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The most secure personal loans of 2023
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THE BEST OF ALL
Top Secured Personal Loans for 2023
Secured personal loans allow you to borrow against the value of an asset such as a car or savings. Secured loans can have lower interest rates but they also come with risk.
By Annie Millerbernd
Dec 13, 2022
Many or all of the items featured on this page are provided by our partners who compensate us. This can affect which products we review and where and how the product appears on an article. However, this does not influence our evaluations. Our opinions are entirely our own. Here is a list of and .
Most personal loans are unsecured, so the approval process is based on your creditworthiness. If you’re not eligible for an unsecured loan, or you don’t get the price you’d like on a bad-credit loan, a secured loan is one alternative.
This type of loan requires the pledge of collateral in order to borrow 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 how to locate them, such as banks, online lenders, as well as credit unions.
Note that the information for each lender is specific to its unsecured loans. The criteria for qualification and loan information may be different when it comes to secured loans.
Most personal loans are unsecured, so the approval process is based on your creditworthiness. However, if you aren’t eligible for an unsecured loan, or you don’t get the price you’d like on a bad-credit loan then a secured loan is one alternative.
This type of loan requires you to put up collateral to obtain money. The disadvantage is that if you don’t make timely payments, the lender may seize your assets.
Find out more about secured and where to find them, including online lenders, banks as well as credit unions.
Be aware that the information provided by each lender is unique to the lender’s unsecured loans. Criteria for qualifying and loan information may differ 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 several data points associated with each financial product and service.
Est. APR
The amount of the loan
Min. credit score
Learn more
Best Egg on Best Egg’s website
Best for 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 option for 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 to Secured loans via online lending
18.00 – 35.99%
$1,500 – $20,000
None
The average score is 600 – 700
on the OneMain Financial website.
A personal loan from First Tech CreditUnion through NerdWallet’s secure website
Best option for secured loans from credit unions
6.70 – 18.00%
$500 – $50,000
660
on NerdWallet’s secure site
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 NerdWallet’s secure website
Our top pick to secure loans by online lending institutions
on the Best Egg’s website
Good Egg 4.5 NerdWallet’s ratings are based on the opinions of Our editorial department. The scoring algorithm takes into consideration the factors we believe to be a good choice for consumers, such as impact to credit score, rates and fees customers’ experience, and ethical lending practices.
Est. APR 8.99 + 35.99%
Loan amount $2,000 – $50,000
Min. credit score of 600
View the full details
on the Best Egg’s website
View the full details
Min. credit score of 600
Important facts Best Egg secured loans are like home equity loans but use items attached to your home, rather than the home itself as collateral.
Pros Offers wide range in loan amounts.
Offers a secured loan option for homeowners.
Directly pay creditors with debt consolidation loans.
Cons Origination cost.
No rate discounts.
There is no option to select the initial payment date.
Credit Score Minimum: 600. The average for borrowers is 700. Minimum credit history: Three consecutive years, and at least three different accounts. Minimum income requirement is $3,500 and the average borrower is $80,000. Borrower must have enough cash flow to pay current financial obligations. Maximum ratio of debt to income: 40% or 65% including the mortgage. The average of borrowers is 40%. Employment: Must provide proof of income; part-time employees are qualified. You must provide a proof of 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 aren’t processed.
Disclaimer *Trustpilot TrustScore as of June 2020. Best Egg personal loans, including the Best Egg Secured Loan, are offered via Cross River Bank, a New Jersey State Chartered Commercial Bank, Member 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. All uses in the name of “Best Egg” refer to “the Best Egg personal loan”, “the Best Egg Secured Loan”, and/or “Best Egg” on behalf of Cross River Bank or Blue Ridge Bank as the source of the Best Egg personal loan,” in the event that it is applicable. The amount, term and the APR for each loan we offer to you will depend upon your score on credit, income, debt payment commitments, loan amount, credit history and other factors. The loan contract will include specific terms and conditions. Around half of our customers receive their money on the same day. Following successful authentication, your funds will be in the account of your bank account within 1-3 business days. The timing of available funds following loan approval may vary depending upon your bank’s policies. The amount of loans ranges from $2,000to $50,000. Residents of Massachusetts are required to have a minimum loan amount of $6500 ; New Mexico and Ohio, $5,000. Georgia is Georgia $3,000. To get a second Best Egg loan you must ensure that your total current Best Egg loan balances cannot exceed $100,000. Annual Percentage Rates (APRs) range between 8.99%-35.99 percent. The APR is the cost of credit as a yearly rate and includes the interest rate as well as an initial fee that is 0.99%-8.99% of the loan amount, which will be deducted from any loan proceeds you receive. Origination fees for the loan term 4-years or longer is at least 4.99%. Your loan duration will affect the APR of your loan, which could be higher than our lowest advertised rate. You must have a minimum 700 FICO(r) score as well as a minimum individual annual income of $100,000 to be eligible to receive our lowest rate. For instance, a five-year 10,000 loan with 9.99 percent APR will have 60 monthly installments scheduled for $201.81 while 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 activities, Federal law requires all financial institutions to gather, verify, and record information that identifies each person who opens an account. What this means to you: If you open an account, we’ll request your name and address, as well as your dates of birth and any other details that allow us to recognize you. We might also request to see your driver’s license or other identification documents. Best Egg products are not accessible if you reside in Iowa, Vermont, West Virginia and the District of Columbia, or U.S. Territories.
