Our top selections
Top Picks
Guides & tips
Guides
Calculators
Tools
My NerdWallet
Top Secured Personal Loans for 2023
Advertiser disclosure You’re our first priority. Everytime. We believe that everyone should be able to make financial decisions without hesitation. Although our website does not contain every financial institution or product on the market We’re pleased that the guidance we offer and the information we offer and the tools we create are objective, independent, straightforward — and free. So how do we make money? Our partners pay us. This could influence the types of products we write about (and the way they appear on our site) however it in no way affects our suggestions or recommendations that are based on many hours of study. Our partners are not able to be paid to ensure positive ratings of their goods or services. .
THE BEST OF
Top Secured Personal Loans for 2023
Secured personal loans permit 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 carry risk.
By Annie Millerbernd
Dec 13, 2022
A majority or all of the products featured here are from our partners who pay us. This could affect the products we write about and the location and manner in which the product is featured on a page. But, it doesn’t influence our assessments. Our views are our own. Here’s a list of and .
Most personal loans are not secured, which means approval is based on your creditworthiness. But if you can’t qualify for an unsecured loan, or you don’t get the price you’d like for a bad credit loan, a secured loan is one alternative.
This type of loan requires you to pledge collateral to secure money. The drawback is that if you don’t make timely payments in time, the lender could seize your property.
Find out more about secured, and where you can find them, including banks, online lenders and credit unions.
The information provided for each lender is unique to the lender’s non-secured loans. Qualification criteria and loan details could be different for secured loans.
The majority of personal loans are not secured, which means they are based on creditworthiness. But if you can’t qualify for an unsecure loan, or you don’t get the price you’d like for a bad credit loan or secured loan is a viable option.
This kind of loan requires the pledge of collateral in order to borrow money. The downside: If you don’t make timely payments in time, the lender may seize your assets.
Find out more about secured, and where you can find them, including banks, online lenders and credit unions.
Note that the information for each lender is specific to its secured loans. Criteria for qualifying and loan details may be different for secured loans.
Best Secured Personal Loans
Lender
NerdWallet rating. The NerdWallet ratings are made by our editorial team. The scoring formulas take into account several data points associated with every financial service and product.
Est. APR
Loan amount
Min. credit score
Learn more
Best Egg on Best Egg’s website
Best to Secured loans from online lenders
8.99 – 35.99%
$2,000 – $50,000
600
on the website of Best Egg.
Upgrade on the website of Upgrade.
Best option for secured loans by online loan lenders
8.24 – 35.97%
$1,000 – $50,000
560
on Upgrade’s website
OneMain Financial on OneMain Financial’s website
Best for Secured loans by online loan lenders
18.00 – 35.99%
$1,500 – $20,000
None
Average score is 600 – 600 –
on the OneMain Financial website.
The First Tech Credit Union Personal loan via NerdWallet’s secure website
Best to Secure loans by credit unions
6.70 – 18.00%
$500 – $50,000
660
on NerdWallet’s secure site
Navy Federal Credit Union Personal Loan on NerdWallet’s secure website
Best option for secured loans at credit unions
7.49 – 18.00%
$250 – $50,000
None
on the secure website of NerdWallet.
Our pick for Secured loans by online lending institutions
on the website of Best Egg.
Good Egg 4.5 NerdWallet’s ratings are determined by our editorial team. The scoring formula considers aspects we consider to be beneficial to consumers, such as the impact on credit score as well as fees and rates customers’ experience, and ethical lending practices.
Est. APR 8.99 — 35.99 percent
Loan amount $2,000 – $50,000
Min. credit score of 600
View the full details
on Best Egg’s website
View the full details
Min. credit score of 600
The key details Best Egg secured loans are similar to home equity loans but use items attached to your home, rather than the house itself as collateral.
Pros Offers wide range in loan amounts.
Offers a secured loan option for homeowners.
Direct payment to creditors with debt consolidation loans.
Cons Origination cost.
No rate discounts.
There is no option to select the initial payment date.
The minimum credit score is 600; borrower average 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. Borrower must have enough funds to meet the current financial obligations. The maximum ratio of debt-to-income is 40 percent or 65% if you include a mortgage; borrower average is 40 percent. Employment: Must show proof of income. Part-time employees are eligible. Must provide an official 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 processed.
