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Top Secured Personal Loans for 2023
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THE BEST OF
The most secure personal loans of 2023
Secured personal loans allow you to borrow on the basis of the value of an asset such as 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 featured here are from our partners who pay us. This can affect which products we feature as well as the place and way the product is featured on a page. But, it doesn’t influence our assessments. Our opinions are entirely our own. Here’s a list of and .
Most personal loans are secured, and they are based on creditworthiness. However, if you aren’t eligible for an unsecured loan, or you don’t get the price you’d like on a low-credit loan then a secured loan is one alternative.
This type of loan requires you to pledge collateral to obtain money. The downside: If you don’t make timely payments, the lender can seize your asset.
Find out more about secured and where to look for them, including banks, online lenders, as well as credit unions.
Note that the information for each lender is specific to its secured loans. Criteria for qualifying and loan details may differ when it comes to secured loans.
The majority of personal loans are not secured, which means approval is based on your creditworthiness. However, if you aren’t eligible for an unsecured loan or receive the interest you desire on a low-credit loan then a secured loan is a viable option.
This type of loan requires you to put up collateral to obtain money. The downside: If you don’t make timely payments, the lender may seize your assets.
Learn about secured and how to find them, including banks, online lenders as well as credit unions.
The information for each lender is specific to its unsecured loans. Criteria for qualifying and loan details may be different for secured loans.
Best Personal Loans Secured
Lender
NerdWallet rating The ratings of NerdWallet are set by our editorial staff. The scoring formulas are based on many data points for every financial service and product.
Est. APR
Loan amount
Min. credit score
Learn more
Best Egg on Best Egg’s website
Best for Secured loans from online lenders
8.99 – 35.99%
$2,000 – $50,000
600
on the website of Best Egg.
Upgrade on Upgrade’s website
Best to 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 via online lending
18.00 – 35.99%
$1,500 – $20,000
None
Average score is 600 – 600 –
on OneMain Financial’s site
The First Tech Credit Union Personal loan through NerdWallet’s secure website
Best option for secured loans from credit unions
6.70 – 18.00%
$500 – $50,000
660
on the secure website of NerdWallet.
Navy Federal Credit Union Personal Credit Loan on NerdWallet’s secure site
Best option for secured loans at credit unions
7.49 – 18.00%
$250 – $50,000
None
on the secure website of NerdWallet.
Our pick of Secured loans via online lender
on the Best Egg’s website
Best Egg 4.5 NerdWallet’s scores are determined by the editorial staff of our website. The scoring algorithm takes into consideration factors we consider to be consumer-friendly, including the impact on credit scores rates and fees, customer 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 more information
on the Best Egg’s website
View details
Min. credit score of 600
Important details Best Egg secured loans are similar to home equity loans however they use items that are attached to your home rather than the property it self as collateral.
Pros provides a variety of loan amounts.
Offers a secured loan option for homeowners.
Directly pay the debtors who have taken out the debt consolidation loans.
Cons Origination cost.
No rate discounts.
There is no choice to choose the first payment date.
Credit Score Minimum: 600; the average of borrowers is 700. Minimum credit history is three years and three accounts. Minimum income requirement is $3,500 The average of borrower’s income is $80,000. The borrower should have sufficient cash flow to pay current financial obligations. Maximum debt-to-income ratio: 40 percent or 65%, excluding the mortgage. The average of borrowers is 40 percent. Employment: Must show evidence of income; part-time employees are qualified. Must provide 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%. Refund fee: $15 in the event that payments are not completed.
Disclaimer *Trustpilot TrustScore in June 2020. Best Egg personal loans, including the Best Egg Secured Loan, are offered through Cross River Bank, a New Jersey State Chartered Commercial Bank, member of the FDIC, Equal Housing Lender or Blue Ridge Bank, a Nationally Chartered Bank, Member FDIC, Equal Housing Lender. «Best Egg» is a registered trademark of Marlette Holdings, Inc. which is a Delaware corporation. The use 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 source of the Best Egg personal loan,» in the event that it is applicable. The length, the amount and the the APR for each loan we offer to you will depend the credit rating of your, income, debt payment commitments, loan amount, credit history, and many other variables. Your loan agreement will contain specific conditions and terms. The majority of our customers receive their money the next day. Once you have verified your identity, the money will be in the account of your bank account within 1-3 business days. The amount of funds available following loan approval may vary depending on the policies of your bank. The loan amounts vary between $2,000 and $50,000. Residents of Massachusetts have an initial loan amount of $6,500; New Mexico and Ohio, $5,000. Georgia is Georgia $3,000. To get the second Best Egg loan you must ensure that your current Best Egg loan balances cannot exceed $100,000. The Annual Percentage Rates (APRs) vary between 8.99%-35.99%. The APR represents the cost of credit per year at a rate, and it is a reflection of the interest rate you pay and the origination cost of 0.99%-8.99% of the loan amount that will be subtracted from any loan profits you get. Origination fees for the loan that is four years or more will be at least 4.99 percent. Your loan term will impact the APR of your loan, which could be greater than our advertised rate. You need an at-least 700 FICO(r) score and an annual income of at least of $100,000 in order to qualify the lowest interest rate. Example: A 5-year loan of $10,000 loan with 9.99 percent APR comes with 60 monthly scheduled payments of $201.81, and a 3-year five-figure loan with 7.99 APR, which is a.75% rate, has 36 monthly scheduled payments 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 verification, confirm, and record information that identifies the person who creates an account. What this means for you: When you open an account we will ask for your name, address, date of birth, and any other information that allows us to recognize you. We might also request to see your driver’s licence or other identification documents. Best Egg products are not available if you live 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 compiled 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 ethical lending practices.
