Compare unsecured loans to borrow funds without collateral

Get access to funds and enjoy more flexibility with an unsecured personal loan.

An unsecured personal loan lets you borrow funds without using an asset as security. This type of loan comes with an increased amount of flexibility in terms how you use your loan amount. You can use your funds to make a large purchase, improve your home, consolidate debt or just about anything else you like.

Keep in mind that for most personal loans, you’ll need a good credit score of 680 or higher to be approved.

Find out if an unsecured personal loan is right for you by reading the guide below.

Lending Club Personal Loan

Lending Club Personal Loan

Lending Club offers loans for a variety of purposes, up to $40,000 as an alternative to bank personal loans. Rates from 5.99% to 35.89%* APR based on your credit score.

Min. Loan Amount: $1,000
Max. Loan Amount: $40,000
Loan Term: Flexible Terms
Turnaround Time: Varies
Total Costs: Depends on your credit score

    A selection of personal loans you can apply for

    Rates last updated May 27th, 2017
    Unfortunately, none of the personal loan providers have a loan for that credit score. It you are urgent need of a small loan, you might want to check out a short term loan.
    Maximum Loan Amount Term of Loan Turnaround Time
    Prosper Personal Loan
    Borrow only what you need for debt consolidation, home improvements, special occasions and more — with APRs based on your credit score.
    $35,000 3 or 5 years 1-3 business days Go to site More
    Lending Club Personal Loan
    Borrow up to $40,000 with rates from 5.99% to 35.89% APR based on your credit score.
    $40,000 Flexible Terms Varies Go to site More
    Upstart Personal Loans
    This newer service looks beyond your credit score to match you with accredited investors for low-rate personal loans.
    $50,000 36 months 1-2 business days Go to site More
    NetCredit Personal Loan
    You could borrow up to $10,000 and get an interest rate personalized to your credit score
    $10,000 Varies upon State 1 business day Go to site More
    SoFi Personal Loan Fixed Rate (with Autopay)
    Borrow up to $100,000 with a competitive APR and no fees.
    $100,000 3, 5, or 7 years Varies Go to site More
    OneMain Financial Personal Loans
    Get funded quickly with a term loan that works for your circumstances — even with bad or no credit.
    $25,000 3 years to 5 years Up to 3 days More
    Avant — Personal Loan
    Check your rate — without affecting your credit score — before applying for this unsecured personal loan.
    $35,000 24–60 months 1–2 business days More

    Have we missed anything in the comparison table? Tell us

    • If the provider quotes a different rate to the one above please let us know

    How unsecured personal loans work

    Unsecured loans can be used for just about any legitimate purpose. When you apply for the loan, you may be asked to list why you are applying for it, and this will be part of the lender’s decision.

    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, usually between $1,000 and $50,000. Loan terms usually vary between one and seven years.

    You’ll find that unsecured loans tend to come with higher rates than secured loans because the lender is taking on more risk. These loans can also come with establishment fees, monthly fees and annual fees, so be sure to check these before you apply.

    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 penalty depending on your loan.

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

    Interest rates on unsecured loans are usually higher for borrowers because the lender takes on more risk. 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 recoup the outstanding amount.

    Unsecured personal loan features to compare

    Comparing your unsecured personal loan options is an important part of finding the right loan. Here are some things to keep in mind when doing so:

    • Interest rate. Check whether the interest rate is fixed or variable and whether it’s competitive.
    • Minimum and maximum loan amounts. Many lenders will set a minimum and maximum you can borrow – these usually vary between $1,000 and $50,000. It’s important to check that the amount you need falls between the two.
    • Fees and charges. You can be charged 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.

    Horace is buying a boat

    unsecured personal loanHorace is planning his travels over the break before he returns to work as a school administrator. He loves the idea of vacationing overseas and decided to buy a boat. Since the prices for boats can be a bit high, he looked into getting an unsecured personal loan.

    Knowing he’ll be able to afford ongoing repayments on his current salary, Horace compared lenders offering loans for excellent credit scores. He checked the other eligibility criteria and then applied online. He found out he was approved soon after and made his way to the shore to enjoy the waters during the school break.

    Pros and cons of unsecured personal loans

    Pros

    • No asset needed for security.
      When getting an unsecured personal loan, there’s no need to supply an asset as security. If you’re purchasing an asset with your funds you won’t have to risk it, and you also won’t need to risk an asset you already own.
    • Flexible loan purpose. 
      You can use the funds however you like. Once you’re approved, the funds will be transferred to you and you can use them to consolidate debt, purchase what you need to or to invest.
    • Easy application process.
      Applying for one of these loans is usually quite easy. The application can typically take place online if you can provide the appropriate documentation required. After the application, you can usually get a response in 60 seconds.

    Cons

    • Higher interest rates due to no collateral being offered.
      As there is a higher risk involved from the lender, the interest rates are generally higher on unsecured loans.

    Things to avoid with unsecured personal loans

    • Lying about what you need the funds for. Always be upfront with your lender about why you’re applying for the loan, whether it be for business purposes or to consolidate debts.
    • 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. 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 licensed. Always make sure you’re getting a loan from a licensed lender. You can check the information at the very bottom of the website to see the lender’s details.
    • 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.

    How to apply for an unsecured personal loan

    If you think an unsecured personal loan is for you, you can use the comparison table above. After browsing through the table and finding a suitable loan, click the “Go to site” button to go to the lender’s website and start the application process.

    Typically, to get an unsecured personal loan you’ll need to meet a range of eligibility criteria set by the lenders.

    • You must be at least 18 years old.
    • You must also have good credit and be able to provide proof that you can pay off the loan.
    • You may be asked to provide copies of your pay stubs or bank account statements as proof of income.
    • You’ll also need to verify identity.

    Frequently asked questions

    Some lenders may allow you to use the funds from an unsecured personal loan for business purposes, but others will not. You may need to specifically apply for a business loan.

    There are two reasons this might have happened: A lender may operate on a tiered-rate system where your rate is determined by the information in your application, or the lender found you to be a higher risk borrower, so applied a higher rate to your account.

    While unsecured personal loans generally come with higher rates than secured personal loans, you can still find a competitive low rate option. Compare your options using the comparison table above to a find a rate that fits your preference.

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    US Personal Loans Offers

    Learn about our information service
    Lending Club Personal Loan

    Borrow up to $40,000 with rates from 5.99% to 35.89% APR based on your credit score.

    Prosper Personal Loan

    Borrow only what you need for debt consolidation, home improvements, special occasions and more — with APRs based on your credit score.

    Upstart Personal Loans

    This newer service looks beyond your credit score to match you with accredited investors for low-rate personal loans.

    PersonalLoans.com

    An online loan matching service that connects you with lenders for peer-to-peer, personal and bank loans for a variety of purposes.

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