Write About Everything

Our top picks

Top Picks

Guides & tips

Guides

Calculators

Tools

My NerdWallet

The most secure personal loans of 2023

Advertiser disclosure You’re our first priority. Everytime. We believe that everyone should be able to make sound financial decisions without hesitation. And while our site doesn’t contain every financial institution or product on the market however, we’re confident of the advice we provide and the information we offer as well as the tools we design are objective, independent easy to use and completely free. How do we earn money? Our partners pay us. This can influence the products we write about (and the way they appear on the site) However, it does not affect our advice or suggestions which are based on many hours of research. Our partners do not pay us to guarantee favorable reviews of their products or services. .

THE BEST OF ALL

The most secure personal loans of 2023

Secured personal loans permit you to borrow against the value of an asset like an automobile or savings. Secured loans may carry lower interest rates but they also come with risk.

By Annie Millerbernd

Dec 13, 2022

The majority of items featured on this page are provided by our partners, who pay us. This can affect which products we feature and the location and manner in which the product appears on a page. However, this does not influence our assessments. Our opinions are our own. Here’s a list of and .

Most personal loans are secured, and they are based on creditworthiness. But if you can’t qualify for an unsecure loan or get the rate you want for a bad credit loan, a secured loan is an option.

This kind of loan requires the pledge of collateral in order to borrow money. The drawback is that if you don’t make timely payments in time, the lender can seize your asset.

Here’s what to know about secured, and where you can look for them, including banks, online lenders and credit unions.

The information provided for each lender is specific to its non-secured loans. The criteria for qualification and loan details could differ in secured loans.

Most personal loans are secured, and the approval process is based on your creditworthiness. If you’re not eligible for an unsecure loan or get the rate you want on a low-credit loan or secured loan is one alternative.

This kind of loan requires the pledge of collateral in order to get money. The disadvantage is that if you fail to pay on time in time, the lender can seize your asset.

Learn about secured and where to find them, including online lenders, banks and credit unions.

Be aware that the information provided by each lender is unique to the lender’s non-secured loans. Qualification criteria and loan details may be different when it comes to secured loans.

Best Secured Personal Loans

Lender

NerdWallet rating The ratings of NerdWallet are determined by our editorial team. The scoring formulas consider several data points associated with each financial product and service.

Est. APR

The amount of the loan

Min. credit score

Learn more

Best Egg on Best Egg’s website

Best for Secured loans by online loan lenders

8.99 – 35.99%

$2,000 – $50,000

600

on the website of Best Egg.

Upgrade on the website of Upgrade.

Best to Secured loans via online lending

8.24 – 35.97%

$1,000 – $50,000

560

on the website of Upgrade.

OneMain Financial on OneMain Financial’s website

Best option for secured loans from online lenders

18.00 – 35.99%

$1,500 – $20,000

None

The average score is 600 – 700

on OneMain Financial’s site

The First Tech Credit Union Personal loan through NerdWallet’s secure website

Best for Secured loans by credit unions

6.70 – 18.00%

$500 – $50,000

660

on NerdWallet’s secure website

Navy Federal Credit Union Personal Credit Loan on NerdWallet’s secure site

Best to Secured loans at credit unions

7.49 – 18.00%

$250 – $50,000

None

on the secure NerdWallet website.

Our top pick of Secured loans by online lending institutions

on Best Egg’s website

Good Egg 4.5 NerdWallet’s scores are determined by the editorial staff of our website. The scoring algorithm takes into consideration the factors we believe to be a good choice for consumers, such as the impact on credit score rates and fees, customer experience and responsible lending practices.

Est. APR 8.99 – 35.99 Percent

Loan amount $2,000 – $50,000

Min. credit score 600

View details

on the Best Egg’s website

View the full details

Min. credit score 600

Key information Best Egg secured loans are like home equity loans but they are secured by items to your home instead of the house itself as collateral.

