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The most secure personal loans of 2023

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THE BEST OF

The most secure personal loans of 2023

Secured personal loans permit you to borrow against the value of an asset, such as car or savings. Secured loans can have 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 compensate us. This may influence which products we feature and the location and manner in which the product appears on an article. However, this does not influence our evaluations. Our views are our own. Here is a list of and .

Most personal loans are not secured, which means they are based on creditworthiness. If you’re not eligible for an unsecure loan or receive the interest you desire for a bad credit loan or secured loan is one alternative.

This kind of loan requires the pledge of collateral in order to borrow money. The drawback 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 banks, online lenders and credit unions.

Be aware that the information provided by each lender is unique to the lender’s unsecured loans. Criteria for qualifying and loan details may be different for secured loans.

The majority of personal loans are unsecured, so approval is based on your creditworthiness. If you’re not eligible for an unsecured loan or get the price you’d like on a low-credit loan or secured loan is a viable option.

This type of loan requires the pledge of collateral in order to borrow money. The downside: If you don’t pay your loan on time, the lender could seize your property.

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

The information for each lender is unique to the lender’s unsecured loans. Qualification criteria and loan information may differ in secured loans.

Best Secured Personal Loans

Lender

NerdWallet rating NerdWallet’s ratings are made by our editorial team. The scoring formulas are based on many data points for each financial product and service.

Est. APR

The loan amount

Min. credit score

Learn more

Best Egg on Best Egg’s website

Best to Secured loans by online loan 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 option for secured loans by online loan lenders

18.00 – 35.99%

$1,500 – $20,000

None

The average score is 600 – 650

on the OneMain Financial website.

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

Best option for secured loans at credit unions

6.70 – 18.00%

$500 – $50,000

660

on the secure website of NerdWallet.

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 NerdWallet’s secure website

Our top pick to secure loans by online lending institutions

on the website of Best Egg.

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

Est. APR 8.99 + 35.99 Percent

The amount of the loan is $2,000 to $50,000.

Min. credit score 600

View details

on the Best Egg’s website

View details

Min. credit score 600

Important facts Best Egg secured loans are similar to home equity loans but they are secured by items to your home rather than the home itself as collateral.

Pros Offers wide range in loan amounts.

Offers a secured loan option for homeowners.

Offers direct payment to creditors with credit consolidation loans.

Cons Origination fee.

No rate discounts.

There is no choice to choose the first payment date.

The minimum credit score is 600. The average for borrowers is 700. Minimum credit history is three consecutive years, and at least three different accounts. The minimum amount of income required is $3500 The average of borrower’s income is $80,000. The borrower should have sufficient cash flow to pay the current financial obligations. Maximum debt-to-income ratio: 40 percent or 65% if you include the mortgage. The average of borrowers is 40 percent. Employment: Must provide evidence of income; part-time employees are eligible. You must provide a proof of a valid 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 payments aren’t processed.

Disclaimer *Trustpilot TrustScore in June 2020. Best Egg personal loans, including the Best Egg Secured Loan, are provided through Cross River Bank, a New Jersey State Chartered Commercial Bank and Members FDIC, Equal Housing Lender or Blue Ridge Bank, a Nationally Chartered Bank, Member FDIC, Equal Housing Lender. “Best Egg” is a trademark of Marlette Holdings, Inc., a Delaware company. The use for “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 source of the Best Egg personal loan,” depending on the circumstances. The term, amount and the APR for each loan we provide will depend upon your score on credit your income, debt repayment obligation, loan amount, credit history and other factors. The loan contract will include specific conditions and terms. About half of our customers receive their money the next day. Once you have verified your identity, the money will be in the account of your bank account within 1-3 business days. The timing of available funds following loan approval can vary based upon your bank’s policies. The loan amounts vary from $2,000- $50,000. Residents of Massachusetts must have the 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 total existing Best Egg loan amounts cannot exceed $100,000. The Annual Percentage Rates (APRs) vary from 8.99%-35.99%. The APR represents the cost of credit per year at a rate that is a reflection of the interest rate you pay and an origination fee of 0.99%-8.99 percent of your loan amount to be taken from any loan proceeds you receive. Origination fees for the loan term 4-years or longer will be at least 4.99%. The length of your loan term will impact your APR, which can be higher than our lowest advertised rate. You need at least 700 FICO(r) score as well as an annual income for you as an individual of $100,000 to be eligible the lowest interest rate. For example: a 5-year 10,000 loan with 9.99 percent APR will have 60 monthly installments scheduled for $201.81 and a three-year five-figure loan with 7.99% APR has 36 scheduled monthly payments of $155.12. To assist the federal government in combating the financing of terrorism and money laundering activities, Federal law requires all financial institutions to gather verification, confirm, and document information that can 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 birthday, as well as other details that allow us to identify you. We might also request for your driver’s license or other identifying documents. Best Egg products aren’t available for residents of 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 team. The scoring formula takes into account aspects we believe are friendly to consumers, such as the impact on credit score, rates and fees, customer service and responsible lending practices.

