Unlike mortgages and car loans, unsecured personal loans don’t require collateral, like your house or car. To help you find the right one, here’s our list of the best unsecured personal loans.
- Best for large loan amounts: Wells Fargo
- Best for small loan amounts: U.S. Bank
- Best for potentially fast funding: LightStream
- Best for perks: SoFi
- Best for bad credit: OneMain Financial
- What are unsecured personal loans?
- When is an unsecured personal loan a good idea?
- Alternatives to unsecured personal loans
- FAQs about unsecured personal loans
Best for large loan amounts: Wells Fargo
Why a Wells Fargo personal loan stands out: Wells Fargo offers unsecured personal loans in amounts up to $100,000 which is higher than what some other lenders offer.
Pros
- Competitive APRs
- Relationship discount for some customers
- No origination or prepayment fees
Cons
- Must be an existing Wells Fargo customer to qualify
- Late payment fees
- High minimum loan amount
Read reviews of Wells Fargo personal loans to learn more.
Best for small loan amounts: U.S. Bank
Why a U.S. Bank personal loan stands out: Some lenders have a minimum loan amount as high as $3,000 or even $5,000. But at U.S. Bank, you can get an unsecured personal loan for as little as $1,000, so you can cover a smaller expense.
Pros
- Flexible repayment terms
- No origination fees or prepayment penalties
- Can borrow up to $50,000 if you’re a U.S. Bank member
Cons
- $25,000 maximum borrowing limit if you’re not a U.S. Bank member
- High credit score requirements for the lowest APR
- Not available in every state
Read reviews of U.S. Bank personal loans to learn more.
Best for potentially fast funding: LightStream
Why a LightStream personal loan stands out: If you need cash quickly, you might be able to get it the same day you apply for a LightStream personal loan. Same-day funding is available if you complete an application by 2:30 p.m. Eastern time on a business day, sign your loan agreement, and share your banking info.
Pros
- May borrow up to $100,000
- No origination fees or prepayment penalties
- Rate beat program
Cons
- Must have good or excellent credit
- High minimum loan amounts
- No prequalification option
Read reviews of LightStream personal loans to learn more.
Best for perks: SoFi
Why a SoFi personal loan stands out: With a SoFi personal loan, you’ll get access to a variety of perks to improve your financial health. For example, you can sign up for free financial planning, save money on travel expenses, or qualify for a rate discount on your next loan.
Pros
- No late fees or prepayment penalties
- Pays creditors directly with direct consolidation loans
- Offers same-day funding
Cons
- Can be difficult to get with shaky credit
- Possible origination fees
- High minimum loan amount
Read reviews of SoFi personal loans to learn more.
Best for bad credit: OneMain Financial
Why a OneMain Financial personal loan stands out: Some lenders only offer unsecured personal loans to borrowers with good credit, but OneMain Financial is open to applicants with bad credit. The lender will look at other factors like your income, expenses and any bankruptcy filings.
Pros
- Small loans available
- Accepts co-applicants
- Local branches for in-person applications and service
Cons
- Charges an origination fee
- Higher APRs than other lenders
- Not available in every state
Read reviews of OneMain Financial personal loans to learn more.
What are unsecured personal loans?
Unsecured personal loans don’t require collateral like your house or car. They’re considered riskier than secured loans, so lenders usually charge higher interest rates for them. But if you have good credit or apply with a co-signer, you can still score a good rate on an unsecured personal loan.
With an unsecured loan, you may choose from a variety of loan amounts and repayment terms but some lenders charge fees like origination fees and late fees. In most cases, you can apply online and get your funds quickly, sometimes the day you get approved.
When is an unsecured personal loan a good idea?
You might want to consider an unsecured personal loan if …
- You have good credit: If you have a high credit score, you may lock in a competitive interest rate on an unsecured personal loan.
- You don’t want to put your assets on the line: You won’t have to secure your unsecured personal loan to your house or car, for example, and risk losing it if you default on your loan.
- You need a large loan: Some unsecured personal loans go up to $100,000, making them a good idea if you have a larger expense.
- You can’t wait long for cash: You might be able to get your money the day you apply or the day after.
If you don’t have the best credit, an unsecured loan may not make sense, especially if you can’t qualify for a good interest rate.
Alternatives to unsecured personal loans
If you decide unsecured personal loans aren’t a good fit, here are a few alternative options to explore:
- Home equity loan — If you own a home with equity (your home value minus your mortgage balance), you might qualify for a home equity loan. You’ll get a lump sum of cash and pay it back through fixed monthly payments.
- 0% APR credit card — Some credit card companies offer cards with a 0% APR for a set period of time, usually between 6 and 21 months. If you pay back what you borrow before the promo period expires, you won’t owe any interest.
- Buy-now, pay-later apps — A buy-now, pay-later app might be worthwhile if you want to buy something expensive like a couch or television but can’t pay for it upfront. You’ll be able to repay it through equal installments over time.
Our methodology: How we pick the best personal loans
Credit Karma’s editors evaluate the best personal loans by reviewing key features of dozens of popular lenders. Those features fall into three important categories:
- Affordability: We start by checking if a lender’s rates are competitive: are they higher than average or are they lower than many competitors? From there, we analyze if fees — particularly an origination fee — may make your loan more unaffordable. Last, we’ll check if the lender offers rate discounts for items such as automatic payments that may reduce your rate.
- Customer-friendly features: Taking out a personal loan is a big financial commitment, so we prioritize lenders that make things easier for you. For instance, do they offer a wide range of loan amounts for people with different borrowing needs? Do they offer at least several loan terms to give you more flexibility with your monthly payment? And, crucially, can they fund your loan quickly? A lender will also get bonus points for offering direct payments for debt consolidation or other customer-friendly features.
- Transparency: We believe personal loan terms should be easy to find and decipher. Prequalification, which lets you check what rate you may qualify for without a hard credit inquiry, is particularly important. We also check to see if a lender has been recently penalized by regulators.
Estimate personal loan costs
To better understand the total cost of any personal loans you’re considering, use an online calculator like Credit Karma’s simple loan calculator. A loan calculator can help you estimate your monthly payment and how much you’d pay in interest versus principal over the length of the loan.
FAQs about unsecured personal loans
Many lenders make it easy to get unsecured loans online, from the comfort of your own home or office. You can even find some lenders that have more lenient credit requirements.
Borrowing limits for unsecured personal loans usually cap out at $100,000. But factors like your credit score and loan purpose will determine the amount you may qualify for.
Each lender has its own minimum credit score requirements for unsecured personal loans. But certain lenders are more flexible and open to borrowers with bad credit.
*Approval Odds are not a guarantee of approval. Credit Karma determines Approval Odds by comparing your credit profile to other Credit Karma members who were approved for the personal loan, or whether you meet certain criteria determined by the lender. Of course, there’s no such thing as a sure thing, but knowing your Approval Odds may help you narrow down your choices. For example, you may not be approved because you don’t meet the lender’s “ability to pay standard” after they verify your income and employment; or, you already have the maximum number of accounts with that specific lender.