Compare unsecured loans

Get access to funds and enjoy more flexibility without having to use an asset as collateral.

Last updated:

An unsecured personal loan lets you borrow funds without using an asset such as your home equity or your car as security. Keep in mind that for most personal loans, you’ll need a credit score of 650 or higher to be approved. This means you’ll need to have a good to excellent credit score. Find out if an unsecured personal loan is right for you by reading more in our guide below.

Mogo Personal Loan

Mogo Personal Loan

From

5.9 % p.a.

rate

  • Borrow from $2,000
  • Simple online application
  • Free credit score upon account creation

Mogo Personal Loan

Apply today to get approved for a personal loan up to $35,000 on flexible terms.

  • Max. loan amount: $35,000
  • Loan term: 1-5 years
  • Turnaround time: Same day
  • APR: 5.9% - 46.96%
  • Fees: NSF fee - $20 to $48
  • Quick pre-approval
  • Automatic payments
Go to site
Promoted

Compare unsecured personal loans

Name Product APR Min. Loan Amount Max. Loan Amount Loan Term Min. Credit Score
5.9% - 46.96%
$2,000
$35,000
1-5 years
540
Mogo offers loans up to $35,000 on flexible terms.
18.9% - 54.9%
$2,000
$10,000
1-5 years
550
An established online lender with loans up to $10,000. Now accepting applicants on El and Social Assistance.
46.93%
$100 (in store), $500 (online)
$10,000
6 months - 5 years
N/A
Cash Money offers installment loans up to $10,000 for AB, MB and NB residents.
46.93%
$100 (in store), $500 (online)
$10,000
6 months - 5 years
N/A
Cash Money offers line of credit loans up to $10,000 fo AB and ON residents.
19.99% - 46.93%
$100
$15,000
No end dates
N/A
Borrow up to $15,000, based on your income and credit history, with a personal line of credit from LendDirect.
43% (British Columbia and Ontario) and 34.9% (Quebec)
$2,000
$10,000
1-5 years
N/A
LendingMate offers loans to Canadians with poor credit with no credit checks.

Compare up to 4 providers

How unsecured personal loans work

You can usually use an unsecured loan for any legitimate and legal purpose. However, when you apply for the loan, you may be asked to list why you are applying for it, and the lender may take your reason into account when deciding whether to approve your loan or not.

When completing your application, you’ll also need to list how much you want to borrow and choose your loan term. Unsecured personal loans offer varying amounts of money, usually between $1,000 and $35,000. Loan terms usually range between one and seven years.

You’ll find that unsecured loans tend to come with interest rates that are higher than secured loans because the lender is taking on more risk allowing you to borrow the money without putting up collateral. These loans can also come with administrative fees, monthly fees and annual fees, so be sure to check any additional fees that you may be charged before you apply. It’s important to know just how much your loan will cost you.

Unsecured personal loans can have fixed or variable interest rates and repayment restrictions differ between lenders – you may be able to make additional repayments and repay your loan early without facing a penalty, depending on your loan and the lender.

Why is the interest rate usually higher on an unsecured loan?

Interest rates on unsecured loans are usually higher for borrowers than they are for secured loans because the lender is taking on more risk, since you are not putting up any collateral, like your car or equity on your home. If you default on the loan, you’ll have paid back more interest than on a secured loan. If your loan is secured, the lender can take the asset you’ve used for collateral to recover the outstanding amount still owed.

How to compare unsecured personal loans

Before you apply for a loan, it’s important to compare different lenders and loan options in order to find the best loan for you. Here are some factors to keep in mind when making your comparisons:

  • Interest rate. Check whether the interest rate is fixed or variable and whether it’s a competitive offer.
  • Minimum and maximum loan amounts. Many lenders will set a minimum and maximum you can borrow – these usually vary between $1,000 and $35,000, however it can sometimes be higher.
  • Fees and charges. You can be charged both upfront and ongoing fees with unsecured personal loans, so check what these are before you apply. You can look at the APR to see an overall cost for the loan which includes these fees.
  • Additional features. Your loan may come with additional features that you might find convenient, such as online account management or discounts on additional products offered by the lender.

Pros and cons

Pros

  • No asset needed for security.
    When getting an unsecured personal loan, there’s no need to supply an asset, like your home equity or your car, as security. Additionally, if you’re purchasing an asset with your loan, you won’t have to risk it either.
  • Flexible loan purpose.
    You can use the funds for a wide variety of legitimate and legal purposes, subject to the lender’s restrictions. When you apply for the loan, you will likely be asked to list your reason for needing it.
  • Easy application process.
    Applying for one of these loans is usually quite easy and can be done online or in person if the lender has a physical store. You can usually get a pre-approval response quickly after applying, though a firm offer will require verification of your information.

Cons

  • Higher interest rates due to no collateral being offered.
    Since the lender faces a greater risk because the loan is unsecured by collateral, the interest rates are generally higher on unsecured loans. You can expect to pay relatively high interest rates.

Mistakes to avoid

  • Lying about what you need the funds for. Always be upfront with your lender about why you’re applying for the loan, whether it is for business purposes, to consolidate debts or to cover some bills.
  • Getting into too much debt. If you’re taking out an unsecured loan to consolidate existing debts, you should be wary of getting yourself into financial trouble by increasing your debt load. Make sure you’ll be paying less with this new loan than you’re paying on your current debts.
  • Check that the lender providing your loan is legitimate. Always make sure you’re getting a loan from a trustworthy lender. Don’t fall prey to any loan scams, especially in the online world.
  • Fees and charges. Where possible, always do your best to avoid excessive fees and charges. One way to do this is to make sure you do your research, ask questions and compare different loans and lenders.

How to apply for an unsecured personal loan

If you think an unsecured personal loan is the right choice for you and your financial situation, compare different lenders and loans on offer until you find the right one for you. Once you find a loan that you are eligible for that meets your needs, you can either apply online or in person if the lender has a physical store location.

Frequently asked questions

Was this content helpful to you? No  Yes
Go to site