Est. APR 8.24 – 35.97 Percent

Loan amount $1,000 – $50,000

Min. credit score 560

View details

on Upgrade’s website

View details

Min. credit score 560

Important facts Upgrade applicants are able to secure their loans with a car and the worth of that can be incorporated into the rate.

Pros Secured and joint loans.

Multiple rate discounts.

Mobile application to manage loan payments.

Direct payment to creditor with debt consolidation loans.

Repayment terms for home improvement loans.

Cons Origination cost.

You cannot choose your payment time.

Qualifications Minimum credit score: 560. Minimum number of credit accounts on history: one account. Maximum debt-to-income ratio: 75%, including the loan you’re applying for. Minimum period of credit history: 2 years. Minimum income requirement: None. Lender accepts income from retirement, alimony, child support and Social Security and other sources.

Available Term Lengths 2 to 7 years

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

Disclaimer Personal loans made through Upgrade feature Annual Percentage Rates (APRs) of 8.24%-35.97 percent. All personal loans come with the 1.85% to 8.99% origination fee that is taken out of the loan profits. The lowest rates are contingent on Autopay and paying off part of debt directly. These loans have repayment terms of 24-84 months. For example, if you get an amount of 10,000 loan with a term of 36 months and a 17.59% APR (which includes a 13.94 percent annual rate of interest and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $341.48. In the course of the loan, your payments would total $12,293.46. The APR for your loan may be higher or lower and the loan offer may not come with different lengths of terms that are available. The actual rate is based on your the credit score, usage history, loan term, and other factors. The late payment or the subsequent fees or charges may raise the price for your fixed-rate loan. There is no fee or penalty for paying off the loan early. Personal loans are provided 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 website

OneMain Financial 4.0 NerdWallet’s ratings are decided by our editorial team. The scoring formula is based on 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 18.00 – 35.99%

Loan amount $1,500 – $20,000

Min. credit score None Average score is 600- 500

View details

on OneMain Financial’s site

View the full details

Min. credit score None

The most important details OneMain Secured loans require a vehicle as collateral. They can also apply for an applicant who is a co-applicant.

Pros Option: Choose to modify the date of your payment.

Joint and secured loans.

Fast and quick funding.

Direct payment to creditor on consolidating debt loans.

Cons Rates are higher as compared to other lenders.

Charges charge for origination fees.

No rate discounts.

Pre-qualification does not allow borrowers to preview potential rates.

Qualifications You must have a Social Security number or taxpayer identification number. The minimum age is 18 or over in most states. Minimum credit score zero. Minimum number of accounts on credit reports: None, but applicants with no credit history might not qualify. The minimum income is none. This lender will accept the income earned from employment, alimony and retirement benefits, child support, Social Security payments, investments and public assistance.