on Upgrade’s website
Upgrade 5.0 NerdWallet’s ratings are determined by our editorial team. The scoring formula takes into account 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 8.24 — 35.97 percent
The amount of the loan is $1,000.
Min. credit score 560
View details
on the website of Upgrade.
View the full details
Min. credit score 560
Key facts Upgrade applicants can back their secured loans with a car, the value of which factors into your rate.
Pros Secured and joint loans.
Multiple rate discounts.
Mobile app for managing loan payments.
Direct payment to creditors with debt consolidation loans.
The terms of repayment for home improvement loans.
Cons Origination fee.
There is no option to select your payment time.
Qualifications Minimum credit score: 560. Minimum amount of credit accounts in your history: one account. Maximum debt-to-income ratio: 75%, excluding that loan the applicant is applying for. Minimum time period of credit-related history 2 years. Minimum income requirement: None. Lender accepts income from retirement, alimony, child support, Social Security and other sources.
Available Term Lengths from 2 to 7 years
Fees Origination Fee: 1.85% to 8.99 percent. Late Fee $10. Failed payment fee of $10.
Disclaimer Personal loans made through Upgrade have APRs (APRs) that range from 8.24%-35.97 percent. All personal loans come with a 1.85% to 8.99 percent origination fee that is taken out of the loan proceeds. Lowest rates require Autopay and the payment of part of debt directly. The terms for repayment vary from 24 to 84 months. For example, if you receive a 10,000 loan with a 36-month term and a 17.59 APR of 17.59% (which includes a 13.94 percent annual rate of interest and a 5% one-time origination fee) You would be able to receive $9,500 to your account and would be required to pay a monthly payment of $341.48. In the course of the loan, your payments would amount to $12,293.46. The interest rate for your loan could be different, or even lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit use history loan length, along with other variables. Late payments or subsequent fees and charges could increase the cost for your fixed-rate loan. There is no charge or penalty for paying off the loan early. Personal loans issued by Upgrade’s bank partners. Information on Upgrade’s bank partners can be found at https://www.upgrade.com/bank-partners .
on OneMain Financial’s website
OneMain Financial 4.0 NerdWallet’s ratings are evaluated by our editorial staff. The scoring formula is based on aspects we believe are beneficial to the consumer, such as impact on credit score rate and fees, the customer experience and responsible lending practices.
Est. APR 18.00 – 35.99 percent
Loan amount $1,500 – $20,000
Min. credit score None Average score is 600 – 700
View details
on the OneMain Financial website.
View more information
Min. credit score None
The most important facts OneMain Secured loans require a car as collateral. They can also apply for a co-applicant to an application.
Pros Option to choose and alter the payment date.
Secured and joint loans.
Fast and quick funding.
Direct payment to the creditors of debt consolidation loans.
Cons Rates are higher in comparison to other lenders.
Charges for origination fees.
No rate discounts.
Pre-qualification does not allow borrowers to preview potential rates.
