What are two disadvantages of unsecured loans?

Higher rates and shorter terms: Unsecured loans typically come with higher interest rates and shorter repayment periods than secured loans. This means you could end up with higher monthly payments with less time to repay the loan. More stringent requirements: Unsecured loans often come with stricter eligibility criteria compared to secured loans. For example, you’ll likely need a higher credit score to get approved.

Best unsecured personal loans of November 2023

Many loans are secured by collateral — for example, a mortgage is secured by a home. Most personal loans, however, are unsecured. An unsecured personal loan can be a convenient way to cover a variety of expenses — such as if you want to consolidate debt or fund a major purchase — without having to worry about pledging any of your assets as collateral.

The best unsecured personal loans come with competitive interest rates, a variety of loan amounts, relatively long repayment terms and fast funding times. Some also have more lenient credit score requirements while others allow you to apply with a co-signer or joint applicant, which could help you qualify more easily.

To determine the best unsecured personal loans, we compared 25 lenders using these metrics as well as other factors like state availability, late payment and prepayment fees, borrower discounts and customer experience.

Best unsecured personal loans of 2023

SoFi
: Best overall
LendingPoint
: Best for fair credit
Upgrade
: Best for co-borrowers
Prosper
: Best for peer-to-peer lending
LightStream
: Best for large loans
Discover
: Best for competitive rates
Oportun
: Best for small loans
Compare the best unsecured personal loans
Methodology
Frequently asked questions (FAQs)

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What you should know

SoFi offers an impressive range of loan amounts from $5,000 to $100,000 with repayment terms from two to seven years, and its loans come with no fees. Plus, you could get your funds as soon as the same day as approval. The lender also offers multiple rate discounts — including discounts for autopay and existing account holders — as well as member benefits, such as unemployment protection, career coaching and financial planning.

Keep in mind that you’ll also need a credit score of at least 680 to qualify — though you do have the option to apply with a joint applicant. SoFi personal loans also aren’t available in Mississippi.

Pros and cons

Pros

Offers multiple rate discounts and member benefits.
Can borrow up to $100,000.
Fast funding.

Cons

Must borrow at least $5,000.
Not available in all states.
Could be hard to qualify if you don’t have good credit.

More details

Interest rates: 8.99% to 25.81%.
Loan amounts: $5,000 to $100,000.
Repayment terms: 2 to 7 years.
Discounts: Autopay (0.25%), existing account holder (0.125%) and direct creditor payment for debt consolidation (0.25%).
Fees: None.
Min. credit score: 680.
Can apply with a co-signer: No (but can apply with a joint applicant).

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While many lenders require good credit, you could get approved for a LendingPoint personal loan with a credit score as low as 590. With LendingPoint, you can borrow $2,000 to $36,500 with terms from two to six years, and you could get your funds as soon as the next business day after approval.

Keep in mind that LendingPoint charges an origination fee, which could increase your overall borrowing costs, and it doesn’t operate in Nevada or West Virginia. Additionally, the lender doesn’t accept co-signers or joint applicants, which means you’ll have to qualify on your own.

Pros and cons

Pros

Accepts fair credit scores.
Quick approval decisions.
Fast funding.

Cons

Charges an origination fee.
Doesn’t permit co-signers or joint applicants.
Not available in all states.

More details

Interest rates: 7.99% to 35.99%.
Loan amounts: $2,000 to $36,500.
Loan terms: 2 to 6 years.
Discounts: None.
Fees: Origination fee (0% to 8%).
Min. credit score: 590.
Can apply with a co-signer: No.

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Unlike many lenders, Upgrade permits joint applications, which could make it a good option if you’re struggling to qualify for a loan on your own. Note that unlike a co-signer who is liable for the loan if the primary borrower fails to make payments, a joint applicant (also known as a co-borrower) is equally responsible from the start.

With Upgrade, you can borrow $1,000 to $50,000 with terms from two to seven years. If you’re approved, you could get your funds within a day of clearing any necessary verifications.

Keep in mind that Upgrade charges an origination fee as well as fees for late and returned payments.

Pros and cons

Pros

Permits joint applications.
Accepts poor and fair credit scores.
Fast funding.

