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Top Secured Personal Loans for 2023
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BEST OF ALL
Top Secured Personal Loans for 2023
Secured personal loans permit you to borrow against the value of an asset like a car or savings. Secured loans might 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 feature as well as the place and way the product appears on an article. However, this does not influence our assessments. Our opinions are our own. Here’s a list of and .
The majority of personal loans are unsecured, so approval is based on your creditworthiness. However, if you aren’t eligible for an unsecured loan or receive the interest you desire for a bad credit loan, a secured loan is a viable option.
This kind of loan requires you to put up collateral in order to borrow money. The downside: If you don’t make timely payments, the lender can seize your asset.
Learn about secured, and where you can find them, including banks, online lenders, and credit unions.
Note that the information for each lender is unique to the lender’s secured loans. The criteria for qualification and loan details could differ in secured loans.
The majority of personal loans are unsecured, so approval is based on your creditworthiness. However, if you aren’t eligible for an unsecured loan or get the rate you want for a bad credit loan or secured loan is an option.
This type of loan requires the pledge of collateral in order to borrow money. The disadvantage is that if you don’t pay your loan on time in time, the lender may seize your assets.
Here’s what to know about secured, and where you can find them, including online lenders, banks and credit unions.
Note that the information for each lender is specific to its secured loans. The criteria for qualification and loan details could differ in secured loans.
Best Secured Personal Loans
Lender
NerdWallet rating The ratings of NerdWallet are determined by our editorial team. The scoring formulas take into account multiple data points for 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 option for secured loans by online loan lenders
8.99 – 35.99%
$2,000 – $50,000
600
on the website of Best Egg.
Upgrade on Upgrade’s website
Best for Secured loans by online loan lenders
8.24 – 35.97%
$1,000 – $50,000
560
on the website of Upgrade.
OneMain Financial on OneMain Financial’s website
Best for Secured loans via online lending
18.00 – 35.99%
$1,500 – $20,000
None
The average score is 600 – 600 –
on OneMain Financial’s website
A personal loan from First Tech CreditUnion on NerdWallet’s secure website
Best 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 Loan on NerdWallet’s secure website
Best for Secured loans by credit unions
7.49 – 18.00%
$250 – $50,000
None
on the secure NerdWallet website.
Our choice for Secured loans by online lending institutions
on the Best Egg’s website
Good Egg 4.5 NerdWallet’s scores are determined by the editorial staff of our website. The scoring formula takes into account factors we consider 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 Percent
Loan amount $2,000 – $50,000
Min. credit score 600
View details
on the website of Best Egg.
View the full details
Min. credit score 600
Key details Best Egg secured loans are like home equity loans however they use items that are attached to your home, rather than the house that is the collateral.
Pros offers a wide variety of loan amounts.
Secured loan option for homeowners.
Direct payment to creditors with credit consolidation loans.
Cons Origination fee.
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 months and 3 accounts. Minimum income requirement is $3,500; borrower average is $80,000. The borrower should have sufficient cash flow to pay the current financial obligations. The maximum ratio of debt-to-income is 40 percent or 65%, excluding the mortgage. The borrower’s average is 40%. Employment: Must present proof of income; part-time employees are eligible. Must provide an official 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 completed.
Disclaimer *Trustpilot TrustScore in June 2020. Best Egg personal loans, including the Best Egg Secured Loan, are provided via Cross River Bank, a New Jersey State Chartered Commercial Bank that is a Members 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. The various uses in the name of «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 the creator of the Best Egg personal loan,» in the event that it is applicable. The amount, term and the rate of interest for any loan we provide will depend on your credit score and income, as well as debt payment obligation, loan amount, credit history, and many other variables. Your loan contract will include specific terms and conditions. The majority of our customers get their money on the same day. Once you have verified your identity, the cash 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 are required to have an initial loan amount of $6,500 ; New Mexico and Ohio, $5,000. Georgia is Georgia, $3,000. If you want to take out an additional Best Egg loan the total current Best Egg loan amounts cannot exceed 100,000. The Annual Percentage Rates (APRs) range from 8.99%-35.99 percent. The APR represents the cost of credit in a yearly rate and is a reflection of both your interest rate and an origination fee of 0.99%-8.99 percent of your loan amount to be taken from any loan profits you get. Origination fees for the loan term 4-years or longer will be at minimum 4.99 percent. Your loan term will affect the APR of your loan, which could be higher than our lowest advertised rate. You must have at least 700 FICO(r) score and a minimum individual annual income of $100,000 to qualify to receive our lowest rate. Example: A 5-year 10,000 loan with 9.99% APR has 60 monthly installments scheduled for $201.81 and a three-year loan of $5,000 loan with 7.99 APR, which is a.75% rate, has 36 monthly scheduled payments of $155.12. In order to assist the government in fighting the financing of terrorists and money laundering, Federal law requires all financial institutions to gather the information, verify and keep records of information that identify each person who opens an account. What does this mean for youis that when you sign up for an account, we will ask for your name address, address, birthday, as well as other information that will allow us to identify you. We might also request to see your driver’s licence or other documents that identify you. Best Egg products aren’t available if you live in Iowa, Vermont, West Virginia and West Virginia, the District of Columbia, or U.S. Territories.
