Our top selections
Top Picks
Guides & tips
Guides
Calculators
Tools
My NerdWallet
The most secure personal loans of 2023
Advertiser disclosure You’re our first priority. Everytime. We believe that every person should be able make financial decisions without hesitation. And while our site doesn’t include every financial or company product on the market however, we’re confident that the guidance we offer and the information we offer and the tools we create are independent, objective, straightforward — and free. How do we earn money? Our partners compensate us. This can influence the products we review and write about (and where those products appear on the site) however it in no way affects our advice or suggestions which are based on thousands of hours of research. Our partners cannot promise us favorable reviews of their products or services. .
BEST OF
Top Secured Personal Loans for 2023
Secured personal loans allow you to borrow on the basis of the value of an asset like an automobile or savings. Secured loans may carry lower interest rates but they also carry risk.
By Annie Millerbernd
Dec 13, 2022
A majority or all of the items featured on this page are provided by our partners, who pay us. This may influence which products we review and the location and manner in which the product appears on the page. However, this doesn’t influence our evaluations. Our opinions are our own. Here’s a list of and .
The majority of personal loans are secured, and the approval process is based on your creditworthiness. But if you can’t qualify for an unsecure loan, or you don’t get the rate you want for a bad credit loan, a secured loan is an option.
This type of loan requires you to put up collateral to obtain money. The drawback is that if you fail to pay on time due to the lender could seize your property.
Learn about secured and how to locate them, such as banks, online lenders and credit unions.
Note that the information for each lender is specific to its secured loans. Qualification criteria and loan details may differ when it comes to secured loans.
Most personal loans are secured, and the approval process is based on your creditworthiness. If you’re not eligible for an unsecured loan or get the rate you want for a bad credit loan, a secured loan is an option.
This type of loan requires the pledge of collateral in order to get money. The downside: If you fail to pay on time due to the lender may seize your assets.
Learn 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. Qualification criteria and loan information may differ for 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
The amount of the loan
Min. credit score
Find out more
Best Egg on Best Egg’s website
Best option for secured loans from online lenders
8.99 – 35.99%
$2,000 – $50,000
600
on Best Egg’s website
Upgrade on the Upgrade website.
Best option for secured loans from online lenders
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 from online lenders
18.00 – 35.99%
$1,500 – $20,000
None
The average score is 600 – 700
on the OneMain Financial website.
First Tech Credit Union Personal Loan through NerdWallet’s secure website
Best option for secured loans at 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 for Secured loans at credit unions
7.49 – 18.00%
$250 – $50,000
None
on the secure website of NerdWallet.
Our choice to secure loans by online lending institutions
on the website of Best Egg.
Good Egg 4.5 NerdWallet’s scores are determined by our editorial team. The scoring algorithm takes into consideration aspects we consider to be consumer-friendly, including impact to credit score, rates and fees customers’ experience, and responsible lending practices.
Est. APR 8.99 + 35.99 percent
The amount of the loan is $2,000 to $50,000.
Min. credit score 600
View details
on Best Egg’s website
View more information
Min. credit score 600
The key information Best Egg secured loans are like home equity loans but use items attached to your home rather than the property it self as collateral.
Pros offers a wide variety in loan amounts.
Offers a secured loan option for homeowners.
Direct payment to customers with the 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 years and three accounts. The minimum amount of income required is $3500; borrower average is $80,000. The borrower should have sufficient funds to meet the current financial obligations. Maximum ratio of debt to income: 40 percent or 65%, excluding a mortgage; borrower average is 40%. Employment: Must provide proof of income. Part-time employees are qualified. You must provide a an official U.S. address and Social Security number.
Available Term Lengths: 3 to 5 years
Fees Origination fee: 0.99% – 8.99%. Fee for return: $15 if payments aren’t completed.