Cons

Charges an origination fee.
Charges fees for late and returned payments.
Doesn’t disclose rate discounts unless you have a registered account.

More details

Interest rates: 8.49% to 35.99%.
Loan amounts: $1,000 to $50,000.
Loan terms: 2 to 7 years.
Discounts: Autopay (amount not disclosed).
Fees: Origination fee (1.85% to 8.99%), late fee ($10) and returned payment fee ($10).
Min. credit score: 580.
Can apply with a co-signer: No (but can apply with a joint applicant).

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Unlike the other lenders on this list, Prosper is a peer-to-peer (P2P) lender. This means that instead of going through a financial institution to ask for money, borrowers are connected directly with private investors. Because the middleman is eliminated, eligibility requirements for P2P loans are often less strict. With Prosper, for example, you could get approved for a personal loan with a credit score as low as 600. You also have the option to apply with a joint applicant.

Prosper personal loans are available for $2,000 to $50,000 and come with terms from two to five years. If you’re approved, you could get your funds as soon as the next business day.

Keep in mind that Prosper charges an origination fee as well as fees for check payments, late payments and insufficient funds.

Pros and cons

Pros

Provides P2P lending.
Accepts fair credit scores.
Fast funding.

Cons

Charges an origination fee.
Charges fees for check payments, late payments and insufficient funds.
No advertised rate discounts.

More details

Interest rates: 6.99% to 35.99%.
Loan amounts: $2,000 to $50,000.
Repayment terms: 2 to 5 years.
Discounts: None.
Fees: Origination fee (1% to 5%), check payment fee ($5 or 5% of your payment, whichever is less), late fee ($15 or 5% of the unpaid monthly payment amount, whichever is greater) and insufficient funds fee ($15).
Min. credit score: 600.
Can apply with a co-signer: No (but can apply with a joint applicant).

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If you need to borrow a large amount, LightStream could be a good option. You can borrow $5,000 to $100,000, and you could get your funds as soon as the same day as approval. Terms typically range from two to seven years, though some loan types — such as home improvement loans — offer terms of up to 12 years.

The lender charges no fees and also offers competitive rates on unsecured loans. Additionally, if you’ve already been approved for an unsecured loan from another lender, you could get a 0.1% rate discount through LightStream’s Rate Beat Program. You can also get another 0.5% knocked off your rate if you sign up for automatic payments.

Note that while LightStream doesn’t disclose its minimum credit score requirements, it does specify that you’ll need good to excellent credit to get approved. The lender also doesn’t allow borrowers to prequalify.

Pros and cons

Pros

Can borrow up to $100,000.
Fast funding.
No fees.

Cons

Doesn’t offer a prequalification process.
Could be hard to qualify if you don’t have good credit.
Doesn’t disclose minimum credit score requirements.

More details

Interest rates: 7.99% to 25.99%.
Loan amounts: $5,000 to $100,000.
Loan terms: 2 to 12 years (depending on loan type).
Discounts: Autopay (0.5%) and Rate Beat Program (0.1%).
Fees: None.
Min. credit score: Does not disclose.
Can apply with a co-signer: No (but can apply with a joint applicant).

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Discover offers one of the lowest minimum annual percentage rates (APRs) on this list. This could make it an appealing option if you have good credit and can qualify for the lowest rate. Discover personal loans are available from $2,500 to $40,000 and come with terms from three to seven years. If you’re approved, you could get your funds as soon as the next business day.

Keep in mind that while Discover doesn’t charge an origination fee, it does assess late fees. This lender also doesn’t permit co-signers or joint applicants.

Pros and cons

Pros

Competitive rates.
Fast funding.
No origination fee.

Cons

Charges late fees.
Doesn’t permit co-signers or joint applicants.
Doesn’t disclose minimum credit score requirements.

More details

Interest rates: 7.99% to 24.99%.
Loan amounts: $2,500 to $40,000.
Repayment terms: 3 to 7 years.
Discounts: None.
Fees: Late fee ($39).
Min. credit score: Does not disclose.
Can apply with a co-signer: No.

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If you need a small, unsecured loan, Oportun could be a good option. You can borrow as little as $300 up to $8,000 with terms from one to 4.08 years (amounts and terms could vary depending on your state). If you’re approved, you could get your funds within one to three business days.

