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The most secure personal loans of 2023
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BEST OF
Best Secured Personal Loans of 2023
Secured personal loans permit you to borrow on the basis of the value of an asset, such as a car or savings. Secured loans might have 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 compensate us. This may influence which products we feature and the location and manner in which the product is featured on an article. However, this does not affect our opinions. Our views are our own. Here is a list of and .
The majority of personal loans are secured, and they are based on creditworthiness. If you’re not eligible for an unsecured loan, or you don’t receive the interest you desire 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 disadvantage 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 how to look for them, including online lenders, banks and credit unions.
Be aware that the information provided by each lender is unique to the lender’s non-secured loans. Criteria for qualifying and loan details may be different in secured loans.
Most personal loans are not secured, which means approval is based on your creditworthiness. If you’re not eligible for an unsecured loan, or you don’t receive the interest you desire for a bad credit loan, a secured loan is an option.
This kind of loan requires you to pledge collateral to obtain money. The drawback is that if you don’t make timely payments in time, the lender could seize your property.
Here’s what to know about secured and where to find them, including online lenders, banks and credit unions.
Note that the information for each lender is specific to its non-secured loans. Criteria for qualifying and loan details may be different for secured loans.
Best Secured Personal Loans
Lender
NerdWallet rating NerdWallet’s ratings are made by our editorial team. The scoring formulas take into account multiple data points for every financial product or service.
Est. APR
The loan amount
Min. credit score
Learn 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 website of Best Egg.
Upgrade on the website of Upgrade.
Best to Secured loans via online lending
8.24 – 35.97%
$1,000 – $50,000
560
on 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
Average score is 600 – 700
on the OneMain Financial website.
The First Tech Credit Union Personal loan on 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 Loan on NerdWallet’s secure website
Best option for secured loans from credit unions
7.49 – 18.00%
$250 – $50,000
None
on NerdWallet’s secure website
Our top pick for Secured loans from online lenders
on the website of Best Egg.
The Best Egg 4.5 NerdWallet’s ratings are determined by our editorial team. The scoring algorithm takes into consideration the factors we believe to be beneficial to consumers, such as the impact on credit scores, rates and fees customers’ experience, and ethical lending practices.
Est. APR 8.99 – 35.99%
The amount of the loan is $2,000 to $50,000.
Min. credit score of 600
View details
on the website of Best Egg.
View more information
Min. credit score 600
Key details Best Egg secured loans are similar to home equity loans but use items attached to your home, rather than the home that is the collateral.
Pros offers a wide variety of loan amounts.
Offers a secured loan option for homeowners.
Directly pay customers with credit consolidation loans.
Cons Origination cost.
No rate discounts.
There is no choice to choose the first payment date.
Credit Score Minimum: 600. The average for borrowers is 700. Minimum credit history: Three months and 3 accounts. The minimum income requirement is $3500; borrower average is $80,000. Borrower must have enough cash flow to cover the current financial obligations. The maximum ratio of debt-to-income is 40% or 65% including the mortgage. The borrower’s average is 40%. Employment: Must present proof of income; part-time employees are eligible. 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%. Fee for return: $15 if payments are not processed.
Disclaimer *Trustpilot TrustScore at June 2020. Best Egg personal loans, including the Best Egg Secured Loan, are made by 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. which is a Delaware company. The use for “Best Egg” refer to “the Best Egg personal loan”, “the Best Egg Secured Loan” 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 length, the amount, and APR of any loan we provide will be based the credit rating of your your income, debt repayment obligations, loan amount, credit history and other aspects. Your loan agreement will have specific terms and conditions. About half of our customers get their funds the following day. Once you have verified your identity, the money will be in 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. The loan amounts vary from $2,000to $50,000. Residents of Massachusetts have a minimum loan amount of $6500 ; New Mexico and Ohio, $5,000. Georgia, $3,000. Georgia, $3,000. For an additional Best Egg loan you must ensure that your current Best Egg loan balances must not exceed $100,000. The Annual Percentage Rates (APRs) range between 8.99%-35.99 percent. The APR is the price of credit per year at a rate, and it includes both your interest rate and an initial fee that is 0.99%-8.99% of your loan amount, which will be deducted from any loan proceeds you receive. Origination fees for a loan term 4-years or longer will be at least 4.99 percent. The length of your loan term will impact your APR, which can be higher than our lowest advertised rate. You need a minimum 700 FICO(r) score as well as an annual income of at least of $100,000 to be eligible to receive our lowest rate. For example: a 5-year 10,000 loan with 9.99% APR has 60 scheduled monthly payments of $201.81 while a 3 year five-figure loan with 7.99% APR has 36 monthly scheduled payments of $155.12. To help the government fight the funding of terrorism and money laundering, Federal law requires all financial institutions to gather, verify, and document information that can identify every person who has an account. What does this mean to you: If you open an account we’ll request your name, address, dates of birth and any other information that allows us to identify you. We may also ask for your driver’s license or other documents that identify you. 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 the factors we believe to be beneficial to the consumer, including the impact on credit score rate and fees, customer service and responsible lending practices.
