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Best Secured Personal Loans of 2023
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BEST OF
The most secure personal loans of 2023
Secured personal loans permit you to borrow on the basis of the value of an asset such as an automobile or savings. Secured loans might have lower interest rates but they also carry risk.
By Annie Millerbernd
Dec 13, 2022
Many or all of the items featured on this page are provided by our partners who pay us. This could affect the products we write about and where and how the product is featured on a page. However, this doesn’t affect our opinions. Our views are our own. Here’s a list of and .
The majority of personal loans are secured, and the approval process is based on your creditworthiness. However, if you aren’t eligible for an unsecured loan or 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 disadvantage is that if you fail to pay on time in time, the lender could seize your property.
Learn about secured and how to 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. Criteria for qualifying and loan details may differ in secured loans.
Most personal loans are unsecured, so approval is based on your creditworthiness. However, if you aren’t eligible for an unsecured loan or get the price you’d like on a bad-credit loan or secured loan is an option.
This type of loan requires the pledge of collateral to obtain money. The disadvantage is that if you don’t make timely payments, the lender may seize your assets.
Learn about secured and how to look for them, including online lenders, banks and credit unions.
The information for each lender is specific to its non-secured loans. Qualification criteria and loan details may be different in secured loans.
Best Secured Personal Loans
Lender
NerdWallet rating The ratings of NerdWallet are determined by our editorial team. The scoring formulas consider multiple data points for every financial product or service.
Est. APR
Loan amount
Min. credit score
Find out more
Best Egg on Best Egg’s website
Best to Secured loans via online lending
8.99 – 35.99%
$2,000 – $50,000
600
on Best Egg’s website
Upgrade on the Upgrade website.
Best for Secured loans from online lenders
8.24 – 35.97%
$1,000 – $50,000
560
on the Upgrade’s website
OneMain Financial on OneMain Financial’s website
Best to Secured loans via online lending
18.00 – 35.99%
$1,500 – $20,000
None
Average score is 600 to 600 –
on OneMain Financial’s website
A personal loan from First Tech CreditUnion via NerdWallet’s secure website
Best to Secure loans by 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 to Secured loans from credit unions
7.49 – 18.00%
$250 – $50,000
None
on the secure website of NerdWallet.
Our top pick for Secured loans from online lenders
on the Best Egg’s website
Good Egg 4.5 NerdWallet’s ratings are based on the opinions of Our editorial department. The scoring formula considers the factors we believe to be a good choice for consumers, such as the impact on credit score, rates and fees customers’ experience, and ethical lending practices.
Est. APR 8.99 — 35.99 percent
Amount of loan $2,000 – $50,000
Min. credit score of 600
View the full details
on the website of Best Egg.
View details
Min. credit score 600
Important facts Best Egg secured loans are like home equity loans but they are secured by items to your home instead of the house it self as collateral.
Pros provides a variety in loan amounts.
Secured loan option for homeowners.
Offers direct payment to creditors with credit consolidation loans.
Cons Origination cost.
No rate discounts.
There is no choice to choose the first payment date.
Credit Score Minimum: 600. The average for borrowers is 700. Minimum credit history: Three months and 3 accounts. The minimum income requirement is $3500 The average of borrower’s income is $80,000. The borrower should have sufficient cash flow to pay the current financial obligations. Maximum ratio of debt to income: 40% or 65% including the mortgage. The borrower’s average is 40%. Employment: Must show proof of income. Part-time employees are eligible. It is required to provide a an official U.S. address and Social Security number.
Available Term Lengths of 3 to 5 years
Fees Origination fee: 0.99% – 8.99%. Return fee: $15 if the payment is not processed.