Pros provides a variety of loan amounts.

Provides secured loan option for homeowners.

Direct payment to the debtors who have taken out credit consolidation loans.

Cons Origination fee.

No rate discounts.

There is no option to select the initial payment date.

The minimum credit score is 600; borrower average is 700. Minimum credit history is three years and three accounts. The minimum income requirement is $3500 The average of borrower’s income is $80,000. The borrower should have sufficient cash flow to cover the current financial obligations. Maximum ratio of debt to income: 40% or 65% including the mortgage. The borrower’s average is 40 percent. Employment: Must provide evidence of income; part-time employees are qualified. Must provide valid U.S. address and Social Security number.

Available Term Lengths of 3 to 5 years

Fees Origination fee: 0.99% – 8.99%. Refund fee: $15 in the event that the payment is not processed.

Disclaimer *Trustpilot TrustScore as of June 2020. Best Egg personal loans, including the Best Egg Secured Loan, are made via Cross River Bank, a New Jersey State Chartered Commercial Bank, member of the FDIC, Equal Housing Lender or Blue Ridge Bank, a Nationally Chartered Bank, Member FDIC, Equal Housing Lender. “Best Egg” is a trademark owned by Marlette Holdings, Inc. (a Delaware company. The various uses of “Best Egg” refer to “the Best Egg personal loan”, “the Best Egg Secured Loan” and/or “Best Egg” on behalf of Cross River Bank or Blue Ridge Bank as the originator of the Best Egg personal loan,” as applicable. The term, amount and the the APR for each loan we offer to you will be based upon your score on credit, income, debt payment obligations, loan amount, credit history, and many other variables. The loan agreement will contain specific terms and conditions. Around half of our customers get their money the next day. After successful verification, your cash can be deposited in the account of your bank account within 1-3 business days. The timing of available funds following loan approval can vary based on the policies of your bank. Loan amounts range between $2,000 and $50,000. Residents of Massachusetts are required to have a minimum loan amount of $6,500; New Mexico and Ohio, $5,000. Georgia is Georgia $3,000. If you want to take out a second Best Egg loan you must ensure that your current Best Egg loan amounts cannot exceed 100,000. APRs (APRs) range from 8.99%-35.99 percent. The APR is the cost of credit as a yearly rate that includes both your interest rate and an initial fee that is 0.99%-8.99 percent of your loan amount, which will be deducted from any loan funds you receive. The origination fee on an loan term 4-years or longer is at least 4.99%. The length of your loan term will affect the APR of your loan, which could be greater than our advertised rate. You need a minimum 700 FICO(r) score as well as an annual income for you as an individual of $100,000 to qualify to receive our lowest rate. For example: a 5-year loan of $10,000 loan with 9.99 percent APR will have 60 scheduled monthly payments of $201.81 while a 3 year $5,000 loan with 7.99 percent APR will have 36 monthly scheduled payments of $155.12. To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to gather the information, verify and keep records of information that identify every person who has an account. What this means to you: If you open an account we’ll ask you for your name and address, as well as your date of birth, and other details that allow us to identify you. We may also want for your driver’s license or other identifying documents. Best Egg products are not accessible if you reside in Iowa, Vermont, West Virginia or in the District of Columbia, or U.S. Territories.

on the Upgrade’s website

Upgrade 5.0 NerdWallet’s rating is determined by our editorial staff. The scoring algorithm takes into consideration factors we consider to be consumer-friendly, including impact to credit score rates and fees, customer experience and ethical lending practices.

Est. APR 8.24 — 35.97 Percent

The amount of the loan is $1,000.

Min. credit score 560

View details

on Upgrade’s website

View more information

Min. credit score 560

Key facts Upgrade applicants can secure their loans by using a vehicle and the worth of that factors into your rate.

Advantages of joint and secured loans.

Multiple rate discounts.

Mobile app to manage loan payments.

Direct payment to creditor with the debt consolidation loans.

