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If you need money to cover an expense or make a purchase that you don’t have enough cash to immediately afford, you may consider taking out a personal loan. You can use a personal loan for debt consolidation, medical expenses, and home improvement projects, among many other purposes.
Best Unsecured Personal Loans of 2023
SoFi Personal Loan – Product Name Only
LightStream Personal Loan – Product Name Only
Payoff Loan™ – Product Name Only
Upstart Personal Loan – Product Name Only
PenFed Credit Union Personal Loan – Product Name Only
Wells Fargo Personal Loan – Product Name Only
When shopping for a personal loan, you’ll find there are two main types: secured and unsecured. Secured loans are backed by collateral, such as a house or a car, that the lender can take if you don’t pay. Unsecured loans don’t require collateral and typically come with higher interest rates than secured loans. Most personal loans are unsecured, and the best personal loans offer a variety of term lengths and other features.
Compare the Best Unsecured Personal Loans
Unsecured Personal Loan Frequently Asked Questions
What is an unsecured personal loan?
An unsecured personal loan is a loan that you don’t need collateral to receive. With some other types of loans, like auto loans or mortgages, you need to put up a car or house in the event you don’t pay the loan back.
Can I get an unsecured loan with bad credit?
It depends on the lender. Some lenders have high minimum credit scores for their loans, while others are more generous with their minimums. On our list of the best unsecured loans, a great option for borrowers with bad credit is Upstart, which has a minimum requirement of just 600.
What can I use an unsecured loan for?
Unsecured loans can be used for many purposes, depending on the lender, including:
Debt consolidation
Credit card refinancing
Home improvements
Moving expenses
Travel
Car repair
Medical bills
Reach out to your individual lender to ask about what it offers.
Methodology
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Source:: Business Insider