Est. APR 8.24 – 35.97 percent
Amount of loan: $1,000 – $50,000
Min. credit score 560
View the full details
on the website of Upgrade.
View more information
Min. credit score 560
Important facts Upgrade applicants are able to repay their secured loans with a car and the worth of that can be incorporated into the rate.
The pros of secured and joint loans.
Multiple rate discounts.
Mobile app to manage loan payments.
Direct payment to creditors with debt consolidation loans.
Repayment terms for home improvement loans.
Cons Origination cost.
You cannot choose the payment date.
Qualifications Minimum credit score: 560. Minimum number of credit accounts on history: one account. Maximum debt-to-income ratio: 75%, excluding any loan the applicant is applying for. Minimum length of credit history: 2 years. Minimum income requirement: None. Lender accepts income from alimony, retirement, child support as well as 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 10 dollars.
Disclaimer The personal loans that are made using the Upgrade offer annual percentage rates (APRs) between 8.24%-35.97 percent. All personal loans include the 1.85 percent to 8.99% origination fee, which is deducted from the loan profits. The lowest rates are contingent on Autopay and paying off part of debt directly. Loans feature repayment terms of between 24 and 84 months. As an example, if get a $10,000 loan with a term of 36 months and a 17.59 percent APR (which comprises a 13.94% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 to your account and would be required to pay a monthly installment of $341.48. Over the life of the loan the payments would total $12,293.46. The rate of interest on your loan could be different, or even lower and the loan deals may not offer various lengths of term that are available. Actual rate depends on the credit score, utilization history, loan duration, as well as other factors. The late payment or the subsequent fees or charges may raise the price on your fixed rate loan. There isn’t a fee 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 site
OneMain Financial 4.0 NerdWallet’s ratings are determined by our editorial team. 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 ethical lending practices.
Est. APR 18.00 APR 18.00 – 35.99 percent
Amount of loan $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 facts OneMain Secured loans require a vehicle as collateral. The borrower can also include an applicant who is a co-applicant.
Pros Option: Choose to modify your payment date.
Joint and secured loans.
Fast and quick funding.
Direct payment to creditor on debt consolidation loans.
Cons Rates are higher compared to other lenders.
Charges origination fee.
No rate discounts.
Pre-qualification doesn’t allow prospective borrowers to view rates.
Qualifications Must have an Social Security number or taxpayer identification number. The minimum age is 18 or over in all states. Minimum credit score zero. Minimum number of accounts listed on credit reports: None, however, applicants who have no credit history might not be considered. Income minimum: none. This lender accepts income from employment, alimony pension, child support, retirement, Social Security payments, investments , and public assistance.
Available Term Lengths from 2 to 5 years
Fees Origination Fee: $25 to $500 or 1% to 10% from your loan amount. Late fee: $5-$30 or 1.5% to 15% of your monthly payment. Fee for non-sufficient funds: $15.
