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The most secure personal loans of 2023
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BEST OF ALL
Top Secured Personal Loans for 2023
Secured personal loans let you borrow money against the value of an asset such as an automobile or savings. Secured loans can have lower interest rates but they also come with 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 can affect which products we feature as well as the place and way the product is featured on the page. However, this does not influence our evaluations. Our opinions are our own. Here’s a list and .
Most personal loans are not secured, which means the approval process is based on your creditworthiness. However, if you aren’t eligible for an unsecure loan, or you don’t 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 fail to pay on time due to the lender may seize your assets.
Learn about secured and where to find them, including banks, online lenders and credit unions.
The information provided for each lender is unique to the lender’s unsecured loans. Qualification criteria and loan information may differ when it comes to secured loans.
Most personal loans are unsecured, so the approval process is based on your creditworthiness. If you’re not eligible for an unsecured loan, or you don’t receive the interest you desire on a bad-credit loan then a secured loan is one alternative.
This type of loan requires you to put up collateral in order to borrow money. The drawback is that if you don’t pay your loan on time in time, the lender can seize your asset.
Here’s what to know about secured, and where you can find them, including online lenders, banks and credit unions.
Be aware that the information provided by each lender is unique to the lender’s unsecured loans. The criteria for qualification and loan details could be different in secured loans.
Best Secured Personal Loans
Lender
NerdWallet rating NerdWallet’s ratings are determined by our editorial team. The scoring formulas consider multiple data points for every financial product or service.
Est. APR
The loan amount
Min. credit score
Find out 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 Best Egg’s website
Upgrade on Upgrade’s website
Best to Secured loans via online lending
8.24 – 35.97%
$1,000 – $50,000
560
on the website of Upgrade.
OneMain Financial on OneMain Financial’s website
Best option for secured loans by online loan lenders
18.00 – 35.99%
$1,500 – $20,000
None
Average score is 600 – 600 –
on OneMain Financial’s website
The First Tech Credit Union Personal loan on NerdWallet’s secure website
Best for Secured loans from credit unions
6.70 – 18.00%
$500 – $50,000
660
on NerdWallet’s secure website
Navy Federal Credit Union Personal Loan on NerdWallet’s secure website
Best for Secured loans from 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 website of Best Egg.
The Best Egg 4.5 NerdWallet’s ratings are determined by Our editorial department. The scoring formula takes into account the factors we believe to be beneficial to consumers, such as the impact on credit scores, rates and fees as well as the customer’s 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 of 600
View the full details
on the Best Egg’s website
View the full details
Min. credit score of 600
Important facts Best Egg secured loans are similar to home equity loans however they use items that are attached to your home, rather than the home it self as collateral.
Pros offers a wide variety of loan amounts.
Secured loan option for homeowners.
Direct payment to creditors with the debt consolidation loans.
Cons Origination fee.
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. The minimum income requirement is $3500 and the average borrower is $80,000. The borrower should have sufficient funds to meet 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 percent. Employment: Must show evidence 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%. Refund fee: $15 in the event that payments are not completed.
Disclaimer *Trustpilot TrustScore as of June 2020. Best Egg personal loans, including the Best Egg Secured Loan, are provided by 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 trademark of Marlette Holdings, Inc. (a Delaware corporation. The use for “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 originator of the Best Egg personal loan,” depending on the circumstances. The term, amount and APR of any loan we provide to you will depend 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. Around half of our customers get their money on the same day. Following successful authentication, your cash will be in your bank account within 1-3 business days. The time frame for funds available following loan approval could vary based on the policies of your bank. Loan amounts range from $2,000- $50,000. Residents of Massachusetts must have the minimum loan amount of $6500 ; New Mexico and Ohio, $5,000; and Georgia $3,000. To get an additional Best Egg loan, your current Best Egg loan balances must not exceed $100,000. The Annual Percentage Rates (APRs) range from 8.99%-35.99 percent. The APR is the price of credit per year at a rate that reflects both your interest rate and the origination cost of 0.99%-8.99% of your loan amount to be taken from any loan profits you get. The origination cost for an loan term 4-years or longer will be at least 4.99%. Your loan term will impact your APR, which may be higher than our lowest advertised rate. You need a minimum 700 FICO(r) score and a minimum individual annual income 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 monthly installments scheduled for $201.81 while a 3 year $5,000 loan with 7.99 percent APR will have 36 scheduled monthly payments of $155.12. In order to assist the government in fighting the funding of terrorism and money laundering activities, Federal law requires all banks to collect the information, verify and keep records of information that identify each person who opens an account. What this means for you: When you sign up for an account, we’ll ask you for your name address, address, dates of birth and any other information that allows us to identify you. We may also want for your driver’s license or other identifying documents. Best Egg products are not available if you live in Iowa, Vermont, West Virginia or in the District of Columbia, or U.S. Territories.
on the website of Upgrade.
