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The most secure personal loans of 2023
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BEST OF
Best Secured Personal Loans of 2023
Secured personal loans allow you to borrow against the value of an asset such as a car or savings. Secured loans can have lower interest rates, however they also come with risk.
By Annie Millerbernd
Dec 13, 2022
The majority of items featured on this page are provided by our partners, who pay us. This could affect the products we write about as well as the place and way the product is featured on a page. But, it doesn’t influence our assessments. Our opinions are our own. Here is a list of and .
Most personal loans are secured, and the approval process is based on your creditworthiness. But if you can’t qualify for an unsecured loan or receive the interest you desire for a bad credit loan then a secured loan is an 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 in time, the lender can seize your asset.
Learn about secured, and where you can look for them, including banks, online lenders, and credit unions.
Note that the information for each lender is unique to the lender’s unsecured loans. The criteria for qualification and loan details could be different for secured loans.
The majority of personal loans are not secured, which means they are based on creditworthiness. However, if you aren’t eligible for an unsecured loan or get the rate you want for a bad credit loan, a secured loan is an option.
This kind of loan requires you to pledge collateral to obtain money. The disadvantage is that if you don’t make timely payments due to the lender may seize your assets.
Find out more about secured and how to look for them, including online lenders, banks and credit unions.
The information for each lender is specific to its unsecured loans. Criteria for qualifying and loan information may differ in secured loans.
Best Secured Personal Loans
Lender
NerdWallet rating NerdWallet’s ratings are made by our editorial team. The scoring formulas consider several data points associated with each financial product and service.
Est. APR
The amount of the loan
Min. credit score
Find out more
Best Egg on Best Egg’s website
Best to Secured loans by online loan lenders
8.99 – 35.99%
$2,000 – $50,000
600
on the website of Best Egg.
Upgrade on the Upgrade website.
Best to Secured loans by online loan lenders
8.24 – 35.97%
$1,000 – $50,000
560
on the Upgrade’s website
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
The average score is 600 – 700
on the OneMain Financial website.
The First Tech Credit Union Personal loan via 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 Credit Loan on NerdWallet’s secure site
Best to Secured loans at credit unions
7.49 – 18.00%
$250 – $50,000
None
on the secure website of NerdWallet.
Our pick to secure loans via online lender
on Best Egg’s website
Good Egg 4.5 NerdWallet’s ratings are based on the opinions of our editorial team. The scoring algorithm takes into consideration aspects we consider to be a good choice for consumers, such as impact to credit score as well as fees and rates customers’ experience, and responsible 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 details
on Best Egg’s website
View details
Min. credit score of 600
Key information Best Egg secured loans are similar to home equity loans but they are secured by items to your home instead of the home itself as collateral.
Pros offers a wide variety of loan amounts.
Offers a secured loan option for homeowners.
Directly pay customers with credit consolidation loans.
Cons Origination cost.
No rate discounts.
No option to choose initial payment date.
Qualifications Minimum credit score: 600. The average for borrowers is 700. Minimum credit history is three months and 3 accounts. Minimum income requirement is $3,500 and the average borrower 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%, excluding the mortgage. The borrower’s average is 40%. Employment: Must present proof of income; part-time employees are eligible. It is required to provide a 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%. Return fee: $15 if the payment is not processed.
Disclaimer *Trustpilot TrustScore in June 2020. Best Egg personal loans, including the Best Egg Secured Loan, are provided through Cross River Bank, a New Jersey State Chartered Commercial Bank and Member 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 company. The use for “Best Egg” refer to “the Best Egg personal loan”, “the Best Egg Secured Loan”, and/or “Best Egg for Cross River Bank or Blue Ridge Bank, as creator of the Best Egg personal loan,” in the event that it is applicable. The term, amount and the APR of any loan we provide will depend the credit rating of your and income, as well as debt payment obligations, loan amount, credit history and other aspects. Your loan agreement will have specific terms and conditions. About half of our customers get their money the next day. After successful verification, your cash will be transferred to your bank account within 1-3 business days. The timing of available funds after loan approval may vary depending upon your bank’s policies. Loan amounts range between $2,000 and $50,000. Residents of Massachusetts must have a minimum loan amount of $6500 ; New Mexico and Ohio, $5,000; and Georgia $3,000. If you want to take out an additional Best Egg loan the current Best Egg loan balances cannot exceed 100,000. The Annual Percentage Rates (APRs) range between 8.99%-35.99%. The APR is the cost of credit as a yearly rate, and it includes the interest rate as well as an initial fee that is 0.99%-8.99 percent of the loan amount to be taken from any loan funds you receive. Origination fees for an loan term 4-years or longer will be at minimum 4.99%. Your loan duration will affect your APR, which may be higher than our lowest advertised rate. You must have a minimum 700 FICO(r) score and an annual income of at least of $100,000 to be eligible for our lowest APR. Example: A 5-year loan of $10,000 loan with 9.99% APR has 60 scheduled monthly payments of $201.81 while a 3 year five-figure loan with 7.99% APR has 36 scheduled monthly installments of $155.12. To assist the federal government in combating the financing of terrorists and money laundering activities, Federal law requires all banks to collect, verify, and document information that can identify each person who opens an account. What this means for youis that when you open an account we’ll ask you for your name address, address, date of birth, as well as other information that will allow us to identify you. We may also ask for your driver’s license or other documents that identify you. Best Egg products aren’t accessible if you reside in Iowa, Vermont, West Virginia or the District of Columbia, or U.S. Territories.
