Best Signature Loans: What You Need to Know
Get up to $50,000 as soon as the same day with just your signature
| Lender | User rating | Best for | APR | Amount | Min. credit score | |
|---|---|---|---|---|---|---|
|
Debt consolidation | 7.99% to 35.99% |
$1k – $50k |
580 | ||
|
Bad or no credit | 7.23% to 24.00% (Test) | Up to $125M | Not specified |
Read more about how we made our picks for the best signature loans.
Signature loan lenders at a glance
Best for: Debt consolidation – Upgrade
- APR
- 7.99% to 35.99%
Personal loans made through Upgrade feature Annual Percentage Rates (APRs) of 7.99%-35.99%. All personal loans have a 1.85% to 9.99% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. Loans feature repayment terms of 24 to 84 months. For example, if you receive a $10,000 loan with a 36-month term and a 17.59% APR (which includes a 13.94% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $341.48. Over the life of the loan, your payments would total $12,293.46. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by Upgrade’s bank partners. Information on Upgrade’s bank partners can be found at https://www.upgrade.com/bank-partners/.
- Offers discounts: Get discounts for using the loan to pay off debt and for signing up for autopay
- Boost approval odds with co-borrower: Applying with another person can help you qualify and get better rates
- Fair credit OK: Some lenders require good or excellent credit, but Upgrade ’s minimum score is 580
- Charges fees: Upgrade will keep 1.85%-9.99% of your loan money before sending it to you
- Collateral discount: If you want a signature loan, you’ll miss out on Upgrade ’s discount for offering collateral
Upgrade stands out as the best signature loan lender for debt consolidation, as it offers a discount for using your loan to pay off debt. You can get a lower rate by applying for a joint loan, but remember that your co-borrower would be equally responsible for making payments.
Upgrade does charge a one-time origination fee on every loan — it’ll keep 1.85%-9.99% of your loan money before sending it to you. The better your credit, the lower this number will likely be.
To qualify for a loan through Upgrade , you must meet the requirements below:
- Age: Be at least 18 years old (19 in some states)
- Citizenship: Be a U.S. citizen or permanent resident, or live in the U.S. with a valid visa
- Administrative: Have a valid bank account and email address
- Credit score: 580+
Best for: Bad or no credit – Upstart
- APR
- 7.23% to 24.00%
The full range of available rates varies by state. A representative example of payment terms for a Personal Loan is as follows: a borrower receives a loan of $10,000 for a term of 60 months, with an interest rate of 21.58% and a 9.84% origination fee of $984, for an APR of 26.82%. In this example, the borrower will receive $9016 and will make 60 monthly payments of $275. APR is calculated based on 5-year rates offered in December 2023. There is no downpayment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved.
QA Test
- Bad credit OK: Some partners don’t have a specific credit score requirement
- Fast funding: Get your money as soon as the next day
- Skip the paperwork: Most people don’t have to upload documents as part of the approval process
- May charge fees: Upstart may keep part of your loan money before sending it to you
- Only two repayment terms: Upstart only offers loans with 12- or 84-month terms
Bad credit makes it hard to qualify for a loan, but lending platform Upstart partners with lenders that offer loans for bad credit at relatively affordable rates. Upstart also offers fast funding — you could see money in your account as soon as the next day — and a convenient application process for most borrowers.
However, if you have bad credit, you may need to submit additional paperwork to verify your identity, income, employment or education. You may also need to budget for a one-time origination fee, especially if you have bad credit.
Upstart has transparent eligibility requirements, including:
- Age: Be 18 or older
- Administrative: Have a U.S. address, personal banking account, email address and Social Security number
- Employment: Have a job or job offer that starts within six months, or have regular income
- Income: Have a valid source of income, including a job, job offer or another regular income source
- Credit-related factors: No bankruptcies within the last three years, fewer than six inquiries on your credit report in the last six months and no current delinquencies
- Credit score:
Estimate your payments
What is a signature loan?
Signature loans come in a lump sum of money that you pay back each month for a set term. Instead of collateral, signature loan lenders rely on the promise of your word — or your signature — that you’ll pay back the loan. Here’s what you need to know:
-
Approval
Lenders use your credit score, credit history and income to decide your rates — and whether to offer you a loan at all. You can get a signature loan for bad credit, but you’ll have limited options and your loan will be more expensive. -
Risks
Since your property isn’t up for grabs, your credit score suffers when you stop making payments or default on a loan. If your debt goes to collections, debt collectors can sue you. -
Cost
Signature loans typically have lower rates than credit cards, which can help you save money on interest when you’re consolidating debt or making a large purchase. -
Time
It’s possible to get same- or next-day funding when you apply for signature loans online. Still, in general, it can take anywhere from the same day up to five business days to get your personal loan money.
Signature loans come with fixed monthly payments and a set end date. You’ll know your monthly payment, how long you have to pay off your loan and the total loan cost upfront when you sign.
How to find a signature loan with LendingTree
Shopping around for a personal loan on LendingTree can save you an average of $1,659 over the life of your loan. Here’s how it works.
Tell us what you need
Take two minutes to tell us who you are and how much money you’ll need — we’ll take care of the rest. It’s free, simple and secure.
Shop your offers
LendingTree users get 11 personal loan offers on average. Compare your offers side by side to get the best deal.
Get your money
Pick a lender and sign your loan paperwork quickly. You could see money in your account in as soon as 24 hours, depending on the lender you choose.