Disclaimer Not all applicants will be considered. Loan approval and actual loan terms are contingent on the ability of you to satisfy our standards for credit (including a responsible credit history, sufficient income after the month’s expenses, and the ability to provide collateral). If approved some applicants may not be eligible for higher loan amounts or the most favorable loan conditions. Higher loan amount require first lien on a motor vehicle that is not more than 10 years old and that meets our standards for value, and is registered in your name and backed by current insurance. The loan approval process and loan terms are contingent on your state of residence and your ability to meet our credit requirements (including an established credit history, adequate income after expenses paid monthly, and availability of collateral). APRs generally are higher on loans that are not secured by vehicles. Highly-qualified applicants may be offered higher loan amounts or lower APRs than the ones previously mentioned. OneMain charges origination fees where legal. The state in which you open your loan the origination fee may be either a flat amount as well as a proportion of your loan amount. Flat fee amounts vary by state, and range between $25 and $500. Percentage-based fees are different for each state, ranging between 1% and 10 percent of your loan amount subject to certain state limits on the fees. Visit omf.com/loan-fees for more details. The loan proceeds are not used to pay for postsecondary education expenses according to the CFPB’s Regulation Z such as college or university expenses; for any commercial or business-related purpose; to purchase cryptocurrency-related assets, securities, derivatives or other investments that are speculative as well as to fund gambling or other illegal activities. The states in which these loans are offered must adhere to these requirements for minimum loan size limits: Alabama: $2,100. California: $3,000. Georgia: Unless you are an existing customer, $3100 minimum loan amount. North Dakota: $2,000. Ohio: $2,000. Virginia: $2,600. The borrower (other other than existing customers) in these states are subject to the following maximum unsecured loan dimensions: North Carolina: $7,500. Unsecured loan is one type of loan which does not require collateral (such as the motor vehicle) in exchange for the lender. Example of a Loan: A $6,000 loan with a 24.99 APR, payable in 60 monthly installments will result in monthly payments of $176.07. Time to Fund Loans: Funding must be made within one hour following the closing date through SpeedFunds is required to a debit card issued by a bank. The process of disbursement via cheque or ACH can take up to two business days following loan closing.
Our choice for Secured loans from 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 factors we consider to be friendly to consumers, such as the impact on 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
Key information First Tech members have access to secured loans backed by an CD or savings account, as well as stocks.
Pros Secured, joint and co-sign loan options.
Direct payment to creditor with credit consolidation loans.
Choices to select and alter the date of your payment.
Fast funding.
Cons Exclusive to credit union members.
Reports payments to only one credit bureau out of three.
No rate discount.
The applicant must be an active Member of First Tech Federal Credit Union. Minimum credit score of 660. 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 of $700 if living with others Renting; $1,000 the property; or $1,500 if you own your home. Minimum credit score: At minimum two accounts with a history of being established.
Available Term Lengths: 2 to 7 years
Fees Origination fee: None. Late fee: varies. Check returned fee: $28.
on NerdWallet’s secure website
Navy Federal Credit Union Personal Loan 5.0 NerdWallet’s ratings are determined through our team of editors. The scoring formula considers the factors we believe to be consumer-friendly, including impact to credit score, rates and fees, customer service and responsible lending practices.
Est. APR 7.49 + 18.00 percent
The loan amount is $250-$50,000.
Min. credit score None
View more information
on the secure NerdWallet website.
View details
Min. credit score None
Key facts In addition to unsecured loans, Navy Federal offers secured loans that are backed by the Navy Federal savings account or CD.
Pros Large 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 using debt consolidation loans.
Cons Exclusive to members of credit unions.
No option to pre-qualify with the use of a soft credit test.
No option to choose or change your payment date.
You must be a Navy Federal Credit Union member to be eligible. There is no minimum credit score required.
Available Term Lengths 1 to 5 years
Fees Origination fee: None. Late fee of $29. Fee for returned payments of $29.
>> COMPARE:
What’s a secured personal loan?
Secured personal loan is a loan you get by offering something you have in exchange for money , which you will repay in time, paying interest.
Lenders are able to take your collateral -for example, a car or funds in a savings account, for instance — however, they’ll only do it if you fail to repay the loan. After the loan is paid in full then the lender does not have the power to take your collateral.
Like an unsecured loan credit score or income, as well as other debts are still central to getting secured loan, but offering up collateral lowers the risk to the lender. Additionally, the odds of getting approved are better for secured loans and the interest rate is usually lower.
>> MORE:
How do you get a secured loan
The procedure for getting a secured loan is different according to the type of collateral you’re using, but here are some of the steps to follow:
Ask about the loan. Certain lenders offer secured loans only after an applicant does not for an unsecured loan. If you aren’t able to pre-qualify with the lender or don’t see any secured loan alternative, contact the lender directly about secured loans.
Check your budget. Review your cash flow to determine how much you can afford to put towards the loan every month. Use a to see what annually percentage rates, loan amount and repayment period you’ll need to ensure that you keep your the monthly payment affordable.
Choose one lender. Compare lenders to determine what kinds of collateral they accept and the rates they will offer.
Gather documents. Before applying, gather the documents most lenders require to make an application. This could include an ID issued by the government, Bank statements, W-2s, and pay stubs. There may be additional documents to secure collateral, for example, an auto title.
Apply. Most lenders have online applications. After you have submitted, an approval decision may be a few days or more if the lender needs to evaluate the value of collateral.
>> MORE:
Pros and pros and loans
Weigh the benefits of getting secured loan against potential disadvantages before you take out a loan.
