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Best Secured Personal Loans of 2023
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BEST OF
Top Secured Personal Loans for 2023
Secured personal loans allow you to borrow against the value of an asset like a car or savings. Secured loans may carry lower interest rates but they also carry risk.
By Annie Millerbernd
Dec 13, 2022
The majority of products featured here are from our partners, who pay us. This could affect the products we write about as well as the place and way the product appears on a page. However, this does not influence our assessments. Our opinions are entirely our own. Here is a list of and .
Most personal loans are unsecured, so the approval process is based on your creditworthiness. If you’re not eligible for an unsecured loan or get the price you’d like on a bad-credit loan then a secured loan is an option.
This kind of loan requires the pledge of collateral in order to borrow money. The disadvantage is that if you don’t make timely payments in time, the lender may seize your assets.
Learn about secured and where to find them, including banks, online lenders, and credit unions.
Note that the information for each lender is specific to its secured loans. Criteria for qualifying and loan details may be different when it comes to secured loans.
Most personal loans are secured, and approval is based on your creditworthiness. If you’re not eligible for an unsecure loan, or you don’t get the price you’d like for a bad credit loan or secured loan is a viable option.
This kind of loan requires you to put up collateral to obtain money. The disadvantage is that if you don’t make timely payments in time, the lender may seize your assets.
Learn about secured, and where you can find them, including banks, online lenders as well as credit unions.
Note that the information for each lender is specific to its secured loans. Criteria for qualifying and loan details could differ for secured loans.
Best Secured Personal Loans
Lender
NerdWallet rating NerdWallet’s ratings are determined by our editorial team. The scoring formulas are based on several data points associated with every financial product or service.
Est. APR
The amount of the loan
Min. credit score
Learn 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 the Best Egg’s website
Upgrade on the website of Upgrade.
Best option for secured loans by online loan lenders
8.24 – 35.97%
$1,000 – $50,000
560
on 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
The average score is 600 – 700
on OneMain Financial’s website
A personal loan from First Tech CreditUnion on NerdWallet’s secure website
Best for Secured loans from credit unions
6.70 – 18.00%
$500 – $50,000
660
on NerdWallet’s secure site
Navy Federal Credit Union Personal Loan on NerdWallet’s secure website
Best option for secured loans by credit unions
7.49 – 18.00%
$250 – $50,000
None
on NerdWallet’s secure website
Our pick for Secured loans from online lenders
on the Best Egg’s website
Best Egg 4.5 NerdWallet’s ratings are determined by Our editorial department. The scoring formula considers aspects we consider to be a good choice for consumers, such as impact to credit score rates and fees as well as the customer’s experience and ethical lending practices.
Est. APR 8.99 + 35.99 percent
Amount of loan $2,000 – $50,000
Min. credit score 600
View more information
on the Best Egg’s website
View the full details
Min. credit score 600
Important facts Best Egg secured loans are like home equity loans however they use items that are attached to your home, rather than the house that is the collateral.
Pros Offers wide range of loan amounts.
Offers a secured loan option for homeowners.
Direct payment to creditors with credit consolidation loans.
Cons Origination cost.
No rate discounts.
No option to choose initial payment date.
Qualifications Minimum credit score: 600; the average of borrowers is 700. Minimum credit history: 3 consecutive years, and at least three different accounts. The minimum amount of income required is $3500 and the average borrower is $80,000. Borrower must have enough funds to meet current financial obligations. Maximum ratio of debt to income: 40% or 65% including a mortgage; borrower average is 40 percent. 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 of 3 to 5 years
Fees Origination fee: 0.99% – 8.99%. Return fee: $15 if payments aren’t processed.
Disclaimer *Trustpilot TrustScore at 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 and Members 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” and/or “Best Egg” on behalf of Cross River Bank or Blue Ridge Bank, as originator of the Best Egg personal loan,” in the event that it is applicable. The amount, term, and APR of any loan we provide to you will be based the credit rating of your your income, debt repayment commitments, loan amount, credit history and other aspects. The loan agreement will contain specific conditions and terms. The majority of our customers receive their money on the same day. Following successful authentication, your cash can be deposited in the account of your bank account within 1-3 business days. The amount of 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 are required to have the minimum loan amount of $6,500 ; New Mexico and Ohio, $5,000; and Georgia, $3,000. If you want to take out 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%. The APR is the cost of credit per year at a rate, and it includes both your interest rate and an origination fee of 0.99%-8.99% of your loan amount that will be subtracted from any loan profits you get. Origination fees for the loan term 4-years or longer will be at minimum 4.99%. The length of your loan duration will affect your APR, which can be higher than our lowest advertised rate. You must have an at-least 700 FICO(r) score as well as a minimum individual annual income of $100,000 to be eligible to receive our lowest rate. Example: A 5-year $10,000 loan with 9.99% APR has 60 monthly scheduled payments of $201.81 and a three-year $5,000 loan with 7.99% APR has 36 scheduled monthly installments of $155.12. To assist the federal government in combating the financing 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 youis that when you sign up for an account, we’ll ask you for your name and address, as well as your date of birth, as well as other information that will allow the institution to verify your identity. We might also request to see your driver’s license or other documents that identify you. Best Egg products are not available for residents of Iowa, Vermont, West Virginia or West Virginia, 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 aspects we believe are consumer-friendly, including impact to credit score, rates and fees, the customer experience and responsible lending practices.
