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Top Secured Personal Loans for 2023
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THE BEST OF ALL
Best Secured Personal Loans of 2023
Secured personal loans let you borrow money against the value of an asset like car or savings. Secured loans might have lower interest rates, but they also carry risk.
By Annie Millerbernd
Dec 13, 2022
Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about as well as the place and way the product is featured on a page. But, it doesn’t influence our evaluations. Our views are our own. Here’s a list and .
The majority of personal loans are unsecured, so approval is based on your creditworthiness. However, if you aren’t eligible for an unsecure loan or get the price you’d like on a low-credit loan then a secured loan is an option.
This type of loan requires you to pledge collateral to obtain money. The drawback is that if you don’t pay your loan on time, the lender could seize your property.
Learn about secured and how to look for them, including banks, online lenders as well as credit unions.
Be aware that the information provided by each lender is unique to the lender’s non-secured loans. The criteria for qualification and loan information may differ in secured loans.
The majority of personal loans are not secured, which means they are based on creditworthiness. If you’re not eligible for an unsecured loan or get the price you’d like on a bad-credit loan, a secured loan is a viable option.
This kind of loan requires the pledge of collateral to obtain money. The drawback is that if you don’t pay your loan on time, the lender may seize your assets.
Here’s what to know about secured and where to look for them, including banks, online lenders as well as credit unions.
The information for each lender is specific to its secured loans. Criteria for qualifying and loan details could differ in secured loans.
Best Secured Personal Loans
Lender
NerdWallet rating The ratings of NerdWallet are made by our editorial team. The scoring formulas take into account 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 via online lending
8.99 – 35.99%
$2,000 – $50,000
600
on the Best Egg’s website
Upgrade on the website of Upgrade.
Best 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 via online lending
18.00 – 35.99%
$1,500 – $20,000
None
Average score is 600 to 650
on OneMain Financial’s website
The First Tech Credit Union Personal loan via NerdWallet’s secure website
Best to Secure loans by credit unions
6.70 – 18.00%
$500 – $50,000
660
on NerdWallet’s secure site
Navy Federal Credit Union Personal Loan on NerdWallet’s secure website
Best for Secured loans at credit unions
7.49 – 18.00%
$250 – $50,000
None
on NerdWallet’s secure website
Our pick for Secured loans by online lending institutions
on the website of Best Egg.
The Best 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 scores, rates and fees customers’ experience, and responsible lending practices.
Est. APR 8.99 — 35.99%
Amount of loan $2,000 – $50,000
Min. credit score 600
View more information
on Best Egg’s website
View the full details
Min. credit score 600
Key facts Best Egg secured loans are similar to home equity loans but use items attached to your home instead of the house itself as collateral.
Pros offers a wide variety of loan amounts.
Offers a secured loan option for homeowners.
Direct payment to the debtors who have taken out debt consolidation loans.
Cons Origination fee.
No rate discounts.
No option to choose initial payment date.
The minimum credit score is 600; the average of borrowers is 700. Minimum credit history: 3 years and three accounts. The minimum amount of income required is $3500 The average of borrower’s income is $80,000. The borrower should have sufficient funds to meet current financial obligations. Maximum ratio of debt to income: 40 percent or 65%, excluding a mortgage; borrower average is 40 percent. Employment: Must present proof of income. Part-time employees are eligible. It is required to 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%. Return fee: $15 if the payment is not processed.
Disclaimer *Trustpilot TrustScore in 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 that is a 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 of 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 for Cross River Bank or Blue Ridge Bank as the creator of the Best Egg personal loan,” depending on the circumstances. The amount, term and the APR of any loan we offer to you will be based on your credit score your income, debt repayment commitments, loan amount, credit history and other aspects. The loan agreement will have specific conditions and terms. The majority of our customers get their money on the same day. After successful verification, your cash will be in your bank account within 1-3 business days. The time frame for funds available following loan approval may vary depending on your bank’s policy. The loan amounts vary between $2,000 and $50,000. Residents of Massachusetts have a minimum loan amount of $6,500 ; New Mexico and Ohio, $5,000; and Georgia $3,000. To get an additional Best Egg loan you must ensure that your total existing Best Egg loan balances must not exceed 100,000. Annual Percentage Rates (APRs) vary between 8.99%-35.99%. The APR is the cost of credit in a yearly rate, and it reflects the interest rate as well as the origination cost of 0.99%-8.99 percent of the loan amount to be taken from any loan proceeds you receive. The origination fee on an loan term 4-years or longer is at least 4.99 percent. The length of your loan duration will affect your APR, which may be greater than our advertised rate. You must have an at-least 700 FICO(r) score as well as an annual income for you as an individual of $100,000 in order to qualify the lowest interest rate. For instance, a five-year loan of $10,000 loan with 9.99 percent APR will have 60 monthly installments scheduled for $201.81, and a 3-year five-figure loan with 7.99 APR, which is a.75% rate, has 36 scheduled monthly payments of $155.12. To help the government fight the financing of terrorists and money laundering, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. What does this mean for youis that when you open an account, we’ll request your name address, address, dates of birth and any other details that allow the institution to verify your identity. We may also ask to see your driver’s license or other documents that identify you. Best Egg products aren’t available if you live in Iowa, Vermont, West Virginia and in the District of Columbia, or U.S. Territories.
