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The most secure personal loans of 2023
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BEST OF
The most secure personal loans of 2023
Secured personal loans allow you to borrow against the value of an asset such as car or savings. Secured loans may carry 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 may influence which products we write about as well as the place and way the product appears on an article. However, this doesn’t affect our opinions. Our opinions are entirely our own. Here’s a list and .
Most personal loans are not secured, which means they are based on creditworthiness. But if you can’t qualify for an unsecured loan or get the price you’d like for a bad credit loan or secured loan is one alternative.
This type of loan requires the pledge of collateral to obtain money. The disadvantage is that if you don’t make timely payments due to the lender may seize your assets.
Learn about secured and where to locate them, such as banks, online lenders and credit unions.
Be aware that the information provided by each lender is unique to the lender’s non-secured loans. Criteria for qualifying and loan details may differ in secured loans.
The majority of personal loans are secured, and approval is based on your creditworthiness. But if you can’t qualify for an unsecured loan or receive the interest you desire on a low-credit loan or secured loan is a viable option.
This type of loan requires you to pledge collateral in order to borrow money. The downside: If you fail to pay on time due to the lender may seize your assets.
Find out more about secured and where to locate them, such as online lenders, banks as well as credit unions.
Be aware that the information provided by each lender is specific to its unsecured loans. Qualification criteria and loan details may differ in secured loans.
Best Secured Personal Loans
Lender
NerdWallet rating NerdWallet’s ratings are set by our editorial staff. The scoring formulas take into account many data points for each financial product and service.
Est. APR
The loan amount
Min. credit score
Find out more
Best Egg on Best Egg’s website
Best for Secured loans from online lenders
8.99 – 35.99%
$2,000 – $50,000
600
on Best Egg’s website
Upgrade on Upgrade’s website
Best for Secured loans via online lending
8.24 – 35.97%
$1,000 – $50,000
560
on Upgrade’s website
OneMain Financial on OneMain Financial’s website
Best option for secured loans via online lending
18.00 – 35.99%
$1,500 – $20,000
None
The average score is 600 – 700
on the OneMain Financial website.
First Tech Credit Union Personal Loan via NerdWallet’s secure website
Best option for secured loans by credit unions
6.70 – 18.00%
$500 – $50,000
660
on the secure website of NerdWallet.
Navy Federal Credit Union Personal Loan through NerdWallet’s secure website
Best option for secured loans at credit unions
7.49 – 18.00%
$250 – $50,000
None
on NerdWallet’s secure website
Our top pick to secure loans via online lender
on Best Egg’s website
Best Egg 4.5 NerdWallet’s ratings are based on the opinions of the editorial staff of our website. The scoring formula considers factors we consider to be a good choice for consumers, such as the impact on credit scores, rates and fees customers’ experience, and responsible lending practices.
Est. APR 8.99 — 35.99 Percent
Loan amount $2,000 – $50,000
Min. credit score of 600
View details
on the Best Egg’s website
View the full details
Min. credit score 600
The key information Best Egg secured loans are similar to home equity loans but use items attached to your home rather than the home it self as collateral.
Pros provides a variety in loan amounts.
Offers a secured loan option for homeowners.
Offers direct payment to the debtors who have taken out the debt consolidation loans.
Cons Origination fee.
No rate discounts.
There is no choice to choose the first payment date.
Qualifications Minimum credit score: 600; the average of 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. The borrower should have sufficient cash flow to pay the current financial obligations. Maximum debt-to-income ratio: 40 percent or 65% if you include the mortgage. The borrower’s average is 40%. Employment: Must provide 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%. Refund fee: $15 in the event that payments are not processed.
