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Best Secured Personal Loans of 2023

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THE BEST OF ALL

Top Secured Personal Loans for 2023

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

By Annie Millerbernd

Dec 13, 2022

The majority of products we feature are made by our partners who pay us. This can affect which products we write about and the location and manner in which the product appears on an article. But, it doesn’t affect our opinions. Our opinions are our own. Here’s a list and .

Most personal loans are secured, and approval is based on your creditworthiness. However, if you aren’t eligible for an unsecured loan, or you don’t get the price you’d like on a bad-credit loan, a secured loan is one alternative.

This kind of loan requires the pledge of collateral in order to borrow money. The downside: If you fail to pay on time, the lender could seize your property.

Here’s what to know about secured and where to locate them, such as banks, online lenders and credit unions.

Note that the information for each lender is specific to its secured loans. The criteria for qualification and loan details could be different in secured loans.

Most personal loans are unsecured, so approval is based on your creditworthiness. If you’re not eligible for an unsecure loan, or you don’t get the price you’d like on a bad-credit loan or secured loan is an option.

This type of loan requires the pledge of collateral in order to borrow money. The downside: If you don’t make timely payments due to the lender can seize your asset.

Learn about secured and how to find them, including banks, online lenders as well as credit unions.

The information for each lender is unique to the lender’s secured loans. Criteria for qualifying and loan details may be different for secured loans.

Best Personal Loans Secured

Lender

NerdWallet rating The ratings of NerdWallet are made by our editorial team. The scoring formulas consider multiple data points for every financial product or service.

Est. APR

The amount of the loan

Min. credit score

Find out more

Best Egg on Best Egg’s website

Best to Secured loans from online lenders

8.99 – 35.99%

$2,000 – $50,000

600

on the Best Egg’s website

Upgrade on the website of Upgrade.

Best to Secured loans from online lenders

8.24 – 35.97%

$1,000 – $50,000

560

on the Upgrade’s website

OneMain Financial on OneMain Financial’s website

Best to Secured loans via online lending

18.00 – 35.99%

$1,500 – $20,000

None

Average score is 600 – 700

on OneMain Financial’s website

A personal loan from First Tech CreditUnion via NerdWallet’s secure website

Best for Secured loans from credit unions

6.70 – 18.00%

$500 – $50,000

660

on NerdWallet’s secure site

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

Best option for secured loans from credit unions

7.49 – 18.00%

$250 – $50,000

None

on the secure NerdWallet website.

Our choice for Secured loans from online lenders

on the website of Best Egg.

Good Egg 4.5 NerdWallet’s ratings are based on the opinions of our editorial team. The scoring formula takes into account aspects we consider to be a good choice for consumers, such as the impact on credit score as well as fees and rates as well as the customer’s experience and ethical lending practices.

Est. APR 8.99 — 35.99 Percent

Amount of loan $2,000 – $50,000

Min. credit score 600

View details

on the website of Best Egg.

View more information

Min. credit score of 600

Key facts Best Egg secured loans are similar to home equity loans but use items attached to your home, rather than the house itself as collateral.

Pros offers a wide variety in loan amounts.

Provides secured loan option for homeowners.

Offers 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.

Qualifications Minimum credit score: 600. The average for borrowers is 700. Minimum credit history: Three months and 3 accounts. The minimum amount of income required is $3500; borrower average is $80,000. Borrower must have enough cash flow to pay the current financial obligations. Maximum debt-to-income ratio: 40 percent or 65%, excluding the mortgage. The average of borrowers is 40%. Employment: Must provide proof of income; part-time employees are qualified. You must provide a an official U.S. address and Social Security number.

