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Top Secured Personal Loans for 2023

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THE BEST OF

Top Secured Personal Loans for 2023

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

By Annie Millerbernd

Dec 13, 2022

A majority or all of the products we feature are made by our partners who pay us. This may influence which products we write about and the location and manner in which the product appears on the page. But, it doesn’t influence our evaluations. Our views are our own. Here’s a list of and .

Most personal loans are not secured, which means the approval process is based on your creditworthiness. However, if you aren’t eligible for an unsecure loan or get the rate you want on a bad-credit loan or secured loan is a viable option.

This type of loan requires you to put up collateral to obtain money. The downside: If you fail to pay on time due to the lender could seize your property.

Find out more about secured, and where you can locate them, such as online lenders, banks as well as credit unions.

Note that the information for each lender is unique to the lender’s non-secured loans. The criteria for qualification and loan details could be different when it comes to secured loans.

Most personal loans are not secured, which means the approval process is based on your creditworthiness. However, if you aren’t eligible for an unsecure loan or get the rate you want on a bad-credit loan, a secured loan is a viable option.

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

Find out more about secured and how to look for them, including online lenders, banks and credit unions.

The information for each lender is specific to its unsecured loans. Criteria for qualifying and loan details could differ when it comes to secured loans.

Best Secured Personal Loans

Lender

NerdWallet rating. The NerdWallet ratings are determined by our editorial team. The scoring formulas consider many data points for every financial service and product.

Est. APR

Loan amount

Min. credit score

Find out 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 Upgrade website.

Best option for 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 by online loan lenders

18.00 – 35.99%

$1,500 – $20,000

None

The average score is 600 – 600 –

on the OneMain Financial website.

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

Best to Secure loans at credit unions

6.70 – 18.00%

$500 – $50,000

660

on the secure website of NerdWallet.

Navy Federal Credit Union Personal Loan through NerdWallet’s secure website

Best option for secured loans from credit unions

7.49 – 18.00%

$250 – $50,000

None

on the secure website of NerdWallet.

Our top pick to secure loans via online lender

on Best Egg’s website

Good Egg 4.5 NerdWallet’s scores are determined by the editorial staff of our website. The scoring formula considers aspects we consider to be consumer-friendly, including impact to credit score rates and fees as well as the customer’s experience and responsible lending practices.

Est. APR 8.99 — 35.99 Percent

Amount of loan $2,000 – $50,000

Min. credit score 600

View more information

on the website of Best Egg.

View more information

Min. credit score of 600

The key facts Best Egg secured loans are like 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.

Offers a secured loan option for homeowners.

Direct payment to creditors with the debt consolidation loans.

Cons Origination cost.

No rate discounts.

There is no choice to choose the first payment date.

The minimum credit score is 600; borrower average is 700. Minimum credit history: Three consecutive years, and at least three different accounts. The minimum income requirement is $3500 and the average borrower is $80,000. The borrower should have sufficient funds to meet current financial obligations. Maximum ratio of debt to income: 40 percent or 65% if you include a mortgage; borrower average is 40 percent. Employment: Must provide evidence of income; part-time employees are qualified. You must provide a 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 in June 2020. Best Egg personal loans, including the Best Egg Secured Loan, are made through 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 registered trademark of Marlette Holdings, Inc., a Delaware corporation. The various uses of “Best Egg” refer to “the Best Egg personal loan”, “the Best Egg Secured Loan” and/or “Best Egg for Cross River Bank or Blue Ridge Bank as the originator of the Best Egg personal loan,” in the event that it is applicable. The term, amount, and the APR for each loan we offer to you will be based on your credit score, income, debt payment obligations, loan amount, credit history and other aspects. The loan agreement will have specific terms and conditions. The majority of our customers receive their funds the following day. Following successful authentication, your funds will be transferred to the account of your bank account within 1-3 business days. The time frame for funds available after loan approval may vary depending on the policies of your bank. Loan amounts range between $2,000 and $50,000. Residents of Massachusetts are required to have an initial loan amount of $6,500; New Mexico and Ohio, $5,000. Georgia, $3,000. Georgia, $3,000. If you want to take out the second Best Egg loan, your current Best Egg loan amounts cannot exceed $100,000. Annual Percentage Rates (APRs) range from 8.99%-35.99%. The APR represents the cost of credit in a yearly rate that reflects the interest rate you pay and an origination fee of 0.99%-8.99 percent of your loan amount, which will be deducted from any loan funds you receive. Origination fees for an loan duration of 4 years or more will be at minimum 4.99 percent. Your loan term will affect the APR of your loan, which could be greater than our advertised rate. You must have at least 700 FICO(r) score as well as an annual income for you as an individual of $100,000 to qualify the lowest interest rate. For instance, a five-year $10,000 loan with 9.99% APR has 60 scheduled monthly payments of $201.81, and a 3-year loan of $5,000 loan with 7.99 percent APR will have 36 scheduled monthly installments of $155.12. To help the government fight the financing of terrorism and money laundering activities, Federal law requires all financial institutions to obtain verification, confirm, and document information that can identify the person who creates an account. What this means for you: When you open an account, we’ll ask you for your name and address, as well as your dates of birth and other information that allows us to recognize you. We may also ask to see your driver’s licence or other documents that identify you. Best Egg products are not available for residents of Iowa, Vermont, West Virginia or in the District of Columbia, or U.S. Territories.