on the Upgrade’s website
Upgrade 5.0 NerdWallet’s ratings are compiled by our editorial staff. The scoring formula is based on the factors we believe to be 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%
The amount of the loan is $1,000.
Min. credit score 560
View the full details
on the Upgrade’s website
View more information
Min. credit score 560
The most important thing to know is that Upgrade applicants can secure their loans with a car The value of which is a factor in your rate.
Advantages of joint and secured loans.
Multiple rate discounts.
Mobile application to manage loan payments.
Direct payment to creditor with the debt consolidation loans.
Long repayment terms on home renovation loans.
Cons Origination fee.
No option to choose the payment date.
Qualifications Minimum credit score: 560. Minimum number of accounts on credit history: one account. Maximum ratio of debt to income: 75%, including that loan the applicant is applying for. Minimum length of credit-related history 2 years. Minimum income requirement: None. Lender will consider alimony, retirement, child support and Social Security and various other sources.
Available Term Lengths 2 to 7 years
Fees Origination Fee: 1.85% to 8.99%. Late Fee: $10. Failed payment fee 10 dollars.
Disclaimer The personal loans that are made using the Upgrade have APRs (APRs) that range from 8.24%-35.97 percent. All personal loans have a 1.85% to 8.99 per cent origination charge which is taken from the loan profits. The lowest rates are contingent on Autopay and paying off some of the debt directly. These loans have repayment terms of 24-84 months. For example, if you get the $10,000 loan with a term of 36 months and a 17.59 percent APR (which also includes a 13.94% yearly interest rate and an origination fee of 5% that is one-time fee) the loan would pay $9,500 to your account and will be required to make a monthly installment of $341.48. Over the life of the loan the payments would amount to $12,293.46. The interest rate for your loan could be higher or lower and your loan deals may not offer multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other variables. In the event of late payments, additional fees or charges may raise the cost for your fixed-rate loan. There is no charge or penalty for paying off an 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 takes into account factors we consider to be beneficial to the consumer, such as impact on credit score rates and fees, the customer experience and responsible lending practices.
Est. 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 the OneMain Financial website.
View more information
Min. credit score None
The most important details OneMain Secured loans require a vehicle to serve as collateral. The borrower can also include an applicant who is a co-applicant.
Pros Option: Choose to alter the date of your payment.
Secured and joint loans.
Fast and quick funding.
Direct payment to creditor on consolidating debt loans.
Cons Rates are higher in comparison to other lenders.
Charges for origination fees.
No rate discounts.
Pre-qualification doesn’t allow the borrower to see rates they might be able to afford.
Qualifications Must have a 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. Minimum number of accounts listed on credit report: None however applicants with no credit history may not be eligible. Income minimum: none. This lender will consider earnings from alimony, employment and retirement benefits, child support, Social Security payments, public assistance and investments.
Available Term Lengths 2 to 5 years
Fees Origination fee between $25 and $500 or 1to 10 percent of the loan amount. Late fee: $5 to $30 or 1.5% to 15 percent of your monthly payments. Fee for non-sufficient funds $15.
Disclaimer Not every applicant will be accepted. Loan approval and actual loan terms are contingent upon being able to fulfill our credit standards (including having a credit history that is responsible and a sufficient income after expenses per month, and the being able to show collateral). If approved however, not all applicants will be eligible for greater loan amounts or most favorable loan terms. Larger loan amount require lien on a vehicle not more than ten years old and that meets our standards for value, and is registered in your name and backed by an insurance policy that is valid. The approval of your loan and the actual loan terms depend on your state of residence and your capacity to meet our credit requirements (including having a good credit history, sufficient income following monthly expenses and the availability of collateral). 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 lower APRs than the rates that are listed above. OneMain will charge origination fees if permitted by law. Based on the state in which you take out your loan, the origination fee could be an amount that is fixed in addition to a portion of the loan amount. The flat fee amount varies per state, and range between $25 and $500. Percentage-based fees vary by state ranging between 1% and 10% of your loan amount subject to limitations on fee amount. Visit omf.com/loan-fees for more information. The loan proceeds are not used for postsecondary educational expenses according to the CFPB’s Regulation Z such as college or university expenses and for any business or commercial reason; to purchase crypto assets such as securities, derivatives, or other speculative investments; or to fund gambling or other illegal activities. The states in which these loans are offered must adhere to these minimum loan size limits: Alabama: $2,100. California: $3,000. Georgia If you’re not a present customer, $3,100 minimal loan amount. North Dakota: $2,000. Ohio: $2,000. Virginia: $2,600. Borrowers (other other than existing customers) in these states are restricted to the following maximum secured loan size: North Carolina: $7,500. An unsecure loan is a loan that doesn’t require you to provide collateral (such as a motor vehicle) in exchange for the lender. Example Loan: A $6,000 loan with an 24.99% APR that is repaymentable in 60 installments will result in monthly payments of $176.07. Time to fund loans: Funding within one hour after closing through SpeedFunds should be made available to a debit card issued by a bank. Disbursement by cheque or ACH could take as long as 2 business days following loan closing.
