Unsecured loans are a perfect way to get fast money with no collateral. Let’s review the option in detail and div out what a personal loan without collateral is. We will also compare the lenders and highlight what to pay attention to when applying.
Unsecured Loan Providers Comparison
The following companies are one of the most reputable unsecured personal loan lenders. They cooperate with borrowers who have a high credit score. Read about the lenders of the best unsecured personal loans online, who cooperate with average-credit and excellent-credit borrowers.
OppLoans.com
This online platform offers unsecured bad credit loans as well as installment loans for the short term.
- It lends up to $4,000
- APRs range from 99% to 199%
- OppLoans is available in 49 states
- Bad credit unsecured loans are available to consumers
- No hidden or prepayment fees
- The payback period is up to 36 months
Unsecured loans for poor credit from OppLoans are a great option for consumers who value their time and want to achieve fast lending services from the comfort of their homes. It is possible to acquire installment loans for up to 36 months even with bad credit.
LendingClub.com
LendingClub is one of the main peer-to-peer lenders.
- The amount can reach $40,000
- LendingClub doesn’t offer unsecured loans for bad credit, as a minimum required score is 600
- APR varies between 5.99% and 35.89%. The better the credit – the lower the APR.
- LendingClub services are available in 49 states
- The origination fee is 1%-6%.
- The lender charges a 7% fee for each monthly repayment made by check.
- The payback terms are 3 or 5 years
LendingClub is a good choice as it is the main peer-to-peer lender. Its rates are competitive, availability is wide, and terms are transparent. If you wonder what unsecured loan rates you can get, apply to LendingClub. It generates a soft inquiry, that will not damage your credit score.
Prosper.com
Lending criteria of Prosper are more liberal than of its main competitors.
- The amounts are $2,000-$35,000
- APR varies between 5.99% and 35.99%
- Origination fee starts from 1% and can reach 5%
- Prosper is available in 46 states (it does not make loans in Maine, Iowa, West Virginia and North Dakota).
- The payback terms are 3 or 5 years
The same way as LendingClub, Prosper is one of the most famous peer-to-peer lenders. Its terms are transparent. It is widely available. It pays not that much attention to the number of your credit inquiries and debt-to-income ratio.
Best Unsecured Loans for Excellent Credit
We have good news for people with great credit: you can apply for the best no collateral loans with unbelievably low rates. But remember that the direct lenders with low interest rates want to see all the financial health markers. Not only a high credit score matters but stable employment and low debt-to-income ratio as well.
SoFi.com
SoFi is known as the company that refinances student loans. However, it offers personal loans without collateral as well.
- The amounts start at $5,000 and can reach $100,000
- APR varies: fixed-rate options start from 5.49% and can reach 14.24%, variable-rate options are 4.98% – 11.44%
- There is no origination fee charged
- 3, 4 or 7-year repayment terms
- SoFi is available in 22 states + Washington, D.C
SoFi offers low interest rates. You can try the variable-rate option and save even more in case you are ready to accept the risk that the rate will grow. SoFi has a unique program of unemployment protection. It helps to suspend repayments. The payments are not deducted from checking account or savings automatically.
LightStream.com
LightStream is a division of SunTrust Bank and offers amortizing installment loans for various purposes.
- It lends from $5,000 to $100,000
- APR ranges from 3.49% to 16.79%
- LightStream is available in 49 states
- Amortizing installment loans are available to consumers with stable income
- No hidden or prepayment fees
- The payback period is 24-144 months
LightStream deals only with reliable consumers who can provide proof of steady income and good credit history. No collateral personal loans may be obtained for any purpose including medical costs, house or auto repair, wedding expenses, or upcoming vacation costs.
Earnest.com
Earnest is a recent startup. It gives personal unsecured loans at low cost to financially responsible people.
- The amounts start at $2,000 and may reach $50,000
- It evaluates not only a credit score but education, savings, and career as well
- APR starts at 5.25% and can reach 14.24%
- There is no origination fee charged
- One can apply in 45 states + Washington D.C.
- 1, 2, and 3-year options offered
Earnest is a perfect lending option for young people, whose credit history is short. No matter how long your history is, it should be blemish-free. To obtain a small unsecured personal loan, you should present an income that is enough for living and loan repayment.
Best Unsecured Loans for Average Credit
If your credit is not the best one, it can still be difficult to get a loan with low interest. Let’s check the perfect options for the average credit lenders.
Peerform.com
The rates of Peerform are the best for an average-credit borrower. The webpage clearly explains how to qualify for unsecured loans online.
- You can qualify for a loan between $1,000 and $25,000 regardless of credit history
- APR varies from 7.12% to 29.99%
- Origination fees vary from 1% to 5%
- The payback term is 3 years
- The income of the average Peerform borrower is $85,000 a year
Pay attention that it’s impossible to select a repayment term – it’s set to 3 years.
Upstart.com
UpStart is a reputable company that offers unsecured personal loans for American consumers who need some financial aid to fund their expenses or make a big purchase.
- It lends from $5,000 to $30,000
- APRs range from 6.18% to 35.99%
- Its service is not available to in West Virginia and Iowa
- No down payment or prepayment fees
- The payback period is 3 to 5 years
It is necessary to admit that the lender’s terms and interest rates depend on the borrower’s income source, credit history and even the background information such as education or current position.
Avant.com
This company is based in Chicago. It focuses on American middle-class consumers.
- The amounts range from $2,000 to $35,000
- APR starts at 9.95% and can reach 35.99%
- The administration fee comprises 4.75%
- The minimum loan amount depends on the state
- This lender works in 46 states + the District of Columbia
If your credit is not that excellent, it is hard to come by options worth $35,000. Though unsecured personal loan rates are not the lowest ones, they are anyway fair for this level of credit score. Avant isn’t one of the peer-to-peer lenders. That’s why you can get through the process much faster. Note that all the rates depend on state law and credit determination.
How to Choose the Best Option?
When picking an unsecured loan lender, put attention to the following 6 factors:
- low APRs
- low or zero fees
- higher loan limits
- flexible terms
- serving most of the country
- reputation
Are There Unsecured Loans for People with Bad Credit?
In most cases, yes. You may find a lender ready to cooperate even if you have bad credit. However, the rates will be higher, because such cooperation is risky for a lender providing a bad credit loan.
In the case of poor credit history, experts suggest trying the existing bank or credit union. A secured loan is almost a 100% guarantee of getting a lower APR if you risk and put up collateral.
On the flip side, if you fit the preferred borrowing profile, you can select an online lender who offers a better rate. Before putting a signature on a loan agreement, check all the terms and fees. Some extra interest and little fees can add up afterward.
4 Tips on How to Select a Lending Company
- Compare all the options available.
- Pay attention to fees.
- Select the appropriate loan term.
- Beware of scams.