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Best Unsecured Personal Loans

February 2024

You can use unsecured personal loans for just about anything. And unlike secured loans (e.g., mortgages and auto loans), you can get the money without putting up your assets as collateral. These are the best unsecured personal loans currently available.
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If you need money now and you don't want the risk of placing a valuable asset as collateral, you may want to consider an unsecured loan. The annual percentage rates (APR) of unsecured personal loans range from {{features_summary.interest-rate.lowest}}% to {{features_summary.interest-rate.highest}}%, and you can borrow up to {{currency features_summary.loan-amount.highest}}. You will need good credit to qualify for the best loans without collateral. The largest loan amounts and lowest rates are only available to borrowers with high incomes and superprime credit. However, even borrowers with poor credit qualify for a loan.
Find the best deal available to you by applying with at least three of the top-rated personal loans listed below. SuperMoney's loan offer engine allows you to find out what rates you qualify for without hurting your credit.

Methodology

SuperMoney's list of the top-rated unsecured personal loans is based on the qualitative recommendations of our community members and the quantitative recommendations of our ranking algorithms. We analyzed more than 100 lenders and focused on lenders that provide low interest rates and competitive fees.

How to compare the best unsecured personal loans

The key features to look for when shopping for an unsecured loan are the APR, the origination fee, and the length of the loan's term.
  • Annual percentage rates. The APR of a loan represents the total interest rate of a loan over one year. APRs vary depending upon your credit score. The table below gives you an idea of the rates you can expect based on your credit score. The lower the APR, the less the personal loan will cost you. This the most important factor when you compare personal loans. The lowest APR currently available from our list of best unsecured loans is {{features_summary.interest-rate.lowest}}%, but this is only available to high-income borrowers with excellent credit.
  • Origination fees. Origination fees are charged by lenders to cover the cost of setting up and processing an unsecured loan. They are expressed as a percentage of the loan amount and vary depending on your creditworthiness and the loan's term. Fees can range from 1% to 6% of the loan amount. For example, if you borrow $10,000 and the origination fee is 5%, you will pay $500. This fee is deducted from the loan amount. In the example above, you would only receive $9,500, not the full $10,000. Take this into account when deciding how much money you need to borrow. Whenever possible, choose lenders that don't charge an origination fee.
  • Loan term. The term length of a loan often determines whether borrowers can afford the monthly payments. Unsecured personal loan terms generally range from 12 to 60 months. To illustrate, a $10,000 loan with a 10% APR and a 3-year term will have monthly payments of $323. The same loan with a 12-month term will have monthly payments of $879. Obviously, the lower monthly payments make the loan with the longer-term more affordable, but it would cost you $1,066 more in interest over the life of the loan.

What are the pros and cons of unsecured personal loans

WEIGH THE RISKS & BENEFITS
Here is a list of the benefits and the drawbacks to consider.
Pros
  • Fast access to money
  • No need for collateral
  • Manage your budget with fixed monthly payments
  • Can be discharged with a Chapter 7 bankruptcy
Cons
  • Best rates require a good credit score
  • Higher rates than secured loans

Common Questions About the Best Loans Without Collateral

What Is an unsecured loan?

Unsecured loans are loans that are not secured by collateral -- such as a car, a home, or savings in a bank account. They are also called installment loans, consumer loans, or signature loans. Instead, they are only backed by the borrower's creditworthiness.

Are unsecured loans a good idea?

They can be. It all depends on your circumstances, how much money you need, and the purpose of the loan. Unsecured loans are not backed by assets, so your personal property usually isn't at risk if you can't make payments. They have fixed monthly payments, which make them ideal for budgeting large expenses. However, they usually have higher interest rates and shorter terms than secured loans.

How does an unsecured loan work?

Unsecured personal loans are straightforward. Once you apply and you're approved, the lender transfers the money to your bank account. You then start making regular monthly payments until the loan is repaid in full.
To qualify for an unsecured loan, you need to convince lenders you are able and willing to repay the debt on time. They determine that by examining -- among other things -- your credit score, income, current debts, education level, and other relevant factors. Interest rates can be very high if you don't have good credit.
If you don't qualify for an unsecured personal loan, but you have valuable assets (home, car, savings), consider getting a secured loan. These are typically easier to get, have lower interest rates, and can help you improve your credit if you make regular and on-time payments.

What are the best interest rates for unsecured personal loans?

Currently, APRs in our list of best unsecured personal loans range from {{features_summary.interest-rate.lowest}}% to {{features_summary.interest-rate.highest}}%. The rate you are offered will depend on multiple factors, such as your credit score, income, and debt levels.
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Remember, the lowest interest rates are only available to high-income borrowers with excellent credit. Compare at least three lenders from the list above to find the best loan offer available for your credit profile. You will need to get preapproved to determine what your personal rate is. SuperMoney's loan offer engine allows you to get multiple loan offers from top lenders with one secure form.

How to find the best unsecured loans

Rates, fees, and requirements vary drastically from lender to lender. So, it is important to check out what rates and terms you qualify for with the best personal loans before you choose a lender. One of the difficulties in shopping for a loan is that not all lenders are transparent about their fees and rates. Even savvy borrowers may not always get the best deal available. It's also challenging to know what rates you qualify for without applying with every major lender. And if you do, your credit will probably take a hit.
SuperMoney makes it easy to compare the best no-collateral loans by setting out their key features side by side. Our personal loan offer engine allows you to receive prequalified offers from leading lenders without hurting your credit.

About the Author


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SuperMoney is the most comprehensive financial services comparison site around. We have published hundreds of personal finance articles and provide detailed reviews on thousands of financial products and services. Our unbiased advice and free comparison tools help consumers make smart financial decisions based on hard data, not marketing gimmicks.

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