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Best Secured Personal Loans of 2023
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THE BEST OF ALL
The most secure personal loans of 2023
Secured personal loans allow you to borrow against the value of an asset like car or savings. Secured loans may carry lower interest rates, but they also carry risk.
By Annie Millerbernd
Dec 13, 2022
Many or all of the products we feature are made 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. However, this does not affect our opinions. Our opinions are our own. Here is a list of and .
The majority of personal loans are not secured, which means the approval process is based on your creditworthiness. But if you can’t qualify for an unsecure loan or get the rate you want on a bad-credit loan then a secured loan is a viable option.
This kind of loan requires the pledge of collateral to obtain money. The downside: If you don’t pay your loan on time in time, the lender can seize your asset.
Learn about secured and where to locate them, such as banks, online lenders, and credit unions.
The information provided for each lender is specific to its secured loans. Criteria for qualifying and loan details could be different for secured loans.
Most personal loans are unsecured, so approval is based on your creditworthiness. But if you can’t qualify for an unsecured loan or get the price you’d like on a bad-credit loan, a secured loan is one alternative.
This kind of loan requires the pledge of collateral in order to borrow money. The disadvantage is that if you don’t pay your loan on time in time, the lender can seize your asset.
Find out more about secured and where to look for them, including banks, online lenders as well as credit unions.
The information for each lender is specific to its secured loans. Criteria for qualifying and loan information may differ for secured loans.
Best Personal Loans Secured
Lender
NerdWallet rating The ratings of NerdWallet are determined 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 option for secured loans by online loan lenders
8.99 – 35.99%
$2,000 – $50,000
600
on Best Egg’s website
Upgrade on the website of Upgrade.
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 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 at 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 for Secured loans from credit unions
7.49 – 18.00%
$250 – $50,000
None
on NerdWallet’s secure website
Our top pick of Secured loans by online lending institutions
on the website of Best Egg.
The Best Egg 4.5 NerdWallet’s scores are determined by our editorial team. The scoring formula takes into account factors we consider to be beneficial to consumers, such as the impact on credit score rates and fees, customer 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 600
View details
on the website of Best Egg.
View the full details
Min. credit score 600
Important details Best Egg secured loans are like home equity loans but use items attached to your home instead of the house itself as collateral.
Pros provides a variety of loan amounts.
Offers a secured loan option for homeowners.
Directly pay customers with debt consolidation loans.
Cons Origination fee.
No rate discounts.
There is no choice to choose the first payment date.
Qualifications Minimum credit score: 600; borrower average is 700. Minimum credit history: 3 months and 3 accounts. The minimum income requirement is $3500; borrower average is $80,000. Borrower must have enough cash flow to pay current financial obligations. Maximum ratio of debt to income: 40 percent or 65%, excluding the mortgage. The borrower’s average is 40 percent. Employment: Must show proof of income; part-time employees are qualified. It is required to 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%. Return fee: $15 if payments are not completed.
Disclaimer *Trustpilot TrustScore as of June 2020. Best Egg personal loans, including the Best Egg Secured Loan, are offered by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member 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. which is 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 the source of the Best Egg personal loan,” in the event that it is applicable. The amount, term, and rate of interest for any loan we provide will depend on your credit score and income, as well as debt payment obligations, loan amount, credit history, and many other variables. Your loan agreement will have specific conditions and terms. Around half of our customers get their money the next day. Once you have verified your identity, the funds will be transferred to your bank account within 1-3 business days. The time frame for funds available following loan approval can vary based upon your bank’s policies. The loan amounts vary 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. For a second Best Egg loan the current Best Egg loan amounts cannot exceed $100,000. The Annual Percentage Rates (APRs) range between 8.99%-35.99 percent. The APR represents the cost of credit per year at a rate that includes the interest rate you pay and the origination cost of 0.99%-8.99% of your loan amount, which will be deducted from any loan proceeds you receive. The origination cost for a loan duration of 4 years or more will be at minimum 4.99 percent. Your loan duration will affect your APR, which can be higher than our lowest advertised rate. You need an at-least 700 FICO(r) score as well as an annual income of at least of $100,000 in order to qualify the lowest interest rate. For instance, a five-year $10,000 loan with 9.99% APR has 60 monthly installments scheduled for $201.81 and a three-year $5,000 loan with 7.99 percent APR will have 36 monthly scheduled payments of $155.12. To help the government fight the funding of terrorism and money laundering, Federal law requires all financial institutions to gather verification, confirm, and keep records of information that identify every person who has an account. What this means to you: If you open an account we’ll request your name address, address, birthday, and any other information that will allow the institution to verify your identity. We might also request to see your driver’s licence or other documents that identify you. Best Egg products are not accessible if you reside in Iowa, Vermont, West Virginia or the District of Columbia, or U.S. Territories.
on the Upgrade’s website
Upgrade 5.0 NerdWallet’s rating is determined by our editorial staff. The scoring formula takes into account factors we consider to be friendly to consumers, such as 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 $1,000.