Disclaimer *Trustpilot TrustScore as of June 2020. Best Egg personal loans, including the Best Egg Secured Loan, are provided by Cross River Bank, a New Jersey State Chartered Commercial Bank, member of the FDIC, Equal Housing Lender or Blue Ridge Bank, a Nationally Chartered Bank, Member FDIC, Equal Housing Lender. “Best Egg” is a trademark owned by Marlette Holdings, Inc., 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 originator of the Best Egg personal loan,” depending on the circumstances. The amount, term, and the APR for each loan we offer to you will be based on your credit score and income, as well as debt payment obligation, loan amount, credit history and other factors. Your loan agreement will contain specific terms and conditions. The majority of our customers receive their money on the same day. Once you have verified your identity, the cash will be transferred to the account of your bank account within 1-3 business days. The timing of available funds after loan approval can vary based on the policies of your bank. Loan amounts range between $2,000 and $50,000. Residents of Massachusetts have the minimum loan amount of $6500 ; New Mexico and Ohio, $5,000. Georgia is Georgia $3,000. For an additional Best Egg loan the total existing Best Egg loan balances must not exceed $100,000. Annual Percentage Rates (APRs) vary between 8.99%-35.99 percent. The APR is the price of credit as a yearly rate, and it is a reflection of the interest rate as well as the origination cost of 0.99%-8.99 percent of the loan amount, which will be deducted from any loan profits you get. The origination cost for an loan term 4-years or longer will be at minimum 4.99 percent. Your loan term will affect your APR, which may be higher than our lowest advertised rate. You must have an at-least 700 FICO(r) score as well as an annual income for you as an individual of $100,000 to qualify for our lowest APR. For instance, a five-year $10,000 loan with 9.99 percent APR comes with 60 monthly installments scheduled for $201.81 and a three-year five-figure loan with 7.99% APR has 36 scheduled monthly payments of $155.12. In order to assist the government in fighting the financing of terrorism and money laundering, Federal law requires all financial institutions to obtain, verify, and document information that can identify the person who creates an account. What this means for youis that when you open an account we will ask for your name and address, as well as your dates 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 licence or other documents that identify you. Best Egg products are not accessible if you reside in Iowa, Vermont, West Virginia or West Virginia, the District of Columbia, or U.S. Territories.
on the Upgrade’s website
Upgrade 5.0 NerdWallet’s ratings are determined 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, the customer experience and responsible lending practices.
Est. APR 8.24 — 35.97%
Loan amount $1,000 – $50,000
Min. credit score 560
View the full details
on the Upgrade’s website
View the full details
Min. credit score 560
Key facts Upgrade applicants can secure their loans by using a vehicle The value of which factors into your rate.
Pros Secured and joint loans.
Multiple rate discounts.
Mobile app for managing loan payments.
Direct payment to creditors using debt consolidation loans.
The terms of repayment for home improvement loans.
Cons Origination cost.
You cannot choose the payment date.
Qualifications Minimum credit score: 560. Minimum number of credit accounts on history: One account. Maximum debt-to-income ratio: 75%, excluding any loan you’re applying for. Minimum length of credit-related history two years. Minimum income requirement: None. Lender will consider retirement, alimony and child support as well as Social Security and various other sources.
Available Term Lengths from 2 to 7 years
Fees Origination Fee: 1.85% to 8.99 Percentage. Late Fee 10$. Fee for late payment 10 dollars.
Disclaimer Disclosure: Personal loans made through Upgrade have annual percentage rates (APRs) of 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 debt directly. Loans feature repayment terms of 24 to 84 months. For instance, if you get a 10,000 loan with a 36-month period 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), you would receive $9,500 to 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 interest rate on your loan may be higher or lower and the loan deals may not offer multiple term lengths offered. The rate you pay for your loan will depend on your credit score, credit use history loan duration, as well as other elements. The late payment or the subsequent charges and fees may increase the price of your fixed rate loan. There is no charge 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 site
OneMain Financial 4.0 NerdWallet’s ratings are determined by our editorial team. The scoring algorithm takes into consideration the factors we believe to be consumer-friendly, including impact to credit score, rates and fees, customer experience and responsible lending practices.
Est. APR 18.00 APR 18.00 – 35.99 percent
Loan amount $1,500 – $20,000
Min. credit score None Average score is 600 – 650
View the full details
on the OneMain Financial website.