Available Term Lengths 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 at June 2020. Best Egg personal loans, including the Best Egg Secured Loan, are offered by Cross River Bank, a New Jersey State Chartered Commercial Bank, Members 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. All uses in the name 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 creator of the Best Egg personal loan,” depending on the circumstances. The term, amount, and APR of any loan we offer to you will be based on your credit score your income, debt repayment obligation, loan amount, credit history and other aspects. The loan agreement will contain specific terms and conditions. Around half of our customers receive their money on the same day. Once you have verified your identity, the funds will be in the account of your bank account within 1-3 business days. The amount of funds available upon loan approval can vary based on your bank’s policy. Loan amounts range from $2,000to $50,000. Residents of Massachusetts are required to have the minimum loan amount of $6,500 ; New Mexico and Ohio, $5,000. Georgia is Georgia $3,000. To get the second Best Egg loan, your current Best Egg loan amounts cannot exceed 100,000. APRs (APRs) range from 8.99%-35.99%. The APR is the price of credit per year at a rate and is a reflection of the interest rate you pay and the origination cost of 0.99%-8.99 percent of the loan amount, which will be deducted from any loan proceeds you receive. The origination fee on the loan term 4-years or longer is at least 4.99%. The length of your loan term will affect your APR, which can be higher than our lowest advertised rate. You must have a minimum 700 FICO(r) score as well as an annual income of at least of $100,000 to be eligible the lowest interest rate. For example: a 5-year $10,000 loan with 9.99% APR has 60 scheduled monthly payments of $201.81 and a three-year loan of $5,000 loan with 7.99% APR has 36 scheduled monthly installments of $155.12. To assist the federal government in combating the funding of terrorism and money laundering activities, Federal law requires all banks to collect verification, confirm, and keep records of information that identify every person who has an account. What this means for youis that when you sign up for an account, we’ll request your name, address, dates of birth and other information that allows the institution to verify your identity. We might also request to see your driver’s license or other identifying documents. Best Egg products aren’t available for residents of Iowa, Vermont, West Virginia and the District of Columbia, or U.S. Territories.

on Upgrade’s website

Upgrade 5.0 NerdWallet’s ratings are determined by our editorial team. The scoring algorithm takes into consideration factors we consider to be friendly to consumers, such as the impact on credit score rates and fees, customer service and ethical lending practices.

Est. APR 8.24 — 35.97 Percent

The amount of the loan is $1,000.

Min. credit score 560

View the full details

on Upgrade’s website

View the full details

Min. credit score 560

Important facts Upgrade applicants are able to back their secured loans with a vehicle and the worth of that factors into your rate.

The pros of secured and joint loans.

Multiple rate discounts.

Mobile application to manage loan payments.

Direct payment to creditor with credit consolidation loans.

Repayment terms for home renovation loans.

Cons Origination fee.

You cannot choose your payment date.

Credit Score Minimum: 560. Minimum number of credit accounts on history: One account. Maximum debt-to-income ratiois 75%, which includes that loan the applicant is applying for. Minimum time period of your credit record: 2 years. Minimum income requirement: None. Lender will accept income from retirement, alimony, child support, Social Security and 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: $10.

Disclaimer The personal loans that are made using the Upgrade feature APRs (APRs) of 8.24%-35.97%. All personal loans include a 1.85% to 8.99 per cent origination charge, which is deducted from the loan profits. Lowest rates require Autopay and the payment of some of the debt directly. The terms for repayment vary from 24 to 84 months. As an example, if get an amount of $10,000 loan with a 36-month period and a 17.59 percent APR (which comprises a 13.94 percent annual interest rate and an origination fee of 5% that is one-time fee) You would be able to receive $9,500 in your account and would have a required monthly payment of $341.48. Over the life of the loan the payments would amount to $12,293.46. The rate of interest for your loan could be different, or even lower and the loan offer may not come with multiple term lengths available. The actual rate is based on your credit score, credit usage history, loan length, along with other elements. Late payments or subsequent fees and charges could increase the price on your fixed rate loan. There is no charge or penalty for repaying the 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 decided by our editorial team. The scoring formula takes into account the factors we believe to be friendly to consumers, such as the impact on credit score rates and fees, the customer experience and responsible lending practices.

