unsecured loans.
Qualification criteria: Lenders may be more willing to make a loan to you or lower your rate when you put an asset on the line. If you don't have good credit, a secured loan could be easier to qualify for. Eligibility requirements for unsecured loans are often more strict.
For example, when you take out a mortgage, mortgage lenders use the home you're buying as collateral. They need to appraise the home in order to know how much to lend, so the process can take more than a month. However, you'll likely have a lower interest rate compared to an unsecured loan, like a personal loan. But if you miss payments and the loan goes into default, the lender can foreclose on your home and sell it to recover what you owe.
On the other hand, with unsecured personal loans, you don't need to pledge any collateral. As a result, if you miss payments and default, the lender can't take an asset from you.
Dependent on collateral and your credit and financial profile
Dependent on your credit and financial profile
Eligibility
Less strict
More strict
How to qualify for an unsecured loan
If you're interested in qualifying for an unsecured loan, start by deciding on the specific type of unsecured loan product you want. For example, do you want an unsecured credit card, personal loan, or BNPL loan?
Once you decide, shop around with different providers and check their eligibility requirements. Each will have a unique process for evaluating applicants, and some will be more lenient than others.
However most will require basic background information, like the following:
Your name
Your address
Your income
Pay stubs, W-2s, or bank statements
Your email address and phone number
Lenders typically conduct a hard credit inquiry when you apply for a loan to review your financial background. This can temporarily ding your credit score for up to a year.
Collect quotes from lenders: Once you find a handful of lenders that look like good fits, collect quotes to find out the rates and terms that each may offer you.
For example, if you're looking for an unsecured personal loan, most lenders allow you to request a quote, or prequalify, on their website or through a loan marketplace (like Credible) without hurting your credit. Prequalification includes a soft credit check and is an estimate of what your rates may look like. However, it's not an official offer of credit and your rates may change once you formally apply.
2. Compare quotes
Compare the loan amounts, APRs, fees, terms, monthly payment amounts, and total costs. Look for a loan with a payment you can comfortably afford from a lender you feel good about. See if you'll get a discount for autopay plus what other discounts are available. Keep in mind that a longer loan term can equate to a lower monthly payment, but higher interest costs over the life of the loan. Make sure a longer term makes sense if you choose one.
3. Apply
If you end up finding a good fit, the next step is to complete the full application. This step will usually require a hard credit check, which could impact your score, and you'll likely need to submit documents to verify your identity and income. If the lender approves you, review the loan documents carefully before signing. Once you agree to the loan, lenders may send the loan funds as soon as the same day, depending on the type of loan you've applied for.
The best unsecured loan for you won't necessarily be best for someone else. Different lenders cater to different borrowers. For example, some focus on excellent-credit borrowers who need large loans, while others focus on bad-credit borrowers who need smaller amounts and are willing to pay a higher APR.
These are the best unsecured personal loans. Personal loans can be used for a wide range of purposes, and typically have higher loan amounts and lower interest rates than credit cards.
Lightstream is one of three Credible partner lenders to offer loan amounts up to $100,000, which makes it ideal for financing large expenses like home improvements or weddings. Funds are available as soon as the same day you apply, and you'll have up to 20 years to repay certain types of loans, including home improvement loans, RV loans, and boat loans. There are no origination fees, and rates are low — Lightstream's lowest APR beats SoFi's advertised lowest APR by 1 percentage point. But you'll need good credit to qualify.
Unlike most lenders, Lightstream does not let you prequalify on its site. Nor does it provide a contact phone number next to its customer service hours on its website.
pros
Same-day funding available
High maximum loan amount
No origination fee
cons
Good credit required
No prequalification process
Not available in Vermont
Loan amount
$5,000 to $100,000
Repayment terms
2 - 20 years, depending on loan purpose
Fees
None
Discounts
Autopay
Eligibility
Available in all states except RI and VT
Min. income
Does not disclose
Customer service
Email
Soft credit check
No
Time to get funds
As soon as the same business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Best Egg is a solid lender for a wide range of borrowers and, notably, scored second for personal loan satisfaction in J.D. Power's Consumer Lending Study. It offers competitive rates, reasonable loan terms and amounts, and personal loans for fair credit. You'll need a FICO score of at least 600 to qualify, but the lower your score, the higher your APR may be. The APR includes the interest rate and origination fees, which range from 0.99% to 9.99% with Best Egg.