Disclaimer *Trustpilot TrustScore in June 2020. Best Egg personal loans, including the Best Egg Secured Loan, are made through 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 of Marlette Holdings, Inc. (a Delaware company. 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 source of the Best Egg personal loan,” in the event that it is applicable. The term, amount and the APR of any loan we provide to you will be based upon your score on credit, income, debt payment obligation, loan amount, credit history and other factors. The loan contract will include specific conditions and terms. About half of our customers receive their money the next day. Following successful authentication, your money can be deposited in your bank account within 1-3 business days. The time frame for funds available following loan approval can vary based on your bank’s policy. The amount of loans ranges between $2,000 and $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. If you want to take out a second Best Egg loan, your total current Best Egg loan balances cannot exceed 100,000. APRs (APRs) range from 8.99%-35.99 percent. The APR represents the cost of credit as a yearly rate, and it reflects the interest rate you pay and an initial fee that is 0.99%-8.99 percent of the loan amount to be taken from any loan profits you get. Origination fees for the loan duration of 4 years or more is at least 4.99%. Your loan term will affect the APR of your loan, which could be higher than our lowest advertised rate. You need an at-least 700 FICO(r) score as well as an annual income for you as an individual of $100,000 in order to qualify for our lowest APR. For example: a 5-year loan of $10,000 loan with 9.99 percent APR will have 60 scheduled monthly payments of $201.81, and a 3-year five-figure loan with 7.99 percent APR will have 36 scheduled monthly payments of $155.12. To help the government fight the financing of terrorists and money laundering, Federal law requires all financial institutions to gather verification, confirm, and document information that can identify each person who opens an account. What does this mean for youis that when you open an account, we’ll request your name address, address, dates of birth and any other information that allows the institution to verify your identity. We may also ask to see your driver’s license or other identifying documents. Best Egg products are not available for residents of Iowa, Vermont, West Virginia or in the District of Columbia, or U.S. Territories.
on Upgrade’s website
Upgrade 5.0 NerdWallet’s ratings are compiled by our editorial staff. The scoring formula is based on factors we consider to be consumer-friendly, including impact to credit score, rates and fees, customer service and responsible 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 website of Upgrade.
View more information
Min. credit score 560
Key facts Upgrade applicants can repay their secured loans by using a vehicle The value of which factors into your rate.
The pros of secured and joint loans.
Multiple rate discounts.
Mobile app to manage loan payments.
Direct payment to creditors with debt consolidation loans.
The terms of repayment for home renovation loans.
Cons Origination fee.
There is no option to select your payment time.
Credit Score Minimum: 560. Minimum number of credit accounts on history: one account. Maximum ratio of debt to income: 75%, excluding the loan the applicant is applying for. Minimum length of credit-related history two years. Minimum income requirement: None. Lender will accept income from alimony, retirement, child support, Social Security and various other sources.
Available Term Lengths from 2 to 7 years
Fees Origination Fee: 1.85% to 8.99 Percentage. Late Fee: $10. Fee for late payment 10 dollars.
Disclaimer The personal loans made through Upgrade offer Annual Percentage Rates (APRs) that range from 8.24%-35.97 percent. All personal loans have a 1.85 percent to 8.99 per cent origination charge which is taken from the loan profits. Lowest rates require Autopay and paying off part of debts directly. Loans feature repayment terms of 24 to 84 months. As an example, if get the 10,000 loan with a 36-month term and a 17.59 APR of 17.59% (which comprises a 13.94% yearly interest rate and the 5% one-time origination fee), you would receive 9500 dollars in your account, and will be required to make a monthly installment of $341.48. Over the life of the loan the payments would amount to $12,293.46. The interest rate on your loan may be different, or even lower and the loan offer may not come with different lengths of terms that are available. Actual rate depends on the credit score, use history loan term, and other factors. In the event of late payments, additional fees or charges may raise the cost of your fixed rate loan. There is no charge or penalty for repaying a 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 aspects we believe are consumer-friendly, including impact to credit score, rates and fees, customer service and ethical lending practices.