Upgrade 5.0 NerdWallet’s ratings are compiled by our editorial staff. The scoring formula takes into account factors we consider to be beneficial to the consumer, including the impact on credit score rate and fees, customer experience and responsible lending practices.
Est. APR 8.24 + 35.97%
Loan amount $1,000 – $50,000
Min. credit score 560
View more information
on the Upgrade’s website
View details
Min. credit score 560
Important facts Upgrade applicants are able to secure their loans with a car The value of which can be incorporated into the rate.
Advantages of joint and secured loans.
Multiple rate discounts.
Mobile app to manage loan payments.
Direct payment to creditor with the debt consolidation loans.
Long repayment terms on home renovation loans.
Cons Origination cost.
There is no option to select the payment date.
Qualifications Minimum credit score 560. Minimum amount of credit accounts in your history: one account. Maximum debt-to-income ratiois 75%, excluding the loan the applicant is applying for. Minimum time period of your credit record: two years. Minimum income requirement: None. Lender will consider retirement, alimony and child support and Social Security and various other sources.
Available Term Lengths: 2 to 7 years
Fees Origination fee: 1.85% to 8.99 Percentage. Late Fee $10. Fee for late payment 10 dollars.
Disclaimer Personal loans that are made using the Upgrade offer annual percentage rates (APRs) between 8.24%-35.97%. All personal loans have an 1.85% to 8.99 percent origination fee, which is deducted from the loan profits. The lowest rates are contingent on Autopay and paying off part of debt directly. These loans have repayment terms of 24-84 months. As an example, if get the $10,000 loan with a term of 36 months and a 17.59% APR (which comprises a 13.94 percent annual interest rate and the 5% one-time origination fee) You would be able to receive $9,500 to your account and would have a required monthly installment of $341.48. Through the term of the loan you would pay total $12,293.46. The interest rate for your loan could be lower or higher, and your loan offers may not have different lengths of terms available. The rate you pay for your loan will depend on your credit score, credit use history loan term, and other factors. Late payments or subsequent fees and charges could increase the cost for your fixed-rate loan. There isn’t a fee or penalty for repaying an loan early. Personal loans are provided 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 decided 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 18.00 — 35.99 percent
Amount of loan $1,500-$20,000
Min. credit score None Average score is 600 – 650
View the full details
on the OneMain Financial website.
View the full details
Min. credit score None
The most important details OneMain secured loans require a car as collateral. Borrowers may also add a co-applicant to an application.
Pros Option: Choose to change the date of your payment.
Joint and secured loans.
Quick funding.
Direct payment to the creditors of debt consolidation loans.
Cons Rates are very high when compared to other lenders.
Charges charge for origination fees.
No rate discounts.
The pre-qualification process does not permit the borrower to see rates they might be able to afford.
Qualifications Must have an Social Security number or taxpayer identification number. You must be at least 18 years old in all states. Minimum credit score: None. The minimum number of accounts on the credit report: None but applicants with no credit history are unlikely to be considered. The minimum income is none; this lender will consider earnings from alimony, employment and retirement benefits, child support, Social Security payments, investments and public assistance.
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 to $30 or 1.5% to 15% of your monthly payment. Non-sufficient funds fee $15.
Disclaimer Not every applicant will be accepted. Loan approval and actual loan terms are contingent on your ability to meet our credit standards (including having a credit history that is responsible and a sufficient income after monthly expenses, and ability to provide collateral). If you are approved, not all applicants will qualify for larger loan amounts or most favorable loan conditions. The larger loan amounts require a first lien on a motor vehicle that is not older than ten years and that meets our value requirements, titled in your name with current insurance. Loan approval and actual loan conditions are contingent upon your state of residence and your ability to meet our credit standards (including having a good credit history, a sufficient income after monthly expenses and the availability of collateral). APRs tend to be higher for loans that are not secured by the vehicle. Highly-qualified applicants may be offered higher loan amounts and/or APRs that are lower than the rates shown above. OneMain charges origination fees where permitted by law. Based on the state in which you open your loan, the origination fee may be either flat in addition to a portion of your loan amount. The amount of flat fees varies by state, and can range from $25 to $500. Percentage-based fees are different for each state and range from 1% to 10 percent of your loan amount subject to certain limitations on fee amount. Go to omf.com/loan-fees for more information. The loan proceeds are not used to pay for postsecondary education expenses according to the CFPB’s Regulation Z such as college or university expenses as well as for any other business or commercial purpose; to purchase cryptocurrency-related assets, securities, derivatives or other investments that are speculative as well as for gambling or illicit purposes. The states in which these loans are offered must adhere to these requirements for minimum loan size limits: Alabama: $2,100. California: $3,000. Georgia If you’re not an existing customer, $3100 minimal loan amount. North Dakota: $2,000. Ohio: $2,000. Virginia: $2,600. Borrowers (other than present customers) in states like these are subject to the following maximum secured loan sizes: North Carolina: $7,500. Unsecured loan is a loan which does not require you to provide collateral (such as the motor vehicle) in exchange for the lender. Example: A $6,000 loan with an 24.99 APR of 4% that is repaymentable in 60 installments would have monthly payment of $176.07. Time to Fund Loans: Funding within one hour after closing through SpeedFunds is required to a debit card issued by a bank. The process of disbursement via cheque or ACH can take up to 1-2 business days after loan closing.