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 and 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 owned by Marlette Holdings, Inc. (a Delaware corporation. The various uses of «Best Egg» refer to «the Best Egg personal loan», «the Best Egg Secured Loan» or «Best Egg for Cross River Bank or Blue Ridge Bank, as source of the Best Egg personal loan,» depending on the circumstances. The term, amount and the rate of interest for any loan we provide will depend upon your score on credit and income, as well as debt payment obligations, loan amount, credit history, and many other variables. The loan contract will include specific conditions and terms. About half of our customers get their funds the following day. After successful verification, your cash will be transferred to the account of your bank account within 1-3 business days. The timing of available funds after loan approval may vary depending on your bank’s policy. Loan amounts range from $2,000- $50,000. Residents of Massachusetts have an initial loan amount of $6,500; New Mexico and Ohio, $5,000; and Georgia, $3,000. If you want to take out a second Best Egg loan, your current Best Egg loan amounts cannot exceed 100,000. The Annual Percentage Rates (APRs) range from 8.99%-35.99%. The APR is the price of credit per year at a rate that reflects the interest rate as well as an initial fee that is 0.99%-8.99 percent of your loan amount that will be subtracted from any loan funds you receive. The origination cost for a loan duration of 4 years or more will be at least 4.99 percent. Your loan term will impact the APR of your loan, which could be higher than our lowest advertised rate. You must have at least 700 FICO(r) score as well as a minimum individual annual income of $100,000 in order to qualify to receive our lowest rate. For instance, a five-year loan of $10,000 loan with 9.99 percent APR will have 60 monthly scheduled payments of $201.81, and a 3-year loan of $5,000 loan with 7.99% APR has 36 scheduled monthly installments of $155.12. To assist the federal government in combating the funding of terrorism and money laundering activities, Federal law requires all banks to collect the information, verify and document information that can identify each person who opens an account. What does this mean to you: If you open an account we’ll request your name and address, as well as your birthday, and other details that allow the institution to verify your identity. We may also want to see your driver’s licence or other identifying documents. Best Egg products aren’t accessible if you reside in Iowa, Vermont, West Virginia or West Virginia, 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 algorithm takes into consideration factors we consider to be beneficial to the consumer, including the impact on credit score, rates and fees, the customer experience and ethical 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 details
Min. credit score 560
Important facts Upgrade applicants are able to repay their secured loans with a vehicle and the worth of that factors into your rate.
Advantages of joint and secured loans.
Multiple rate discounts.
Mobile app for managing loan payments.
Direct payment to creditors using the debt consolidation loans.
Long repayment terms on home improvement loans.
Cons Origination cost.
You cannot choose your payment time.
Credit Score Minimum: 560. Minimum number of credit accounts on history: One account. Maximum ratio of debt to income: 75%, excluding any loan that you’re applying to. Minimum period of credit-related history Two years. Minimum income requirement: None. Lender accepts income from retirement, alimony and 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 percent. Late Fee $10. Fee for late payment of $10.
Disclaimer The personal loans that are made using the Upgrade offer annual percentage rates (APRs) of 8.24%-35.97%. All personal loans come with the 1.85 percent to 8.99 per cent origination charge which is taken from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. The terms for repayment vary from 24 to 84 months. As an example, if receive the 10,000 loan with a term of 36 months and a 17.59 percent APR (which also includes a 13.94 percent annual interest rate and the 5% one-time origination fee) You would be able to receive $9,500 in your account and would be required to pay a monthly installment of $341.48. In the course of the loan the payments would amount to $12,293.46. The interest rate for your loan could be different, or even lower and the loan offers may not have multiple term lengths available. The actual rate is based on your the credit score, usage history, loan length, along with other factors. In the event of late payments, additional charges and fees may increase the price 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 the OneMain Financial website.
OneMain Financial 4.0 NerdWallet’s ratings are determined by our editorial team. The scoring formula takes into account the factors we believe to be friendly to consumers, such as the impact on credit score rate and fees, customer experience and responsible 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- 700
View details
on OneMain Financial’s website
View more information
Min. credit score None
Key facts OneMain Secured loans require a vehicle to serve as collateral. The borrower can also include an applicant who is a co-applicant.
Pros Option to select and alter your payment date.