Est. APR 18.00 – 35.99 percent
The loan amount is $1,500 to $20,000
Min. credit score None Average score is 600 – 650
View the full details
on OneMain Financial’s website
View details
Min. credit score None
Key details OneMain Secured loans require a car as collateral. They can also apply for a co-applicant to an application.
Pros Option: Choose to change your payment date.
Joint and secured loans.
Quick funding.
Direct payment to creditors on debt consolidation loans.
Cons Rates are very high when in comparison to other lenders.
Charges for origination fees.
No rate discounts.
Pre-qualification does not allow prospective borrowers to view rates.
Qualifications You must have a Social Security number or taxpayer identification number. You must be at least 18 years old in the majority of states. Minimum credit score is: None. Minimum number of accounts listed on credit report: None however applicants with no credit history may not be eligible. The minimum income is none. This lender will accept the income earned from employment, alimony and retirement benefits, child support, Social Security payments, public assistance and investments.
Available Term Lengths from 2 to 5 years
Fees Origination fee of $25-$500 or 10% to 1% on the loan amount. Late fee: $5 to $30 or 1.5% to 15% of your monthly payment. Fee for non-sufficient funds $15.
Disclaimer: Not all applicants will be approved. Approval of loan and loan terms are contingent upon your ability to meet our standards for credit (including having a credit history that is responsible, sufficient income after the month’s expenses, and the ability to provide collateral). If approved some applicants may not qualify for larger loan amounts or most favorable loan terms. Higher loan amount require lien on a vehicle not more than ten years old and that meets our requirements for value, and is titled in your name and backed by an insurance policy that is valid. Loan approval and actual loan terms depend on your residence state and your ability to meet our standards for credit (including an established credit history, a sufficient income after monthly expenses, and availability of collateral). APRs generally are higher on loans not secured by the vehicle. Highly-qualified applicants may be offered higher loan amounts and/or lower APRs than the rates that are listed above. OneMain charges origination fees where allowed by law. Depending on the state where you open your loan, the origination fee may be either a flat amount or a percentage of your loan amount. Flat fee amounts vary by state, and can range from $25 to $500. Percentage-based fees are different for each state ranging between 1% and 10 percent of your loan amount subject to state restrictions on the fees. Visit omf.com/loan-fees for more information. The proceeds of loans cannot be used for postsecondary educational expenses as per the CFPB’s Regulation Z such as college and university costs, or vocational expenses as well as for any other commercial or business-related reason; to purchase cryptocurrency assets such as securities, derivatives, or any other investment that is speculative in nature; or for gambling or illicit purposes. Borrowers in these states are subject 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 other than existing customers) in states like these are limited to the following maximum unsecured loan sizes: North Carolina: $7,500. Unsecured loan is a loan that doesn’t need you to offer collateral (such as the motor vehicle) to the lender. Example: A $6,000 loan with a 24.99 APR of 4% that is payable in 60 monthly installments, with monthly payments of $176.07. Time to Fund Loans: Funding within one hour of closing via SpeedFunds is required to a bank-issued debit card. Disbursement by cheque or ACH could take as long as two business days following loan closing.
Our choice is 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 takes into account aspects we believe are friendly to consumers, such as the impact on credit score rates and fees, the customer experience and responsible lending practices.
Est. APR 6.70 — 18.00 Percent
Amount of loan $500 – $50,000
Min. credit score 660
View more information
on NerdWallet’s secure website
View details
Min. credit score of 660
Key information First Tech members have access to secured loans which are backed by a CD, savings account or stocks.
Pros Secured, joint and co-sign loan options.
Direct payment to creditors with credit consolidation loans.
Options to choose and change your payment date.
Fast and quick funding.
Cons Exclusive to credit union members.
Payments are reported to one of the three major credit bureaus.
No rate discount.
You must be a member of First Tech Federal Credit Union. Minimum credit score: at least 660. You must provide a Social Security number and driver’s license or another ID issued by a state. Maximum debt-to-income ratio: 50%. Minimum monthly income: $700 if living with others Renting; $1,000 or owning your own home. Minimum credit score: At minimum two accounts with a history of being established.