View the full details
Min. credit score None
Key details OneMain secured loans require a vehicle as collateral. They can also apply for an additional co-applicant on the application.
Pros Option: Choose to modify the payment date.
Joint and secured loans.
Quick funding.
Direct payment to creditor on debt consolidation loans.
Cons Rates are high compared to other lenders.
Charges for origination fees.
No rate discounts.
Pre-qualification does not allow prospective borrowers to view rates.
Qualifications Must have an 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 on credit report: None however, applicants who have no credit history are unlikely to qualify. Income minimum: none; this lender will accept earnings from alimony, employment pension, child support, retirement, Social Security payments, public assistance and investments.
Available Term Lengths: 2 to 5 years
Fees Origination fee between $25 and $500 or 1to 10 percent on the loan amount. Late fee: $5 to $30 or 1.5% to 15 percent of your monthly payments. Fee for non-sufficient funds $15.
Disclaimer: Not every applicant will be accepted. Approval of loan and loan terms are contingent on your ability to meet our credit requirements (including an established credit history and a sufficient income after expenses per month, and the availability of collateral). If approved some applicants may not be eligible for greater loan amounts or favorable loan conditions. Higher loan quantities require lien on a motor vehicle that is not more than 10 years old, that meets our value requirements, titled in your name, and with current insurance. The loan approval process and loan terms depend on your state of residence and your ability to meet our credit standards (including having a good credit history, sufficient income after expenses paid monthly and collateral availability). APRs tend to be higher for loans not secured by vehicles. The most qualified applicants could be offered more loan amounts and/or APRs that are lower than the rates previously mentioned. OneMain offers origination fees when legal. Based on the state in which you are opening your loan the origination fee could be a flat amount as well as a proportion of your loan amount. The flat fee amount varies per state, ranging from $25 to $500. Percentage-based fees are different for each state, ranging from 1% to 10% of the loan amount subject to limitations on fees. Visit omf.com/loan-fees for more details. The loan proceeds are not used to pay for postsecondary education expenses as per the CFPB’s Regulation Z such as college or university expenses; for any commercial or business-related purpose; to purchase cryptocurrency assets, securities, derivatives or other speculative investments or to fund gambling or other illegal activities. In these states, borrowers are subject to the following minimum loan dimensions: Alabama: $2,100. California: $3,000. Georgia If you’re not a present customer, $3,100 minimum loan amount. North Dakota: $2,000. Ohio: $2,000. Virginia: $2,600. Borrowers (other than current customers) in these states are restricted to the following maximum unsecured loan size: North Carolina: $7,500. Unsecured loan is one type of loan that doesn’t require you to provide collateral (such as a motor vehicle) for the lender. Example: A $6,000 loan with an 24.99 APR, payable in 60 monthly installments will result in monthly payment of $176.07. Time to fund loans: Funding within one hour after closing through SpeedFunds must be disbursed to a debit card issued by the bank. The process of disbursement via cheque or ACH can take up to 1-2 business days after loan closing.
Our choice is for secured loans from credit unions
on NerdWallet’s secure site
First Tech Credit Union Personal Loan 5.0 NerdWallet’s ratings are set by our editorial staff. The scoring formula considers the factors we believe to be friendly to consumers, such as the impact on credit score rate and fees, customer experience and ethical lending practices.
Est. APR 6.70 — 18.00 Percent
Amount of loan $500 – $50,000
Min. credit score of 660
View details
on NerdWallet’s secure site
View the full details
Min. credit score 660
Key information First Tech members have access to secured loans that are secured by the CD, savings account or stocks.
Pros Co-signing, joint and secured loan options.
Direct payment to creditors with the debt consolidation loans.
Choices to select and alter your payment date.
Fast and quick funding.
Cons Exclusive for members of credit unions.
Pays only one of the three major credit bureaus.
No rate discount.
