Signature Loans: 5 No-Collateral Low-Interest Lenders

When you need cash with no collateral, signature loans can be your answer.

A signature loan is an unsecured personal loan that typically comes with flexible repayment terms, low monthly payments, and no collateral required.

Signature loans are based on your credit history, income, and your signature which is why it’s referred to as a signature loan.

While signature loans can be used for just about any reason, most people get signature loans to consolidate debt, unexpected emergencies, car or home repairs, to go on vacation or for school expenses.

While many people turn to their local bank or credit union for signature loans, there are several direct lenders that can offer instant online approval. In many instances, you can get funding the same day you are approved.

5 Online Lenders that offer Signature Loans

Initially, you will have to provide basic information like name, date of birth, and Social Security number to determine eligibility. Lenders may later ask for proof of income and identity before final approval.

1. Upgrade Loans – credit score needed 620

signature-loan

Upgrade has low starting rates and you can get prequalified with no impact to your credit score. Upgrade offers unsecured personal loans up to $35,000, with annual percentage rates (APRs) that range from 7.99% to 35.97%.

About Upgrade: Upgrade started its lending company in 2017, catering its services to borrowers with good credit as well as borrowers with less than perfect credit. Upgrade only requires a minimum credit score of 620 for approval along with other factors. But keep in mind the better your credit score, the lower your interest rate.

How to Qualify:

  • US citizen or permanent resident with a valid visa
  • Valid bank account
  • Valid email address
  • Minimum credit score of 620
  • Monthly free cash flow of $1,000
  • Maximum debt-to-income ratio of 40% — excluding mortgages

Pros

  • Competitive APR: 7.99% to 35.97%
  • Could get funds within a day of clearing verifications
  • No prepayment fees
  • Loans as high as $35,000

Cons

  • High origination fee of 2.9% to 8%
  • Only two loan term options: 3 years or 5 years

2. SoFi Loans – credit score needed 700

signature-loansSoFi Loans offer some of the lowest APRs and highest loan amounts for borrowers with good credit. Plus, no matter how much you borrow, you won't have to pay any fees. And, SoFi offers unemployment protection, which pauses your monthly repayments if you lose your job. Borrow up to $100,000 with flexible terms to fit your needs.

About SoFi Loans: Social Finance, Inc. (commonly known as SoFi) is an online personal finance company that started in 2011. SoFi provides student loan refinancing, mortgages, personal loans, cash management and investment accounts. SoFi's products provide customers with tools to take control of their financial futures.

How to Qualify:

  • Minimum credit score: 680, but typically 700 or higher
  • Minimum annual income: None; currently employed or pending employment
  • Currently employed or pending employment
  • Not a resident of Mississippi
  • US citizen or permanent resident

Pros

  • Competitive APR: 5.99 - 17.53%
  • Loan Amount: $5,000 - $100,000
  • Option to change your payment date
  • Loan Terms from 2 to 7 years

Cons

  • Does not offer direct payment to creditors with debt consolidation loans
  • SoFi can take a few business days to fund

3. Prosper Borrowers – credit score needed 640

Prosper is a peer-to-peer loan marketplace that matches borrowers with investors willing to fund fixed-rate personal loans. Loan funds are originated through Utah-based WebBank.

How to Qualify:

  • Minimum credit score: 640, but average is 717.
  • Minimum credit history: Two years, but average is 11.
  • Minimum annual income: None, but average is $89,000.
  • Maximum debt-to-income ratio: 50% (excluding mortgage).
  • No bankruptcies filed within the last year.
  • Fewer than five credit bureau inquiries in the last six months.

Pros

  • Your credit won’t be affected when you check your interest rates
  • Loan Amount: $2,000 to $40,000
  • APR range: 7.95% to 35.99%
  • Loan Terms 36 or 60 months

Cons

  • Funding may take up to 14 days because you have to wait on investors to commit funds.
  • Prosper charges 2.41% - 5.00% to originate your loan.

4. Laurel Road Loans – credit score needed 660

laurel-road-personal-loansPre-qualify for a personal loan at Laurel Road with no impact to your credit score. The entire application process can be completed online, and a customer service representative is available to help via phone, email, in-app messaging, or live chat. Borrow up to $45,000 with flexible terms to fit your needs.

About Laurel Road: Laurel Road started it's lending and banking company in 2013, catering its services to student loan refinancing, mortgages, and personal loans. In April 2019, Laurel Road became part of KeyBank, one of the nation’s largest bank-based financial services companies and Member FDIC.

How to Qualify:

  • Minimum credit score: 660.
  • Minimum income: None specified.
  • Debt-to-income ratio: Not disclosed.

Rates and terms:

  • 3 year: 8.01%—20.06%
  • 4 year: 9.16%—21.46%
  • 5 year: 10.11%—22.56%

Pros

  • Fixed APRs as low as 8.01%
  • No origination fees
  • No prepayment fees
  • Loans as high as $45,000
  • Discount of 0.25% when payments are made automatically from a bank account

Cons

  • Takes about 5 days for funding
  • Laurel Road’s website doesn’t offer a lot of information on what it takes to qualify.

5. OppLoans – no minimum credit score required

loans-for-bad-creditOppLoans offers installment loans for bad credit borrowers up to $5,000. While the loan rates are high, starting from 59% to 199%, you can payoff the loan before the end of terms with no pre-payment penalty. OppLoans offers quick funding and is a less expensive alternative to payday loans.

About OppLoans: The company started in 2012 to give people with less than perfect credit access to no collateral signature loans. If you've exhausted all other borrowing options, OppLoans may the solution in an emergency.

How to Qualify:

  • Minimum credit score: 350.
  • Minimum monthly gross income: $1,500.
  • Must be employed or receive benefits, like Social Security benefits. Borrowers cannot be self-employed.
  • Have a bank account in your name with 40 days of history.
  • Receive your paychecks through direct deposit.

Pros

  • Loans to borrowers with poor credit.
  • Option to change your payment date.
  • No prepayment fees
  • Loans as high as $5,000
  • Able to fund loans within 1-2 business days.

Cons

  • High rates from 59.00 - 199.00%.
  • Short maximum repayment terms of up to 18 months in many states.

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