This loan option is optimal for people who have a major expense, a reasonable debt-to-income ratio (DTI) and a high credit score. These borrowers will likely receive a lower interest rate, making the monthly payments more manageable. If your credit score is lacking, a lender is likely to stick you with a higher interest rate – assuming you’re actually approved. A higher rate may make it more difficult to afford the monthly payments, putting your credit score at further risk. If you’re concerned about making payments in full and on time, consider improving your credit score before applying for an unsecured loan.