Note that if you successfully prequalify with Best Egg, you may be more likely to be approved for the loan relative to other lenders you prequalify with. Based on Credible data, borrowers who chose to apply for a loan with Best Egg were more than twice as likely to be approved (relative to most other Credible partners).
pros
Secured loans available
Low minimum income requirement
Scored second in J.D. Power's Consumer Lending Satisfaction Study
Funds in 1-3 business days
High close rate on loans through Credible platform
cons
Origination fees
No discounts
Not available in DC, IA, VT, or WV
Loan amount
$2,000 to $50,000
Fees
Origination fee, late fee, unsuccessful payment fee, check processing fee
Discounts
None
Eligibility
Available in all states except DC, IA, VT, and WV
Min. income
None
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as 1 to 3 business days after successful verification
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Upstart has one of the lowest available APRs of Credible partner lenders and of all non-partners we reviewed, making it a good choice for well-qualified applicants. However, it's also one of few lenders that doesn't have a minimum credit score requirement (if you apply on the lender's website), which makes it an option if you have bad credit or no credit history. Upstart may charge an origination fee as high as 12%, but good-credit borrowers may not be charged one at all.
Trustpilot gives Upstart 4.9 stars, which is the highest of all lenders we reviewed.
pros
May fund in 1 business day
No minimum credit score requirement on lender site
Low minimum APR
Trustpilot score of 4.9/5 stars
cons
May charge a high origination fee
No discounts offered
Loan amount
$1,000 to $50,000
Fees
Origination fee
Discounts
None
Eligibility
Available nationwide
Min. income
$12,000
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as 1 to 3 business days
Loan uses
Pay off credit cards, consolidate debt, relocate, make a large purchase, and other purposes
It’s worth considering a personal loan through Splash if you have good credit (ideally, a FICO score above 700). The platform offers loans from a wide range of lenders, and next-day funding is available. Plus, Splash has a live chat feature so you can get real-time answers without having to wait on hold or for an email. Loans are available up to $100,000 if you apply via Splash’s website.
Rates are competitive, but borrowers with excellent credit may find lower APRs elsewhere. If you need a repayment term longer than five years, you’ll need to look elsewhere as well.
pros
Excellent customer reviews on Trustpilot
Funding as soon as the next business day
Large loan amounts available
cons
Possible origination fee up to 7.49% (through Credible)
Other lenders may have lower starting APRs
No cosigner option
Loan amount
$5,000 - $100,000 (up to $35,000 on Credible)
Fees
Origination fee
Discounts
None
Eligibility
Available in all states except VT. OH and NM net disbursed amount must be greater than $5,000. MA must be greater than $6,000
Min. income
$45,000
Customer service
Live chat
Soft credit check
Yes
Time to get funds
Typically 1-3 days
Loan uses
Debt consolidation, credit card refinancing, home improvement, major purchases
LendingClub is a solid lender for good credit borrowers and some fair credit borrowers that apply directly on its website. It's easy to prequalify with LendingClub, especially if you're uncomfortable providing your Social Security number, as the company doesn't require it at the prequalification stage. (You will need to provide it if you move forward with a full application.)
While prequalification is not a guarantee that you'll be approved for a loan, LendingClub does a better job than most other Credible partner lenders at approving applicants that have successfully prequalified. In other words, you're less likely to have your application declined once you apply (if you've already prequalified). LendingClub may charge an origination fee between 3% and 8%.