on the Upgrade’s website
Upgrade 5.0 NerdWallet’s ratings are compiled by our editorial staff. The scoring algorithm takes into consideration the factors we believe to be consumer-friendly, including impact to credit score rates and fees, customer experience and responsible lending practices.
Est. APR 8.24 – 35.97 Percent
Amount of loan: $1,000 – $50,000
Min. credit score 560
View more information
on the Upgrade’s website
View more information
Min. credit score 560
The most important thing to know is that Upgrade applicants can back their secured loans with a car, the value of which 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.
Repayment terms for home improvement loans.
Cons Origination cost.
No option to choose your payment time.
Qualifications Minimum credit score: 560. Minimum number of accounts on credit history: One account. Maximum debt-to-income ratio: 75%, excluding the loan that you’re applying to. Minimum period of credit history: Two years. Minimum income requirement: None. Lender will accept income from retirement, alimony and child support as well as 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. Failure to pay fee 10 dollars.
Disclaimer Disclosure: Personal loans obtained through the Upgrade feature APRs (APRs) of 8.24%-35.97%. All personal loans come with an 1.85% to 8.99 per cent origination charge that is taken out of the loan profits. The lowest rates are contingent on Autopay and paying off part of debts directly. The terms for repayment vary from 24 to 84 months. For instance, if you receive an amount of $10,000 loan with a 36-month term and a 17.59 APR of 17.59% (which comprises a 13.94 percent annual rate of interest and the 5% one-time origination fee) the loan would pay 9500 dollars in your account, and will be required to make a monthly payment of $341.48. Through the term of the loan the payments would amount to $12,293.46. The APR for your loan could be lower or higher, and your loan deals may not offer multiple term lengths offered. The actual rate is based on your credit score, credit utilization history, loan term, and other elements. In the event of late payments, additional charges and fees may increase the price for 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 the OneMain Financial 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 rates and fees, customer service and ethical lending practices.
Est. APR 18.00 – 35.99%
Amount of loan $1,500-$20,000
Min. credit score None Average score is 600 – 500
View the full details
on OneMain Financial’s website
View more information
Min. credit score None
Important information OneMain secured loans require a vehicle to serve as collateral. Borrowers may also add an applicant who is a co-applicant.
Pros Option: Choose to change your payment date.
Secured and joint loans.
Fast and quick funding.
Direct payment to creditor on the consolidation of debt loans.
Cons Rates are higher in comparison to other lenders.
Charges origination fee.
No rate discounts.
Pre-qualification does not allow the borrower to see rates they might be able to afford.
Qualifications You must have a Social Security number or taxpayer identification number. You must be at least 18 years old in most states. Minimum credit score is: None. Minimum number of accounts on credit reports: None, but applicants with no credit history may not be eligible. Income minimum: none; this lender accepts earnings from alimony, employment, retirement, child support, Social Security payments, public assistance and investments.
Available Term Lengths: 2 to 5 years
Fees Origination fee between $25 and $500 or 1% to 10% of your loan amount. Late fee: $5 to $30 or 1.5 percent to 15% of your monthly payment. Non-sufficient funds fee $15.
Disclaimer: Not all applicants will be approved. The approval of loans and the actual loan terms are contingent upon being able to fulfill our credit requirements (including a responsible credit history and a sufficient income after monthly expenses, and being able to show collateral). If they are approved some applicants may not qualify for larger loan amounts or favorable loan conditions. Higher loan quantities require first lien on a vehicle not older than ten years, that meets our requirements for value, and is titled in your name and backed by current insurance. The loan approval process and loan conditions are contingent upon the state in which you reside and your ability to meet our standards for credit (including a responsible credit history, adequate income after expenses paid monthly, and availability of collateral). APRs are generally higher on loans not secured by the vehicle. The most qualified applicants could be offered higher loan amounts and/or lower APRs than the ones previously mentioned. OneMain charges origination fees where legal. The state in which you are opening your loan the origination fee may be either a flat amount in addition to a portion of the loan amount. The flat fee amount varies per state, ranging between $25 and $500. Percentage-based fees are different for each state, ranging from 1% to 10 percent of the loan amount subject to certain state limits on the fees. Go to omf.com/loan-fees to learn more. Loan proceeds cannot be used to pay for postsecondary education expenses as defined by the CFPB’s Regulation Z such as college or university expenses as well as for any other business or commercial use; for the purchase of cryptocurrency-related assets and derivatives, securities, or other speculative investments or to fund gambling or other illegal activities. In these states, borrowers must adhere to these minimum loan sizes: Alabama: $2,100. California: $3,000. Georgia If you’re not an existing customer, $3100 minimum loan amount. North Dakota: $2,000. Ohio: $2,000. Virginia: $2,600. Borrowers (other than present customers) in these states are restricted to the following maximum secured loan dimensions: North Carolina: $7,500. An unsecure loan is one type of loan that doesn’t need you to offer collateral (such as the motor vehicle) for the lender. Example Loan: A $6,000 loan with an 24.99 APR of 4% that is repaymentable in 60 installments would have monthly installments of $176.07. Time to fund loans: Funding within one hour of closing via SpeedFunds should be made available to a debit card issued by a bank. The process of disbursement via cheque or ACH could take as long as 2 business days following loan closing.
