Some good lenders for small unsecured personal loans include Avant, Citibank and Best Egg. Most small personal loans are unsecured, as are most personal loans in general. That means you won’t have to put down any collateral in order to take out the loan. If you’re unable to pay back the loan, the lender may sell the debt to a collections agency after months of trying to get the money themselves. Or, they will eventually have to get a court judgment against you to garnish your wages or levy your bank account. In contrast, with a secured personal loan, there’s collateral that the lender can take ownership of if you default.
Exactly what is considered a “small” unsecured personal loan depends on whom you ask. But generally it’s around $1,000 to $3,000, where many lenders set the minimums for personal loan amounts. To qualify for one of these loans, you’ll usually need a credit score of around 660, though some lenders will accept scores lower than that (e.g. Avant).
Now that you have a better picture of what a small unsecured personal loan is, it’s a good idea to take a look at a few lenders that have worthwhile offers. You can also see what lenders you’re pre-qualified for using WalletHub’s pre-qualification tool.
Lenders offering small unsecured personal loans:
Avant: Borrow as little as $2,000. 9.95% - 35.99% APR. Up to 4.75% origination fee. 600 credit score required.
Best Egg: Borrow as little as $2,000. 5.99% - 29.99% APR. 0.99% - 5.99% origination fee. 640* credit score required.
Citibank: Borrow as little as $2,000. 7.99% - 17.99% APR. No origination fee. 680* credit score required.
LendingClub: Borrow as little as $1,000. 6.95% - 35.89% APR. 1% - 6% origination fee. 600 - 640* credit score required.
Prosper: Borrow as little as $2,000. 6.95% - 35.99% APR. 2.41% - 5% origination fee. 640 credit score required.
*According to multiple third-party sources
There are many small unsecured personal loan options to choose from. But if you have bad credit, you may want to seek out a secured personal loan instead. Though you will have to put up collateral, your approval odds will be a lot higher, and you’ll have a chance to get decent rates because the lender’s risk is low.
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