Repayment terms for home renovation loans.

Cons Origination fee.

No option to choose your payment date.

Qualifications Minimum credit score 560. Minimum number of credit accounts on history: One account. Maximum ratio of debt to income: 75%, including that loan the applicant is applying for. Minimum time period of credit-related history Two years. Minimum income requirement: None. Lender accepts income from retirement, alimony, child support, Social Security and various other sources.

Available Term Lengths from 2 to 7 years

Fees Origination Fee: 1.85% to 8.99 percent. Late Fee 10$. Fee for late payment of $10.

Disclaimer The personal loans that are made using the Upgrade offer APRs (APRs) that range from 8.24%-35.97 percent. All personal loans include the 1.85% to 8.99% origination fee, which is deducted from the loan profits. Lowest rates require Autopay and paying off a portion of existing debt directly. Loans feature repayment terms of 24-84 months. As an example, if receive an amount of 10,000 loan with a term of 36 months and a 17.59% APR (which comprises a 13.94 percent annual rate of interest and the 5% one-time origination fee) You would be able to receive 9500 dollars in your account, and would have a required monthly payment of $341.48. In the course of the loan, your payments would amount to $12,293.46. The rate of interest on your loan may be higher or lower and your loan offers may not have different lengths of terms available. Actual rate depends on credit score, credit utilization history, loan duration, as well as other factors. In the event of late payments, additional fees and charges could increase the price for your fixed-rate loan. There is no charge or penalty for paying off 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 .

on OneMain Financial’s site

OneMain Financial 4.0 NerdWallet’s ratings are evaluated by our editorial staff. The scoring formula is based on factors we consider to be friendly to consumers, such as the impact on credit score rates and fees, customer experience and ethical lending practices.

Est. APR 18.00 APR 18.00 – 35.99%

The loan amount is $1,500 to $20,000

Min. credit score None Average score is 600- 500

View more information

on OneMain Financial’s website

View more information

Min. credit score None

Important facts OneMain secured loans require a car as collateral. They can also apply for an additional co-applicant on the application.

Pros Option to choose and change the payment date.

Secured and joint loans.

Fast funding.

Direct payment to creditors on consolidating debt loans.

Cons Rates are high in comparison to other lenders.

Charges for origination fees.

No rate discounts.

Pre-qualification doesn’t allow borrowers to preview potential rates.

Qualifications Must have an Social Security number or taxpayer identification number. The minimum age is 18 or over in most states. Minimum credit score is: None. Minimum number of accounts listed on credit report: None however applicants with no credit history might not be eligible. Minimum income: None; this lender will accept income from employment, alimony, retirement, child support, Social Security payments, public assistance and investments.

Available Term Lengths from 2 to 5 years

Fees Origination Fee of $25-$500 or 10% to 1% from your loan amount. Late fee: $5-$30 or 1.5% to 15 percent of your monthly payments. Fee for non-sufficient funds: $15.