Our pick of Secured loans from credit unions
on NerdWallet’s secure website
First Tech Credit Union Personal Loan 5.0 NerdWallet’s ratings are determined by our editorial team. The scoring formula considers the factors we believe to be beneficial to the consumer, including the impact on credit score rates and fees, customer service and ethical lending practices.
Est. APR 6.70 – 18.00 Percent
Loan amount $500 – $50,000
Min. credit score of 660
View more information
on NerdWallet’s secure website
View the full details
Min. credit score 660
Key details First Tech members have access to secured loans that are secured by the CD or savings account. They can also access stocks.
Pros Co-sign, joint and secured loan options.
Direct payment to creditor with credit consolidation loans.
Choices to select and alter the payment date.
Fast funding.
Cons Only available to credit union members.
Reports payments to 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. Must provide Social Security number and driver’s license or any other ID issued by the state. Maximum debt-to-income ratio: 50%. Minimum monthly income: $700 when living with other people; $1,000 if renting or owning your own home. Minimum credit history: 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 website
Navy Federal Credit union Personal Loan 5.0 The ratings of NerdWallet are determined by the editorial staff of our website. The scoring formula considers factors we consider to be consumer-friendly, including impact on credit score rates and fees, the customer experience and ethical lending practices.
Est. APR 7.49 – 18.00 percent
The loan amount is $250-$50,000.
Min. credit score None
View more information
on NerdWallet’s secure website
View more information
Min. credit score None
The key facts In addition unsecured loans, Navy Federal offers secured loans backed by the Navy Federal savings account or CD.
Pros A wide selection of loan amounts.
Quick funding.
Discount on rates for certain customers.
Co-signing, joint and secured loan options.
Direct payment to creditors with the debt consolidation loans.
Cons Exclusive to credit union members.
There is no option to pre-qualify for a soft credit check.
No option to choose or alter your payment date.
The applicant must be an Navy Federal Credit Union member to be eligible. There is no minimum credit score required.
Available Term Lengths 1 – 5 years
Fees Origination fee: None. Late fee is $29. Returned payment fee: $29.
>> COMPARE:
What’s a secured personal loan?
An secured personal loan is a loan you can get by pledging something that you own to get cash that you pay back over time and with interest.
The lender has the right to acquire your collateralsuch as a car or money in a savings account for instance — however, they’ll only do it if you are unable to pay back the loan. After the loan is paid in full and the loan is paid in full, the lender does not have the right to take the collateral.
Similar to an unsecure loan, your credit as well as income and other debts remain central to getting a secured loan however, offering collateral decreases the risk to the lender. In turn, approval odds are better with secured loans and the rate generally lower.
>> MORE:
How do you get a secured loan
The process of getting secured loan can vary based on the type of collateral you’re applying for, but here are the steps you’ll take:
Find out more regarding the loan. Certain lenders offer secured loans only if the applicant is not eligible qualify for an unsecure loan. If you can’t pre-qualify with the lender or have a secured loan option, you can ask the lender directly about secured loans.
Check your budget. Check your cash flow and discover the amount you’re able to pay toward the loan every month. Make use of a calculator to find out what annual percentage rate, loan amount and repayment period you’ll need to ensure that you keep your monthly payments affordable.
Choose a lender. Compare lenders to find out what kind of collateral they accept and what rates they offer.
Gather the necessary documents. Before you apply to a lender, collect the documents lenders require for an application. This could include an ID issued by the government and Bank statements, W-2s and pay stubs. You may also need documents for collateral, for example, a car title.
Apply. Most lenders have online applications. After you’ve submitted your application your application, a decision on approval could be a few days or more if the lender has to assess the value of the collateral.
>> MORE:
Pros and cons of secured loans
Weigh the benefits of getting secured loan against the potential drawbacks before you borrow.
Pros
Better approval odds. The lender will be more inclined to accept an secured loan application.
