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Signature Loans: 5 No-Collateral Low-Interest Lenders

Signature loans can be a quick solution when you need a personal loan with no collateral.
signature loans

When you need a fast cash loan, 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 580

upgrade-signature-loan

Upgrade has low starting rates and you can get prequalified with no impact on your credit score. Upgrade offers unsecured personal loans up to $50,000, with annual percentage rates (APRs) that range from 8.49% to 35.99%.

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 580 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 580
  • Monthly free cash flow of $1,000
  • Maximum debt-to-income ratio of 40% — excluding mortgages

Pros:

  • Competitive APR of 8.49% to 35.99%
  • Funds may be available within a day of clearing verifications
  • No prepayment fees
  • Loans as high as $50,000
  • Get $200 when you also open a Rewards Checking Plus account and direct deposit at least $1,000*

Cons:

  • High origination fee that ranges from 1.85% to 9.99%
  • Loan term options: 2 to 7 years
Learn More

2. Axos Personal Loans – credit score needed 700

banks-that-offer-early-depositAbout Axos Loans: Axos Bank is a digital bank that started in 2000 as the Bank of the Internet.  Axos Bank provides mortgage, auto, business, and personal loans, along with banking services like checking, savings and investment accounts. Axos Bank's products provide customers with tools to take control of their financial futures.

How to Qualify:

  • Minimum credit score: 700, but typically higher
  • Minimum annual income: Verifiable income
  • Valid driver’s license or state ID
  • Proof of income
  • Social Security Number

Pros

  • Check your rate with no impact on your FICO score
  • Annual Percentage Rates (APR) for personal loans provided by Axos Bank range between 11.79-20.84%
  • A one-time fee of 1-2% of your loan amount based on your credit rating and deducted from the funded amount when you receive your loan
  • Loan Amount: $7,000 – $50,000
  • Option to change your payment date
  • Loan terms up to 6 years

Cons

  • Does not offer direct payment to creditors with debt consolidation loans
  • Axos Bank can take a few business days to fund
Learn More

3. Upstart – credit score needed 580

Pre-qualify for a personal loan at Upstart with no impact on 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 $50,000 with flexible repayment terms that range from 36 to 60 months to fit your needs.

About Upstart: Upstart uses non-traditional information to approve applicants. That means if you have a limited credit file or even bad credit, Upstart will consider your overall financial picture including the school you attended, your area of study, employment history, and your credit history.

How to Qualify:

  • Minimum credit score: 300
  • 18+ years old
  • U.S. citizen or permanent resident
  • U.S. bank account
  • Valid email address and Social Security number
  • No current delinquent accounts on your credit reports
  • Minimum annual income: $12,000. This lender accepts income from employment, alimony, retirement, child support, Social Security payments, disability benefits and self-employment.

Pros

  • Fixed APRs as low as 6.40% – 35.99% APR
  • No prepayment fees
  • Loans as high as $50,000
  • 99% of personal loan funds are sent just 1 business day after signing
  • Repayment terms either 3 or 5 years

Cons

  • Upstart may charge an origination fee of up to 12% of the loan amount, depending on your state of residence
Learn More

4. Happy Money – credit score needed 640

Happy Money consolidates your credit card debt into a single, fixed, and affordable monthly payment to simplify your life. Paying off your credit cards can help increase your credit score.

About Happy Money: If you're struggling to keep up with multiple high-interest credit card payments, a Happy Money Payoff Loan can help. Borrowers can consolidate debt into one monthly payment with a lower APR. This means you can save money on interest and make it easier to manage your finances.

How to Qualify:

  • Minimum credit score: 640
  • Must have open and satisfactory tradelines (mortgage, auto loan, etc.)
  • Low credit utilization ratio between your available credit and the current balances on credit cards
  • No bankruptcies filed within the past two years
  • Zero credit delinquencies

Pros

  • Your credit won’t be affected when you check your interest rates
  • Loan Amount: $5,000 to $40,000
  • APR range: Rates as low as 12.45% APR
  • Loan Terms 24 or 60 months

Cons

  • Happy Money charges an origination fee which is taken out of your loan proceeds
Learn More

5. OppLoans – no minimum credit score required

loans-for-bad-creditOppLoans offers installment loans for bad credit borrowers up to $4,000. While the loan rates are high, starting from 59% to 199%, you can pay off 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: OppLoans 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 be the solution in an emergency.

How to Qualify:

  • Minimum credit score: 350
  • Have a regular source of income
  • Have a checking or a savings account
  • 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 $4,000
  • Able to fund loans within 1-2 business days

Cons:

  • High rates up to 179%
  • Short maximum repayment terms of up to 18 months
Learn More

Advantages and disadvantages of signature loans

As with any type of loan, signature loans come with advantages and disadvantages:

Advantages. One of the main advantages of signature loans is that they can be obtained quickly without the need to put up any assets as collateral. The borrower’s signature and promise to pay is the sole collateral for receiving a signature loan. Once approved, funds obtained through signature loans are deposited in the borrower’s checking account more quickly than other types of loans.

Disadvantages. Signature loans can be more difficult to get without an established credit history. That's because lenders take on more risk with no collateral loans. Additionally, borrowers with poor credit will likely pay higher interest rates than good credit borrowers.

How to get a signature loan

You have the option to apply for a signature loan in person at a bank or credit union or use the convenience of an online lender. Whatever option you choose to apply, you may be asked to fill out a form with your personal information, including your employer and income, and possibly provide copies of W-2 forms, tax returns, or bank statements.

The final underwriting process may involve a hard credit check in addition to the soft credit check that most online lenders perform initially to determine if you're qualified.

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The national savings rate is 0.47% APY. This online bank pays way more.

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Disclaimer: Our goal is to provide the most relevant and current information. However, the information is for informational purposes only and is not intended to be personal financial advice.

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