Best Unsecured Personal Loans with No Origination Fees

Personal loans can come with or without an origination fee. Loans with these types of fees come with additional upfront costs during processing and before fund disbursement. Compare your best options for unsecured loans without upfront fees.

The Round-Up

SoFi

SoFi stands out for its member-only perks (like a credit union.) These perks include unemployment protection and discounts on products and special events. They charge no fees and offer customers loan amounts between $5,000 to $100,000. SoFi first started as student loan refinancing for graduates of high caliber schools and programs and because of this offered the industry’s lowest rates and best repayment terms.

About SoFi Personal Loans:

• No fees, including late fees, origination fees, and prepayment penalties
• Offers co-sign and joint loan options
• SoFi offers a rate discount of 0.25% if you set up autopay
• Must have good credit and have a responsible financial history
• Can be used to consolidate debt

Wells Fargo

Wells Fargo offers its customers both secured and unsecured loans. Their maximum loan amounts are higher than most other lenders.They offer unsecured loans up to $100,000 and secured personal loans up to $250,000 but may carry higher interest rates. However, secured loans require collateral, such as a savings account. 

About Wells Fargo Loans:

• Customers only: You must be a Wells Fargo Customer to apply for a personal loan.
• Offers co-applicant options: This may help you qualify for more favorable loan terms for those with imperfect credit.
• Have minimal fees: Wells Fargo loans have no origination fees and no prepayment penalties.
• Can be used for many purposes: Unsecured loans from Wells Fargo can be used for many purposes, including debt consolidation, home improvement expenses, and medical bills.
• Credit checks: As part of the application process, a hard credit inquiry is required and may affect your credit score.

Marcus by Goldman Sachs

Personal loans from Marcus by Goldman are great for debt consolidation and can be a great option to pay off high-interest debt by making payments directly to creditors. Like many other personal loans, a good credit score and strong credit history is required to qualify and they do not offer joint applications.

About Marcus by Goldman Sachs Personal Loans:

• No fees: These loans have no sign-up or late fees and include no prepayment penalties.
• Offers deferred payments: You can defer one payment without penalty after 12 consecutive payments in full and on time. 
• Fixed-rate loan amounts: Unsecured personal loan amounts range from $3,500 to $40,000 and  they offer long term loans that last anywhere from three to six years. 
• Competitive interest rates: Interest rates are fixed for the life of your loan, often much lower than credit card interest rates, making Marcus by Goldman Sachs an excellent choice for debt consolidation.
• Debt Consolidation: Marcus by Goldman Sachs will directly pay your creditors and can be used to pay off up to ten credit cards.

Discover Personal Loans

Discover Personal Loans offer another great option for debt consolidation for credit cards and will handle any direct payments you may have. Notably, Discover has a straightforward application process and charges no origination fees. Loan amounts range from $2,500 to $35,000.

About Discover Personal Loans:

• Fast-funding: Upon application approval, Discover can make creditor payments as soon as the next business day.  
• Fees: A fee of $39 is charged for any late payments. If you have trouble making payments on time, this type of loan may not be for you.
• Fixed interest rates: Discover offers its customers fixed interest rates and flexible repayment plans.

Are Unsecured Personal Loans Right for you?

Personal loans with no origination fees seem attractive, but may not be right for you. Many banks also offer personal loans with no upfront fees. These loans often have lower rates and offer existing customers benefits. However, if you have bad credit or little credit history, you likely won’t qualify. It is important to note that banks do not pre-qualify borrowers using a soft credit inquiry and instead use a hard inquiry which can negatively impact your credit score.