Available Term Lengths: 2 to 5 years

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

Disclaimer Not all applicants will be considered. Approval of loan and loan terms are contingent on the ability of you to satisfy our standards for credit (including an established credit history, sufficient income after expenses per month, and the ability to provide collateral). If you are approved, not all applicants will qualify for larger loan amounts or most favorable loan terms. Larger loan amounts require a first lien on a motor vehicle no more than 10 years old, that meets our value requirements, titled in your name and backed by current insurance. The loan approval process and loan terms are contingent on your residence state and your capacity to meet our credit requirements (including an established credit history, adequate income after monthly expenses, and availability of collateral). APRs generally are higher on loans that are not secured by the vehicle. Highly-qualified applicants may be offered greater loan amounts and/or lower APRs than those previously mentioned. OneMain charges origination fees where legal. The state in which you open your loan the origination fee may be either flat in addition to a portion of your loan amount. Flat fee amounts vary by state, ranging from $25 to $500. Percentage-based fees are different for each state ranging from 1% to 10 percent of your loan amount subject to state restrictions on the fees. Go to omf.com/loan-fees to learn more. The loan proceeds are not utilized for educational costs postsecondary as per the CFPB’s Regulation Z such as college and university costs, or vocational expenses; for any business or commercial reason; to purchase cryptocurrency-related assets and derivatives, securities, or other investments that are speculative; or for gambling or illicit purposes. The states in which these loans are offered must adhere to these minimal loan dimensions: Alabama: $2,100. California: $3,000. Georgia If you’re 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 these states are restricted to these maximum secured loan size: North Carolina: $7,500. An unsecured loan is a loan that doesn’t need you to offer collateral (such as the motor vehicle) in exchange for the lender. Example: A $6,000 loan with a 24.99 APR, repayable in 60 monthly installments will result in monthly payment of $176.07. Time to Fund Loans: Funding within one hour after closing through SpeedFunds is required to a debit card issued by a bank. Payments made by check or ACH may take up to 1-2 business days after loan closing.

Our top pick of Secured loans by credit unions

on NerdWallet’s secure website

First Tech Credit Union Personal Loan 5.0 NerdWallet’s ratings are evaluated by our editorial team. The scoring formula takes into account factors we consider to be beneficial to the consumer, including the impact on credit score, rates and fees, customer experience and ethical lending practices.

Est. APR 6.70 – 18.00 percent

Loan amount $500 – $50,000

Min. credit score 660

View the full details

on NerdWallet’s secure website

View the full details

Min. credit score of 660

Important information 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 using credit consolidation loans.

You can choose to change your payment date.

Quick funding.

Cons Exclusive to members of credit unions.

Reports payments to only one credit bureau out of three.

No rate discount.

Qualifications Must be a 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 other state-issued ID. Maximum debt-to-income ratio: 50%. Minimum monthly income: $700 when living with others 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 from 2 to 7 years

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

on NerdWallet’s secure site

Navy Federal Credit union Personal Loan 5.0 The ratings of NerdWallet are determined through our team of editors. The scoring formula considers the factors we believe to be consumer-friendly, including impact on 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 the full details

on the secure website of NerdWallet.

View details

Min. credit score None

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

Pros A wide choice of loan amounts.

Quick funding.

Rate discount for some customers.

Co-signing, joint and secured loan options.

Direct payment to creditors using debt consolidation loans.

Cons Exclusive for members of credit unions.

It is not possible to pre-qualify using the use of a soft credit test.

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. There is no minimum credit score requirement.

Available Term Lengths: 1 to 5 years

Fees Origination fee: None. Late fee: $29. Returned payment fee of $29.

>> COMPARE:

What exactly is a personal loan?

A secured personal loan is an loan that you obtain by pledging something you own to get money , which you will repay in time, paying interest.

Lenders have the right to seize your collateral- a vehicle or money in a savings or savings account, for example — but they’ll only take it if you fail to pay back the loan. Once the loan is paid in full then the lender no longer has the power to take your collateral.

Similar to an unsecure loan credit, income and other debts are still central to getting approved for a secured loan However, providing collateral decreases the risk to the lender. Additionally, the odds of getting approved are better for secured loans and the interest rate generally lower.

>> MORE:

How can you obtain a secured loan

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

Ask regarding the loan. Some lenders provide secured loans only if the applicant does not for an unsecured loan. If you aren’t able to pre-qualify with the lender, or you don’t have any secured loan alternative, contact the lender directly about secured loans.

Check your budget. Review your cash flow to find out the amount you’re able to contribute to the loan each month. Utilize a calculator to determine the percent of your annual income, loan amount and repayment time you’ll need to make monthly payments affordable.

Select one lender. Compare lenders to find out what kinds of collateral they will accept and what rates they are willing to offer.

Gather documents. Before you apply to a lender, collect the documents lenders require in order to submit an application. This could include a government-issued ID as well as bank statements, W-2s, and pay stubs. There may be additional documents to secure collateral, such as the title to your car.

Apply. The majority of lenders accept online applications. Once you submit, an approval decision may be a few days or more if the lender has to assess the value of collateral.

>> MORE:

Pros and pros and loans

Consider the advantages of taking a secured loan against the possible drawbacks before you borrow.

Pros

Better approval odds. The lender is more likely to accept secured loan application.