Signature loan document checklist
Find these documents before you apply to save yourself time.
- Proof of identity — Social Security number and government-issued IDs, like a driver’s license or passport
- Proof of income/employment — W-2s, tax returns, pay stubs
- Proof of address/residence — Lease, utility bill
Boost your chances of getting a signature loan
Apply with a cosigner
Cosigners with good or excellent credit can improve your odds of getting a loan — and getting lower rates. Learn more about the best personal loans with a cosigner.
Boost your credit
Improving your credit score will help you qualify for loans and save money. Raising a “fair” credit score to “very good” helped people save an average of $1,804 on personal loans.
Check your credit reports
Check your credit reports at AnnualCreditReport.com and take the time to dispute any errors that might bring down your score.
Signature loan risks: Expert insights
Watch out for high rates and fees as you could get stuck paying your lender hundreds or thousands of dollars in interest, costing you more in the long run.
Personal loans do come with risks, especially if you don’t understand the terms. Here are a few risks to watch out for:
-
Unexpected fees
If you don’t understand how origination fees work, you could be surprised to see that the amount of money you borrowed isn’t how much you ultimately get. Lenders typically take the origination fee off the top before sending you the loan money. In addition, some lenders charge late fees or fees for paying off your loan early. -
Expensive interest payments
Choosing a longer loan term can make your loan payments cheaper, but it’ll also make your loan more expensive overall. Choose the shortest loan term you can comfortably afford to make your loan as inexpensive as possible. -
Damage to your credit
If you miss a payment, your credit score can take a hit. If you default (which usually happens once you’re 90+ days late on a personal loan) your credit score can drop by more than 100 points. -
Legal consequences
Once your debt is sent to a debt collection agency, they can sue you for payment and even take you to court to garnish your wages.
The best ways to avoid the risks of taking out a personal loan are to make sure that you fully understand the fees, payments and terms of your loan, and that you can afford it.
Calculate your monthly payments with a personal loan calculator to make sure they fit into your budget.
What happens when you default?
Your loan will likely go into default if you don’t make payments for 90 days. Here’s what happens.
- The account goes to collections. Your lender will send your account to a collections department or sell your debt to a collections agency, which will contact you to collect the money you owe.
- Credit score drops. When your debt goes to collections, it appears on your credit report and damages your credit. The negative mark stays on your credit report for seven years.
- Potential lawsuit. If you still don’t pay, the lender or collections agency could sue you to collect the money you owe.
- Potential consequences if you lose lawsuit. If you lose the lawsuit, the court could force you to pay by garnishing your wages, putting liens on your property or taking your assets.
Avoid defaulting by choosing a loan with payments you can comfortably afford. If you’re worried about whether payments fit in your budget, shop around to get the lowest rate or wait to apply until you’ve saved up money and improved your credit score.
How we chose the best signature loans
We reviewed more than 40 lenders and loan marketplaces to determine the overall best five signature loans. To make our list, lenders must offer competitive APRs and unsecured loans.
From there, we assessed each lender or marketplace across four categories: eligibility and access; cost to borrow; loan terms and options; repayment support and tools.
According to our systematic rating and review process, the best signature loans come from PenFed, Prosper, SoFi, Upgrade and Upstart.
Our categories
We assess how easy it is for people to qualify and apply. This includes state availability, soft-credit prequalification, membership requirements, funding speed and whether borrowers with less-than-excellent credit can get a loan.
We evaluate how affordable the loans are based on minimum and maximum APRs, loan fees and rate discounts. Lenders with unclear or potentially predatory costs receive lower scores.
We consider repayment term flexibility, loan amount ranges and whether options like secured loans, joint loans or direct-to-creditor payments are offered — plus whether the lender clearly communicates these options.
We evaluate borrower experience after funding: customer service access, hardship or forbearance programs, payment flexibility and digital tools like mobile apps or credit monitoring.
Our process
We gather data directly from lenders through their websites, disclosures and direct communication with company representatives. Our editorial team verifies and updates information regularly. We value transparency and award less favorable scores when lenders obscure or omit details.
Our editorial team applies the same scoring model and standards to every lender. Lenders cannot pay to influence our ratings. Read more about our editorial guidelines.
Why trust LendingTree’s methodology?
Our writers and editors dig through the facts, contact lenders directly and even go through the application process ourselves if it helps better explain what you can expect. As a Certified Financial Education Instructor℠, I’m committed to breaking down complex financial details so people can make confident, informed decisions with their money.
Jessica’s experience in editing and financial education helps shape LendingTree articles that are clear, accurate and truly useful to readers. Her certification means our recommendations are built on a foundation of consumer-first financial knowledge — not just numbers.
Frequently asked questions
Signature loans can be a good idea, especially if you’re using them to consolidate debt or as an alternative to high-interest credit cards.
However, it’s a bad financial move to use a signature loan to pay for nonessential expenses, like a vacation or another luxury expense — especially if you can’t afford the monthly payments. This is a form of bad debt, the type of debt that doesn’t help you reach your financial goals.
Every lender has its own minimum credit score for a personal loan, though few lenders offer loans to people with credit scores below 580. Still, there are exceptions like Upstart , which requires a credit score of .
It can be hard to get approved for a signature loan if you have bad credit, but there are lenders that specialize in offering poor credit signature loans. Keep in mind, though, that one of the consequences of bad credit is paying higher rates on loans, meaning you’ll pay more to borrow money.