Our pick for Secured loans at credit unions
on the secure website of NerdWallet.
First Tech Credit Union Personal Loan 5.0 NerdWallet’s ratings are evaluated by our editorial team. The scoring formula considers 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 6.70 – 18.00 percent
The loan amount is $500-$50,000.
Min. credit score of 660
View more information
on NerdWallet’s secure website
View the full details
Min. credit score of 660
Key information First Tech members have access to secured loans backed by the CD or savings account, as well as stocks.
Pros Co-signing, joint and secured loan options.
Direct payment to creditors with debt consolidation loans.
You can choose to change your payment date.
Fast and quick funding.
Cons Exclusive 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: 666. The applicant must show a Social Security number and driver’s license or another ID issued by a state. Maximum debt-to-income ratio: 50%. Minimum monthly income: $700 when living with someone else; $1,000 if renting or owning your own home. Minimum credit score: At least two established accounts.
Available Term Lengths: 2 to 7 years
Fees Origination fee: None. Late fee: Varies. Returned check fee $28.
on the secure website of NerdWallet.
Navy Federal Credit union Personal Loan 5.0 NerdWallet’s ratings are compiled by our editorial team. The scoring formula takes into account the factors we believe to be beneficial to consumers, including impact to credit score rates and fees, customer service and ethical lending practices.
Est. APR 7.49 + 18.00%
Loan amount $250 – $50,000
Min. credit score None
View details
on the secure NerdWallet website.
View more information
Min. credit score None
Important facts In addition to unsecured loans, Navy Federal offers secured loans that are backed by a Navy Federal savings account or CD.
Pros A wide selection of loan amounts.
Fast and quick funding.
Discount on rates for certain customers.
Co-signing, joint and secured loan options.
Direct payment to creditors with credit consolidation loans.
Cons Exclusive to credit union members.
There is no option to pre-qualify for the use of a soft credit test.
No option to choose or alter your payment date.
You must be an Navy Federal Credit Union member for application. There is no minimum credit score requirement.
Available Term Lengths: 1 to 5 years
Fees Origination fee: None. Late fee of $29. Fee for returned payments: $29.
>> COMPARE:
What is a secured personal loan?
An secured personal loan is a loan you can get by offering something you own in exchange for borrowed cash that you pay back in time, paying interest.
Lenders are able to take your collateral — a vehicle or money in a savings account for example — but they’ll only do it if you are unable to repay the loan. After the loan is paid in full and the loan is paid in full, the lender does not have the power to take your collateral.
Like an unsecured loan credit score or income, as well as other debts remain central to getting a secured loan, but offering up collateral reduces the risk for the lender. In turn, approval odds are better with secured loans and the rate is usually lower.
>> MORE:
How to get a secured loan
The process for getting secured loan can vary depending on the kind of collateral you’re using but here are some of the steps you’ll need to take:
Find out more regarding the loan. Some lenders offer 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 any secured loan option, ask the lender directly regarding secured loans.
Check your budget. Examine your cash flow to find out the amount you’re able to pay toward the loan every month. Use a to see what annual percentage rate, loan amount and repayment term you’d need to keep monthly payments within your budget.
Select a lender. Compare lenders to see what types of collateral they are willing to accept as well as what rates they offer.
Collect documents. Before you submit your application, gather the documents most lenders require in order to submit an application. They may require the ID of a government official and bank statements, W-2s, and pay stubs. You may also need documents to secure collateral, such as the title to your car.
Apply. The majority of lenders accept online applications. After you have submitted, an approval decision may take several days or longer if a lender has to assess the collateral’s value.
>> MORE:
Pros and negatives of secured loans
Weigh the benefits of getting secured loan against the possible disadvantages before you take out a loan.
Pros
Better approval odds. A lender has a higher chance to approve an secured loan application.
Lower interest rates and larger loan amounts. Since the chance of losing money is reduced for the lender the loan may be granted a bigger loan with a less rate.