Lower interest costs and higher loan amounts. Because the risk of losing money is lower for the lender the loan may be granted a bigger loan at a lower rate.
Cons
The lender may accept your collateral. If your car is collateral for a loan and you’re in need of it to travel to work, say the loss of it could place you in a more difficult situation than when you took out the loan.
Not as readily available as the unsecured loans. Many 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 mortgage that allows you to access money based on the value that your house. Like the first mortgage the lender can take your house 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 vehicle’s make, model, and year — along with your financial and credit scoreto determine your rate. If they approve, you give the lender your car title and they will return it after the loan is paid off. This is different from auto title loans, which can have triple-digit APRs (more about them below).
CD loans If you hold a certificate of deposit at an institution, you may be allowed to make use of it as collateral for a personal loan. Rates are generally low — typically starting at a few percentage points above the CD rate. it’s a method of accessing funds without withdrawing the CD early and paying penalties.
401(k) loans: An employer-sponsored 401(k) plan might permit employees to borrow money from their retirement accounts for up to five years. There are generally low rates on 401(k) loans, but by borrowing from the account, you’re losing the market’s gains and compound interest from saving for retirement.
Where can I find a secured personal loan
Banks: Banks typically offer a savings- or CD-secured loan. A bank account you have with the bank will be collateral, and you can’t use that account up until loan is paid back.
Credit unions: Certain credit unions provide share-secured loans, which is another name used to describe savings-secured loans. The credit union will store your savings until you pay back the loan.
If your credit union does not offer theseloans, you might qualify for an unsecured loan due to the fact that the credit unions have been known to have low requirements for borrowers and less restrictive APRs.
>> MORE:
Online lenders: Many online lenders who offer secured loans require a vehicle to serve as collateral. Some let you apply for this loan in advance, while others might offer you the possibility only after you’ve attempted to apply for an unsecure loan.
Many lenders let you check your rate on an unsecured loan without affecting your credit, so it’s not a bad idea to check the loan with several lenders.
You can use the NerdWallet lender marketplace to find rates for unsecured loans.
Secured loans to avoid
: Pawnshops let you hand your valuables to them in exchange for cash you have to repay within a few weeks. These loans could have a rate of 200% and can be difficult to pay back. If you fail to pay, the pawnshop may retain your possession.
They are high-interest short-term loans typically of between a few hundred and a thousand dollars. Because they’re difficult to repay on time, this kind of loan can lead to repeat borrowing, which could lead you into an unsustainable cycle of debt. Avoid auto-secured loans that have rates of more than 36%, the highest rate consumer advocates say an affordable loan can be able to have.
>> MORE:
The last update was on December 13, 2022.
Methodology NerdWallet’s review procedure reviews and ranks personal loan products from over 35 institutions. We collect more than 45 data points from each lender and interview representatives from the company and then compare the lender with others that seek the same type of customer or offer similar personal loan product. NerdWallet editors and writers conduct a full fact check and review each year. We also make updates every year when needed.
Our star ratings give points to lenders that offer consumers-friendly services, such as soft credit checks to pre-qualify, competitive interest rates and no charges, transparency of rates and terms, flexible payment options, quick funding times, accessible customer support, and reporting of all payments to credit bureaus and financial education. We also take into consideration regulatory actions filed by agencies like Consumer Financial Protection Bureau. Consumer Financial Protection Bureau. We assess these elements in accordance with our analysis of which are the most crucial to consumers, and how they affect the consumer’s experience.
This approach is only available to lenders that set the interest rate at 36%, which is the maximum rate most experts in finance and consumer advocacy are in agreement with as the ideal rate to consider a loan that is affordable. NerdWallet does not get paid for our star rating. Learn more about us and our .
To recap our selections… The NerdWallet’s Top Secured Personal Loans for 2023 : Best for Secured loans from online lenders: The best for Secured loans from online lenders: The best for Secured loans from online lenders: Best for Secured loans from credit unions : Best in Secured loans by credit unions
Frequently asked questions What is a secured personal loan?
Secured personal loan is one type of loan which requires collateraltypically a car or bank account. Along with your credit score and income the lender examines the worth of the collateral to determine whether you’re eligible for the loan, and how much they will loan you and the rate of interest. You repay this type of loan with fixed monthly installments, which is similar to an unsecure loan. However, unlike an unsecure loan it is possible for the lender can take your collateral if you fail to repay.
Are secured loans more accessible?
Secured loans can be easier to obtain than other loans because you offer something you own as collateral to secure the loan that the lender may take in the event that you do not repay the loan. This makes your loan much less risky to the lender as requirements for income and credit are typically less stringent with secured loan.
About Annie Millerbernd, the author is an individual loans writer. Her writing has been featured in The Associated Press and USA Today.
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