Pros
Better approval odds. An lender is more likely to approve a secured loan application.
Lower interest rates and larger loan amounts. Since the risk that you will lose money lower for the lender you could be granted a bigger loan at a lower rate.
Cons
The lender may use your collateral. If your car is collateral to an loan and you require it to get to work, say, losing it could put you in a much worse position than before you borrowed.
Not as readily available as loans that are not unsecured loans. Many banks, credit unions and online lenders only offer non-secured loans.
>> MORE:
Secured loan examples
Equity home loans and HELOCs: A house equity loan or line of credit is a mortgage that gives you access to money based on the value that your house. Similar to the original mortgage one lender could take possession of your home if you don’t repay.
>> MORE:
Auto-secured loans When you take out an auto-secured loan the lender takes into account information such as your vehicle’s make, model, and year, as well as 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 you have paid off the loan is paid in full. These are different from auto title loans, which can have triple-digit APRs (more on these below).
CD loans: If you have a certificate of deposit at an institution, you may be allowed to utilize it as collateral to secure a personal loan. Rates are usually low on — typically starting with a couple of percentage points above the CD rate — and it’s a method of accessing funds without withdrawing the CD early and paying a penalty.
401(k) loans: An employer-sponsored 401(k) plan may allow employees to draw funds from their retirement account for up to five years. The rates are typically low for 401(k) loans, but when you borrow from the account, you’re losing out on market gains and compound interest from the retirement funds.
Where to get the secured personal loan
Banks: Most banks offer a savings- or CD-secured loan. An account you already have with the bank will serve as collateral and you won’t be able to have access to that money until the loan is paid back.
Credit unions: Certain credit unions provide share-secured loans, which is another name that refers to savings secured loans. Credit unions will store your savings until you pay back the loan.
In the event that your financial institution does not provide these loans, you could be eligible for an unsecure loan as credit unions are known for having low requirements for borrowers and less restrictive APRs.
>> MORE:
Online lenders: Most online lenders who offer secured loans require a car as collateral. Some lenders allow you to apply for this loan upfront, but others may show you the option only after you’ve tried applying for an unsecured loan.
Some lenders let you examine your interest rate for an unsecured loan without impacting your credit score, therefore it doesn’t hurt to take the loan with several lenders.
You can use NerdWallet’s lender marketplace to compare rates on unsecured loans.
Secured loans to avoid
: Pawnshops let you hand over valuables in exchange for cash you have to repay within a few weeks. These loans could have 200% APRs and may be difficult to pay back. If you do not repay, the pawnshop will keep your item.
High-interest short-term loans typically ranging from between a few hundred and a thousand dollars. Because they’re difficult to repay in time, this kind of loan can encourage repeat borrowing, which could cause you to enter into a debt cycle. Avoid auto-secured loans with rates that exceed 36%, the highest rate that advocates for 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 from over 35 banks. We collect more than 45 information points for each lender and interview representatives from the company and 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 carry out an exhaustive fact-check and update annually, but also make updates all through the year if.
Our star ratings give points to lenders that offer consumers-friendly features such as soft credit checks that allow you to pre-qualify for loans, competitive interest rates, no charges, transparency of rates and conditions, flexible payment options, fast time to fund, easy customer support, and reporting of payment information to credit bureaus, and financial education. We also look at regulatory actions filed by organizations like Consumer Financial Protection Bureau. Consumer Financial Protection Bureau. We assess these elements according to our evaluation of which are the most significant to consumers and how meaningfully they impact the consumer’s experience.
This methodology applies only to lenders that cap their interest at 36%. This is the highest rate that financial experts and consumer advocates are in agreement with as the ideal rate for the loan in order to make it affordable. NerdWallet is not compensated for our star rating. Read more about our and our .
To summarize our choices… the NerdWallet’s Best Personal Loans that are Secured for 2023 : Best Secured loans from online lenders : 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 by credit unions
Commonly asked questions What do you mean by a personal loan?
A secured personal loan is one type of loan that needs collateraltypically a car or bank account. Apart from your credit and income The lender evaluates the value of the collateral in determining whether you are eligible for the loan, and how much they will 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 it is possible for the lender could 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 obtain than secured loans since you can use the collateral of something you own to secure the loan, which the lender could take if you do not repay the loan. This helps make this loan more secure for the lender as credit and income requirements are usually softer on secured loan.
About Annie Millerbernd, the author is an individual loans writer. Her writing has been featured on The Associated Press and USA Today.
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