Our top pick for Secured loans from credit unions
on the secure website of NerdWallet.
First Tech Credit Union Personal Loan 5.0 NerdWallet’s ratings are set by our editorial staff. The scoring formula considers aspects we believe are consumer-friendly, including impact to credit score, rates and fees, customer experience and responsible lending practices.
Est. APR 6.70 – 18.00 Percent
Amount of loan $500 – $50,000
Min. credit score of 660
View details
on NerdWallet’s secure site
View more information
Min. credit score 660
Important details First Tech members have access to secured loans that are secured by a CD, savings account or stocks.
Pros Co-signing, joint and secured loan options.
Direct payment to creditors with credit consolidation loans.
You can choose to change your payment date.
Fast funding.
Cons Only available to members of credit unions.
Payments are reported to one of the three major credit bureaus.
No rate discount.
The applicant must be a member of First Tech Federal Credit Union. Minimum credit score is at least 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; $1,000 if renting the property; or $1,500 if you own your own home. Minimum credit score: At minimum two accounts with a history of being established.
Available Term Lengths from 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 through our team of editors. The scoring formula considers factors we consider to be a good choice for consumers, such as impact to credit score rate and fees, customer service and ethical lending practices.
Est. APR 7.49 – 18.00%
The loan amount is $250-$50,000.
Min. credit score None
View more information
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 that are backed by the Navy Federal savings account or CD.
Pros Wide selection of loan amounts.
Quick funding.
Rate discount for some customers.
Co-sign, joint and secured loan options.
Direct payment to creditors with credit consolidation loans.
Cons Exclusive to credit union members.
There is no option to pre-qualify for an informal credit check.
There is no option to select or change the date of your payment.
The applicant must be an Navy Federal Credit Union member to be eligible. There is no minimum credit score requirement.
Available Term Lengths 1 to 5 years
Fees Origination fee: None. Late fee: $29. Returned payment fee $29.
>> COMPARE:
What exactly is a personal loan?
Secured personal loan is a loan you can get by offering something you have in exchange for money that you repay over time and with interest.
Lenders are able to seize your collateralsuch as a car or money in a savings or savings account, for instance, but they’ll only take it if you are unable to repay the loan. Once the loan is paid in full, the lender no longer has the right to take the collateral.
As with an unsecured loan credit as well as income and other debts are still central to getting approved for secured loan However, providing collateral decreases the risk to the lender. The odds of approval are better with secured loans and the rate is typically lower.
>> MORE:
How do you get a secured loan
The process for getting secured loan can vary according to the type of collateral you’re applying for, but here are some of the steps to follow:
Find out more concerning the loan. Certain lenders offer secured loans only after the applicant is not eligible for an unsecured loan. If you aren’t able to pre-qualify with the lender or don’t think you’ll be able to get any secured loan option, you can ask the lender directly regarding secured loans.
Check your budget. Review your cash flow to determine how much you can afford to contribute to the loan every month. Use a to see what annual percentage rate, loan amount and repayment term you’d need to keep the monthly payment affordable.
Select one lender. Compare lenders to determine what types of collateral they will accept and what rates they are willing to offer.
Gather documents. Before applying make sure you have the necessary documents that lenders require for an application. They may require the ID of a government official as well as Bank statements, W-2s and pay stubs. There may be additional documents for the collateral, for example, an auto title.
Apply. The majority of lenders accept online applications. After you’ve submitted your application your application, a decision on approval could take several days, or even longer if a lender must assess the collateral’s value.
>> MORE:
Pros and pros and loans
Compare the benefits of getting a secured loan against potential disadvantages before you take out a loan.
Pros
Better approval odds. The lender will be more inclined to accept a secured loan application.