Est. APR 8.24 — 35.97%
Amount of loan: $1,000 – $50,000
Min. credit score 560
View more information
on the Upgrade’s website
View more information
Min. credit score 560
Important facts Upgrade applicants are able to repay their secured loans with a vehicle, the value of which factors into your rate.
Advantages of joint and secured loans.
Multiple rate discounts.
Mobile app for managing loan payments.
Direct payment to creditors using debt consolidation loans.
Repayment terms for home renovation loans.
Cons Origination fee.
No option to choose your payment date.
Qualifications Minimum credit score: 560. Minimum number of credit accounts on history: one account. Maximum ratio of debt to income: 75%, excluding that loan that you’re applying to. Minimum time period of your credit record: Two years. Minimum income requirement: None. Lender will accept income from alimony, retirement, child support and Social Security and various other sources.
Available Term Lengths from 2 to 7 years
Fees Origination fee: 1.85% to 8.99 Percentage. Late Fee: $10. Failed payment fee: $10.
Disclaimer Disclosure: Personal loans obtained through the Upgrade feature Annual Percentage Rates (APRs) that range from 8.24%-35.97%. All personal loans come with an 1.85% to 8.99 per cent origination charge that is taken out of the loan profits. The lowest rates are contingent on Autopay and paying off a portion of existing debt directly. The terms for repayment vary from 24 to 84 months. For instance, if you receive the $10,000 loan with a 36-month term and a 17.59 percent APR (which comprises a 13.94 percent annual rate of interest and an origination fee of 5% that is one-time fee), you would receive 9500 dollars in your account, and will be required to make a monthly installment of $341.48. Through the term of the loan you would pay amount to $12,293.46. The rate of interest for your loan could be different, or even lower and the loan offer may not come with multiple term lengths available. The rate you pay for your loan will depend on your the credit score, usage history, loan length, along with other factors. The late payment or the subsequent fees or charges may raise the price on your fixed rate loan. There is no fee or penalty for paying off the 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 algorithm takes into consideration factors we consider to be consumer-friendly, including impact to credit score, rates and fees, customer experience and responsible lending practices.
Est. APR 18.00 – 35.99%
Loan amount $1,500 – $20,000
Min. credit score None Average score is 600 – 700
View the full details
on OneMain Financial’s website
View the full details
Min. credit score None
The most important facts OneMain Secured loans require a vehicle as collateral. The borrower can also include a co-applicant to an application.
Pros Option to select and change the payment date.
Secured and joint loans.
Quick funding.
Direct payment to creditors on consolidating debt loans.
Cons Rates are higher in comparison to other lenders.
Charges charge for origination fees.
No rate discounts.
Pre-qualification doesn’t allow prospective borrowers to view rates.
Qualifications You must have an Social Security number or taxpayer identification number. The minimum age is 18 or over in most states. Minimum credit score: None. The minimum number of accounts on the credit reports: None, however, applicants who have no credit history might not qualify. Income minimum: none. This lender accepts earnings from alimony, employment, retirement, child support, Social Security payments, public assistance and investments.
Available Term Lengths 2 to 5 years
Fees Origination fee of $25-$500 or 1% to 10% on your loan amount. Late fee: $5 to $30 or 1.5 percent to 15 percent of your monthly payment. Non-sufficient funds fee $15.