Est. APR 18.00 – 35.99 Percent

Loan amount $1,500 – $20,000

Min. credit score None Average score is 600 – 500

View details

on OneMain Financial’s site

View more information

Min. credit score None

The most important facts OneMain secured loans require a car as collateral. They can also apply for a co-applicant to an application.

Pros Option: Choose to alter your payment date.

Secured and joint loans.

Quick funding.

Direct payment to creditor on the consolidation of debt loans.

Cons Rates are very high when compared to other lenders.

Charges origination fee.

No rate discounts.

The pre-qualification process does not permit borrowers to preview potential rates.

Qualifications Must have a Social Security number or taxpayer identification number. Must be 18 or older in all states. Minimum credit score is: None. Minimum number of accounts listed on credit report: None, however applicants with no credit history might not be considered. Minimum income: None. This lender will consider earnings from alimony, employment, retirement, child support, Social Security payments, investments , and public assistance.

Available Term Lengths 2 to 5 years

Fees Origination Fee between $25 and $500 or 1% to 10% on the loan amount. Late fee: $5 to $30 or 1.5 percent to 15% of your monthly payment. Fee for non-sufficient funds 15 dollars.

Disclaimer Not all applicants will be considered. The approval of loans and the actual loan terms are contingent upon the ability of you to satisfy our standards for credit (including an established credit history as well as a steady income following monthly expenses, and availability of collateral). If they are approved some applicants may not be eligible for higher loan amounts or favorable loan terms. The larger loan amount require lien on a vehicle not older than ten years and that meets our requirements for value, and is titled in your name with valid insurance. The loan approval process and loan conditions are contingent upon the state in which you reside and your capacity to meet our credit standards (including having a good credit history, a sufficient income after expenses paid monthly and the availability of collateral). APRs tend to be higher for loans that are not secured by the vehicle. For applicants who are highly qualified, they may receive higher loan amounts and/or APRs that are lower than the ones shown above. OneMain will charge origination fees if allowed by law. Depending on the state where you are opening your loan, the origination fee could be a flat amount in addition to a portion of your loan amount. The flat fee amount varies per state, and range between $25 and $500. Percentage-based fees differ by state and range from 1% to 10 percent of the loan amount subject to certain state limits on the fee amount. Visit omf.com/loan-fees to learn more. The loan proceeds are not used to pay for postsecondary education expenses as defined by the CFPB’s Regulation Z such as college and university costs, or vocational expenses; for any commercial or business-related reason; to purchase cryptocurrency-related assets, securities, derivatives or other speculative investments as well as for gambling or illicit purposes. Borrowers in these states must adhere to these requirements for minimum loan sizes: Alabama: $2,100. California: $3,000. Georgia In the event that you are not an existing customer, you must pay $3,100 as the minimum loan amount. North Dakota: $2,000. Ohio: $2,000. Virginia: $2,600. The borrower (other than present customers) in states like these are limited to these maximum secured loan dimensions: North Carolina: $7,500. An unsecured loan is an unsecure loan that does not need you to offer collateral (such as a motor vehicle) for the lender. Example of a Loan: A $6,000 loan with an 24.99 APR, repaymentable in 60 installments would have monthly payment of $176.07. Time to Fund Loans: Funding must be made within one hour after closing through SpeedFunds should be made available to a debit card issued by a bank. The process of disbursement via cheque or ACH may take up to two business days following loan closing.

Our choice is 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 rates and fees, the customer experience and ethical lending practices.

Est. APR 6.70 + 18.00 percent

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

Min. credit score of 660

View more information

on NerdWallet’s secure site

View details

Min. credit score 660

The most important facts First Tech members have access to secured loans backed by an CD, savings account or stocks.

Pros Secured, joint and co-sign loan options.

Direct payment to creditors with credit consolidation loans.