Est. APR 8.24 – 35.97%
Loan amount $1,000 – $50,000
Min. credit score 560
View details
on Upgrade’s website
View the full details
Min. credit score 560
Important facts Upgrade applicants are able to repay their secured loans by using a vehicle and the worth of that can be incorporated into the rate.
Advantages of joint and secured loans.
Multiple rate discounts.
Mobile app for managing loan payments.
Direct payment to creditors with debt consolidation loans.
Repayment terms for home improvement loans.
Cons Origination fee.
You cannot choose your payment time.
Credit Score Minimum: 560. Minimum number of accounts on credit history: One account. Maximum ratio of debt to income: 75%, which includes the loan that you’re applying to. Minimum time period of credit-related history 2 years. Minimum income requirement: None. Lender will consider alimony, retirement, child support as well as Social Security and various other sources.
Available Term Lengths 2 to 7 years
Fees Origination Fee: 1.85% to 8.99%. Late Fee 10$. Fee for late payment of $10.
Disclaimer Personal loans obtained through the Upgrade offer annual percentage rates (APRs) between 8.24%-35.97 percent. All personal loans include an 1.85 percent to 8.99 percent origination fee that is taken out of the loan profits. The lowest rates are contingent on Autopay and paying off some of the debt directly. The terms for repayment vary from between 24 and 84 months. For example, if you receive a $10,000 loan with a 36-month period and a 17.59% APR (which comprises a 13.94 percent annual interest rate and a 5% one-time origination fee), you would receive $9,500 to your account and would have a required monthly payment of $341.48. Over the life of the loan you would pay total $12,293.46. The rate of interest for your loan could be different, or even lower and the loan offers may not have different lengths of terms offered. Actual rate depends on credit score, credit use history loan duration, as well as other elements. Late payments or subsequent fees or charges may raise the price on 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 website
OneMain Financial 4.0 NerdWallet’s ratings are determined by our editorial team. The scoring formula takes into account factors we consider to be consumer-friendly, including impact to credit score rate and fees, customer service and ethical lending practices.
Est. APR 18.00 — 35.99 Percent
Loan amount $1,500 – $20,000
Min. credit score None Scores range from 600 to 700
View the full details
on OneMain Financial’s site
View more information
Min. credit score None
The most important details OneMain secured loans require a car as collateral. They can also apply for an applicant who is a co-applicant.
Pros Option to select and alter the payment date.
Joint and secured loans.
Fast funding.
Direct payment to creditors on debt consolidation loans.
Cons Rates are higher compared to other lenders.
Charges for origination fees.
No rate discounts.
Pre-qualification doesn’t allow prospective borrowers to view rates.
Qualifications Must have a Social Security number or taxpayer identification number. The minimum age is 18 or over in all states. Minimum credit score is: None. The minimum number of accounts on the credit reports: None, however, applicants who have no credit history might not be considered. The minimum income is none; this lender will accept earnings from alimony, employment, retirement, child support, Social Security payments, public assistance and investments.
Available Term Lengths: 2 to 5 years
Fees Origination Fee of $25-$500 or 10% to 1% from the loan amount. Late fee: $5 to $30 or 1.5 percent to 15 percent of your monthly payment. Non-sufficient funds fee 15 dollars.