Disclaimer: Not every applicant will be accepted. Approval of loan and loan terms depend on the ability of you to satisfy our credit requirements (including having a credit history that is responsible as well as a steady income following expenses per month, and the being able to show collateral). If they are approved however, not all applicants will be eligible for higher loan amounts or favorable loan conditions. Higher loan amounts require a first lien on a motor vehicle no more than ten years old and meeting our value requirements, titled in your name, and with current insurance. Loan approval and actual loan conditions are contingent upon the state in which you reside and your capacity to meet our standards for credit (including a responsible credit history, a sufficient income following monthly expenses and collateral availability). APRs are generally higher on loans that are not secured by a vehicle. For applicants who are highly qualified, they may receive higher loan amounts and/or APRs that are lower than the rates that are listed above. OneMain offers origination fees when allowed by law. Based on the state in which you are opening your loan, the origination fee could be flat in addition to a portion of your loan amount. The amount of flat fees varies by state, and can range from $25 to $500. Percentage-based fees are different for each state and range from 1% to 10% of the loan amount, subject to limitations on fees. Visit omf.com/loan-fees for more information. Loan proceeds cannot be used to pay for postsecondary education expenses as defined by the CFPB’s Regulation Z such as college, university or vocational expense as well as for any other commercial or business-related use; for the purchase of cryptocurrency assets and derivatives, securities, or other investments that are speculative or for gambling or illicit purposes. Borrowers in these states are subject to the following minimal loan dimensions: Alabama: $2,100. California: $3,000. Georgia If you’re not an existing customer, $3100 maximum loan amount. North Dakota: $2,000. Ohio: $2,000. Virginia: $2,600. The borrower (other than present customers) in states like these are restricted to these maximum unsecure loan sizes: North Carolina: $7,500. Unsecured loan is an unsecure loan that doesn’t require you to provide collateral (such as an automobile) for the lender. Example of a Loan: A $6,000 loan with a 24.99% APR that is repayable in 60 monthly installments will result in monthly installments of $176.07. Time to Fund Loans: Funding within one hour following the closing date through SpeedFunds should be made available to a bank-issued debit card. Payments made by check or ACH may take up to two business days following loan closing.

Our top pick for Secured loans at credit unions

on NerdWallet’s secure site

First Tech Credit Union Personal Loan 5.0 NerdWallet’s ratings are determined by our editorial team. The scoring algorithm takes into consideration aspects we believe are friendly to consumers, such as the impact on credit score rate and fees, the customer experience and responsible lending practices.

Est. APR 6.70 – 18.00 Percent

The loan amount is $500-$50,000.

Min. credit score 660

View more information

on NerdWallet’s secure website

View more information

Min. credit score of 660

The most important information First Tech members have access to secured loans backed by a CD or savings account, as well as stocks.

Pros Secured, joint and co-sign loan options.

Direct payment to creditor with the debt consolidation loans.

You can choose to change your payment date.

Fast and quick funding.

Cons Only available to credit union members.

Reports payments to only one credit bureau out of three.

No rate discount.

The applicant must be an active Member of First Tech Federal Credit Union. Minimum credit score is at least 660. Must provide Social Security number and driver’s license or any other ID issued by the state. Maximum debt-to-income ratio: 50%. Minimum monthly income: $700 when living with others Renting; $1,000 or owning your own home. Minimum credit history: At minimum two accounts with a history of being established.

Available Term Lengths from 2 to 7 years

Fees Origination fee: None. Late fee: Vary. Return check fee $28.

on the secure website of NerdWallet.

Navy Federal Credit union Personal Loan 5.0 The ratings of NerdWallet are determined by our editorial team. The scoring formula considers the factors we believe to be beneficial to consumers, including the impact on credit score, rates and fees, customer service and ethical lending practices.

Est. APR 7.49 – 18.00%

The loan amount is $250-$50,000.

Min. credit score None

View more information

on the secure NerdWallet website.

View the full details

Min. credit score None

Important facts In addition to unsecured loans, Navy Federal offers secured loans backed by the Navy Federal savings account or CD.

Pros Large selection of loan amounts.

Fast funding.

Discount on rates for certain customers.

Secured, joint and co-sign loan options.

Direct payment to creditor with credit consolidation loans.

Cons Only available to members of credit unions.

There is no option to pre-qualify for a soft credit check.

No option to choose or change the date of your payment.

Qualifications Must be an Navy Federal Credit Union member to be eligible. There is no minimum credit score requirement.

Available Term Lengths 1 to 5 years

Fees Origination fee: None. Late fee is $29. Fee for returned payments $29.

>> COMPARE:

What exactly is a personal loan?

An secured personal loan is an loan you get by pledging something you own in exchange for borrowed money that you repay in time, paying interest.