You can choose to change the payment date.

Fast funding.

Cons Only available to credit union members.

Pays 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 666. The applicant must show a 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 if living with other people Renting; $1,000 the property; or $1,500 if you own your own home. Credit history must be at least two established accounts.

Available Term Lengths: 2 to 7 years

Fees Origination fee: None. Late fee: varies. Check returned 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 algorithm takes into consideration the factors we believe to be beneficial to consumers, including impact to credit score rates and fees, customer service and responsible lending practices.

Est. APR 7.49 – 18.00%

Loan amount $250 – $50,000

Min. credit score None

View more information

on the secure website of NerdWallet.

View more information

Min. credit score None

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

Pros A wide selection of loan amounts.

Fast and quick funding.

Discount on rates for certain customers.

Co-sign, joint and secured loan options.

Direct payment to creditors using the debt consolidation loans.

Cons Only available to members of credit unions.

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

There is no option to select or change the date of your payment.

The applicant must be an Navy Federal Credit Union member to be eligible. No minimum credit score requirement.

Available Term Lengths 1 to 5 years

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

>> COMPARE:

What’s a secured personal loan?

An secured personal loan is a loan that you obtain by pledging something you own to get money , which you will repay over time with interest.

Lenders have the right to acquire your collateral- a vehicle or money in a savings or savings account, for instance, but they’ll only do it if you are unable to repay the loan. Once the loan is fully paid and the loan is paid in full, the lender does not have the right to take the collateral.

Similar to an unsecure loan credit score as well as income and other debts are still central to getting approved for a secured loan however, offering collateral decreases the risk to the lender. The odds of approval are higher for secured loans and the interest rate is typically lower.

>> MORE:

How to get a secured loan

The procedure for getting a secured loan is different depending on the kind of collateral you’re applying for, but here are the steps you’ll take:

Ask regarding the loan. Some lenders provide secured loans only after an applicant has not been approved require an unsecured loan. If you’re unable to pre-qualify the lender or have any secured loan option, ask the lender directly regarding secured loans.

Check your budget. Examine your cash flow to determine the amount you’re able to contribute to the loan each month. Use a to see what percent of your annual income, loan amount and repayment term you’d need to keep monthly payments within your budget.

Select the right lender. Compare lenders to determine what kind of collateral they will accept and the rates they will offer.

Gather the necessary documents. Before you apply, gather the documents most lenders require to make an application. This could include the ID of a government official and Bank statements, W-2s, and pay stubs. There may be additional documents for the collateral, for example, a car title.

Apply. Many lenders offer online applications. After you’ve submitted your application, an approval decision may be a few days or longer if a lender needs to evaluate the value of collateral.

>> MORE:

Pros and cons of secured loans

Weigh the benefits of getting secured loan against potential disadvantages before you take out a loan.

Pros

Better approval odds. A lender is more likely to approve an secured loan application.

Lower interest rate and greater loan amounts. Since the risk of losing money is reduced for the lender, you may get a larger loan with a less interest.

Cons

The lender might take your collateral. If your vehicle is collateral for an loan and you require it to get to work, for instance the loss of it could place you in a much worse position than you were before borrowing.

Not as widely available as loans that are not unsecured loans. Many credit unions, banks and online lenders provide only unsecured loans.

>> MORE:

Secured loan examples

Equity home loans and HELOCs A home equity loan or line of credit is a type of mortgage that lets you access cash based on the value the home. As with the initial mortgage one lender may take possession of your home when you fail to pay.

>> MORE:

Auto-secured loans If you have an auto-secured loan, the lender considers information like the vehicle’s make, model, and year, as well as your credit and finances — to decide your rate. If you are approved, you hand the lender your title and they return it once the loan is paid back. This is different from auto title loans that can come with triple-digit APRs (more on these below).

