How to get an unsecured personal loan

Unsecured loans are loans where lenders don’t require collateral for approval. They are different from secured loans, which require collateral (like a car or a house) that the lender can repossess if you fail to make repayments. Unsecured loans are based on your financial history, including credit history, current debts, and income. 

Interest rates for an unsecured personal loan may range from 6% to 36%, though the Federal Reserve reports that the average personal loan interest rate is 17%.

Who Offers Unsecured Personal Loans?

There are a few places to apply for an unsecured personal loan, though you should consider the pros and cons of each before making a decision. 


Banks offer unsecured personal loans and might be a good option if you already have a good relationship with your bank. If your accounts are in good standing, you may be able to get a bigger loan or better interest rates. There are some drawbacks as banks typically only accept borrowers that have good credit scores and may not offer pre-qualification.  

Online Lenders

Unlike some banks, many online lenders offer pre-qualification. This allows you to submit some personal information to get a preview of a loan you may qualify for, including the loan amount and terms. With pre-qualification, online lenders run a soft credit check that doesn’t affect your credit score. 

Online lenders are often the fastest way to get a loan as you apply online and often get a decision on the same day. They may also directly deposit the loan amount to your account. 

Credit Unions

If you have less-than-great credit, a credit union may be the option with the best rates since federal credit unions cap APRs at 18%. Like banks, credit unions do not offer the option to pre-qualify, so shopping around for the best loans can be a hassle. 

Credit unions only extend loans to members and membership qualifications differ from credit union to credit union. Some require you to live in a particular area or be a part of a special group that the credit union works with. 

How Do I Qualify for an Unsecured Personal Loan?

Depending on where you apply for a personal loan, several different factors may come into play. Some lenders focus solely on your credit score, offering the best rates and largest loan amounts to those with excellent credit scores. 

Other lenders may also look at your credit history and only extend loans to those with a minimum credit history length (usually two years). Those with longer credit histories may be able to access better terms.

Lenders also consider your debt-to-income (DTI) ratio to see if you already carry a lot of debt. This ratio compares your monthly debt payments to your monthly income. Those that are already carrying a lot of debt may appear riskier to lenders who might think you will have a hard time paying back their loan. The ideal range for DTI is under 40%. 

Once you have a good idea of which type of lender may be best for you, be sure that your financial information is in order. If you have at least two years of credit history and a good credit score, you should be able to qualify for an unsecured personal loan with good rates. 

18 thoughts on “How to get an unsecured personal loan”

  1. Debra Scott

    Yes I am Debra Scott I was wondering how do I get the loan your talking about y’all email me and said you have a loan for me

        1. Avatar photo

          Thank You for taking the time to contact us, Timothy!

          Hearing positive feedback pushes us to continue publishing quality information with each and every blog posted.

          We hope you have a great weekend,
          The AssessmentOption Team

  2. Debra Scott

    Yes I just want to correct y’all on something y’all said it’s time for me to get my second loan y’all never gave me a first one y’all said it’s been a while it’s been about 2 weeks or so from my first loan no y’all never gave me a first loan so I would like to get that straight y’all have not gave me no type of money so we have an understanding on this this will be my first time if I agree to do it or if it sound in my original price to start paying back it once we decide so just send me a email letting me know what I have to do thank you and have a blessed day

    1. Avatar photo

      Good day, Wiley! We wanted to say Thank You for taking the time to contact us.

      Hearing positive feedback pushes us to continue publishing quality information with each and every blog posted.

      We hope you have a great week,
      The AssessmentOption Team

  3. Micheal H Ennis

    I’m really needing a loan me and my family are about to lose everything car house lights everything so please help us

      1. John DeBelle

        I am the owner of a dole proprietorship and was awarded a ppp loan that was to be a godsend and help keep my livelihood afloat for my family and I. Unfortunately due to my own unfamiliarity with the process while I was approved and then funds were sent to my personal online bank account (dave), but due to the fact that it is indeed a personal account and not a business account my online bank rejected the funds and sent them back to the lender. Now my son’s wow are set aside and approved I am currently in a state of limbo with an unknown timeframe as to win I will finally receive my money that I so desperately need to stay afloat and I’m less than two weeks away from shutting down. Unfortunately there is no end in sight as I have been waiting and have met dead end after dead end for over 2 months. My credit is below average and pretty much out of all options as I have already burned through all my assets trying to stay afloat. Is there anything that I can do maybe take out a loan against the loan that I am awaiting from the SBA which I already have been given a loan number for?

        1. Avatar photo

          John, that is a tough scenario to work through, but hopefully, the following resources may be of some help:
          For short term loan options, please visit: Quick Loans, Loan Assist USA, or Lions Gate Loans.

          For additional information on what may be available to you, please visit: The Comprehensive Guide to Personal Loans, Which is Better: Personal Loan vs Line of Credit, or Can I Get A Personal Loan If I’m Self Employed.

          Best wishes for a quick resolution,
          The AssessmentOption Team

  4. Jackie Conner

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    Buy several different types of products and sell as they rise in value and reinvest with three low risk stocks and sell them after moderate gains.

  5. Is it generally more difficult to get an unsecured loan for a major restorative dental procedure versus say a wedding or automobile?

  6. Jennifer Miller

    How do I get a personal loan with poor credit and no bank account? Looking for a small loan of $300-$500.

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