Disclaimer *Trustpilot TrustScore as of 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 Members FDIC, Equal Housing Lender or Blue Ridge Bank, a Nationally Chartered Bank, Member FDIC, Equal Housing Lender. “Best Egg” is a trademark owned by Marlette Holdings, Inc., 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 the source of the Best Egg personal loan,” as applicable. The term, amount and the the APR for each loan we offer to you will depend upon your score on credit your income, debt repayment obligations, loan amount, credit history, and many other variables. The loan agreement will contain specific conditions and terms. About half of our customers receive their money on the same day. After successful verification, your cash will be in your bank account within 1-3 business days. The timing of available funds upon loan approval may vary depending on your bank’s policy. The loan amounts vary between $2,000 and $50,000. Residents of Massachusetts are required to have the minimum loan amount of $6,500; New Mexico and Ohio, $5,000. Georgia, $3,000. Georgia, $3,000. If you want to take out the second Best Egg loan the total existing Best Egg loan balances cannot exceed 100,000. The Annual Percentage Rates (APRs) range from 8.99%-35.99 percent. The APR is the price of credit as a yearly rate and includes the interest rate as well as an origination fee of 0.99%-8.99 percent of your loan amount, which will be deducted from any loan proceeds you receive. The origination fee on the loan that is four years or more will be at minimum 4.99%. Your loan term will affect your APR, which can be greater than our advertised rate. You must have a minimum 700 FICO(r) score as well as an annual income for you as an individual of $100,000 to be eligible to receive our lowest rate. Example: A 5-year $10,000 loan with 9.99% APR has 60 scheduled monthly payments of $201.81 and a three-year five-figure loan with 7.99 percent APR will have 36 scheduled monthly installments of $155.12. To assist the federal government in combating the financing of terrorism and money laundering, Federal law requires all banks to collect, verify, and record information that identifies the person who creates an account. What does this mean for youis that when you open an account we’ll request your name, address, dates of birth as well as other information that will allow the institution to verify your identity. We may also want for your driver’s license or other documents that identify you. Best Egg products aren’t 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 rating is determined by our editorial team. The scoring algorithm takes into consideration the factors we believe to be beneficial to the consumer, including the impact on credit score rate and fees, customer service and ethical lending practices.
Est. APR 8.24 — 35.97%
The amount of the loan is $1,000.
Min. credit score 560
View the full details
on Upgrade’s website
View the full details
Min. credit score 560
Key facts Upgrade applicants can back their secured loans with a vehicle and the worth of that is a factor in your rate.
Advantages of joint and secured loans.
Multiple rate discounts.
Mobile app to manage loan payments.
Direct payment to creditor with the debt consolidation loans.
Long repayment terms on home improvement loans.
Cons Origination cost.
No option to choose the payment date.
Credit Score Minimum 560. Minimum amount of credit accounts in your history: One account. Maximum debt-to-income ratio: 75%, excluding the loan the applicant is applying for. Minimum period of credit history: two years. Minimum income requirement: None. Lender will consider alimony, retirement, child support and Social Security and other sources.
Available Term Lengths 2 to 7 years
Fees Origination fee: 1.85% to 8.99 Percentage. Late Fee 10$. Fee for late payment 10 dollars.
Disclaimer The personal loans obtained through the Upgrade have APRs (APRs) between 8.24%-35.97%. All personal loans have a 1.85 percent to 8.99 percent origination fee that is taken out of the loan profits. Lowest rates require Autopay and paying off some of the debts directly. Loans feature repayment terms of 24 to 84 months. For example, if you receive the 10,000 loan with a term of 36 months and a 17.59 APR of 17.59% (which also includes a 13.94 percent annual rate of interest and an origination fee of 5% that is one-time fee) the loan would pay $9,500 to your account and would be required to pay a monthly payment of $341.48. Over the life of the loan the payments would amount to $12,293.46. The APR for your loan could be different, or even lower and the loan offers may not have various lengths of term offered. The rate you pay for your loan will depend on your credit score, credit use history loan length, along with other elements. The late payment or the subsequent charges and fees may increase the cost on your fixed rate loan. There is no fee or penalty for repaying 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 OneMain Financial’s website
OneMain Financial 4.0 NerdWallet’s ratings are determined by our editorial team. The scoring algorithm takes into consideration aspects we believe are beneficial to the consumer, such as impact on 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- 700
View more information
on the OneMain Financial website.
View details
Min. credit score None
Important facts OneMain secured loans require a car as collateral. Borrowers may also add an additional co-applicant on the application.
Pros Option: Choose to change your payment date.
Joint and secured loans.
Quick funding.
Direct payment to the creditors of the consolidation of debt loans.
Cons Rates are high as compared to other lenders.
Charges origination fee.
No rate discounts.
Pre-qualification doesn’t allow borrowers to preview potential rates.
The requirements include an Social Security number or taxpayer identification number. Must be 18 or older in the majority of states. Minimum credit score: None. Minimum number of accounts on credit report: None, however applicants with no credit history might not qualify. The minimum income is none; this lender will consider income from employment, alimony and retirement benefits, child support, Social Security payments, investments , and public assistance.
Available Term Lengths 2 to 5 years
Fees Origination fee: $25 to $500 or 10% to 1% on the loan amount. Late fee: $5-$30 or 1.5 percent to 15% of your monthly payment. Non-sufficient funds fee: $15.