on the website of Upgrade.
Upgrade 5.0 NerdWallet’s rating is determined by our editorial team. The scoring formula takes into account factors we consider to be beneficial to the consumer, including the impact on credit score rates and fees, customer experience 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 the full details
Min. credit score 560
Key facts Upgrade applicants can secure their loans with a vehicle The value of which can be incorporated into the rate.
Pros Secured and joint loans.
Multiple rate discounts.
Mobile application to manage loan payments.
Direct payment to creditors using the debt consolidation loans.
Long repayment terms on home renovation loans.
Cons Origination fee.
There is no option to select your payment time.
Qualifications Minimum credit score 560. Minimum number of accounts on credit history: one account. Maximum debt-to-income ratio: 75%, which includes that loan you’re applying for. Minimum length of credit history: 2 years. Minimum income requirement: None. Lender will accept income from retirement, alimony and child support, Social Security and other sources.
Available Term Lengths: 2 to 7 years
Fees Origination fee: 1.85% to 8.99%. Late Fee: $10. Failure to pay fee of $10.
Disclaimer Disclosure: Personal loans that are made using the Upgrade feature APRs (APRs) between 8.24%-35.97%. All personal loans come with a 1.85% to 8.99 per cent origination charge that is taken out of the loan profits. Lowest rates require Autopay and paying off some of the debt directly. These loans have repayment terms of 24 to 84 months. For example, if you get a $10,000 loan with a 36-month term and a 17.59 APR of 17.59% (which also includes a 13.94% yearly interest rate and an origination fee of 5% that is one-time fee), you would receive $9,500 to your account and would be required to pay a monthly payment of $341.48. Over the life of the loan you would pay be $12,293.46. The APR for your loan could be higher or lower and the loan offer may not come with different lengths of terms offered. Actual rate depends on the credit score, use history loan duration, as well as other factors. In the event of late payments, additional fees and charges could increase the cost for your fixed-rate loan. There is no charge or penalty for paying off a 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 evaluated by our editorial staff. The scoring formula takes into account factors we consider to be consumer-friendly, including impact to credit score rates and fees, customer experience and ethical lending practices.
Est. APR 18.00 — 35.99 percent
Loan amount $1,500 – $20,000
Min. credit score None Average score is 600 – 700
View the full details
on the OneMain Financial website.
View the full details
Min. credit score None
Key details OneMain secured loans require a vehicle as collateral. Borrowers may also add an applicant who is a co-applicant.
Pros Option to choose and alter the payment date.
Joint and secured loans.
Fast funding.
Direct payment to creditors on the consolidation of debt loans.
Cons Rates are very high when compared to other lenders.
Charges charge for origination fees.
No rate discounts.
Pre-qualification does not 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 the majority of states. Minimum credit score zero. Minimum number of accounts listed on credit reports: None, however applicants with no credit history might not qualify. Income minimum: none. This lender accepts the income earned from employment, alimony pension, child support, retirement, Social Security payments, public assistance and investments.