Oportun is also the only lender on this list designated as a Community Development Financial Institution by the Department of the Treasury, meaning it works to support low-income and underserved borrowers. This also includes borrowers with little to no credit, so you might qualify even if you don’t have enough of a credit history to generate a credit score — usually known as having thin credit.

Keep in mind that Oportun’s minimum APR is higher compared to some lenders. The lender also charges an origination fee as well as fees for late and returned payments, which can increase your overall borrowing costs.

Pros and cons

Pros

Can borrow as little as $300.
No specific minimum credit score.
Might be able to apply with a co-signer in some situations.

Cons

Higher minimum APR compared to some lenders.
Charges an origination fee.
Charges fees for late and returned payments.

More details

Interest rates: 28.99% to 35.99%.
Loan amounts: $300 to $8,500 (depending on your state).
Repayment terms: 1 to 4.08 years (depending on your state).
Discounts: None.
Fees: Origination fee, late fee and returned payment fee (fee amounts will depend on your location).
Min. credit score: No specific minimum.
Can apply with a co-signer: Yes (in some cases).

Compare the best unsecured personal loans

	Interest rates	Loan amounts	Repayment terms (years)	Min. credit score
SoFi	8.99% to 25.81%	$5,000 to $100,000	2 to 7	680
LendingPoint	7.99% to 35.99%	$2,000 to $36,500	2 to 6	590
Upgrade	8.49% to 35.99%	$1,000 to $50,000	2 to 7	580
Prosper	6.99% to 35.99%	$2,000 to $50,000	2 to 5	600
LightStream	7.99% to 25.99%	$5,000 to $100,000	2 to 12 (depending on loan type)	Does not disclose
Discover	7.99% to 24.99%	$2,500 to $40,000	3 to 7	Does not disclose
Oportun	28.99% to 35.99% (depending on your state and loan type)	$300 to $8,000	1 to 4.08 years (depending on your state)	No specific minimum
All interest rates are current and include discounts as applicable as of November 6, 2023.

Methodology

Our expert writers and editors have reviewed and researched 25 popular lenders to help you find the best personal loan. Out of all the lenders considered, the seven that made our list excelled in areas across the following categories (with weightings): loan details (20%), loan cost (35%), eligibility and accessibility (20%), customer service (15%) and ease of application (10%).

Within each major category, we considered several characteristics, including APR ranges, loan amounts, maximum repayment terms, lender discounts, late payment and prepayment penalties, minimum credit score requirements and funding time as well as co-signer or co-borrower acceptance. We also evaluated each provider’s customer support options and customer reviews.

Why some lenders didn’t make the cut

Of the 25 personal loan lenders that we reviewed, only a fraction made the cut. The reasons for this varied by lender, with many not receiving high enough scores to be included due to having higher interest rates, limited customer service options and poor customer reviews. Several also do not allow co-signers or co-borrowers.

Frequently asked questions (FAQs)

How hard it is to get an unsecured personal loan will vary by lender, with some having much more stringent requirements than others. It’s generally more difficult to qualify for an unsecured loan compared to a secured loan. This is because the lender is taking on more risk by providing a loan without collateral as security.

Ultimately, “the key to getting any loan is to show a past history of repaying prior loans and have the ability to pay the new loan,” says Jeffrey Stouffer, a certified financial planner. This typically means you’ll need good credit, verifiable income and a low debt-to-income ratio, which is the amount you owe on monthly debt payments compared to your income.

However, “there are [also] lenders that will accept higher risk profiles,” Stouffer says.

The credit score you’ll need to qualify for an unsecured loan will depend on the lender. Most lenders require good credit — a good credit score is usually considered to be 670 or higher.

There are also several lenders that accept lower credit scores. For example, Universal Credit accepts credit scores as low as 580 while Oportun works with borrowers who have little to no credit. Just keep in mind that bad credit loans usually come with higher interest rates compared to good credit loans.

Higher rates and shorter terms: Unsecured loans typically come with higher interest rates and shorter repayment periods than secured loans. This means you could end up with higher monthly payments with less time to repay the loan.
More stringent requirements: Unsecured loans often come with stricter eligibility criteria compared to secured loans. For example, you’ll likely need a higher credit score to get approved.