Min. credit score 560
View details
on Upgrade’s website
View the full details
Min. credit score 560
The most important thing to know is that Upgrade applicants can secure their loans with a car, the value of which is a factor in your rate.
The pros of secured and joint loans.
Multiple rate discounts.
Mobile app to manage loan payments.
Direct payment to creditors with the debt consolidation loans.
Repayment terms for home improvement loans.
Cons Origination fee.
There is no option to select your payment time.
Credit Score Minimum 560. Minimum number of credit accounts on history: one account. Maximum debt-to-income ratio: 75%, which includes that loan the applicant is applying for. Minimum length of credit-related history two years. Minimum income requirement: None. Lender accepts income from retirement, alimony, child support, Social Security and various other sources.
Available Term Lengths: 2 to 7 years
Fees Origination Fee: 1.85% to 8.99 percent. Late Fee 10$. Fee for late payment 10 dollars.
Disclaimer The personal loans obtained through the Upgrade offer annual percentage rates (APRs) that range from 8.24%-35.97 percent. All personal loans come with a 1.85% to 8.99 percent origination fee, which is deducted from the loan profits. Lowest rates require Autopay and the payment of some of the debts directly. Loans feature repayment terms of 24-84 months. For example, if you receive the 10,000 loan with a 36-month term and a 17.59 APR of 17.59% (which also includes a 13.94 percent annual interest rate and a 5% one-time origination fee) the loan would pay 9500 dollars in your account, and would have a required monthly payment of $341.48. Through the term of the loan the payments would amount to $12,293.46. The interest rate for your loan could be higher or lower and your loan deals may not offer different lengths of terms that are available. The rate you pay for your loan will depend on your the credit score, utilization history, loan duration, as well as other elements. The late payment or the subsequent fees or charges may raise the price of your fixed rate loan. There is no fee 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 OneMain Financial’s site
OneMain Financial 4.0 NerdWallet’s ratings are decided by our editorial team. The scoring formula takes into account the factors we believe to be consumer-friendly, including impact to credit score, rates and fees, the customer experience and ethical lending practices.
Est. APR 18.00 – 35.99%
Amount of loan $1,500-$20,000
Min. credit score None Average score is 600 – 500
View details
on the OneMain Financial website.
View details
Min. credit score None
Key information OneMain Secured loans require a vehicle to serve as collateral. Borrowers may also add an applicant who is a co-applicant.
Pros Option to choose and change the date of your payment.
Joint and secured loans.
Fast funding.
Direct payment to the creditors of debt consolidation loans.
Cons Rates are high in comparison to other lenders.
Charges charge for origination fees.
No rate discounts.
Pre-qualification does not allow prospective borrowers to view rates.
The requirements include a Social Security number or taxpayer identification number. The minimum age is 18 or over in the majority of states. Minimum credit score zero. The minimum number of accounts on the credit report: None however, applicants who have no credit history may not be eligible. The minimum income is none. This lender will consider earnings from alimony, employment pension, child support, retirement, Social Security payments, investments and public assistance.
Available Term Lengths: 2 to 5 years
Fees Origination fee: $25 to $500 or 10% to 1% of your loan amount. Late fee: $5-$30 or 1.5% to 15 percent of your monthly payment. Fee for non-sufficient funds $15.