Lenders have the right to acquire your collateralsuch as a car or money in a savings account for example — but they’ll only do it if you fail to pay back the loan. After the loan is fully paid then the lender is no longer able to exercise the power to take your collateral.

Like an unsecured loan, your credit or income, as well as other debts are still central to getting secured loan, but offering up collateral reduces the risk for the lender. The odds of approval are better for secured loans and the rate is typically lower.

>> MORE:

How can you obtain a secured loan

The process for getting a secured loan can vary depending on the kind of collateral you’re using, but here are some of the steps to follow:

Find out more about the loan. Some lenders provide secured loans only if the applicant does not qualify for an unsecure loan. If you’re unable to pre-qualify the lender or don’t think you’ll be able to get a secured loan option, ask the lender directly regarding secured loans.

Check your budget. Check your cash flow and discover the amount you’re able to pay toward the loan each month. Utilize a calculator to determine the annual percentage rate, loan amount and repayment time you’ll need to make monthly payments within your budget.

Select one lender. Compare lenders to find out what kind of collateral they accept and what rates they offer.

Gather the necessary documents. Before applying make sure you have the necessary documents that lenders require to make an application. This could include an ID issued by the government, bank statements, W-2s and pay stubs. You may also need documents for collateral, like a car title.

Apply. The majority of lenders accept online applications. Once you submit your application, a decision on approval could take a couple of days or longer if a lender has to assess the value of collateral.

>> MORE:

Pros and pros and loans

Weigh the benefits of getting secured loan against the potential drawbacks before you borrow.

Pros

Better approval odds. An lender will be more inclined to accept secured loan application.

Lower interest rate and greater loan amounts. Since the risk that you will lose money reduced for the lender the loan may be approved for a larger loan for a lesser rate.

Cons

The lender may use your collateral. If your car is collateral to the loan and you’re in need of it to travel to work, for instance the loss of it could place you in a worse situation than you were before borrowing.

Not as readily available as loans that are not unsecured loans. Many credit unions, banks and online lenders offer only non-secured loans.

>> MORE:

Secured loan examples

Equity home loans and HELOCs A home equity loan or line of credit is a second mortgage that lets you access cash based on the worth the home. Similar to the original mortgage one lender could take possession of your home when you fail to pay.

>> MORE:

Auto-secured loans: With an auto-secured loan the lender takes into account information such as your car’s model, make and year, as well as your financial and credit score- to decide your rate. If they approve, you give the lender your title and they return it once you have paid off the loan is paid off. They are not the same as auto title loans that may have triple-digit APRs (more about them below).

CD loans: If you have an account with the bank, you might be able to utilize it as collateral to secure an individual loan. Rates are usually low on the average, starting just a couple of percentage points higher than the CD rate. it’s a way to access funds without having to cash out the CD before the due date and incurring a penalty.

401(k) loans: An employer-sponsored 401(k) plan may allow employees to borrow from their retirement account at a maximum of five years. There are generally low rates on 401(k) loans, but by borrowing money from the account, you’re losing out on the gains in the market and compound interest from saving for retirement.

How do I get the secured personal loan

Banks: Most banks provide a savings or CD-secured loan. An account that you have at the bank is collateral, and you can’t access that money until the loan is repaid.

Credit unions: Some credit unions offer share-secured loans which is a different name for savings-secured loans. They will hold onto your savings as you pay the loan.

If your credit union doesn’t offer theseloans, you might be eligible for an unsecure loan, because credit unions are known for having low requirements for borrowers and less restrictive APRs.

>> MORE:

Online lenders: Many online lenders who offer secured loans require a vehicle as collateral. Some allow you to apply for this loan upfront, but others might offer you the possibility only after you’ve attempted to apply for an unsecure loan.

Many lenders let you check your interest rate for an unsecured loan without affecting your credit, so it’s not a bad idea to check the loan with several lenders.

You can use NerdWallet’s lender marketplace to compare rates on unsecured loans.