Secured and joint loans.
Fast funding.
Direct payment to the creditors of debt consolidation loans.
Cons Rates are very high when compared to other lenders.
Charges for origination fees.
No rate discounts.
Pre-qualification does not allow borrowers to preview potential rates.
Qualifications You must have a Social Security number or taxpayer identification number. You must be at least 18 years old in all states. Minimum credit score zero. Minimum number of accounts on credit reports: None, however applicants with no credit history are unlikely to be considered. Minimum income: None; this lender will accept the income earned from employment, alimony pension, child support, retirement, Social Security payments, public assistance and investments.
Available Term Lengths from 2 to 5 years
Fees Origination fee between $25 and $500 or 10% to 1% on the loan amount. Late fee: $5-$30 or 1.5% to 15% of your monthly payment. Non-sufficient funds fee: $15.
Disclaimer: Not every applicant will be accepted. The approval of loans and the actual loan terms are contingent on your ability to meet our standards for credit (including an established credit history and a sufficient income after monthly expenses, and being able to show collateral). If approved some applicants may not be eligible for greater loan amounts or most favorable loan terms. Higher loan amount require first lien on a motor vehicle that is not more than 10 years old and that meets our requirements for value, and is titled in your name with valid insurance. The loan approval process and loan terms are contingent on the state in which you reside and your ability to meet our standards for credit (including a responsible credit history, a sufficient income after expenses paid monthly and collateral availability). APRs tend to be higher for loans not secured by vehicles. For applicants who are highly qualified, they may receive more loan amounts and/or lower APRs than the ones that are listed above. OneMain charges origination fees where permitted by law. The state in which you take out your loan the fee for origination can be a flat amount as well as a proportion of the loan amount. The amount of flat fees varies by state, ranging from $25 to $500. Percentage-based fees vary by state, ranging from 1% to 10 percent of the loan amount subject to certain state restrictions on the fee amount. Visit omf.com/loan-fees for more information. The proceeds of loans cannot be utilized for educational costs postsecondary as defined by the CFPB’s Regulation Z such as college and university costs, or vocational expenses; for any commercial or business purpose; to purchase cryptocurrency-related assets such as securities, derivatives, or any other investment that is speculative in nature or to fund gambling or other illegal activities. In these states, borrowers are subject to these requirements for minimum loan dimensions: Alabama: $2,100. California: $3,000. Georgia In the event that you are not an existing customer, $3100 minimum 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 unsecure loan dimensions: North Carolina: $7,500. An unsecure loan is an unsecure loan which does not require you to provide collateral (such as the motor vehicle) to 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 within one hour following the closing date through SpeedFunds should be made available to a debit card issued by a bank. Disbursement by cheque or ACH can take up to 2 business days following loan closing.
Our pick of Secured loans by credit unions
on the secure website of NerdWallet.
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 beneficial to the consumer, including the impact on credit score rates and fees, customer service and responsible lending practices.
Est. APR 6.70 – 18.00%
The loan amount is $500-$50,000.
Min. credit score 660
View the full details
on the secure website of NerdWallet.
View more information
Min. credit score 660
Important facts First Tech members have access to secured loans backed by a CD or savings account. They can also access stocks.
Pros Co-sign, joint and secured loan options.
Direct payment to creditors with the debt consolidation loans.
You can choose to change the payment date.
Quick funding.
Cons Only available to credit union members.
Pays only one of the three major credit bureaus.
No rate discount.
You must be an active participant in First Tech Federal Credit Union. Minimum credit score: 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: $700 if living with other people Renting; $1,000 the property; or $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: Vary. Return check fee: $28.
on NerdWallet’s secure site
Navy Federal Credit Union Personal loan 5.0 NerdWallet’s ratings are determined by our editorial team. The scoring formula considers factors we consider to be consumer-friendly, including the impact on credit score rate and fees, customer experience and responsible lending practices.
Est. APR 7.49 – 18.00%
The loan amount is $250-$50,000.
Min. credit score None
View details
on NerdWallet’s secure website
View details
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 A wide selection in loan amounts.