Available Term Lengths: 2 to 7 years
Fees Origination fee: None. Late fee: Vary. Check returned fee: $28.
on NerdWallet’s secure website
Navy Federal Credit union Personal Loan 5.0 NerdWallet’s ratings are compiled by our editorial team. The scoring formula takes into account factors we consider to be a good choice for consumers, such as impact to credit score rates and fees, the customer experience and ethical lending practices.
Est. APR 7.49 — 18.00 percent
Amount of loan: $250 – $50,000
Min. credit score None
View details
on NerdWallet’s secure website
View details
Min. credit score None
Key facts In addition to loans that are not secured loans, Navy Federal offers secured loans that are backed by a Navy Federal savings account or CD.
Pros Wide selection of loan amounts.
Fast funding.
Discount on rates for certain customers.
Secured, joint and co-sign loan options.
Direct payment to creditors using the debt consolidation loans.
Cons Only available to credit union members.
It is not possible to pre-qualify using a soft credit check.
No option to choose or change the date of your payment.
The applicant must be a 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 is $29. Returned payment fee: $29.
>> COMPARE:
What exactly is a personal loan?
An secured personal loan is a loan you can get by pledging something you own to get money , which you will repay in time, paying interest.
Lenders have the right to take your collateral — a vehicle or money in a savings account, for instance — however, they’ll only take it if you fail to pay back the loan. Once the loan is paid in full, the lender is no longer able to exercise the power to take your collateral.
As with an unsecured loan credit, income and other debts remain central to obtaining a secured loan however, offering collateral lowers the risk to the lender. Additionally, the odds of getting approved are higher for secured loans and the rate generally lower.
>> MORE:
How do you get a secured loan
The procedure for getting a secured loan is different depending on the kind of collateral you’re applying for, but here are the steps you’ll take:
Inquire regarding the loan. Certain lenders offer secured loans only after the applicant has not been approved for an unsecured loan. If you aren’t able to pre-qualify with the lender or don’t have a secured loan option, ask the lender directly about secured loans.
Check your budget. Check your cash flow and discover how much you can afford to pay toward the loan every month. Utilize a calculator to determine the annual percentage rate, loan amount and repayment term you’d need to keep monthly payments affordable.
Select the right lender. Compare lenders to find out what kind of collateral they accept and the rates they will offer.
Gather the necessary 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, bank statements, W-2s, and pay stubs. It is also possible to require documents for the collateral, like a car title.
Apply. Many lenders offer online applications. After you have submitted the application, approval may take several days or more if the lender needs to evaluate the value of collateral.
>> MORE:
Pros and negatives of secured loans
Compare the benefits of getting secured loan against the possible drawbacks before you borrow.
Pros
Better approval odds. The lender will be more inclined to approve an secured loan application.
Lower interest rate and larger loan amounts. Since the risk loss of money lower for the lender, you may get a larger loan for a lesser cost.
Cons
The lender may take your collateral. If your car is collateral for an loan and you require it to travel to work, for example the loss of it could place you in a more difficult situation than before you borrowed.
Not as readily available as the unsecured loans. A lot of credit unions, banks and online lenders only offer non-secured 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 lets you access cash based on the worth the home. Similar to the original mortgage the lender could take possession of your home if you don’t repay.
>> MORE:
Auto-secured loans: With an auto-secured loan, the lender takes into account information such as your car’s model, make and year along with your financial and credit scoreto determine your rate. If approved, you send the lender your car title and they return it once the loan is paid in full. They are not the same as auto title loans that may have triple-digit APRs (more about them below).
CD loans: If you have a certificate of deposit at the bank, you might be able to utilize it as collateral to secure an individual loan. Rates are generally low the average, starting just at a few percentage points above the CD rate — and it’s one way to access funds without having to cash out the CD early or paying a penalty.
401(k) loans: An employer-sponsored 401(k) plan might allow employees to borrow from their retirement account at a maximum of five years. The rates are typically low for 401(k) loans, but by borrowing money from the account, you’ll miss out on market gains and compound interest on your retirement savings.
Where to get a secured personal loan
Banks: Banks usually offer a savings- or CD-secured loan. A bank account you have with the bank will serve as collateral, and you can’t use that account till the loan is repaid.
Credit unions: Certain credit unions provide share-secured loans that is a different name used to describe savings-secured loans. The credit union will keep your savings while you repay the loan.