Secured loans to avoid

: Pawnshops let you hand over valuables to get cash which you have to repay within a couple of weeks. These loans may have a rate of 200% and may be difficult to pay back. If you do not repay, the pawnshop will keep the item.

They are high-interest short-term loans typically ranging from several hundred or thousands of dollars. Because they’re difficult to repay on time, this type of loan could encourage repeated borrowing, which can lead you into an unsustainable cycle of debt. Avoid auto-secured loans with rates above 36%, which is the highest rate that consumers believe an affordable loan can have.

>> MORE:

Last updated on December 13, 2022

Methodology NerdWallet’s review process reviews and ranks personal loan products from more than 35 financial institutions. We gather more than 45 data points from each lender as well as interview representatives of the company and compare the lender with others that seek the same type of customer or offer the same to a personal loan product. NerdWallet editors and writers carry out a full fact check and update each year, but also make updates all through the year if.

Our star ratings award points to lenders that offer consumers-friendly features such as soft credit checks to pre-qualify, competitive interest rates and no fees, transparency of rates and terms as well as various payment choices, quick processing times for funding, easy customer service, reporting of all payments to credit bureaus as well as financial education. We also consider regulatory actions filed by organizations like Consumer Financial Protection Bureau. Consumer Financial Protection Bureau. We evaluate these aspects based on our assessment of which are most important to consumers and how meaningfully they impact consumers’ experience.

This methodology applies only to lenders that cap the interest rate at 36%. This is the maximum rate that most experts in the field and consumer advocates accept as the appropriate limit for the loan that is affordable. NerdWallet is not compensated for our star ratings. Read more about our and our .

To summarize our choices… The NerdWallet’s Top Personal Loans that are Secured for 2023 : Best Secured loans from online lenders: Best for Secured loans from online lenders: The best for Secured loans from online lenders: Best for Secured loans from credit unions : Best in Secured loans from credit unions

Frequently asked questions What do you mean by a personal loan?

A secured personal loan is a loan which requires collateraltypically a car or bank account. In addition to your credit score and income The lender examines the worth of the collateral in determining whether you’re eligible, how much to loan you, and also the rate of interest. This type of loan with fixed monthly installments, which is similar to an unsecured loan. But unlike an unsecured loan, the lender could be able to take your collateral in the event that you don’t pay.

Are secured loans easier to get?

Secured loans can be easier to obtain than unsecured loans because you offer something you own as collateral to secure the loan, which the lender may take in the event that you fail to repay it. This means that your loan more secure for the lender, so the credit and income requirements are generally less strict with a secured loan.

About Annie Millerbernd, the author is a private loans writer. Her writing has been featured on The Associated Press and USA Today.

Take all the appropriate money moves

Bank Credit Card Finance Planning News Financial News Insurance Investing Loans Mortgages Small Business Taxes Travel

About

Assistance

legal

Download the app

Note: NerdWallet strives to keep its information current and current. The information you see here may differ than what you see when you visit a financial institution, service provider or specific product’s site. All items in the financial market, including shopping products and services are provided without warranty. When evaluating offers, please go through the Financial Institution’s Terms and Conditions. Pre-qualified offers aren’t binding. If you notice discrepancies on your credit score, or any other information on your credit report and/or credit score, you should contact TransUnion(r) directly. NerdWallet Compare, Inc. NMLS ID# 1617539 California: California Finance Lender loans arranged pursuant to Department of Financial Protection and Innovation Finance Lenders License # 60DBO-74812. Property and Casualty insurance services provided by NerdWallet Insurance Services, Inc. (CA resident license no. OK92033) NerdWallet(tm) | 55 Hawthorne St. – 11th Floor, San Francisco, CA 94105

NerdWallet USA

|

|

|

|

(c) 2023 NerdWallet, Inc. All Rights Reserved.

If you are you looking for more about $255 Payday Loans Online Same Day (loan-segw.site) review the web site.