Lower interest rate and higher loan amounts. Since the chance loss of money less for the lender, you may be approved for a larger loan with a less rate.
Cons
The lender may take your collateral. If your car is collateral for a loan and you’re in need of it in order to go to work, for example, losing it could put you in a much worse position than before you borrowed.
Not as widely available as the unsecured loans. A lot of credit unions, banks and online lenders only offer unsecured loans.
>> MORE:
Secured loan examples
Home equity loans and HELOCs: A line of credit or home equity loan or line of credit is a mortgage that gives you access to cash based on the worth the home. Like the first mortgage, a lender can take your house 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 as well as your credit score and financial situationto determine the rate. If approved, you send the lender your vehicle’s title, and they return it once the loan is paid off. This is different from auto title loans that may have triple-digit APRs (more on these below).
CD loans If you own a certificate of deposit at a bank, you may be eligible to make use of it as collateral for personal loan. Rates are usually low on the average, starting just a couple of percentage points higher than the CD rate — and it’s a method of accessing funds without having to cash out the CD before the due date and incurring a penalty.
401(k) loans: An employer-sponsored 401(k) plan could permit employees to borrow money from their retirement accounts for up to five years. Rates are usually low on 401(k) loans, but when you borrow from the account, you’re losing out on the gains in the market and compound interest on saving for retirement.
Where can I find a secured personal loan
Banks: Banks typically provide a savings or CD-secured loan. An account you already have with the bank will serve as collateral for the loan, but you will not be able to access that money up until loan is paid back.
Credit unions: Some credit unions provide share-secured loans, which is another name that refers to savings secured loans. Credit unions will store your savings as you pay the loan.
If your credit union does not offer these, you may qualify for an unsecured loan due to the fact that the credit unions have been known for having less stringent requirements for borrowing and lower APRs.
>> MORE:
Online lenders: Many online lenders who offer secure loans require a vehicle to serve as collateral. Some allow you to apply for this loan upfront, but others may show you the possibility after having tried applying for an unsecured loan.
Many lenders let you check your rate on an unsecured loan without affecting your credit score, therefore it’s not hurt to compare the with multiple lenders.
You can use NerdWallet’s lender marketplace to find rates for unsecured loans.
Secured loans to prevent
: Pawnshops let you hand your valuables to them in exchange for cash that you have to repay within a few weeks. These loans could be a 200% APR and are often difficult to repay. If you do not pay back, the pawnshop can keep your item.
High-interest short-term loans of usually a few hundred or thousand dollars. Because they’re hard to repay on time, this type of loan could encourage repeated borrowing, and cause you to enter into a debt cycle. Avoid auto-secured loans with rates that exceed 36%, the most expensive rate that consumers believe an affordable loan could have.
>> MORE:
Last updated on December 13, 2022.
Methodology NerdWallet’s review process evaluates and rates personal loan products from over 35 financial institutions. We collect more than 45 information points for each lender and interview representatives from the company and evaluate the lender against other lenders who seek the same customer or offer the same personal loan product. NerdWallet editors and writers carry out a full fact check and update each year, but they also update every year when needed.
Our stars are awarded points to lenders that offer consumer-friendly features, including: soft credit checks that allow you to pre-qualify for loans, competitive interest rates, no charges, transparency of rates and conditions, flexibility in payment methods, quick processing times for funding, easy customer support, and reporting of payment information to credit bureaus and financial education. We also look at the regulatory actions taken by agencies such as Consumer Financial Protection Bureau. Consumer Financial Protection Bureau. We weigh these factors based on our assessment of which are the most significant to consumers and how meaningfully they impact consumers’ experiences.
This approach is only available to lenders who set the interest rate at 36%, the maximum rate most financial experts and consumer advocates are in agreement with as the ideal rate to consider an loan in order to make it affordable. NerdWallet is not compensated for our star rating. Find out more about our and our .
To summarize our choices… NerdWallet’s Top Personal Loans that are Secured for 2023 : Best 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 to secure loans by credit unions
Frequently asked questions What is a secured personal loan?
Secured personal loan is a loan which requires collateraltypically a vehicle or bank account. In addition to your credit and income, the lender examines the worth of the collateral in determining whether you’re eligible, how much to loan you, and also your rate of interest. You repay this type of loan in fixed monthly installments, much like an unsecured loan. However, unlike an unsecured loan it is possible for the lender could use your collateral should you do not pay back.
Are secured loans easier to get?
Secured loans are more straightforward to get than unsecured loans since you can use an asset you own as collateral to secure the loan that the lender could take if you don’t repay the loan. This makes your loan more secure for the lender, so the criteria for credit and income are generally less strict with a secured loan.
About the author Annie Millerbernd is a private loans writer. Her work has appeared on The Associated Press and USA Today.
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