SoFi stands out for offering no-fee personal loans with competitive rates, high loan amounts, long loan terms, discounts for autopay and direct pay, and funding as soon as the same day. Plus, SoFi prioritizes convenience for existing and potential customers with features like live chat and an easy prequalification process that doesn't require your Social Security number.
The main catch is that you need to qualify for a loan with SoFi, which can be hard to do if you don't have good credit. You also won't be able to apply with a cosigner, since SoFi doesn't accept cosigners; nor does it offer secured personal loans.
pros
No fees required
Large loan amounts available
Autopay and direct pay discounts
Same day funding
Long loan terms available
cons
Good credit required
5,000 minimum loan amount
Loan amount
$5,000 to $100,000
Repayment terms
2 - 7 years
Fees
Option to pay an origination fee in exchange for a lower rate
Discounts
Autopay, direct pay
Eligibility
Available in all states
Min. income
Does not disclose
Customer service
Phone, email, live chat
Soft credit check
Yes
Time to get funds
Typically within a few days, given approval and bank account verification, but sometimes within the same day
Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
pros
Fair credit borrowers eligible
Autopay and direct pay discounts
Can fund in as little as 1 business day
Mobile app
Secured loans available
cons
High maximum origination fee
Cosigners not accepted on home improvement loans
Low J.D. Power ranking
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Repayment terms
2 to 7 years
Fees
Origination fee
Discounts
Autopay and direct pay
Eligibility
Available in all states
Min. income
Does not disclose
Customer service
Email
Soft credit check
Yes
Time to get funds
1 business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
BHG Financial stands out for offering the largest loan amounts — up to $200,000 — of any Credible partner lenders. Simply put, if you need an unsecured personal loan over $100,000, there are very few places to look, but BHG is one. You'll have up to 10 years to repay the loan, but you'll need an annual income of at least $100,000 to qualify and a FICO score that's 660 or higher.
Loan amounts start at $20,000, so look elsewhere for small loans. And BHG charges a modest origination fee between 3% and 4%, depending on your financial profile. Loan funds are available within five to 14 days of loan approval. Note that you can't prequalify with BHG.
pros
Eligible applicants can borrow up to $200,000
Considers borrowers with fair credit
Long repayment terms
cons
Not available in IL, ND, and MT
No discounts
Minimum annual income requirement of $100,000
Funding takes at least five days
Loan amount
$20,000 - $200,000
Repayment terms
3 - 10 years
Fees
Origination fees, late fees, other fees may apply
Discounts
None
Eligibility
Available in all states except Illinois, North Dakota, and Montana
Universal Credit is one of a handful of lenders that offers personal loans for bad credit. If your FICO credit score is at least 560, you may be eligible for a Universal Credit personal loan. It offers loan amounts up to $50,000, repayment terms up to seven years, and discounts for direct pay and autopay. Funds are available as soon as the next business day after loan approval.
Note that rates and fees can be relatively high — you may pay an origination fee from 5.25% to 9.99%, and APRs start at 11.69%. If you get a loan with a high interest rate, consider refinancing your personal loan at a lower rate once you've improved your credit score.
pros
Borrowers with bad credit considered
$25,000 annual income requirement
Autopay and direct pay discounts available
Can fund in one business day
cons
High APRs
Potentially high origination fees
Not available in Iowa
Loan amount
$1,000 - $50,000
Repayment terms
3, 5, or 7 years
Fees
Origination fee
Discounts
Autopay and direct pay
Eligibility
A U.S. citizen or permanent resident; not available in DC, IA, SC, WV
Min. income
$25,000 annually
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as 1 business day after acceptance
Loan uses
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
OneMain Financial has multiple options for bad-credit personal loans. There is no minimum credit score required (if you apply directly with OneMain), which means you could get a loan with bad credit (FICO below 580). Plus, cosigners are allowed — a cosigner is someone (ideally, with good credit) who promises to repay the loan if you can't, which can make it easier to qualify or lower your rate. And, secured personal loans are available. You secure a loan with collateral, which may also help you qualify or lower your rate.