Qualifications Must be an active participant in First Tech Federal Credit Union. Minimum credit score is 660. Must provide 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 Renting; $1,000 or owning your home. Minimum credit history: At least two credit accounts that are established.
Available Term Lengths from 2 to 7 years
Fees Origination fee: None. Late fee: Vary. Returned check fee $28.
on the secure website of NerdWallet.
Navy Federal Credit Union Personal Loan 5.0 NerdWallet’s ratings are compiled by our editorial team. The scoring formula considers aspects we consider 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
Amount of loan: $250 – $50,000
Min. credit score None
View more information
on the secure website of NerdWallet.
View details
Min. credit score None
Important facts In addition to unsecured loans, Navy Federal offers secured loans that are backed by an account called a Navy Federal savings account or CD.
Pros A wide selection of loan amounts.
Fast and quick funding.
Discount on rates for certain customers.
Co-sign, joint and secured loan options.
Direct payment to creditor with debt consolidation loans.
Cons Exclusive to credit union members.
No option to pre-qualify with the use of a soft credit test.
There is no option to select or change the date of your payment.
Qualifications Must be an Navy Federal Credit Union member to be eligible. No minimum credit score requirement.
Available Term Lengths 1 to 5 years
Fees Origination fee: None. Late fee: $29. Returned payment fee: $29.
>> COMPARE:
What exactly is a personal loan?
Secured personal loan is an loan you get by pledging something that you have in exchange for money that you repay over time and with interest.
Lenders have the right to seize your collateral- a vehicle or money in a savings or savings account, for example — but they’ll only take it if you are unable to repay the loan. After the loan is fully paid and the loan is paid in full, the lender no longer has the power to take your collateral.
Similar to an unsecure loan credit or income, as well as other debts are still essential to obtaining a secured loan however, offering collateral lowers the risk to the lender. The odds of approval are better with secured loans and the rate generally lower.
>> MORE:
How do you get a secured loan
The process of getting secured loan will differ based on the type of collateral you’re using, however, here are the steps you’ll need to take:
Inquire regarding the loan. Some lenders provide secured loans only after the applicant has not been approved for an unsecured loan. If you aren’t able to pre-qualify with the lender, or you don’t see an option for a secured loan alternative, contact the lender directly about secured loans.
Check your budget. Review your cash flow to discover the amount you’re able to put towards the loan every 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 within your budget.
Choose the right lender. Compare lenders to see what types of collateral they accept and the rates they will offer.
Gather the necessary documents. Before you apply, gather the documents most lenders require in order to submit an application. This could include the ID of a government official and Bank statements, W-2s and pay stubs. You may also need documents for the collateral, such as an auto title.
Apply. The majority of lenders accept online applications. Once you submit, an approval decision may take several days or more if the lender has to assess the collateral’s value.
>> MORE:
Pros and negatives of secured loans
Weigh the benefits of getting a secured loan against the possible drawbacks before you borrow.
Pros
Better approval odds. An lender is more likely to accept an secured loan application.
Lower interest rates and greater loan amounts. Because the risk of losing money is lower for the lender, you may get a larger loan at a lower interest.
Cons
The lender might use your collateral. If your vehicle is collateral for the loan and you need it to get to work, for example you lose it, it could put you in a more difficult situation than when you took out the loan.
Not as accessible as loans that are not unsecured loans. Many banks, credit unions and online lenders only offer unsecured loans.
>> MORE:
Secured loan examples
Home equity loans and HELOCs The house equity loan or line of credit is a mortgage that allows you to access money based on the value the home. Similar to the original mortgage, a lender can take your house if you don’t repay.
>> MORE:
Auto-secured loans If you have an auto-secured loan, the lender will take into consideration information such as the vehicle’s make, model, and year — as well as your credit and finances — to decide your rate. If you are approved, you hand the lender your vehicle’s title, and they will return it after it is loan is paid back. These are different from auto title loans, which can have triple-digit APRs (more about them below).