on the website of Upgrade.

Upgrade 5.0 NerdWallet’s ratings are compiled by our editorial team. The scoring formula is based on aspects we believe are consumer-friendly, including impact to credit score, rates and fees, the customer experience and ethical lending practices.

Est. APR 8.24 + 35.97%

Amount of loan: $1,000 – $50,000

Min. credit score 560

View more information

on Upgrade’s website

View the full details

Min. credit score 560

The most important thing to know is that Upgrade applicants can repay their secured loans with a vehicle The value of which is a factor in your rate.

Advantages of joint and secured loans.

Multiple rate discounts.

Mobile app to manage loan payments.

Direct payment to creditors using the debt consolidation loans.

Long repayment terms on home improvement loans.

Cons Origination cost.

There is no option to select your payment date.

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

Available Term Lengths 2 to 7 years

Fees Origination fee: 1.85% to 8.99%. Late Fee $10. Failed payment fee: $10.

Disclaimer Disclosure: Personal loans made through Upgrade offer APRs (APRs) that range from 8.24%-35.97%. All personal loans include a 1.85% to 8.99 percent origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and the payment of some of the debts directly. The terms for repayment vary from 24-84 months. As an example, if receive a 10,000 loan with a 36-month term and a 17.59 percent APR (which comprises a 13.94% yearly interest rate and an origination fee of 5% that is one-time fee), you would receive $9,500 to 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 may be different, or even lower and your loan offers may not have multiple term lengths that are available. The rate you pay for your loan will depend on your the credit score, use history loan duration, as well as other factors. In the event of late payments, additional fees or charges may raise the price of your fixed rate loan. There is no charge or penalty for paying off the loan early. Personal loans offered by Upgrade’s banking 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 determined by our editorial team. The scoring formula takes into account factors we consider to be beneficial to the consumer, such as impact on credit score rates and fees, customer service and responsible lending practices.

Est. APR 18.00 — 35.99%

Loan amount $1,500 – $20,000

Min. credit score None Average score is 600- 700

View the full details

on OneMain Financial’s website

View details

Min. credit score None

Key details OneMain Secured loans require a vehicle to serve as collateral. Borrowers may also add an additional co-applicant on the application.

Pros Option to select and modify your payment date.

Secured and joint loans.

Fast and quick funding.

Direct payment to creditor on consolidating debt loans.

Cons Rates are high compared to other lenders.

Charges origination fee.

No rate discounts.

Pre-qualification does not allow the borrower to see rates they might be able to afford.

Qualifications You must have an Social Security number or taxpayer identification number. You must be at least 18 years old in the majority of states. Minimum credit score is: None. The minimum number of accounts on the credit report: None but applicants with no credit history are unlikely to qualify. The minimum income is none. This lender will consider earnings from alimony, employment pension, child support, retirement, Social Security payments, investments and public assistance.