If your credit union doesn’t provide these loans, you could be eligible for an unsecured loan as Credit unions tend for having softer borrower requirements and lower APRs.
>> MORE:
Online lenders: Many online lenders who offer secure loans require a car as collateral. Some let you apply for this loan in advance, while others might offer you the possibility after having attempted to apply for an unsecure loan.
A lot of lenders allow you to check your rate on an unsecured loan without impacting your credit, so it’s not hurt to compare the loan with several lenders.
You can use the NerdWallet lender marketplace to find rates for unsecured loans.
Secured loans to prevent
: Pawnshops let you hand the cash you have in exchange for cash you will have to pay back, usually within a few weeks. These loans could have 200% APRs and may be difficult to repay. If you do not pay back, the pawnshop can retain your possession.
High-interest short-term loans typically of several hundred or thousands of dollars. Since they are difficult to pay back 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%, which is the highest rate that consumers believe an affordable loan could have.
>> MORE:
The last update was on December 13, 2022
Methodology NerdWallet’s review process examines and scores personal loan products from over 35 banks. We collect over 45 information points for each lender, interview company representatives and evaluate the lender against other lenders who seek the same type of customer or offer similar personal loan product. NerdWallet writers and editors conduct thorough fact checks and update annually, but they also update every year when needed.
Our star ratings award points to lenders that offer consumer-friendly features, including: soft credit checks to help you qualify with competitive interest rates and no fees, transparency of rates and terms, flexible payment options, fast funding times, accessible customer support, and reporting of all payments to credit bureaus and financial education. We also take into consideration legal actions that are filed by agencies like Consumer Financial Protection Bureau. Consumer Financial Protection Bureau. We assess these elements based on our assessment of which ones are the most important to consumers and how they affect consumers’ experiences.
This methodology applies only to lenders that cap their interest at 36%, the maximum rate most experts in finance and consumer advocacy are in agreement with as the ideal rate for an loan in order to make it affordable. NerdWallet does not get paid for our top ratings. Learn more about us and our .
To summarize our choices… the NerdWallet’s Best Secured Personal Loans for 2023 : Best for Secured loans from online lenders : The best for Secured loans from online lenders : Best for Secured loans from online lenders : Best for Secured loans from credit unions: Best to secure loans at credit unions
Commonly asked questions What are the definitions of a secure personal loan?
A secured personal loan is one type of loan which requires collateraltypically a car or bank account. Apart from your credit and income, the lender examines the worth of the collateral to determine whether you are eligible for the loan, and how much they will loan you and the interest rate. This type of loan in monthly fixed installments, similar to an unsecure loan. However, unlike an unsecure loan, the lender may be able to take your collateral in the event that you fail to repay.
Are secured loans easier to get?
Secured loans are easier to obtain than secured loans because you pledge the collateral of something you own for the loan that the lender can take if you fail to repay it. This means that the loan less risky for the lender, so the requirements for income and credit are typically less stringent with secured loan.
About Annie Millerbernd, author of Annie Millerbernd. She is a personal loans writer. Her writing has been featured on The Associated Press and USA Today.
Take all the appropriate money moves
Bank Credit Card Finance Planning Finance News Insurance Investing Loans Mortgages Small Business Taxes Travel
About
help
Legal
Download the application
Disclaimer: NerdWallet strives to keep its information current. This information may be different than what you see when you visit a financial institution, service provider or specific product’s site. All financial products, products for shopping and services are offered without warranty. If you are considering a purchase, read the terms and Conditions. Pre-qualified offers are not binding. If you discover discrepancies in your credit score, or any other information from your credit reports and/or credit score, please call TransUnion(r) directly. 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 offered through NerdWallet Insurance Services, Inc. (CA resident license no. OK92033) NerdWallet(tm) | 55 Hawthorne St. – 11th Floor, San Francisco, CA 94105
NerdWallet USA
|
|
|
|
(c) (c) 2023 NerdWallet, Inc. All Rights Reserved.
In case you have any kind of concerns regarding exactly where in addition to tips on how to work with $255 Payday Loans Online Same Day (loan-segw.site), you possibly can e mail us on our own internet site.