CD loans: If you have an account with the bank, you might be able to use it as collateral for an individual loan. Rates are usually low on — typically starting at a few percentage points higher than the CD rate — and it’s one way to access funds without having to withdraw the CD early and paying a penalty.

401(k) loans: An employer-sponsored 401(k) plan might allow employees to draw funds from their retirement account for up to five years. Rates are usually low on 401(k) loans, but when you borrow from the account, you’ll miss out on market gains and compound interest on saving for retirement.

Where to get the secured personal loan

Banks: Banks usually offer a savings- or CD-secured loan. An account you already have at the bank is collateral and you won’t be able to access that money till the loan is repaid.

Credit unions: Some credit unions provide share-secured loans that is a different name for savings-secured loans. The credit union will hold onto your savings as you pay the loan.

If your credit union doesn’t offer theseloans, you might be eligible for an unsecured loan due to the fact that credit unions are known to have low requirements for borrowers and less restrictive APRs.

>> MORE:

Online lenders: Most online lenders offering secure loans require a vehicle to serve as collateral. Some allow you to apply for the loan at the beginning, while other lenders may offer the possibility after having attempted to apply for an unsecure loan.

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

It is possible to use NerdWallet’s lender marketplace to evaluate rates on unsecure loans.

Secured loans to avoid

: Pawnshops let you hand the cash you have in exchange for cash you must repay, typically within a couple of weeks. These loans may be a 200% APR and may be difficult to repay. If you fail to pay, the pawnshop may keep your item.

: These are high-interest, short-term loans typically ranging from several hundred or thousands of dollars. Because they’re difficult to repay in time, this kind of loan can encourage repeat borrowing, and result in an unsustainable cycle of debt. Avoid auto-secured loans with rates above 36%, which is the highest rate that advocates for an affordable loan can have.

>> MORE:

Last updated on December 13, 2022

Methodology NerdWallet’s review procedure reviews and ranks personal loan products offered by more than 35 banks. We collect over 45 information points for each lender, interview company representatives and evaluate the lender against other lenders who seek the same customer or offer similar to a personal loan product. NerdWallet writers and editors conduct an exhaustive fact-check and review each year. We also make updates throughout the year as necessary.

Our star ratings give points to lenders that offer consumer-friendly features, including: soft credit checks to help you qualify, competitive interest rates and no charges, transparent rates and terms and flexibility in payment methods, quick funding times, accessible customer service, and reporting of all payments to credit bureaus and financial education. We also look at legal actions that are filed by agencies such as that of the Consumer Financial Protection Bureau. We assess these elements according to our evaluation of which are the most significant to consumers and the impact they have on consumers’ experiences.

This methodology applies only to lenders that set their interest at 36%, which is the maximum rate that most financial experts and consumer advocates accept as the appropriate limit for an loan in order to make it affordable. NerdWallet is not compensated for our star ratings. Learn more about us and our .

For a recap of our choices… NerdWallet’s Top Secured Personal Loans for 2023 : Best for Secured loans from online lenders : The best for Secured loans from online lenders: Best for Secured loans from online lenders: The best for Secured loans from credit unions Best to secure loans at credit unions

Most frequently asked questions What exactly do you mean by a personal loan?

A secured personal loan is a loan that needs collateraltypically a car or bank account. Apart from your credit and income The lender considers the value of the collateral to determine whether you are eligible and the amount they can loan you and your rate of interest. The repayment of this kind of loan with fixed monthly installments, similar to an unsecure loan. However, unlike an unsecured loan it is possible for the lender may be able to take your collateral in the event that you don’t pay.

Are secured loans more readily available?

Secured loans are easier to get than other loans since you can use something you own as collateral for the loan that the lender may take in the event that you do not repay the loan. This makes your loan more secure for the lender as criteria for credit and income are usually softer on secured loan.

About Annie Millerbernd, author of Annie Millerbernd. She is an individual loans writer. Her work has appeared on The Associated Press and USA Today.

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