Available Term Lengths: 2 to 5 years

Fees Origination Fee: $25 to $500 or 1to 10 percent of 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 approved. The approval of loans and the actual loan terms are contingent upon the ability of you to satisfy our credit standards (including having a credit history that is responsible, sufficient income after monthly expenses, and ability to provide collateral). If they are approved, not all applicants will be eligible for greater loan amounts or favorable loan conditions. Higher loan amounts require a first lien on a motor vehicle that is not more than ten years old, that meets our value requirements, titled in your name and backed by current insurance. The loan approval process and loan terms depend on the state in which you reside and your capacity to meet our credit standards (including an established credit history, sufficient income after expenses paid monthly, and availability of collateral). APRs tend to be higher for loans not secured by the vehicle. The most qualified applicants could be offered greater loan amounts or lower APRs than the ones previously mentioned. OneMain charges origination fees where legal. The state in which you are opening your loan, the origination fee may be either an amount that is fixed as well as a proportion of the 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 between 1% and 10 percent of the loan amount subject to state limits on the fee amount. Go to omf.com/loan-fees for more information. Loan proceeds cannot be used for postsecondary educational expenses as per the CFPB’s Regulation Z such as college or university expenses and for any commercial or business use; for the purchase of cryptocurrency assets such as securities, derivatives, or other investments that are speculative as well as for gambling or illegal purposes. The states in which these loans are offered are subject to these requirements for minimum loan sizes: Alabama: $2,100. California: $3,000. Georgia In the event that you are not an existing customer, $3100 maximum loan amount. North Dakota: $2,000. Ohio: $2,000. Virginia: $2,600. The borrower (other than current customers) in states like these are limited to the following maximum secured loan size: North Carolina: $7,500. Unsecured loan is one type of loan which does not require you to provide collateral (such as a motor vehicle) to the lender. Example Loan: A $6,000 loan with an 24.99 APR of 4% that is repayable in 60 monthly installments will result in monthly payment of $176.07. Time to Fund Loans: Funding must be made within one hour following the closing date through SpeedFunds should be made available to a bank-issued debit card. Payments made by cheque or ACH can take up to 1-2 business days after loan closing.

Our pick of Secured loans at 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 algorithm takes into consideration aspects we believe are consumer-friendly, including impact to credit score, rates and fees, the customer experience and responsible lending practices.

Est. APR 6.70 — 18.00 percent

Amount of loan $500 – $50,000

Min. credit score 660

View the full details

on NerdWallet’s secure site

View details

Min. credit score 660

The most important details First Tech members have access to secured loans that are secured by an CD or savings account. They can also access stocks.

Pros Secured, joint and co-sign loan options.

Direct payment to creditors using the debt consolidation loans.

Choices to select and alter your payment date.

Fast and quick funding.

Cons Only available for members of credit unions.

Pays only one of the three major credit bureaus.

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 other state-issued ID. Maximum debt-to-income ratio: 50%. Minimum monthly income of $700 if living with someone else or renting or owning your own home. Credit history must be at minimum two accounts with a history of being established.

Available Term Lengths: 2 to 7 years

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

on the secure website of NerdWallet.

Navy Federal Credit Union Personal Loan 5.0 NerdWallet’s ratings are compiled through our team of editors. The scoring formula takes into account factors we consider to be beneficial to consumers, including impact on credit score, rates and fees, customer experience and ethical lending practices.

Est. APR 7.49 + 18.00%

Amount of loan: $250 – $50,000

Min. credit score None

View details

on NerdWallet’s secure website

View more information

Min. credit score None

The key facts In addition loans that are not secured loans, Navy Federal offers secured loans backed by a Navy Federal savings account or CD.

Pros Large choice of loan amounts.

Fast and quick funding.

Rate discount for some customers.

Co-signing, joint and secured loan options.

Direct payment to creditor with credit consolidation loans.

Cons Only available for members of credit unions.

No option to pre-qualify with the use of a soft credit test.

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

The applicant must be a 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. Returned payment fee $29.

>> COMPARE:

What’s a secured personal loan?

An secured personal loan is an loan that you obtain by pledging something you have in exchange for cash that you pay back in time, paying interest.

Lenders are able to take your collateral -such as a car or money in a savings account, for instance, but they’ll only accept it if you fail to pay back the loan. Once the loan is paid in full and the loan is paid in full, the lender is no longer able to exercise the power to take your collateral.

As with an unsecured loan credit or income, as well as other debts are still central to getting approved for secured loan however, offering collateral reduces the risk for the lender. In turn, approval odds are better for secured loans and the rate is typically lower.

>> MORE:

How can you obtain a secured loan

The procedure for getting secured loan will differ based on the type of collateral you’re applying for, but here are the steps you’ll take:

Find out more regarding the loan. Some lenders provide secured loans only after an applicant is not eligible qualify for an unsecure loan. If you aren’t able to pre-qualify with the lender or see an option for a secured loan alternative, contact the lender directly about secured loans.

Check your budget. Check your cash flow and find out what you’re able to contribute to the loan each month. Utilize a calculator to determine the annually percentage rates, loan amount and repayment time you’ll need to make the monthly payment affordable.

Choose one lender. Compare lenders to determine what kinds of collateral they accept and what rates they are willing to offer.

Gather documents. Before applying make sure you have the necessary documents that lenders require to make an application. They may require the ID of a government official, bank statements, W-2s, and pay stubs. You may also need documents for the collateral, such as the title to your car.

Apply. Many lenders offer online applications. After you have submitted your application, a decision on approval could take a couple of days, or even longer if a lender has to assess the value of the collateral.