Rates are higher than competitors and OneMain charges origination fees as either a flat fee up to $500, or a percentage from 1% to 10% (depending on your state of residence). Note that even if you prequalify for a personal loan with OneMain, getting approved isn't a given.
pros
Flexible eligibility requirements
Offers secured options
Competitive bad-credit loans
Physical presence
cons
Availability
Origination fees
High starting APR
Low maximum loan amount
Loan amount
$1,500 to $20,000
Fees
Origination fee, unsuccessful payment fee, late fee
Discounts
None
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
Lightstream is one of three Credible partner lenders to offer loan amounts up to $100,000, which makes it ideal for financing large expenses like home improvements or weddings. Funds are available as soon as the same day you apply, and you'll have up to 20 years to repay certain types of loans, including home improvement loans, RV loans, and boat loans. There are no origination fees, and rates are low — Lightstream's lowest APR beats SoFi's advertised lowest APR by 1 percentage point. But you'll need good credit to qualify.
Unlike most lenders, Lightstream does not let you prequalify on its site. Nor does it provide a contact phone number next to its customer service hours on its website.
pros
Same-day funding available
High maximum loan amount
No origination fee
cons
Good credit required
No prequalification process
Not available in Vermont
Loan amount
$5,000 to $100,000
Repayment terms
2 - 20 years, depending on loan purpose
Fees
None
Discounts
Autopay
Eligibility
Available in all states except RI and VT
Min. income
Does not disclose
Customer service
Email
Soft credit check
No
Time to get funds
As soon as the same business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Best Egg is a solid lender for a wide range of borrowers and, notably, scored second for personal loan satisfaction in J.D. Power's Consumer Lending Study. It offers competitive rates, reasonable loan terms and amounts, and personal loans for fair credit. You'll need a FICO score of at least 600 to qualify, but the lower your score, the higher your APR may be. The APR includes the interest rate and origination fees, which range from 0.99% to 9.99% with Best Egg.
Note that if you successfully prequalify with Best Egg, you may be more likely to be approved for the loan relative to other lenders you prequalify with. Based on Credible data, borrowers who chose to apply for a loan with Best Egg were more than twice as likely to be approved (relative to most other Credible partners).
pros
Secured loans available
Low minimum income requirement
Scored second in J.D. Power's Consumer Lending Satisfaction Study
Funds in 1-3 business days
High close rate on loans through Credible platform
cons
Origination fees
No discounts
Not available in DC, IA, VT, or WV
Loan amount
$2,000 to $50,000
Fees
Origination fee, late fee, unsuccessful payment fee, check processing fee
Discounts
None
Eligibility
Available in all states except DC, IA, VT, and WV
Min. income
None
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as 1 to 3 business days after successful verification
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Upstart has one of the lowest available APRs of Credible partner lenders and of all non-partners we reviewed, making it a good choice for well-qualified applicants. However, it's also one of few lenders that doesn't have a minimum credit score requirement (if you apply on the lender's website), which makes it an option if you have bad credit or no credit history. Upstart may charge an origination fee as high as 12%, but good-credit borrowers may not be charged one at all.
Trustpilot gives Upstart 4.9 stars, which is the highest of all lenders we reviewed.
pros
May fund in 1 business day
No minimum credit score requirement on lender site
Low minimum APR
Trustpilot score of 4.9/5 stars
cons
May charge a high origination fee
No discounts offered
Loan amount
$1,000 to $50,000
Fees
Origination fee
Discounts
None
Eligibility
Available nationwide
Min. income
$12,000
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as 1 to 3 business days
Loan uses
Pay off credit cards, consolidate debt, relocate, make a large purchase, and other purposes
It’s worth considering a personal loan through Splash if you have good credit (ideally, a FICO score above 700). The platform offers loans from a wide range of lenders, and next-day funding is available. Plus, Splash has a live chat feature so you can get real-time answers without having to wait on hold or for an email. Loans are available up to $100,000 if you apply via Splash’s website.