CD loans: If you have an account with an institution, you may be able to use it as collateral for an individual loan. Rates are generally low the average, starting just a couple of percentage points higher than the CD rate — and it’s a method of accessing funds without having to cash out the CD before the due date and incurring an interest.
401(k) loans: An employer-sponsored 401(k) plan may allow employees to draw funds from their retirement accounts in up to 5 years. There are generally low rates on 401(k) loans, but when you borrow from the account, you’re losing the market’s gains and compound interest from saving for retirement.
How do I get an secured personal loan
Banks: Banks typically offer a savings- or CD-secured loan. An account that you have at the bank is collateral and you won’t be able to use that account up until loan is repaid.
Credit unions: Certain credit unions provide share-secured loans that is a different term for savings-secured loans. Credit unions will keep your savings while you repay the loan.
In the event that your financial institution does not provide these loans, you could qualify for an unsecured loan due to the fact that credit unions are known for having softer borrower requirements and lower APRs.
>> MORE:
Online lenders: Most online lenders that provide secured loans require a car as collateral. Some let you apply for this loan at the beginning, while others might offer you the possibility after having tried applying for an unsecured loan.
Many lenders let you check your rate on an unsecured loan without affecting your credit score, therefore it’s not hurt to compare the with multiple lenders.
You can use the NerdWallet lender marketplace to compare rates on unsecured loans.
Secured loans to help avoid
: Pawnshops let you hand over valuables to get cash which you will have to pay back, usually within a few weeks. These loans could have 200% APRs and can be difficult to pay back. If you fail to pay back, the pawnshop can retain your possession.
High-interest short-term loans typically of between a few hundred and a thousand dollars. Because they’re hard to repay on time, this type of loan can encourage repeat borrowing, and cause you to enter into an unsustainable cycle of debt. Avoid auto-secured loans with rates above 36%, which is the highest rate that consumers believe an affordable loan could have.
>> MORE:
Updated on December 13, 2022
Methodology The review process of NerdWallet evaluates and rates personal loan products from more than 35 banks. We collect over 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 customer or offer similar personal loan product. NerdWallet editors and writers carry out thorough fact checks and review each year. We also make updates every year when needed.
Our star ratings award points to lenders that offer consumers-friendly services, such as soft credit checks to pre-qualify with competitive interest rates and no fees, transparency of rates and conditions as well as various payment choices, quick time to fund, easy customer support, and reporting of payment information to credit bureaus as well as financial education. We also look at regulatory actions filed by agencies such as Consumer Financial Protection Bureau. Consumer Financial Protection Bureau. We evaluate these aspects based on our assessment of which ones are the most important to consumers and the impact they have on the consumer’s experience.
This method is only applicable to lenders that set the interest rate at 36%. This is the highest rate that financial experts and consumer advocates agree is the acceptable limit to consider a loan in order to make it affordable. NerdWallet does not receive compensation for our star rating. Read more about our and our .
To recap our selections… NerdWallet’s Best Secured Personal Loans for 2023 : Best Secured loans from online lenders : The best for Secured loans from online lenders : Best for Secured loans from online lenders: The best for Secured loans from credit unions : Best for Secured loans by credit unions
Frequently asked questions What are the definitions of a secure personal loan?
Secured personal loan is an loan that requires collateral -typically a vehicle or bank account. Apart from your credit and income, the lender examines the worth of the collateral to determine whether you’re eligible for the loan, and how much they will loan you, as well as your interest rate. You repay this type of loan in fixed monthly installments, much like an unsecure loan. However, unlike an unsecured loan it is possible for the lender may use your collateral should you do not pay back.
Are secured loans more accessible?
Secured loans can be easier to obtain than secured loans because you offer the collateral of something you own to secure the loan that the lender could take if you do not repay the loan. This means that the loan much less risky to the lender and therefore the criteria for credit and income are generally less strict with a secured loan.
About Annie Millerbernd, the author is an individual loans writer. Her writing has been featured in The Associated Press and USA Today.
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