Personal Installment Loans can be secured and unsecured depending on whether you back them up with any collateral or not. Unsecured Personal Loans may be easier to get but a little more expensive as they seem riskier for the lender. But if you borrow wisely and plan your budget to pay off the loan on time it's a good way out, especially if you have bad credit and don't want to risk your property.

Table of Contents:

How do Unsecured Personal Loans work?

Unsecured Personal Loans calculator

Bad credit Unsecured Personal Loans with No credit check

Get Unsecured Personal Loans online

Unsecured Personal Loans guaranteed approval

Best Unsecured Personal Loans

How to qualify for Unsecured Personal Loans?

Compare Secured Personal Loans

Personal Loans with car title as collateral

How do Unsecured Personal Loans work? 

Personal Loans are loans for your own personal needs, such as car purchases, traveling, holidays, dental or medical care, debt consolidation, etc. There are two types of Personal Loans: Secured and Unsecured:

  • When you borrow money and use your property as collateral, it's called a secured Personal Loan
  • If you take out a loan without an asset, then it's called an unsecured loan.

If we compare these two types, on the one hand, secured loans often have lower interest than unsecured loans, but on the other hand, you can lose your property. Unsecured loans don't require assets, but the APR is always quite higher in comparison with secured loans. What's more, is that it's much easier to apply for an unsecured loan than for a secured one, cause you don't need so many documents and verification procedures.

Unsecured Personal Loans calculator 

A Secured Personal Loan interest rate starts from 5,8% to 15%. Unsecured Personal Loans interest rate varies from 7,7% to 17%. Both variants depend on your credit score: if it's good you'll get better deals. As you can see, unsecured loans have at least 2% more interest than secured ones.

Do you need to learn the total cost of your unsecured Personal Loan? Use our calculator.

Unsecured Personal Loans for bad credit with No credit check 

A lot of lenders offer unsecured Personal Loans to customers with both good and bad credit score. The possible loan amount starts from $1,000 and may reach up to $35,000. But is it good or bad? Let's find out. If a customer has a bad credit score, it means that he failed to pay off one or more previous debts. Lenders usually see those customers as more risky clients, so the interest on the loans is often higher. Why do lenders approve applications from such subprime borrowers? What's their profit? Most people think, that there are mainly two types of lenders, who offer No Credit Check Personal Loans, and scams. That’s true that fair lenders always ask you to provide certain data such as US residence verification, monthly income verification, certificate of employment. But you can also be matched with many companies ready to lend you the money even with bad credit and no credit check. Filling out a free compacom form now online will increase your chances of finding the right lender and getting approved.

Get Unsecured Personal Loans Online

Applying for Unsecured personal loans online lets you check out potential loan terms, interest rates, loan amounts, and payments. Take these 3 easy steps to pre-qualify for the necessary funds now and compare offers from the best direct lenders to find the company that gives you the unsecured Personal Loan you need and a payment you can afford.

  1. Fill out a simple application form online.
  2. Wait for an instant lender's decision and approval.
  3. Get the money deposited into your account the same day or within 1 - 2 business days.

Unsecured Personal Loans guaranteed approval

There's the manual how to choose the best Personal Loan with an instant decision online:

  • Decide what sum you want to borrow.
  • Calculate how much you can pay off monthly.
  • Calculate the time it'll take to repay a loan.
  • Choose a secured or unsecured type of loan.

Here are some tips that will help you get guaranteed approval for a Personal Loan from a direct lender:

  • A Secured loan is easier to get and it has lower rates, it can be a good option if you have bad credit score.
  • Take a loan only if you are sure you can repay it.
  • The better your credit score is, the better conditions you'll be offered.
  • Always have another plan, especially if you take out a secured loan.
  • If you have a good credit score, an unsecured loan can be as good as a secured one (cause you'll be offered good interest rates).
  • Choose a fixed or variable interest. Fixed-rate keeps your payments constant, while variable makes them more flexible, repayments can go up or down.

Best Unsecured Personal Loans

To compare and choose the best Unsecured Personal Loans direct lenders you need to consider:

  • The APR which they charge for their loans. Besides, take into account all the other additional fees and costs. The top legit lenders offer APRs from 6% to 36% and should provide you with full disclosure of their finance charges.
  • Turnaround Time. Some lending companies promise the same day funding. As you choose unsecured Personal Loans, it means you won't have to waste time on a collateral inspection, additional paperwork, etc. Maximum 2 working days are required to deposit the money into your banking account.  
  • Affordable rates. Many unsecured Personal loans have fixed rates while others offer variable-rate options. Choose the one which is more convenient to you. 
  • Unsecured Personal Loans benefits. Free access to your credit score reports, financial education resources, and expert advice, or other online services.

How to qualify for Unsecured Personal Loans?

There're different Unsecured Personal Loans requirements for borrowers, and they all consider these eligibility criteria in different ways. Still, there are some general factors that help you qualify for a cash advance at better rates and terms.

  • US residence
  • age over 18
  • a valid phone number
  • an active banking account

Besides, there're several factors which are not a must but can considerably raise your chances for a better Personal loan with no collateral:

  • A good credit score over 690 lets you expect lower APR on a personal loan. 
  • Low debt-to-income ratio of at least 40% which allows you to make monthly repayments on time without any damage to your budget. 
  • Steady income which will guarantee that you can repay your unsecured Personal loan with no delay.

Secured Personal Loans 

If we talk about secured Personal Loans, there are some options too. The amount of money you can borrow is usually limited only by the value of your property. It'll be easier to get the loan and interest will be lower, but you have to risk your property. As we’ve mentioned above you should be aware of scams: if a lender doesn't require any documents or verifications, be very careful, there’s a chance you might be cheated. The converse case is also true, fair lenders will ask you to confirm some basic information.

How to get a secured Personal Loan with bad credit?

  • Look through offers for customers with bad credit.
  • Find out if you meet the requirements or not.
  • Calculate APR and check if you’ll be able to repay the loan.
  • Submit an online application.
  • Get the funds.

Personal Loans with a car title as collateral 

There are different types of secured Personal Loans:

  • The most common type of Personal Loans secured by real estate is a mortgage. The first mortgage is a kind of loan when you buy or refinance your home. It's called so because the lender has special rights for your property written before any other claims.
  • The second mortgage is another more popular type of secured loan. It depends on both your home net worth and equity amount.
  • Home equity line of credit (HELOC) is a real estate-secured loan that functions as a credit card. You can get cash from your lenders or write checks based on your credit line amount. HELOC has two differences in comparison with other loans secured by real estate: firstly, you can borrow money as you need it, secondly, your monthly payment depends on your current loan balance.
  • Commercial Loans. Commercial loans secured by real estate are available for businesses. They usually have less attractive conditions than mortgages for people, but still are more advantageous than commercial loans secured by equipment or accounts receivable.
  • A title loan is when you use your car as collateral and get some percentage of its price (usually from 25% to 50%, sometimes up to 90%). It's called a title loan because you can use your car throughout the whole repayment period. It may seem like a good option, but if you default, in many cases a lender will "repossess" your car immediately. It usually has huge interest rates (about 25% on average), it's as risky as a Payday Loan, but in the end, you can lose your car.