Rates are competitive, but borrowers with excellent credit may find lower APRs elsewhere. If you need a repayment term longer than five years, you’ll need to look elsewhere as well.
pros
Excellent customer reviews on Trustpilot
Funding as soon as the next business day
Large loan amounts available
cons
Possible origination fee up to 7.49% (through Credible)
Other lenders may have lower starting APRs
No cosigner option
Loan amount
$5,000 - $100,000 (up to $35,000 on Credible)
Fees
Origination fee
Discounts
None
Eligibility
Available in all states except VT. OH and NM net disbursed amount must be greater than $5,000. MA must be greater than $6,000
Min. income
$45,000
Customer service
Live chat
Soft credit check
Yes
Time to get funds
Typically 1-3 days
Loan uses
Debt consolidation, credit card refinancing, home improvement, major purchases
LendingClub is a solid lender for good credit borrowers and some fair credit borrowers that apply directly on its website. It's easy to prequalify with LendingClub, especially if you're uncomfortable providing your Social Security number, as the company doesn't require it at the prequalification stage. (You will need to provide it if you move forward with a full application.)
While prequalification is not a guarantee that you'll be approved for a loan, LendingClub does a better job than most other Credible partner lenders at approving applicants that have successfully prequalified. In other words, you're less likely to have your application declined once you apply (if you've already prequalified). LendingClub may charge an origination fee between 3% and 8%.
SoFi stands out for offering no-fee personal loans with competitive rates, high loan amounts, long loan terms, discounts for autopay and direct pay, and funding as soon as the same day. Plus, SoFi prioritizes convenience for existing and potential customers with features like live chat and an easy prequalification process that doesn't require your Social Security number.
The main catch is that you need to qualify for a loan with SoFi, which can be hard to do if you don't have good credit. You also won't be able to apply with a cosigner, since SoFi doesn't accept cosigners; nor does it offer secured personal loans.
pros
No fees required
Large loan amounts available
Autopay and direct pay discounts
Same day funding
Long loan terms available
cons
Good credit required
5,000 minimum loan amount
Loan amount
$5,000 to $100,000
Repayment terms
2 - 7 years
Fees
Option to pay an origination fee in exchange for a lower rate
Discounts
Autopay, direct pay
Eligibility
Available in all states
Min. income
Does not disclose
Customer service
Phone, email, live chat
Soft credit check
Yes
Time to get funds
Typically within a few days, given approval and bank account verification, but sometimes within the same day
Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
pros
Fair credit borrowers eligible
Autopay and direct pay discounts
Can fund in as little as 1 business day
Mobile app
Secured loans available
cons
High maximum origination fee
Cosigners not accepted on home improvement loans
Low J.D. Power ranking
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Repayment terms
2 to 7 years
Fees
Origination fee
Discounts
Autopay and direct pay
Eligibility
Available in all states
Min. income
Does not disclose
Customer service
Email
Soft credit check
Yes
Time to get funds
1 business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
BHG Financial stands out for offering the largest loan amounts — up to $200,000 — of any Credible partner lenders. Simply put, if you need an unsecured personal loan over $100,000, there are very few places to look, but BHG is one. You'll have up to 10 years to repay the loan, but you'll need an annual income of at least $100,000 to qualify and a FICO score that's 660 or higher.
