If you are searching for a no collateral loan or unsecured personal loan, there are excellent online lenders who provide exactly that.
Not all lenders were created equal. We want you to find the best unsecured personal loan, so we've reviewed the top lenders and put together this comparison page.
Best Unsecured Personal Loans
Although there are many 'one size fits all' for every aspect of life – these solutions are not meant for everyone. Each person is an individual with their own personality, body build, tastes, and outlook on life. Not every piece of 'one size fits all' clothing fits or looks good on you. It needs to be 'you' - your fashion taste, your affordability, your body type.
Unsecured personal loans are the very same thing. Everyone is in a different financial position; different town, a different job, different lifestyle, different health, and different family needs. The 'best unsecured personal loan' is NOT a 'one size fits all'. The best unsecured personal loan is the one that is best for you. It is the one that fits your financial position, your monthly income, and requirements. So, how do you find the best unsecured personal loan for you?
First of all - what does 'best unsecured personal loan' mean? We need to understand what a personal loan is - it is a loan that is not backed by the equity in your home, your assets, or vehicle. With an unsecured personal loan, the lender cannot seize your asset in the event you default on repaying the loan back. A personal unsecured loan is a loan that carries much more risk for the lender, therefore, the guidelines, terms, and rates may be more stringent and much higher than a personal loan secured by your home or vehicle.
What is an Unsecured Personal Loan?
An unsecured personal loan is not backed by collateral like your home or car, so the lender cannot seize your assets if you do happen to default.
Personal loans are a type of installment loan that has a fixed repayment term, usually two to five years, and often carry a fixed interest rate. You’ll receive a lump sum up front and then repay the loan along with the interest in regular monthly installments. The higher the interest, the higher the payment. Most personal loan lenders will show you how much it is going to cost you to borrow the money upfront before you sign. For instance, if you borrow $25,000 with an annual interest of 7.5% repaid over 5 years it will cost you a total of $5,057 in interest payments. You will repay $30,057 for borrowing the $25,000. Your monthly payment will be $500.96 which will include repaying the principal and interest. Say your credit is below 660 and you want to apply for an unsecured personal loan because you have fair credit your interest rate could very easily be 9.5%. Borrowing the same $25,000, it will cost you $6,053 in interest over the 5-year term. Your monthly payment will increase to $525 and you will pay $31,503 to borrow the $25,000.
It's Simple to Apply for a Personal Loan
Information Required to Apply
- Your credit score.
- Credit history.
- Current employment information.
- Debt to income ratio also referred to as DTI.
- You will need to be 18 years old to apply.
- You need to be a US citizen, permanent resident, or in some cases have a working visa.