What is an unsecured loan?
Unsecured loan: An unsecured loan is not backed by collateral. The lender relies on your credit history, income and other information when deciding whether to lend.
Most personal loans and credit cards are unsecured. If you do not repay, the lender cannot take a specific asset, but missed payments can hurt your credit and lead to collection activity.
Because there is no collateral, lenders may look more closely at your credit and income for an unsecured loan.
When you compare offers
Compare unsecured offers by APR, fees, term and total repayment, and borrow only what you can repay comfortably.
Related guides
- What to Check Before Comparing Personal Loan Offers
A checklist of what to have ready before comparing personal loan offers, plus how prequalifying with Lendara is designed to use a soft pull.
- How Your Credit Score Can Affect the Offers You See
Why the offers you see through a marketplace may vary with your credit score, and how prequalification tools try to show relevant options.
This glossary is for general educational purposes and isn't financial, legal or insurance advice. Lendara is not a lender and does not make credit decisions. Lendara is a free online marketplace that connects you with participating lenders and providers, who set their own eligibility rules, rates, fees and terms. Lendara may receive compensation from partners, which may affect which offers appear and their order.