Available Term Lengths from 2 to 5 years
Fees Origination fee: $25 to $500 or 10% to 1% from 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 standards for credit (including a responsible credit history and a sufficient income after the month’s expenses, and the availability of collateral). If approved, not all applicants will be eligible for higher loan amounts or favorable loan conditions. The larger loan quantities require lien on a vehicle not older than ten years and that meets our requirements for value, and is titled in your name with current insurance. Loan approval and actual loan conditions are contingent upon the state in which you reside and your ability to meet our standards for credit (including an established credit history, adequate income following monthly expenses and the availability of collateral). APRs tend to be higher for loans not secured by vehicles. For applicants who are highly qualified, they may receive more loan amounts and/or APRs that are lower than the rates previously mentioned. OneMain offers origination fees when permitted by law. The state in which you are opening your loan the fee for origination may be either flat as well as a proportion of the loan amount. The amount of flat fees varies by state, and can range between $25 and $500. Percentage-based fees are different for each state and range from 1% to 10% of your loan amount subject to state limits on the fees. Visit 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 and for any commercial or business purpose; to purchase cryptocurrency-related assets, securities, derivatives or any other investment that is speculative in nature or for gambling or illegal purposes. The states in which these loans are offered are subject to the following minimum loan size limits: Alabama: $2,100. California: $3,000. Georgia In the event that you are not an existing customer, $3100 maximum loan amount. North Dakota: $2,000. Ohio: $2,000. Virginia: $2,600. Borrowers (other than present customers) in states like these are subject to these maximum secured loan size: North Carolina: $7,500. An unsecured loan is an unsecure loan that does not need you to offer collateral (such as the motor vehicle) for the lender. Example: A $6,000 loan with a 24.99% APR that is payable in 60 monthly installments will result in monthly payments of $176.07. Time to fund loans: Funding within one hour after closing through SpeedFunds should be made available to a debit card issued by a bank. Disbursement by check or ACH may take up to 1-2 business days after loan closing.
Our choice of Secured loans by credit unions
on NerdWallet’s secure website
First Tech Credit Union Personal Loan 5.0 NerdWallet’s ratings are evaluated by our editorial team. The scoring formula takes into account aspects we believe are beneficial to the consumer, including the impact on credit score rate 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 NerdWallet’s secure site
View the full details
Min. credit score of 660
Key details First Tech members have access to secured loans which are backed by an 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.
Fast and quick funding.
Cons Exclusive to members of credit unions.
Payments are reported to 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 is 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 other people or renting; $1,500 if you own your own home. Minimum credit score: At least two established accounts.
Available Term Lengths: 2 to 7 years
Fees Origination fee: None. Late fee: varies. Check returned fee: $28.
on NerdWallet’s secure website
Navy Federal Credit Union Personal Loan 5.0 NerdWallet’s ratings are compiled through our team of editors. The scoring formula considers factors we consider to be consumer-friendly, including the impact on credit score rates and fees, customer experience and responsible lending practices.
Est. APR 7.49 – 18.00 percent
The loan amount is $250-$50,000.
Min. credit score None
View details
on the secure website of NerdWallet.
View details
Min. credit score None
Important facts In addition to non-secured loans, Navy Federal offers secured loans secured by an account called a Navy Federal savings account or CD.
Pros Large selection in loan amounts.
Quick funding.
Discount on rates for certain customers.
Co-signing, joint and secured loan options.
Direct payment to creditors using debt consolidation loans.
Cons Only available to credit union members.
It is not possible to pre-qualify using an informal credit check.
No option to choose or change the date of your payment.
You must be a Navy Federal Credit Union member to apply. There is no minimum credit score required.
Available Term Lengths 1 to 5 years
Fees Origination fee: None. Late fee of $29. Fee for returned payments of $29.
>> COMPARE:
What exactly is a personal loan?
An secured personal loan is a loan you get by pledging something you own to get money , which you will repay over time with interest.
Lenders are able to seize your collateralsuch as a car or money in a savings or savings account, for instance — however, they’ll only take it if you fail to repay the loan. Once the loan is fully paid and the loan is paid in full, the lender no longer has the power to take your collateral.
Like an unsecured loan credit score as well as income and other debts remain central to getting approved for secured loan however, offering collateral decreases the risk to the lender. Additionally, the odds of getting approved are better for secured loans and the interest rate is usually lower.
>> MORE:
How can you obtain a secured loan
The process for getting a secured loan is different depending on the kind of collateral you’re applying for, but here are the steps you’ll need to take:
Find out more about the loan. Certain lenders offer secured loans only after an applicant is not eligible qualify for an unsecure loan. If you aren’t able to pre-qualify with the lender or think you’ll be able to get an option for a secured loan option, you can ask the lender directly regarding secured loans.
Check your budget. Check your cash flow and determine what you’re able to contribute to the loan each month. Utilize a calculator to determine the annual percentage rate, loan amount and repayment time you’ll need to make monthly payments affordable.
Choose one lender. Compare lenders to see what types of collateral they are willing to accept as well as what rates they offer.
Collect documents. Before applying, gather the documents most lenders require to make an application. These can include the ID of a government official as well as bank statements, W-2s and pay stubs. It is also possible to require documents for collateral, such as the title to your car.