Loan amounts start at $20,000, so look elsewhere for small loans. And BHG charges a modest origination fee between 3% and 4%, depending on your financial profile. Loan funds are available within five to 14 days of loan approval. Note that you can't prequalify with BHG.
pros
Eligible applicants can borrow up to $200,000
Considers borrowers with fair credit
Long repayment terms
cons
Not available in IL, ND, and MT
No discounts
Minimum annual income requirement of $100,000
Funding takes at least five days
Loan amount
$20,000 - $200,000
Repayment terms
3 - 10 years
Fees
Origination fees, late fees, other fees may apply
Discounts
None
Eligibility
Available in all states except Illinois, North Dakota, and Montana
Universal Credit is one of a handful of lenders that offers personal loans for bad credit. If your FICO credit score is at least 560, you may be eligible for a Universal Credit personal loan. It offers loan amounts up to $50,000, repayment terms up to seven years, and discounts for direct pay and autopay. Funds are available as soon as the next business day after loan approval.
Note that rates and fees can be relatively high — you may pay an origination fee from 5.25% to 9.99%, and APRs start at 11.69%. If you get a loan with a high interest rate, consider refinancing your personal loan at a lower rate once you've improved your credit score.
pros
Borrowers with bad credit considered
$25,000 annual income requirement
Autopay and direct pay discounts available
Can fund in one business day
cons
High APRs
Potentially high origination fees
Not available in Iowa
Loan amount
$1,000 - $50,000
Repayment terms
3, 5, or 7 years
Fees
Origination fee
Discounts
Autopay and direct pay
Eligibility
A U.S. citizen or permanent resident; not available in DC, IA, SC, WV
Min. income
$25,000 annually
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as 1 business day after acceptance
Loan uses
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
OneMain Financial has multiple options for bad-credit personal loans. There is no minimum credit score required (if you apply directly with OneMain), which means you could get a loan with bad credit (FICO below 580). Plus, cosigners are allowed — a cosigner is someone (ideally, with good credit) who promises to repay the loan if you can't, which can make it easier to qualify or lower your rate. And, secured personal loans are available. You secure a loan with collateral, which may also help you qualify or lower your rate.
Rates are higher than competitors and OneMain charges origination fees as either a flat fee up to $500, or a percentage from 1% to 10% (depending on your state of residence). Note that even if you prequalify for a personal loan with OneMain, getting approved isn't a given.
pros
Flexible eligibility requirements
Offers secured options
Competitive bad-credit loans
Physical presence
cons
Availability
Origination fees
High starting APR
Low maximum loan amount
Loan amount
$1,500 to $20,000
Fees
Origination fee, unsuccessful payment fee, late fee
Discounts
None
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
If you default on an unsecured loan, the lender can make collection attempts, send your account to a collection agency, report missed payments to the credit bureaus, and sue you to get a judgment.
With a judgment, they can then take actions to recover the amount you owe, such as putting a lien against your property or garnishing your wages. With a secured loan, the lender can seize your collateral to recover the amount you owe without taking you to court.
FAQ
Are payday loans secured or unsecured?
Open
Payday loans are considered unsecured loans. Lenders typically don't require you to pledge any collateral to get them. They do, however, often ask you to write a postdated check or allow an automatic electronic money transfer from your account on the payment due date.
It's possible to eliminate a range of debts through bankruptcy. What you qualify for will depend, in part, on the type of bankruptcy you're eligible for, and the type of unsecured loans you wish to eliminate.
However, this should be a last resort once you've taken other steps, like talking to a credit counselor and starting a debt management plan. Consult with a bankruptcy attorney before filing.
Is a personal loan secured or unsecured?
Open
Personal loans can be secured or unsecured. Most lenders offer unsecured personal loans, but some also offer secured options. Upgrade, for example, will allow select applicants to pledge their car as collateral if it will help them qualify. Other lenders might let you pledge a savings account or investments in exchange for a lower rate.
Is a student loan secured or unsecured?
Open
Both federal and private student loans are unsecured, meaning you won't have the option to secure them by pledging collateral.
Jessica Walrack is an experienced freelance writer who has spent more than 11 years in personal finance, with expertise on loans, insurance, banking, mortgages, credit cards, budgeting, and taxes. Her work has been published by CNN, CBS MoneyWatch, U.S. News & World Report, and USA Today.