Disclaimer: Not all applicants will be considered. The approval of loans and the actual loan terms are contingent on being able to fulfill our credit requirements (including a responsible credit history, sufficient income after the month’s expenses, and the being able to show collateral). If approved some applicants may not be eligible for greater loan amounts or favorable loan conditions. Larger loan quantities require lien on a vehicle not more than 10 years old and that meets our requirements for value, and is titled in your name, and with current insurance. The approval of your loan and the actual loan conditions are contingent upon your residence state and your capacity to meet our standards for credit (including a responsible credit history, sufficient income after expenses paid monthly and the availability of collateral). APRs are generally higher on loans that are not secured by the vehicle. For applicants who are highly qualified, they may receive higher loan amounts or lower APRs than the rates shown above. OneMain charges origination fees where allowed by law. Based on the state in which you open your loan, the origination fee may be either flat or a percentage of your loan amount. The flat fee amount varies per state, and range from $25 to $500. Percentage-based fees vary by state and range from 1% to 10 percent of your loan amount subject to certain limitations on fees. Visit omf.com/loan-fees for more information. The loan proceeds are not utilized for educational costs postsecondary as defined by the CFPB’s Regulation Z such as college, university or vocational expense; for any business or commercial use; for the purchase of cryptocurrency assets and derivatives, securities, or other speculative investments as well as to fund gambling or other illegal activities. In these states, borrowers must adhere to these requirements for minimum loan sizes: Alabama: $2,100. California: $3,000. Georgia: Unless you are a present customer, $3,100 maximum loan amount. North Dakota: $2,000. Ohio: $2,000. Virginia: $2,600. Borrowers (other than current customers) in states like these are subject to the following maximum unsecured loan size: North Carolina: $7,500. An unsecure loan is a loan that 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 that is repayable in 60 monthly installments will result in monthly installments of $176.07. Time to Fund Loans: Funding within one hour following the closing date through SpeedFunds must be disbursed to a debit card issued by the bank. Payments made by cheque or ACH may take up to 1-2 business days after loan closing.
Our top pick for Secured loans from credit unions
on NerdWallet’s secure site
First Tech Credit Union Personal Loan 5.0 NerdWallet’s ratings are evaluated by our editorial team. The scoring algorithm takes into consideration aspects we believe are consumer-friendly, including impact to credit score, rates and fees, customer service and responsible 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 the secure website of NerdWallet.
View details
Min. credit score of 660
Key information First Tech members have access to secured loans that are secured by a CD or savings account, as well as stocks.
Pros Co-signing, joint and secured loan options.
Direct payment to creditors with credit consolidation loans.
You can choose to change the date of your payment.
Quick funding.
Cons Only available for members of credit unions.
Payments are reported to 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: at least 660. The applicant must show a Social Security number and driver’s license or other state-issued ID. Maximum debt-to-income ratio: 50%. Minimum monthly income: $700 if living with someone else; $1,000 if renting; $1,500 if you own your home. Minimum credit score: At least two established accounts.
Available Term Lengths: 2 to 7 years
Fees Origination fee: None. Late fee: Varies. Return check fee: $28.
on NerdWallet’s secure site
Navy Federal Credit union Personal Loan 5.0 The ratings of NerdWallet are determined through our team of editors. The scoring formula considers factors we consider to be beneficial to consumers, including the impact on credit score rates and fees, the customer experience and responsible lending practices.
Est. APR 7.49 – 18.00 Percentage
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
Important facts In addition to non-secured loans, Navy Federal offers secured loans that are backed by an account called a Navy Federal savings account or CD.
Pros Wide range in loan amounts.
Fast funding.
Rate discount for some customers.
Co-sign, joint and secured loan options.
Direct payment to creditors using the debt consolidation loans.
Cons Exclusive to credit union members.
No option to pre-qualify with 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. Fee for returned payments: $29.
>> COMPARE:
What exactly is a personal loan?
An secured personal loan is a loan you get by pledging something that you have in exchange for cash that you pay back over time and with interest.
The lender has the right to acquire your collateral- a vehicle or money in a savings or savings account, for instance, but they’ll only do it if you are unable to pay back the loan. After the loan is fully paid then the lender no longer has the right to take the collateral.
Similar to an unsecure loan, your credit as well as income and other debts are still central to getting approved for secured loan However, providing collateral lowers the risk to the lender. Additionally, the odds of getting approved are better for secured loans and the interest rate is typically lower.
>> MORE:
How to get a secured loan
The procedure for getting a secured loan will differ according to the type of collateral you’re using, but here are some of the steps you’ll take:
Ask concerning the loan. Some lenders offer secured loans only after the applicant does not require an unsecured loan. If you aren’t able to pre-qualify with the lender or don’t see any secured loan option, you can ask the lender directly about secured loans.
Check your budget. Check your cash flow and determine what you’re able to pay toward 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 accept and the rates they will offer.
Gather the necessary documents. Before you submit your application to a lender, collect the documents lenders require in order to submit an application. This could include a government-issued ID, Bank statements, W-2s, and pay stubs. It is also possible to require documents for collateral, like a car title.
Apply. The majority of lenders accept online applications. Once you submit, an approval decision may take several days, or even longer if a lender must assess the value of the collateral.
>> MORE:
Pros and cons of secured loans
Consider the advantages of taking secured loan against the potential drawbacks before you borrow.