The requirements include a Social Security number or taxpayer identification number. You must be at least 18 years old in all states. Minimum credit score zero. The minimum number of accounts on the credit report: None, however, applicants who have no credit history might not be eligible. The minimum income is none; this lender will accept the income earned from employment, alimony 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 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 approved. Loan approval and actual loan terms depend on the ability of you to satisfy our credit requirements (including a responsible credit history, sufficient income after expenses per month, and the availability of collateral). If approved some applicants may not qualify for larger loan amounts or favorable loan conditions. Higher loan quantities require lien on a motor vehicle that is not older than ten years and meeting our requirements for value, and is titled in your name, and with current insurance. The approval of your loan and the actual loan terms are contingent on your residence state and your ability to meet our credit standards (including an established credit history, sufficient income after monthly expenses and collateral availability). APRs tend to be higher for loans not secured by vehicles. The most qualified applicants could be offered greater loan amounts and/or lower APRs than those shown above. OneMain offers origination fees when legal. Based on the state in which you are opening your loan the fee for origination may be either flat or a percentage of your loan amount. The flat fee amount varies per state, ranging from $25 to $500. Percentage-based fees differ by state ranging between 1% and 10% of the loan amount subject to state restrictions on the fees. Go to omf.com/loan-fees for more details. Loan proceeds cannot be used for postsecondary educational expenses according to the CFPB’s Regulation Z such as college, university or vocational expense and for any commercial or business-related use; for the purchase of crypto assets and derivatives, securities, or any other investment that is speculative in nature as well as for gambling or illicit purposes. The states in which these loans are offered must adhere to these minimum loan size limits: Alabama: $2,100. California: $3,000. Georgia In the event that you are not an existing customer, you must pay $3,100 as the minimal loan amount. North Dakota: $2,000. Ohio: $2,000. Virginia: $2,600. Borrowers (other than current customers) in these states are restricted to these maximum secured loan dimensions: North Carolina: $7,500. Unsecured loan is a loan that does not need you to offer collateral (such as an automobile) in exchange for the lender. Example of a Loan: A $6,000 loan with a 24.99% APR that is payable in 60 monthly installments, with monthly payments 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 check or ACH may take up to two business days following loan closing.
Our pick is for secured loans at credit unions
on NerdWallet’s secure site
First Tech Credit Union Personal Loan 5.0 NerdWallet’s ratings are determined by our editorial team. The scoring formula considers aspects we believe are beneficial to the consumer, including the impact on credit score, rates and fees, the customer experience and responsible lending practices.
Est. APR 6.70 — 18.00 Percent
The loan amount is $500-$50,000.
Min. credit score 660
View details
on the secure website of NerdWallet.
View more information
Min. credit score 660
Key information First Tech members have access to secured loans which are backed by an CD or savings account, as well as stocks.
Pros Secured, joint and co-sign loan options.
Direct payment to creditors with credit consolidation loans.
You can choose to change the date of your payment.
Fast and quick funding.
Cons Exclusive for members of credit unions.
Pays only one of the three major credit bureaus.
No rate discount.
Qualifications Must be an active participant in First Tech Federal Credit Union. Minimum credit score of 660. Must provide Social Security number and driver’s license or any other ID issued by the state. Maximum debt-to-income ratio: 50%. Minimum monthly income: $700 when living with other people; $1,000 if renting; $1,500 if you own your own home. Credit history must be at least two credit accounts that are 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 determined by our editorial team. The scoring algorithm takes into consideration the factors we believe to be consumer-friendly, including impact on credit score, rates and fees, customer service and ethical lending practices.
Est. APR 7.49 – 18.00%
Amount of loan: $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 non-secured loans, Navy Federal offers secured loans secured by the Navy Federal savings account or CD.
Pros Large range of loan amounts.
Fast funding.
Discount on rates for certain customers.
Co-signing, joint and secured loan options.
Direct payment to creditors using credit consolidation loans.
Cons Exclusive for members of credit unions.
There is no option to pre-qualify for an informal credit check.
No option to choose or change the date of your payment.
You must be an Navy Federal Credit Union member to apply. There is no minimum credit score requirement.
Available Term Lengths 1 – 5 years
Fees Origination fee: None. Late fee: $29. Returned payment fee: $29.
>> COMPARE:
What’s a secured personal loan?
Secured personal loan is an loan you can get by offering something you own to get money , which you will repay in time, paying interest.
Lenders are able to take your collateral -such as a car or money in a savings or savings account, for instance — however, they’ll only accept it if you are unable to pay back the loan. Once the loan is fully paid then the lender is no longer able to exercise the power to take your collateral.
Like an unsecured loan, your credit or income, as well as other debts are still central to getting approved for a secured loan however, offering collateral reduces the risk for the lender. In turn, approval odds are higher for secured loans and the interest rate is typically lower.
>> MORE:
How do you get a secured loan
The process for getting secured loan will differ depending on the kind of collateral you’re using, but here are the steps to follow:
Inquire regarding the loan. Certain lenders offer secured loans only after an applicant does not require an unsecured loan. If you can’t pre-qualify with the lender, or you don’t have a secured loan alternative, contact the lender directly regarding secured loans.
Check your budget. Examine your cash flow to determine how much you can afford to put towards 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.
Choose the right lender. Compare lenders to see what kind of collateral they are willing to accept as well as what rates they are willing to offer.
Gather the necessary documents. Before you apply to a lender, collect the documents lenders require for an application. This could include a government-issued ID and Bank statements, W-2s and pay stubs. It is also possible to require documents for the collateral, like a car title.
Apply. The majority of lenders accept online applications. Once you submit, an approval decision may take a couple of days or more if the lender has to assess the value of the collateral.