Lower interest rates and larger loan amounts. Because the risk of losing money is reduced for the lender you could get a larger loan at a lower cost.

Cons

The lender may use your collateral. If your car is collateral for the loan and you’re in need of it to get to work, for instance you lose it, it could put you in a worse situation than before you borrowed.

Not as widely available as unsecured loans. Many banks, credit unions and online lenders provide only non-secured loans.

>> MORE:

Secured loan examples

Home equity loans and HELOCs The home equity loan or line of credit is a second mortgage that gives you access to cash based on the value of your home. Like the first mortgage the lender can take your house when you fail to pay.

>> MORE:

Auto-secured loans When you take out an auto-secured loan, the lender will take into consideration information such as the car’s model, make and year in addition to your financial and credit scoreto determine the rate. If you are approved, you hand the lender your vehicle’s title, and they return it once it is loan is paid off. This is different from auto title loans that may have triple-digit APRs (more about them below).

CD loans: If you have a certificate of deposit with an institution, you may be eligible to utilize it as collateral to secure personal loan. The rates are typically low the average, starting just a couple of percentage points higher than the CD rate. it’s a method of accessing funds without having to cash out 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 in up to 5 years. There are generally low rates on 401(k) loans, but by borrowing from the account, you’re missing the market’s gains and compound interest from saving for retirement.

Where to get a secured personal loan

Banks: Banks typically offer a savings- or CD-secured loan. A bank account you have at the bank is collateral, and you can’t use that account up until loan is paid back.

Credit unions: Some credit unions offer share-secured loans, which is another term that refers to savings secured loans. The credit union will hold onto your savings until you pay back the loan.

However, if your institution doesn’t provide these loans, you could qualify for an unsecured loan due to the fact that credit unions are known for having low requirements for borrowers and less restrictive APRs.

>> MORE:

Online lenders: The majority of online lenders that provide secure loans require a vehicle as collateral. Some let you apply for the loan upfront, but other lenders may offer the option only after you’ve attempted applying for an unsecure loan.

Many lenders let you check the rate of an unsecure loan without affecting your credit score, so it doesn’t hurt to take the with multiple lenders.

You can use NerdWallet’s lender marketplace to find rates for unsecured loans.

Secured loans to help avoid

: Pawnshops let you hand the cash you have in exchange for cash that you must repay, typically within a few weeks. These loans can have 200% APRs and may be difficult to repay. If you fail to repay, the pawnshop will keep the item.

They are high-interest short-term loans of usually a few hundred or thousand dollars. Because they’re hard to repay in time, this kind of loan could encourage repeated borrowing, and result in an unsustainable cycle of debt. Avoid auto-secured loans that have rates of more than 36%, the most expensive rate that consumers believe an affordable loan can have.

>> MORE:

Updated on December 13, 2022.

Methodology NerdWallet’s review process evaluates and rates personal loan products from over 35 financial institutions. We collect over 45 information points for each lender, interview company representatives and then compare the lender to other lenders that are seeking the same type of customer or offer the same personal loan product. NerdWallet editors and writers conduct thorough fact checks and review each year. We they also update all through the year if.

Our star ratings award points to lenders who provide consumer-friendly features, including: soft credit checks to pre-qualify with competitive interest rates and no charges, transparency of rates and terms and flexibility in payment methods, speedy processing times for funding, easy customer support, and reporting of all payments to credit bureaus and financial education. We also consider regulatory actions filed by agencies like that of the Consumer Financial Protection Bureau. We evaluate these aspects based on our assessment of which ones are the most crucial to consumers, and how they affect consumers’ experiences.

This approach is only available to lenders who set interest rates at 36%, the maximum rate that most financial experts and consumer advocates are in agreement with as the ideal rate for a loan to be affordable. NerdWallet does not get paid for our star rating. Read more about our and our .

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

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

A secured personal loan is a loan that needs collateraltypically a car or bank account. In addition to your credit score and income The lender examines the worth of the collateral to determine whether you’re eligible and the amount they can loan you, and also your interest rate. You repay this type of loan in fixed monthly installments, which is similar to an unsecured loan. But unlike an unsecured loan one, the lender can use your collateral should you don’t pay.

Are secured loans easier to get?

Secured loans are more straightforward to get than unsecured loans since you can use something you own as collateral to secure the loan, which the lender could take if you fail to repay it. This helps make your loan less risky for the lender as requirements for income and credit are generally less strict with a secured loan.

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

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