>> MORE:

Pros and cons of secured 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 approve secured loan application.

Lower interest costs and larger loan amounts. Since the risk loss of money less for the lender, you may get a larger loan at a lower rate.

Cons

The lender may take your collateral. If your vehicle is collateral for the loan and you’re in need of it in order to go to work, say you lose it, it could put you in a more difficult situation than before you borrowed.

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

>> MORE:

Secured loan examples

home equity loans and HELOCs A home equity loan or line of credit is a mortgage that allows you to access money based on the value the home. Similar to the original mortgage one lender could take possession of your home in the event that you fail to repay.

>> MORE:

Auto-secured loans: With an auto-secured loan, the lender takes into account information such as your car’s model, make and year along with your credit score and financial situation- to decide your rate. If approved, you send the lender your car title and they will return it after it is loan is paid back. This is different from auto title loans that can come with triple-digit APRs (more about them below).

CD loans: If you have an account with a bank, you may be allowed to use it as collateral for personal loan. The rates are typically low the average, starting just with a couple of percentage points above the CD rate. it’s a way to access funds without having to withdraw the CD early or paying an interest.

401(k) loans: An employer-sponsored 401(k) plan could allow employees to borrow from their retirement accounts for up to five years. Rates are usually low on 401(k) loans, but by borrowing from the account, you’re losing the market’s gains and compound interest from the retirement funds.

Where to get an secured personal loan

Banks: Banks typically provide a savings or CD-secured loan. An account that you have at the bank is collateral, and you can’t have access to that money till the loan is paid back.

Credit unions: Some credit unions provide share-secured loans which is a different term used to describe savings-secured loans. They will keep your savings as you pay the loan.

In the event that your financial institution does not offer theseloans, you might be eligible for an unsecure loan, because Credit unions tend for having low requirements for borrowers and less restrictive APRs.

>> MORE:

Online lenders: Many online lenders who offer secure loans require a vehicle to serve as collateral. Some lenders allow you to apply for the loan upfront, but other lenders may offer the possibility after having tried applying for an unsecured loan.

Many lenders let you check your rate on an unsecured loan without impacting your credit score, therefore it’s not a bad idea to check the loan with several lenders.

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

Secured loans to help avoid

: Pawnshops let you hand your valuables to them in exchange for cash you must repay, typically within a few weeks. These loans may have a rate of 200% and are often difficult to repay. If you don’t pay back, the pawnshop can retain your possession.

High-interest short-term loans typically of several hundred or thousands of dollars. Since they are difficult to pay back in time, this kind of loan could encourage repeated borrowing, which could result in an unsustainable cycle of debt. Avoid auto-secured loans with rates that exceed 36%, the most expensive rate that consumers believe an affordable loan can have.

>> MORE:

The last update was on December 13, 2022.

Methodology NerdWallet’s review procedure reviews and ranks personal loan products offered by more than 35 banks. We collect more than 45 points of data from every lender as well as interview representatives of the company and evaluate the lender with others that seek the same customer or offer a similar personal loan product. NerdWallet editors and writers conduct a full fact check and update annually, but we also conduct updates throughout the year as necessary.

Our star ratings award points to those who offer consumers-friendly features such as soft credit checks to help you qualify, competitive interest rates and no charges, transparent rates and conditions as well as flexible payment options, quick time to fund, easy customer service, and reporting of all payments to credit bureaus, and financial education. We also look at regulatory actions filed by agencies such as the Consumer Financial Protection Bureau. We assess these elements according to our evaluation of which ones are the most important to consumers and the impact they have on consumers’ experiences.

This approach is only available to lenders that set their interest at 36%, the maximum rate that most financial experts and consumer advocates are in agreement with as the ideal rate for an loan that is affordable. NerdWallet does not receive compensation for our top rating. Find out more about our and our .

To recap our selections… 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 : The best for Secured loans from credit unions Best in Secured loans at credit unions

Commonly asked questions What are the definitions of a secure personal loan?

A secured personal loan is a loan that requires collateral — usually a vehicle or bank account. In addition to your credit and income The lender considers the value of the collateral to determine whether you’re eligible for the loan, and how much they will loan you, and also your interest rate. The repayment of this kind of loan in fixed monthly installments, much like an unsecured loan. But unlike an unsecured loan one, the lender could be able to take your collateral in the event that you fail to repay.

Are secured loans easier to get?

Secured loans are easier to get than secured loans because you offer something you own as collateral for the loan that the lender could take if you don’t repay the loan. This means that the loan more secure for the lender and therefore the criteria for credit and income are typically less stringent with secured loan.

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

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