Best Unsecured Personal Loans 2020

Unsecured loans are a perfect way to get fast money without collateral. Let’s review the option in detail and figure out what an unsecured loan 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.

Lending Club

LendingClub is one of the main peer-to-peer lenders.

  • Its loan 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 loans are available in 49 states.
  • The origination fee is 1%-6%.
  • The lender charges a 7% fee for each monthly repayment made by check.
  • Two options for loan terms: 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 for a LendingClub unsecured loan. This application generates a soft inquiry, that will not damage your credit score.

Prosper

Lending criteria of Prosper are more liberal than of its main competitors.

  • The loan 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).
  • Loan terms: 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 unsecured loans with unbelievably low rates. But remember that the 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

SoFi is known as the company that refinances student loans. However, it offers unsecured loans as well.

  • Loan amount starts 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 one of the lowest interest rates. You can try the variable-rate option and save even more in case you are ready to accept the risk that 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.

Earnest

Earnest is a recent startup. It gives personal unsecured loans at low cost to financially responsible people.

  • Loan amount starts 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 loans 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 one of the best ones, it can still be difficult to get an unsecured loan with low interest. Let’s check the perfect options for the average credit lenders.

Peerform

The rates of Peerform are one of 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 the credit history.
  • APR varies from 7.12% to 29.99%.
  • Origination fees vary from 1% to 5%.
  • Each loan lasts 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 – each loan lasts 3 years.

Avant

This company is based in Chicago. It focuses on American middle-class consumers.

  • The loan amount ranges 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 46 states + the District of Columbia.

If your credit is not that excellent, it is hard to come by loans 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 your loan 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, put attention to the following 6 factors:

  • low APRs
  • low or zero fees
  • higher loan limits
  • flexible terms
  • serving most of the country
  • reputation

Before making a decision, educate yourself on the topic of loans.

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, while such cooperation is risky for a lender providing unsecured bad credit loan.

In the case of bad 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 Personal Loans

  • Compare all the options available.
  • Pay attention to fees.
  • Select the appropriate loan term.
  • Beware of scams.