Fast funding.
Rate discount for some customers.
Co-sign, joint and secured loan options.
Direct payment to creditor with the debt consolidation loans.
Cons Only available to credit union members.
It is not possible to pre-qualify using 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 apply. No minimum credit score requirement.
Available Term Lengths: 1 to 5 years
Fees Origination fee: None. Late fee is $29. Fee for returned payments of $29.
>> COMPARE:
What is a secured personal loan?
An secured personal loan is an loan you can get by pledging something you own to get cash that you pay back over time with interest.
Lenders are able to take your collateral — a vehicle or money in a savings account for instance, but they’ll only accept it if you don’t pay back the loan. After the loan is fully paid, the lender is no longer able to exercise the right to take the collateral.
As with an unsecured loan credit score as well as income and other debts are still central to obtaining secured loan However, providing collateral lowers the risk to the lender. The odds of approval are better with secured loans and the interest rate is typically lower.
>> MORE:
How to get a secured loan
The process of getting secured loan will differ according to the type of collateral you’re using, but here are the steps you’ll need to take:
Find out more concerning the loan. Some lenders offer secured loans only after an applicant is not eligible for an unsecured loan. If you’re unable to pre-qualify the lender, or you don’t have a secured loan option, you can ask the lender directly about secured loans.
Check your budget. Review your cash flow to find out how much you can afford to put towards the loan each month. Use a to see what percent of your annual income, loan amount and repayment term you’d need to keep monthly payments affordable.
Select the right lender. Compare lenders to find out what kinds of collateral they accept and what rates they offer.
Collect documents. Before you submit your application to a lender, collect the documents lenders require in order to submit an application. They may require the ID of a government official, statement from your bank, W-2s and pay stubs. You may also need documents for the collateral, like an auto title.
Apply. Most lenders have online applications. After you’ve submitted your application the application, approval may take a couple of days, or even longer if a lender needs to evaluate the value of the collateral.
>> MORE:
Pros and pros and loans
Consider the advantages of taking a secured loan against potential disadvantages before you take out a loan.
Pros
Better approval odds. A lender is more likely to accept an secured loan application.
Lower interest rate and higher loan amounts. Since the risk loss of money reduced for the lender you could get a larger loan with a less rate.
Cons
The lender may take your collateral. If your car is collateral to an loan and you’re in need of it to get to work, for example, losing it could put you in a worse situation than when you took out the loan.
Not as readily available as unsecured loans. A lot of credit unions, banks and online lenders offer 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 money based on the value the home. Like the first mortgage one lender could take possession of your home when you fail to pay.
>> MORE:
Auto-secured loans: With an auto-secured loan the lender will take into consideration information such as the vehicle’s make, model, and year, in addition to your credit score and financial situation- to decide your rate. If approved, you send the lender your car title and they return it when it is loan is paid off. This is different from auto title loans, which can have triple-digit APRs (more on these below).
CD loans If you hold an account with a bank, you may be allowed to utilize it as collateral to secure an individual loan. The rates are typically low — typically starting a couple of percentage points higher than the CD rate — and it’s a way to access funds without having to cash out the CD early and paying a penalty.
401(k) loans: An employer-sponsored 401(k) plan could permit employees to borrow money from their retirement account at a maximum of five years. Rates are usually low on 401(k) loans, but by borrowing from the account, you’re losing the market’s gains as well as compound interest earned from the retirement funds.
How do I get a secured personal loan
Banks: Most banks 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 access that money until the loan is repaid.
Credit unions: Certain credit unions offer share-secured loans, which is another term that refers to savings secured loans. The credit union will store your savings while you repay the loan.
In the event that your financial institution does not offer these, you may be eligible for an unsecure loan as Credit unions tend to have less stringent requirements for borrowing and lower APRs.
>> MORE:
Online lenders: Many online lenders offering secure loans require a car as collateral. Some lenders allow you to apply for this loan at the beginning, while other lenders may offer the option only after you’ve attempted to apply for an unsecure loan.