>> MORE:
Pros and pros and loans
Consider the advantages of taking a secured loan against the potential negatives prior to committing yourself to borrowing.
Pros
Better approval odds. An lender will be more inclined to approve a secured loan application.
Lower interest rate and higher loan amounts. Because the risk of losing money is lower for the lender you could get a larger loan for a lesser cost.
Cons
The lender might take your collateral. If your vehicle is collateral for the loan and you require it to get to work, for instance, losing it could put you in a much worse position than when you took out the loan.
Not as accessible as loans that are not unsecured loans. A lot of credit unions, banks and online lenders provide only unsecured loans.
>> MORE:
Secured loan examples
home equity loans and HELOCs: A home equity loan or line of credit is a type of mortgage that gives you access to cash based on the worth of your home. As with the initial mortgage, a 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 car’s model, make and year in addition to your credit and finances — to decide your rate. If you are approved, you hand the lender your car title and they return it once you have paid off the loan is paid in full. This is different from auto title loans that can come with triple-digit APRs (more on these below).
CD loans If you own a certificate of deposit with an institution, you may be able to use it as collateral for personal loan. Rates are generally low — typically starting 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 penalties.
401(k) loans: An employer-sponsored 401(k) plan may permit employees to borrow money from their retirement accounts for up to five years. There are generally low rates on 401(k) loans, but when you borrow from the account, you’ll miss out on market gains as well as compound interest earned from your retirement savings.
How do I get the secured personal loan
Banks: Banks typically provide a savings or CD-secured loan. An account that you have with the bank will be collateral, and you can’t access that money until the loan is repaid.
Credit unions: Some credit unions offer share-secured loans that is a different name that refers to savings secured loans. The credit union will hold onto your savings as you pay the loan.
However, if your institution does not offer these, you may be eligible for an unsecured loan as the credit unions have been known to have softer borrower requirements and lower APRs.
>> MORE:
Online lenders: Many online lenders offering secure loans require a vehicle to serve as collateral. Some allow you to apply for the loan in advance, while others might offer you the possibility only after you’ve attempted to apply for an unsecure loan.
Some lenders let you examine your rate on an unsecured loan without affecting your credit score, so it’s not a bad idea to check the loan with several lenders.
You can make use of the NerdWallet lender marketplace to find rates for unsecured loans.
Secured loans to help avoid
: Pawnshops let you hand your valuables to them to get cash which you have to repay within a couple of weeks. These loans may have 200% APRs and are often difficult to repay. If you fail to 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 kind of loan could encourage repeated borrowing, and cause you to enter into the cycle of debt. Avoid auto-secured loans with rates that exceed 36%, which is the highest rate that advocates for an affordable loan could have.
>> MORE:
Updated on December 13, 2022.
Methodology NerdWallet’s review process examines and scores personal loan products offered by more than 35 banks. We collect more than 45 information points for each lender as well as interview representatives of the company and compare the lender with others that seek the same customer or offer similar personal loan product. NerdWallet editors and writers carry out a full fact check and update each year, but they also update throughout the year as necessary.
Our star ratings award points to those who offer consumers-friendly services, such as soft credit checks to help you qualify with competitive interest rates and no fees, transparency of rates and terms, flexible payment options, speedy processing times for funding, easy customer service, and reporting of payments to credit bureaus and financial education. We also take into consideration regulatory actions filed by agencies like that of the Consumer Financial Protection Bureau. We weigh these factors according to our evaluation of which are most crucial to consumers, and how meaningfully they impact the consumer’s experience.
This method is only applicable to lenders that cap interest rates at 36%. This is the highest rate that experts in finance and consumer advocacy accept as the appropriate limit to consider an loan that is affordable. NerdWallet does not get paid for our star ratings. Read more about our and our .
To recap our selections… The NerdWallet’s Best Secured Personal Loans of 2023 : Best for Secured loans from online lenders : Best for Secured loans from online lenders : The best for Secured loans from online lenders: Best for Secured loans from credit unions: Best in Secured loans by credit unions
Most frequently asked questions What exactly do you mean by a personal loan?
An secured personal loan is one type of loan which requires collateral- usually a vehicle or bank account. Apart from your credit and income The lender examines the worth of the collateral to determine whether you qualify for the loan, and how much they will loan you, as well as your rate of interest. You repay this type of loan in fixed monthly installments, much like an unsecure loan. However, unlike an unsecure 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 accessible?
Secured loans can be easier to get than other loans since you can use the collateral of something you own for the loan, which the lender could take if you don’t repay the loan. This helps make your loan less risky for the lender as credit and income requirements are typically less stringent with a secured loan.
About Annie Millerbernd, the author is an individual loans writer. Her work has appeared on The Associated Press and USA Today.
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