Disclaimer: Not every applicant will be accepted. Approval of loan and loan terms are contingent on your ability to meet our standards for credit (including an established 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 greater loan amounts or most favorable loan terms. Higher loan amounts require a lien on a motor vehicle no more than ten years old and that meets our standards for value, and is registered in your name with current insurance. The approval of your loan and the actual loan terms are contingent on your state of residence and your ability to meet our standards for credit (including having a good credit history, a sufficient income following monthly expenses and collateral availability). APRs are generally higher on loans that are not secured by a vehicle. Highly-qualified applicants may be offered greater loan amounts and/or APRs that are lower than the ones that are listed above. OneMain charges origination fees where allowed by law. Based on the state in which you are opening your loan, the origination fee could be an amount that is fixed in addition to a portion of the loan amount. The amount of flat fees varies by state, and can range from $25 to $500. Percentage-based fees differ by state and range between 1% and 10 percent of your loan amount, subject to limitations on fees. Visit omf.com/loan-fees for more details. Loan proceeds cannot be utilized for educational costs postsecondary as per the CFPB’s Regulation Z such as college and university costs, or vocational expenses as well as for any other commercial or business purpose; to purchase cryptocurrency assets such as securities, derivatives, or other speculative investments; or to fund gambling or other illegal activities. In these states, borrowers must adhere to these minimal loan dimensions: Alabama: $2,100. California: $3,000. Georgia If you’re not an existing customer, $3100 minimum loan amount. North Dakota: $2,000. Ohio: $2,000. Virginia: $2,600. The borrower (other than present customers) in states like these are restricted to these maximum secured loan size: North Carolina: $7,500. Unsecured loan is a loan that does not require collateral (such as a motor vehicle) to the lender. Example Loan: A $6,000 loan with a 24.99 APR of 4% that is payable in 60 monthly installments, with monthly payment of $176.07. Time to Fund Loans: Funding must be made within one hour after closing through SpeedFunds is required to a debit card issued by a bank. Disbursement by check or ACH can take up to two business days following loan closing.
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 takes into account aspects we believe are consumer-friendly, including impact to credit score rates and fees, the customer experience and responsible lending practices.
Est. APR 6.70 + 18.00%
Amount of loan $500 – $50,000
Min. credit score of 660
View the full details
on NerdWallet’s secure site
View details
Min. credit score 660
The most important details First Tech members have access to secured loans backed by an CD or savings account. They can also access stocks.
Pros Co-sign, joint and secured loan options.
Direct payment to creditor with the debt consolidation loans.
You can choose to change the payment date.
Fast and 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 an active member of First Tech Federal Credit Union. Minimum credit score of 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: $700 if living with someone else or renting the property; or $1,500 if you own your own home. Minimum credit score: At least two credit accounts that are established.
Available Term Lengths from 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 NerdWallet’s ratings are determined through our team of editors. The scoring formula considers factors we consider to be beneficial to consumers, including the 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 the secure NerdWallet website.
View the full details
Min. credit score None
The key facts In addition non-secured loans, Navy Federal offers secured loans backed by a Navy Federal savings account or CD.
Pros Large range of loan amounts.
Fast funding.
Rate discount for some customers.
Secured, joint and co-sign loan options.
Direct payment to creditor with debt consolidation loans.
Cons Only available to credit union members.
There is no option to pre-qualify for a soft credit check.
There is no option to select or change the date of your payment.
Qualifications Must be a Navy Federal Credit Union member to apply. No minimum credit score requirement.
Available Term Lengths: 1 to 5 years
Fees Origination fee: None. Late fee is $29. Fee for returned payments $29.
>> COMPARE:
What is a secured personal loan?
Secured personal loan is a loan that you obtain by pledging something you own in exchange for borrowed money , which you will repay over time and 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 take it if you are unable to repay the loan. Once the loan is fully paid and the loan is paid in full, the lender no longer has the authority to take the collateral.
Like an unsecured loan credit score as well as income and other debts are still essential to getting approved for secured loan however, offering collateral decreases the risk to the lender. Additionally, the odds of getting approved are better with secured loans and the rate is usually lower.
>> MORE:
How can you obtain a secured loan
The procedure for getting secured loan is different depending on the kind of collateral you’re using but here are some of the steps you’ll take:
Inquire about the loan. Some lenders provide secured loans only after the applicant is not eligible for an unsecured loan. If you can’t pre-qualify with the lender or have an option for a secured loan option, ask the lender directly about secured loans.
Check your budget. Examine your cash flow to determine what you’re able to pay toward the loan every month. Use a to see what annually percentage rates, loan amount and repayment time you’ll need to make monthly payments affordable.
Select the right lender. Compare lenders to see what kinds of collateral they accept and what rates they are willing to offer.
Gather documents. Before you apply make sure you have the necessary documents that lenders require to make an application. These can include an ID issued by the government as well as bank statements, W-2s and pay stubs. It is also possible to require documents to secure collateral, such as a car title.
Apply. The majority of lenders accept online applications. After you have submitted your application, a decision on approval could be a few days or longer if a lender must assess the value of collateral.
>> MORE:
Pros and pros and loans
Consider the advantages of taking secured loan against the potential negatives prior to committing yourself to borrowing.
