While the best unsecured personal loans vary, they all have one thing in common – paying off debt. Although you can use them for a range of things the top unsecured personal loans will help you get free of debt quicker and save money in the process. Which, ultimately, is what we want to do, as it helps us achieve the financial freedom we want.
You may not know where to go to find an unsecured loan. There are many options to consider. That being said, this post is meant to help you determine what the best unsecured loans are – based on your specific circumstance.
What Is An Unsecured Loan?
In basic terms, an unsecured personal loan is issued largely based on your creditworthiness. You do not put up any collateral. There is nothing securing the debt like with a mortgage or car payment. Thus, in most cases, the creditor can’t come after you if payments aren’t made – just as is the case with most unsecured credit cards. This begs the question of whether or not you need to have good credit to get an unsecured loan. In most cases, you will need to have a relatively decent credit score to get the best possible rates.
Besides the benefit of potentially saving money or paying off debt quicker, the main draw to most unsecured loans is the ability to have a fixed payment each month. In the case of, there is likely a variable interest rate which means you don’t know what you’ll be paying each month.
The key to recognize is that an unsecured personal loan should not be used to make frivolous purchases. Sure, you could do that but it would be incredibly foolish. Rather, they should be used as an aid to . One final note about unsecured loans, there are many options to consider. If you’re trying to get the best personal loan for bad credit, you could be best served to stick with your local bank or credit union if you already have an established relationship.
The Best Unsecured Loans
It used to be that the best unsecured personal loans were available solely through brick and mortar banks. Everything banking related was handled through physical locations, even if they didn’t provide good options. The Internet has dramatically changed that.
By giving birth to a wide variety of different financial institutions, the Internet has leveled the playing field for consumers to find what works best in our given situations. This is not to say that in every instance an online institution is always going to be the best option available, as there are a lot of crappy options to wade through to find something decent. That fact must be kept in mind when looking for personal loans.
With that in mind, there are several options to consider if you’re looking to consolidate debt and get an unsecured loan. Some of those options are:
- Best unsecured loans –
- Best unsecured loans for excellent credit –
- Best unsecured loans for good credit –
- Best unsecured loans for average credit –
- Best unsecured loans for student loan debt –
Each of these companies will be covered in detail later in the post. If you have bad credit, understand that it may be more difficult to get a loan, though not necessarily impossible. As with anything financial in nature, make sure to do your homework and find a firm that meets your needs.
Best Unsecured Loan Option Available: Prosper
The best unsecured loan provider, overall, is – one of the two large peer-to-peer lenders. Generally speaking, Prosper is a little more liberal in their extension of loans and requires a credit score of at least 640. As they do what’s called a soft pull of your credit you won’t see any negative impact on your credit score. Prosper looks at many different factors, so your rate isn’t based entirely off your score and thus still offers the potential to get a good overall rate.
Prosper offers a wide range of unsecured loan options – anywhere from $2, 000 on up to $35, 000. Prosper offers loans in 47 states (sorry Maine, North Dakota and Iowa) and offers competitive rates as low as 5.99 percent up to 36 percent. However, as with other peer-to-peer lenders you could be waiting up to a week or two to receive your funds.
- Extremely competitive rates
- Available in 47 states
- Those with average credit can still get a loan
- No hidden fees
- Relatively easy to apply
Drawbacks to Prosper:
- Have to wait to get funds
- Can only get three or five-year loans
- Origination fee of up to five percent
ACE Limited is the parent company of the ACE Group, a global provider of insurance products covering property and casualty, accident and health, reinsurance, travel, creditor, and life insurance. It also operates in the Lloyd's insurance market in London. It offers services including process management, unusual hazards identification and...
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