Disclaimer Not all applicants will be considered. Loan approval and actual loan terms depend on your ability to meet our credit standards (including a responsible credit history as well as a steady income following expenses per month, and the being able to show collateral). If you are approved, not all applicants will be eligible for higher loan amounts or favorable loan terms. Higher loan amounts require a first lien on a motor vehicle that is not older than ten years, that meets our requirements for value, and is titled in your name with an insurance policy that is valid. The loan approval process and loan conditions are contingent upon your state of residence and your capacity to meet our credit standards (including a responsible credit history, sufficient income after expenses paid monthly and the availability of collateral). APRs generally are higher on loans that are not secured by the vehicle. For applicants who are highly qualified, they may receive greater loan amounts and/or lower APRs than those shown above. OneMain charges origination fees where allowed by law. Depending on the state where you take out your loan the fee for origination can be a flat amount or a percentage of your loan amount. The flat fee amount varies per 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 fee amount. Visit omf.com/loan-fees to learn more. Loan proceeds cannot be used to pay for postsecondary education expenses as defined by the CFPB’s Regulation Z such as college or university expenses and for any commercial or business reason; to purchase crypto assets and derivatives, securities, or other investments that are speculative; or for gambling or illicit purposes. Borrowers in these states are subject to the following requirements for minimum loan dimensions: Alabama: $2,100. California: $3,000. Georgia: Unless you are a present customer, $3,100 minimal loan amount. North Dakota: $2,000. Ohio: $2,000. Virginia: $2,600. The borrower (other other than existing customers) in these states are subject to these maximum secured loan sizes: North Carolina: $7,500. An unsecured loan is one type of loan that does not require collateral (such as the motor vehicle) to the lender. Example of a Loan: A $6,000 loan with an 24.99% APR that is repaymentable in 60 installments, with monthly payments of $176.07. Time to fund loans: Funding within one hour following the closing date through SpeedFunds is required to a debit card issued by the bank. Disbursement by check or ACH can take up to 2 business days following loan closing.
Our top pick for Secured loans by credit unions
on the secure website of NerdWallet.
First Tech Credit Union Personal Loan 5.0 NerdWallet’s ratings are determined by our editorial team. The scoring formula takes into account the factors we believe to be beneficial to the consumer, including the impact on credit score, rates and fees, the customer experience and responsible lending practices.
Est. APR 6.70 + 18.00%
Loan amount $500 – $50,000
Min. credit score of 660
View more information
on the secure website of NerdWallet.
View more information
Min. credit score of 660
Key details First Tech members have access to secured loans that are secured by an CD or savings account, as well as stocks.
Pros Co-sign, joint and secured loan options.
Direct payment to creditors using debt consolidation loans.
Choices to select and alter the payment date.
Quick funding.
Cons Only available for members of credit unions.
Pays only 3 credit bureaus.
No rate discount.
You must be an active participant in First Tech Federal Credit Union. Minimum credit score is at least 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 if living with other people; $1,000 if renting or owning your home. Credit history must be at least two established accounts.
Available Term Lengths: 2 to 7 years
Fees Origination fee: None. Late fee: Vary. Return check fee: $28.
on the secure website of NerdWallet.
Navy Federal Credit Union Personal loan 5.0 NerdWallet’s ratings are determined through our team of editors. The scoring algorithm takes into consideration the factors we believe to be a good choice for consumers, such as the impact on credit score rates and fees, customer service and ethical lending practices.
Est. APR 7.49 – 18.00 percent
Loan amount $250 – $50,000
Min. credit score None
View the full details
on NerdWallet’s secure website
View more information
Min. credit score None
The key facts In addition non-secured loans, Navy Federal offers secured loans backed by an account called a Navy Federal savings account or CD.
Pros A wide range in loan amounts.
Fast and quick funding.
Rate discount for some customers.
Co-signing, joint and secured loan options.
Direct payment to creditor with the debt consolidation loans.
Cons Only available for members of credit unions.
No option to pre-qualify with a soft credit check.
There is no option to select or change your payment date.
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 is $29. Returned payment fee $29.
>> COMPARE:
What exactly is a personal loan?
An secured personal loan is an loan that you obtain by pledging something that you have in exchange for money that you repay over time with interest.
The lender has the right to acquire your collateralfor example, a car or funds in a savings account for example — but they’ll only do it if you fail to repay the loan. Once the loan is fully paid, the lender is no longer able to exercise the authority to take the collateral.
Similar to an unsecure loan, your credit as well as income and other debts are still essential to getting approved for secured loan however, offering collateral reduces the risk for the lender. The odds of approval are higher for secured loans and the rate is usually lower.
>> MORE:
How do you get a secured loan
The process of getting a secured loan is different depending on the kind of collateral you’re using but here are the steps you’ll take:
Find out more about the loan. Some lenders provide 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 you don’t see any secured loan alternative, contact the lender directly regarding secured loans.
Check your budget. Examine your cash flow to determine what you’re able to pay toward the loan every month. Make use of a calculator to find out what annually percentage rates, loan amount and repayment term you’d need to keep monthly payments within your budget.
Choose the right lender. Compare lenders to find out what kind of collateral they will accept and what rates they offer.