Disclaimer: Not all applicants will be approved. Loan approval and actual loan terms are contingent on being able to fulfill our credit standards (including a responsible credit history as well as a steady income following monthly expenses, and availability of collateral). If they are approved some applicants may not qualify for larger loan amounts or the most favorable loan conditions. The larger loan quantities require lien on a motor vehicle that is not older than ten years and that meets our value requirements, titled in your name and backed by valid insurance. Loan approval and actual loan terms are contingent on your residence state and your ability to meet our credit requirements (including an established credit history, sufficient income following monthly expenses and collateral availability). APRs are generally higher on loans that are not secured by vehicles. For applicants who are highly qualified, they may receive higher loan amounts and/or APRs that are lower than the ones previously mentioned. OneMain will charge origination fees if permitted by law. Based on the state in which you open 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 from $25 to $500. Percentage-based fees vary by state, ranging between 1% and 10 percent of your loan amount, subject to state limits on the fee amount. Go to omf.com/loan-fees to learn more. The proceeds of loans cannot be used to pay for postsecondary education expenses as per the CFPB’s Regulation Z such as college or university expenses and for any commercial or business use; for the purchase of cryptocurrency-related assets and derivatives, securities, or any other investment that is speculative in nature as well as for gambling or illicit purposes. In these states, borrowers are subject to the following minimal loan size limits: Alabama: $2,100. California: $3,000. Georgia: Unless you are an existing customer, $3100 minimum loan amount. North Dakota: $2,000. Ohio: $2,000. Virginia: $2,600. The borrower (other than present customers) in these states are limited to the following maximum unsecured loan size: North Carolina: $7,500. An unsecure loan is one type of loan that doesn’t require you to provide collateral (such as an automobile) to the lender. Example of a 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 must be disbursed 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 top pick of Secured loans from credit unions
on NerdWallet’s secure website
First Tech Credit Union Personal Loan 5.0 NerdWallet’s ratings are set 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 service and ethical lending practices.
Est. APR 6.70 — 18.00%
The loan amount is $500-$50,000.
Min. credit score of 660
View details
on NerdWallet’s secure website
View more information
Min. credit score 660
Key details First Tech members have access to secured loans which are backed by the CD, savings account or stocks.
Pros Secured, joint and co-sign loan options.
Direct payment to creditors with credit consolidation loans.
You can choose to change the payment date.
Quick funding.
Cons Exclusive for members of credit unions.
Reports payments to only one credit bureau out of three.
No rate discount.
You must be a member of First Tech Federal Credit Union. Minimum credit score is at least 660. You must provide 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 of $700 if living with someone else; $1,000 if renting or owning your home. Credit history must be at least two credit accounts that are established.
Available Term Lengths: 2 to 7 years
Fees Origination fee: None. Late fee: Vary. Return check fee: $28.
on NerdWallet’s secure website
Navy Federal Credit union Personal Loan 5.0 The ratings of NerdWallet are determined by our editorial team. The scoring algorithm takes into consideration factors we consider to be consumer-friendly, including the impact on credit score, rates and fees, the customer experience and responsible lending practices.
Est. APR 7.49 – 18.00 Percentage
Loan amount $250 – $50,000
Min. credit score None
View the full details
on the secure NerdWallet website.
View the full details
Min. credit score None
Important facts In addition to loans that are not secured loans, Navy Federal offers secured loans backed by a Navy Federal savings account or CD.
Pros A wide selection of loan amounts.
Fast and quick funding.
Rate discount for some customers.
Secured, joint and co-sign loan options.
Direct payment to creditors with credit consolidation loans.
Cons Exclusive to members of credit unions.
It is not possible to pre-qualify using a soft credit check.
You cannot choose to alter your payment date.
Qualifications Must be a Navy Federal Credit Union member to be eligible. There is no minimum credit score required.
Available Term Lengths: 1 to 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 an loan you get by pledging something that you have in exchange for money that you repay over time with interest.
Lenders have the right to seize your collateral- a vehicle or money in a savings account for instance, but they’ll only do it if you fail to pay back the loan. After the loan is paid in full, the lender is no longer able to exercise the right to take the collateral.
As with an unsecured loan credit score as well as income and other debts remain central to getting secured loan, but offering up collateral lowers the risk to the lender. The odds of approval are higher for secured loans and the interest rate is usually lower.
>> MORE:
How do you get a secured loan
The procedure for getting secured loan will differ according to the type of collateral you’re using but here are some of the steps you’ll need to take:
Find out more about the loan. Some lenders offer secured loans only if the applicant does not for an unsecured loan. If you’re unable to pre-qualify the lender or see any secured loan option, ask the lender directly regarding secured loans.
Check your budget. Check your cash flow and discover how much you can afford to put towards the loan each month. Make use of a calculator to find out what percent of your annual income, loan amount and repayment period you’ll need to ensure that you keep your monthly payments affordable.
Choose one lender. Compare lenders to find out what kind of collateral they accept and what rates they are willing to offer.
Gather documents. Before applying to a lender, collect the documents lenders require in order to submit an application. These can include an ID issued by the government, statement from your bank, W-2s and pay stubs. It is also possible to require documents for collateral, for example, the title to your car.