Apply. Most lenders have online applications. After you’ve submitted your application, an approval decision may take a couple of days, or even longer if a lender needs to evaluate the collateral’s value.
>> MORE:
Pros and negatives of secured loans
Consider the advantages of taking secured loan against the possible disadvantages before you take out a loan.
Pros
Better approval odds. A lender will be more inclined to accept an secured loan application.
Lower interest rates and greater loan amounts. Since the risk of losing money is lower for the lender, you may get a larger loan at a lower rate.
Cons
The lender might use your collateral. If your car is collateral for a loan and you need it to get to work, say the loss of it could place you in a much worse position than when you took out the loan.
Not as readily available as loans that are not unsecured loans. A lot of credit unions, banks and online lenders provide only 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 type of mortgage that gives you access to money based on the value that your house. Similar to the original mortgage one 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 car’s make, model and year as well as your credit and finances -to determine the rate. If you are approved, you hand the lender your title and they will return it after you have paid off the loan is paid in full. They are not the same as auto title loans that may have triple-digit APRs (more on those below).
CD loans If you own a certificate of deposit with the bank, you might be eligible to make use of it as collateral for an individual loan. The rates are typically low — typically starting a couple of percentage points higher than the CD rate. it’s one way to access funds without withdrawing the CD before the due date and incurring penalties.
401(k) loans: An employer-sponsored 401(k) plan might allow employees to draw funds from their retirement account in up to 5 years. There are generally low rates on 401(k) loans, but by borrowing money from the account, you’re losing out on market gains and compound interest from saving for retirement.
Where can I find an secured personal loan
Banks: Most banks provide a savings or CD-secured loan. An account you already have with the bank will serve as collateral and you won’t be able to access that money up until loan is paid back.
Credit unions: Certain credit unions offer share-secured loans that is a different term used to describe savings-secured loans. They will keep your savings as you pay the loan.
If your credit union does not offer these, you may be eligible for an unsecure loan as credit unions are known to have low requirements for borrowers and less restrictive APRs.
>> MORE:
Online lenders: Many online lenders who offer secure loans require a car as collateral. Some let you apply for the loan at the beginning, while others may show you the possibility after having tried applying for an unsecured loan.
A lot of lenders allow you to check your rate on an unsecured loan without affecting your credit score, therefore it doesn’t hurt to take the with multiple lenders.
It is possible to use the NerdWallet 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 can have a rate of 200% and are often difficult to repay. If you don’t pay, the pawnshop may retain your possession.
: These are high-interest, short-term loans of usually several hundred or thousands of dollars. Because they’re difficult to repay in time, this kind of loan can lead to repeat borrowing, which can result in an unsustainable cycle of debt. Avoid auto-secured loans that have rates of more than 36%, the most expensive rate that consumers believe an affordable loan can have.
>> MORE:
Last updated on December 13, 2022.
Methodology NerdWallet’s review procedure reviews and ranks personal loan products offered by more than 35 financial institutions. We collect over 45 points of data from every lender and interview representatives from the company and evaluate the lender to other lenders that are seeking the same customers or provide a similar personal loan product. NerdWallet editors and writers conduct an exhaustive fact-check and review each year. We also make updates all through the year if.
Our star ratings give points to lenders that offer consumers-friendly features such as soft credit checks that allow you to pre-qualify, competitive interest rates and no fees, transparency of rates and terms, flexible payment options, quick funding times, accessible customer service, reporting of 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 according to our evaluation of which are most important to consumers and the impact they have on consumers’ experience.
This methodology applies only to lenders who set their interest at 36%, the maximum rate that most experts in finance and consumer advocacy are in agreement with as the ideal rate for a loan that is affordable. NerdWallet does not get paid for our star ratings. Find out more about our and our .
For a recap of our choices… the NerdWallet’s Best Personal Loans that are Secured for 2023: Best for Secured loans from online lenders : Best for Secured loans from online lenders: The best for Secured loans from online lenders The best for Secured loans from credit unions: Best for Secured loans by credit unions
Commonly asked questions What is a secured personal loan?
An secured personal loan is an loan which requires collateral- usually a vehicle or bank account. Along with your credit and income, the lender evaluates the value of the collateral in determining whether you’re eligible, how much to loan you and the rate of interest. This type of loan with fixed monthly installments, which is similar to an unsecured loan. However, unlike an unsecured loan one, the lender can 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 fail to repay it. This helps make this loan more secure for the lender as credit and income requirements are usually softer on a secured loan.
About Annie Millerbernd, author of Annie Millerbernd. She is an individual loans writer. Her writing has been featured in The Associated Press and USA Today.
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