Pros
Better approval odds. An lender has a higher chance to approve an secured loan application.
Lower interest rates and higher loan amounts. Since the risk that you will lose money reduced for the lender you could be approved for a larger loan for a lesser rate.
Cons
The lender may use your collateral. If your car is collateral to an loan and you need it to travel to work, say the loss of it could place you in a worse situation than before you borrowed.
Not as accessible 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
Equity home loans and HELOCs The home equity loan or line of credit is a second mortgage that lets you access money based on the value of your home. Similar to the original mortgage, a lender can take your house in the event that you fail to repay.
>> MORE:
Auto-secured loans: With an auto-secured loan the lender considers information like the vehicle’s make, model, and year, along with your financial and credit score- to decide your rate. If you are approved, you hand the lender your car title and they return it when the loan is paid off. 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 at the bank, you might be eligible to make use of it as collateral for an individual loan. Rates are generally low generally starting at a few percentage points higher than the CD rate — and it’s one way to access funds without withdrawing the CD early and paying an interest.
401(k) loans: An employer-sponsored 401(k) plan could permit employees to borrow money from their retirement account in up to 5 years. Rates are usually low on 401(k) loans, but by borrowing money from the account, you’re missing out on market gains as well as compound interest earned from saving for retirement.
How do I get a secured personal loan
Banks: Most banks provide a savings or CD-secured loan. An account you already have at the bank is collateral, and you can’t have access to that money till the loan is paid back.
Credit unions: Certain credit unions provide share-secured loans that is a different name that refers to savings secured loans. Credit unions will store your savings as you pay the loan.
If your credit union does not provide these loans, you could qualify for an unsecured loan as Credit unions tend for having low requirements for borrowers and less restrictive APRs.
>> MORE:
Online lenders: The majority of online lenders offering secured loans require a vehicle to serve as collateral. Some lenders allow you to apply for the loan in advance, while others may show you the possibility only after you’ve attempted applying for an unsecure loan.
Some lenders let you examine your interest rate for an unsecured loan without affecting your credit, so it’s not hurt to compare the loan with several lenders.
You can use the NerdWallet lender marketplace to evaluate rates on unsecure loans.
Secured loans to prevent
: Pawnshops let you hand the cash you have in exchange for cash that you will have to pay back, usually within a few weeks. These loans may be a 200% APR and may be difficult to repay. If you don’t repay, the pawnshop will keep the item.
: These are high-interest, short-term loans typically of between a few hundred and a thousand dollars. Because they’re hard to repay on time, this kind of loan can lead to repeat borrowing, which can cause you to enter into the cycle of debt. Avoid auto-secured loans that have rates of more than 36%, which is the highest rate consumer advocates say an affordable loan can have.
>> MORE:
Last updated on December 13, 2022.
Methodology The review process of NerdWallet reviews and ranks personal loan products from over 35 banks. We collect more than 45 data points from each lender, interview company representatives and evaluate the lender to other lenders that are seeking the same type of customer or offer the same individual loan product. NerdWallet writers and editors conduct an exhaustive fact-check and update each year, but we also conduct updates throughout the year as necessary.
Our star ratings give points to lenders that offer consumers-friendly features such as soft credit checks to help you qualify with competitive interest rates and no charges, transparent rates and conditions, flexibility in payment methods, fast time to fund, easy customer service, reporting of payments to credit bureaus and financial education. We also take into consideration the regulatory actions taken by agencies like 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 the consumer’s experience.
This approach is only available to lenders who set interest rates at 36%, which is the maximum rate that most experts in the field and consumer advocates agree is the acceptable limit to consider the loan to be affordable. NerdWallet does not get paid for our star ratings. Find out more about our and our .
To recap our selections… NerdWallet’s Best Secured Personal Loans of 2023 : Best 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 from credit unions
Frequently asked questions What do you mean by a personal loan?
A secured personal loan is one type of loan that requires collateral -typically a car or bank account. Along with your credit and income The lender evaluates the value of the collateral in determining whether you are eligible and the amount they can loan you, as well as the rate of interest. You repay this type of loan in monthly fixed installments, similar to an unsecured loan. However, unlike an unsecured loan it is possible for the lender can take your collateral if you don’t pay.
Are secured loans more accessible?
Secured loans can be easier to get than secured loans because you pledge an asset you own as collateral for the loan, which the lender could take if you fail to repay it. This helps make your loan much less risky to the lender as criteria for credit and income are typically less stringent with a secured loan.
About Annie Millerbernd, author of Annie Millerbernd. She is an individual loans writer. Her work has appeared in The Associated Press and USA Today.
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