Gather the necessary documents. Before applying make sure you have the necessary documents that lenders require to make an application. These can include the ID of a government official and statement from your bank, W-2s and pay stubs. You may also need documents for collateral, like a car title.
Apply. Most lenders have online applications. After you have submitted, an approval decision may take several days, or even longer if a lender has to assess the value of collateral.
>> MORE:
Pros and cons of secured loans
Compare the benefits of getting a secured loan against the possible drawbacks before you borrow.
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 chance loss of money less for the lender, you may be approved for a larger loan at a lower cost.
Cons
The lender may accept your collateral. If your car is collateral to a loan and you need it to get to work, for example the loss of it could place you in a more difficult situation than when you took out the loan.
Not as widely available as unsecured loans. Many credit unions, banks and online lenders only offer loans that are not secured loans.
>> MORE:
Secured loan examples
Equity home loans and HELOCs The line of credit or home equity loan or line of credit is a mortgage that allows you to access money based on the value that your house. Similar to the original mortgage one lender may take possession of your home when you fail to pay.
>> MORE:
Auto-secured loans: With an auto-secured loan, the lender will take into consideration information such as the vehicle’s make, model, and year, 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 once you have paid off the loan is paid in full. They are not the same as auto title loans, which can have triple-digit APRs (more on these below).
CD loans If you own an account with a bank, you may be able to make use of it as collateral for a personal loan. The rates are typically low generally starting a couple of percentage points above the CD rate — and it’s a method of accessing funds without having to withdraw the CD early and paying a penalty.
401(k) loans: An employer-sponsored 401(k) plan may allow employees to borrow from their retirement accounts at a maximum of five years. Rates are usually low on 401(k) loans, but by borrowing from the account, you’re losing 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. An account that you have at the bank is collateral for the loan, but you will not be able to use that account till the loan is paid back.
Credit unions: Some credit unions provide share-secured loans which is a different term that refers to savings secured loans. They will hold onto your savings until you pay back the loan.
If your credit union does not provide these loans, you could qualify for an unsecured loan, because credit unions are known for having less stringent requirements for borrowing and lower APRs.
>> MORE:
Online lenders: Many online lenders offering secure loans require a car as collateral. Some let you apply for the loan upfront, but others may show you the possibility only after you’ve tried applying for an unsecured loan.
Many lenders let you check your rate on an unsecured loan without impacting your credit score, so it doesn’t hurt to take the loan with several lenders.
It is possible to use NerdWallet’s lender marketplace to find rates for unsecured loans.
Secured loans to avoid
: Pawnshops let you hand your valuables to them to get cash which you must repay, typically within a couple of weeks. These loans can have a rate of 200% and can be difficult to pay back. If you fail to pay back, the pawnshop can retain your possession.
: These 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 encourage repeat borrowing, which could 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 can have.
>> MORE:
The last update was on December 13, 2022
Methodology NerdWallet’s review procedure examines and scores personal loan products from more than 35 financial institutions. We gather more than 45 information points for each lender as well as interview representatives of the company and evaluate the lender against other lenders who seek the same type of customer or offer the same personal loan product. NerdWallet editors and writers conduct thorough fact checks and update each year, but also make updates every year when needed.
Our star ratings give points to lenders who provide consumers-friendly services, such as soft credit checks to help you qualify for loans, competitive interest rates, no charges, transparent rates and conditions, flexibility in payment methods, quick time to fund, easy customer service, reporting of payments to credit bureaus as well as financial education. We also consider legal actions that are filed by agencies like that of the Consumer Financial Protection Bureau. We assess these elements according to our evaluation of which are 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 the field and consumer advocates are in agreement with as the ideal rate to consider the loan to be affordable. NerdWallet is not compensated for our top ratings. Find out more about our and our .
To recap our selections… the NerdWallet’s Best 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: The best to secure loans by credit unions
Frequently asked questions What do you mean by a personal loan?
A secured personal loan is a loan which requires collateral- usually a vehicle or bank account. Along with your credit score and income the lender examines the worth of the collateral to determine whether you’re eligible, how much to loan you and your rate of interest. You repay this type of loan in fixed monthly installments, much like an unsecured loan. But unlike an unsecured loan, the lender could be able to take your collateral in the event that you fail to repay.
Are secured loans more accessible?
Secured loans are easier to obtain than unsecured loans since you can use an asset you own as collateral to secure the loan, which the lender may take in the event that you fail to repay it. This makes the loan much less risky to the lender as credit and income requirements are generally less strict with secured loan.
About Annie Millerbernd, the author is a personal loans writer. Her work has appeared on The Associated Press and USA Today.
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