Some lenders let you examine the rate of an unsecure loan without impacting your credit score, so it’s not hurt to compare the loan with several lenders.
It is possible to use NerdWallet’s lender marketplace to evaluate rates on unsecure loans.
Secured loans to avoid
: Pawnshops let you hand your valuables to them in exchange for cash you must repay, typically within a few weeks. These loans could have a rate of 200% and may be difficult to pay back. If you do not repay, the pawnshop will retain your possession.
High-interest short-term loans typically of several hundred or thousands of dollars. Because they’re difficult to repay on time, this type of loan could encourage repeated borrowing, and cause you to enter into an unsustainable cycle of debt. Avoid auto-secured loans that have rates of more than 36%, the most expensive rate that advocates for an affordable loan could have.
>> MORE:
Updated on December 13, 2022
Methodology NerdWallet’s review procedure evaluates and rates personal loan products from over 35 financial institutions. We collect over 45 information points for each lender, interview company representatives and compare the lender with others that seek the same customer or offer the same personal loan product. NerdWallet writers and editors conduct a full fact check and update each year, but also make updates all through the year if.
Our stars are awarded points to lenders who provide consumers-friendly features such as soft credit checks that allow you to pre-qualify with competitive interest rates and no charges, transparent rates and terms and flexible payment options, speedy time to fund, easy customer service, and reporting of payment information to credit bureaus as well as financial education. We also look at legal actions that are filed by organizations like the Consumer Financial Protection Bureau. We assess these elements according to our evaluation of which are the most crucial to consumers, and how they affect consumers’ experience.
This approach is only available to lenders that set the interest rate at 36%. This is the maximum rate most financial experts and consumer advocates are in agreement with as the ideal rate to consider an loan to be affordable. NerdWallet is not compensated for our top ratings. Find out more about our and our .
For a recap of our choices… NerdWallet’s Best Personal Loans that are Secured for 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 at credit unions
Frequently asked questions What do you mean by a personal loan?
An secured personal loan is an loan that requires collateral -typically a vehicle or bank account. Apart from your credit score and income The lender considers the value of the collateral in determining whether you are eligible and the amount they can loan you and the rate of interest. You repay this type of loan in monthly fixed installments, similar to an unsecure loan. However, unlike an unsecured loan it is possible for the lender may be able to take your collateral in the event that you do not pay back.
Are secured loans easier to get?
Secured loans are more straightforward to get than other loans since you can use the collateral of something you own to secure the loan that the lender may take in the event that you fail to repay it. This helps make the loan less risky for the lender and therefore the criteria for credit and income are generally less strict with secured loan.
About Annie Millerbernd, author of Annie Millerbernd. She is a private loans writer. Her work has appeared in The Associated Press and USA Today.
Do all the right financial moves
Banking Credit Cards Finance Planning Financial News Insurance Investing Loans Mortgages Small Business Travel and Taxes
About
Assistance
legal
Download the app
Disclosure: NerdWallet strives to keep its information accurate and up to date. It is possible that the information presented may be different from what you will see when you go to a financial institution or service provider, or a specific product’s site. All financial products, products for shopping and services are presented without warranty. If you are considering a purchase, read the terms and Conditions. Pre-qualified offers do not bind. If you discover discrepancies in your credit score or other information from your credit reports or credit report, you should get in touch with TransUnion(r) direct. NerdWallet Compare, Inc. NMLS ID# 1617539 California: California Finance Lender loans arranged pursuant to Department of Financial Protection and Innovation Finance Lenders License #60DBO-74812. Property and Casualty insurance services available through NerdWallet Insurance Services, Inc. (CA resident license number. OK92033) NerdWallet(tm) | 55 Hawthorne St. – 11th Floor, San Francisco, CA 94105
NerdWallet USA
|
|
|
|
(c) 2023 NerdWallet, Inc. All Rights Reserved.
If you loved this report and you would like to acquire additional facts about $255 Payday Loans Online Same Day – https://loanpayas.ru, kindly visit the web-site.