Pros
Better approval odds. An lender is more likely to accept a secured loan application.
Lower interest rates and higher loan amounts. Because the risk of losing money is lower for the lender the loan may be granted a bigger loan with a less rate.
Cons
The lender might take your collateral. If your vehicle is collateral for a loan and you require it to get to work, say the loss of it could place you in a much worse position than you were before borrowing.
Not as accessible as the unsecured loans. Many banks, credit unions and online lenders offer only unsecured loans.
>> MORE:
Secured loan examples
Equity home loans and HELOCs The home equity loan or line of credit is a type of mortgage that lets you access money based on the value of your home. Like the first mortgage, a lender may take possession of your home in the event that you fail to repay.
>> MORE:
Auto-secured loans If you have an auto-secured loan the lender takes into account information such as your car’s model, make and year in addition to your financial and credit scoreto determine your rate. If approved, you send the lender your title and they will return it after the loan is paid back. These are different from auto title loans that can come with triple-digit APRs (more on those below).
CD loans: If you have a certificate of deposit at the bank, you might be allowed to utilize it as collateral to secure a personal loan. Rates are usually low on the average, starting just at a few percentage points above the CD rate. it’s a way to access funds without withdrawing the CD early or paying a penalty.
401(k) loans: An employer-sponsored 401(k) plan could permit employees to borrow money from their retirement accounts in up to 5 years. The rates are typically low for 401(k) loans, but by borrowing money from the account, you’ll miss out on market gains as well as compound interest earned from saving for retirement.
How do I get an secured personal loan
Banks: Most banks provide a savings or CD-secured loan. A bank account you have at the bank is collateral, and you can’t use that account till the loan is paid back.
Credit unions: Certain credit unions provide share-secured loans which is a different term that refers to savings secured loans. The credit union will hold onto your savings as you pay the loan.
However, if your institution doesn’t offer theseloans, you might qualify for an unsecured loan as the credit unions have been known to have less stringent requirements for borrowing and lower APRs.
>> MORE:
Online lenders: Many online lenders that provide secure loans require a vehicle as collateral. Some lenders allow you to apply for the loan upfront, but others may show you the option only after you’ve attempted to apply for an unsecure loan.
Some lenders let you examine your interest rate for an unsecured loan without impacting your credit score, so 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 prevent
: Pawnshops let you hand the cash you have to get cash which you have to repay within a couple of weeks. These loans may have a rate of 200% and can be difficult to repay. If you do not pay back, the pawnshop can keep the item.
High-interest short-term loans of usually a few hundred or thousand dollars. Because they’re difficult to repay in time, this kind of loan could encourage repeated borrowing, which could cause you to enter into a debt cycle. Avoid auto-secured loans with rates that exceed 36%, the highest rate consumer advocates say an affordable loan can be able to have.
>> MORE:
Last updated on December 13, 2022.
Methodology NerdWallet’s review procedure examines and scores personal loan products from more than 35 institutions. We collect more than 45 data points from each lender and interview representatives from the company and evaluate the lender to other lenders that are seeking the same customer or offer similar personal loan product. NerdWallet editors and writers conduct an exhaustive fact-check and update each year, but we also conduct updates all through the year if.
Our stars are awarded points to those who offer consumer-friendly features, including: soft credit checks to help you qualify, competitive interest rates and no charges, transparency of rates and terms and flexible payment options, fast funding times, accessible customer service, reporting of all payments to credit bureaus and financial education. We also look at regulatory actions filed by agencies such as the Consumer Financial Protection Bureau. We evaluate these aspects based on our assessment of which are most crucial to consumers, and how meaningfully they impact the consumer’s experience.
This methodology applies only to lenders that cap their interest at 36%, which is the highest rate that financial experts and consumer advocates accept as the appropriate limit to consider the loan to be affordable. NerdWallet does not receive compensation for our top ratings. Learn more about us and our .
For a recap of our choices… the NerdWallet’s Best 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: The best for Secured loans from credit unions : The best for Secured loans by credit unions
Commonly asked questions What is a secured personal loan?
An secured personal loan is a loan that requires collateral — usually a vehicle or bank account. Apart from your credit score and income The lender considers the value of the collateral in determining whether you qualify for the loan, and how much they will loan you, as well as your rate of interest. This type of loan in fixed monthly installments, which is similar to an unsecured loan. However, unlike an unsecured loan, the lender could be able to take your collateral in the event that you fail to repay.
Are secured loans more readily available?
Secured loans can be easier to obtain than unsecured loans because you offer something you own as collateral for the loan, which the lender may take in the event that you do not repay the loan. This helps make your loan more secure for the lender as credit and income requirements are usually softer on a secured loan.
About the author Annie Millerbernd is a private loans writer. Her writing has been featured in The Associated Press and USA Today.
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