Cons
The lender could accept your collateral. If your car is collateral to a loan and you need it to get to work, for instance you lose it, it could put you in a worse situation than you were before borrowing.
Not as accessible as unsecured loans. Many banks, credit unions 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 second mortgage that allows you to access money based on the value the home. As with the initial mortgage one lender can take your house in the event that you fail to repay.
>> MORE:
Auto-secured loans: With an auto-secured loan the lender considers information like the vehicle’s make, model, and year, along with your credit and finances -to determine the rate. If approved, you send the lender your car title and they return it once it is loan is paid back. They are not the same as auto title loans that can come with triple-digit APRs (more on those below).
CD loans If you hold a certificate of deposit at the bank, you might be able to make use of it as collateral for a personal loan. Rates are usually low on the average, starting just with a couple of percentage points higher than the CD rate. it’s a way to access funds without having to withdraw the CD before the due date and incurring penalties.
401(k) loans: An employer-sponsored 401(k) plan might allow employees to draw funds from their retirement account in up to 5 years. Rates are usually low on 401(k) loans, but by borrowing from the account, you’ll miss out on the gains in the market and compound interest on your retirement savings.
How do I get a secured personal loan
Banks: Banks usually offer a savings- or CD-secured loan. A bank account you have with the bank will be collateral for the loan, but you will not be able to use that account until the loan is paid back.
Credit unions: Some credit unions provide share-secured loans, which is another term for savings-secured loans. Credit unions will keep your savings while you repay the loan.
In the event that your financial institution does not offer theseloans, you might qualify for an unsecured loan as Credit unions tend to have less stringent requirements for borrowing and lower APRs.
>> MORE:
Online lenders: Most online lenders that provide secured loans require a vehicle to serve as collateral. Some let you apply for this loan at the beginning, while others may show you the possibility only after you’ve attempted applying for an unsecure loan.
Many lenders let you check the rate of an unsecure loan without impacting your credit score, therefore it’s not a bad idea to check the with multiple lenders.
You can make use of NerdWallet’s lender marketplace to compare rates on unsecured loans.
Secured loans to avoid
: Pawnshops let you hand your valuables to them in exchange for cash that you must repay, typically within a few weeks. These loans may have a rate of 200% and may be difficult to pay back. If you don’t pay back, the pawnshop can keep the item.
: These are high-interest, short-term loans typically of a few hundred or thousand dollars. Because they’re difficult to repay on time, this type of loan can lead to repeat borrowing, which could lead you into a debt cycle. Avoid auto-secured loans that have rates of more than 36%, which is the highest rate consumer advocates say an affordable loan can be able to have.
>> MORE:
The last update was on December 13, 2022.
Methodology NerdWallet’s review procedure reviews and ranks personal loan products from over 35 banks. We gather more than 45 data points from each lender as well as interview representatives of the company and compare the lender against other lenders who seek the same customers or provide the same individual loan product. NerdWallet editors and writers conduct an exhaustive fact-check and update annually, but also make updates throughout the year as necessary.
Our stars are awarded points to those who offer consumer-friendly features, including: soft credit checks to pre-qualify, competitive interest rates and no fees, transparency of rates and conditions and various payment choices, quick funding times, accessible customer service, and reporting of payments to credit bureaus as well as financial education. We also look at legal actions that are filed by organizations like Consumer Financial Protection Bureau. Consumer Financial Protection Bureau. We assess these elements in accordance with our analysis of which ones are the most crucial to consumers, and how they affect consumers’ experiences.
This methodology applies only to lenders that cap their interest at 36%, the maximum rate most experts in finance and consumer advocacy are in agreement with as the ideal rate for an loan in order to make it affordable. NerdWallet does not receive compensation for our star rating. Find out more about our and our .
To recap our selections… the NerdWallet’s Top Personal Loans that are Secured for 2023 : Best Secured loans from online lenders : The best for Secured loans from online lenders: The best for Secured loans from online lenders: Best for Secured loans from credit unions: Best for Secured loans by credit unions
Most frequently asked questions What exactly do you mean by a personal loan?
An secured personal loan is a loan which requires collateraltypically a vehicle or bank account. In addition to your credit and income the lender examines the worth of the collateral to determine whether you qualify, how much to loan you, and also the interest rate. This type of loan in fixed monthly installments, similar to an unsecure loan. However, unlike an unsecured loan one, the lender could use your collateral should you do not pay back.
Are secured loans more readily available?
Secured loans are easier to get than other loans because you offer the collateral of something you own for the loan that the lender could take if you do not repay the loan. This means that your loan much less risky to the lender as criteria for credit and income are generally less strict with secured loan.
About the author Annie Millerbernd is an individual loans writer. Her writing has been featured on The Associated Press and USA Today.
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