Apply. Many lenders offer online applications. Once you submit your application, a decision on approval could be a few days or longer if a lender must assess the value of the collateral.
>> MORE:
Pros and pros and loans
Weigh the benefits of getting secured loan against the potential drawbacks before you borrow.
Pros
Better approval odds. A lender will be more inclined to accept an secured loan application.
Lower interest rate and greater loan amounts. Since the risk that you will lose money less for the lender the loan may be approved for a larger loan for a lesser rate.
Cons
The lender may accept your collateral. If your car is collateral to the loan and you require it to travel to work, say, losing it could put you in a worse situation than you were before borrowing.
Not as accessible as the unsecured loans. Many banks, credit unions and online lenders only offer unsecured loans.
>> MORE:
Secured loan examples
Equity home loans and HELOCs The house equity loan or line of credit is a type of 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 If you have an auto-secured loan, the lender will take into consideration information such as the car’s model, make and year along with your credit score and financial situation- to decide your rate. If you are approved, you hand the lender your vehicle’s title, and they return it when it is loan is paid in full. This is different from auto title loans that may have triple-digit APRs (more on those below).
CD loans If you hold a certificate of deposit at the bank, you might be eligible to make use of it as collateral for an individual loan. The rates are typically low generally starting at a few percentage points above the CD rate — and it’s a way to access funds without having to cash out the CD before the due date and incurring penalties.
401(k) loans: An employer-sponsored 401(k) plan may allow employees to borrow from their retirement account in up to 5 years. The rates are typically low for 401(k) loans, but by borrowing money from the account, you’ll miss out on market gains and compound interest from 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 at the bank is collateral for the loan, but you will not be able to have access to that money till the loan is repaid.
Credit unions: Certain credit unions offer share-secured loans that is a different term for savings-secured loans. The credit union will keep your savings while you repay the loan.
However, if your institution doesn’t provide these loans, you could be eligible for an unsecured loan due to the fact that credit unions are known to have less stringent requirements for borrowing and lower APRs.
>> MORE:
Online lenders: Many online lenders offering secure loans require a vehicle as collateral. Some let you apply for this loan upfront, but other lenders may offer the option only after you’ve attempted applying 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 NerdWallet’s lender marketplace to evaluate rates on unsecure loans.
Secured loans to avoid
: Pawnshops let you hand your valuables to them in exchange for cash that you must repay, typically within a couple of weeks. These loans could be a 200% APR and can be difficult to pay back. If you don’t repay, the pawnshop will keep your item.
They are high-interest short-term loans typically ranging from a few hundred or thousand dollars. Because they’re hard to repay in time, this kind of loan can encourage repeat borrowing, which can cause you to enter into a debt cycle. Avoid auto-secured loans with rates that exceed 36%, the highest rate consumer advocates say an affordable loan can be able to have.
>> MORE:
Last updated on December 13, 2022
Methodology NerdWallet’s review procedure examines and scores personal loan products from more than 35 institutions. We gather more than 45 information points for each lender and interview representatives from the company and then compare the lender to other lenders that are seeking the same customers or provide a similar personal loan product. NerdWallet writers and editors conduct an exhaustive fact-check and review each year. We also make updates throughout the year as necessary.
Our star ratings award points to lenders who provide consumer-friendly features, including: soft credit checks to pre-qualify for loans, competitive interest rates, no charges, transparent rates and conditions, flexibility in payment methods, fast processing times for funding, easy customer support, and reporting of payments to credit bureaus as well as financial education. We also consider regulatory actions filed by agencies such as that of the Consumer Financial Protection Bureau. We weigh these factors based on our assessment of which are most significant to consumers and the impact they have on consumers’ experiences.
This method is only applicable to lenders that cap interest rates at 36%, which is the maximum rate most experts in the field and consumer advocates accept as the appropriate limit for a loan in order to make it affordable. NerdWallet is not compensated for our top ratings. Learn more about us and our .
To summarize our choices… The NerdWallet’s Top Secured Personal Loans of 2023: Best for Secured loans from online lenders : The best for Secured loans from online lenders : The best for Secured loans from online lenders The best for Secured loans from credit unions The best to secure loans from 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. Along with your credit score and income the lender examines the worth of the collateral in determining whether you are eligible for the loan, and how much they will loan you, and also your interest rate. This type of loan in fixed monthly installments, similar to an unsecured loan. But unlike an unsecured loan it is possible for the lender could use your collateral should you fail to repay.
Are secured loans more readily available?
Secured loans can be easier to obtain than secured loans since you can use an asset you own as collateral for the loan and the lender can take if you don’t repay the loan. This helps make this loan much less risky to the lender as credit and income requirements are usually softer on a secured loan.
About the author Annie Millerbernd is a private loans writer. Her writing has been featured in The Associated Press and USA Today.
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