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Best Secured Personal Loans of 2023

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The most secure personal loans of 2023

Secured personal loans permit you to borrow against the value of an asset like car or savings. Secured loans may carry lower interest rates, but they also come with risk.

By Annie Millerbernd

Dec 13, 2022

Many or all of the products featured here are from our partners who pay us. This may influence which products we write about and the location and manner in which the product is featured on a page. But, it doesn’t influence our assessments. Our opinions are our own. Here’s a list and .

The majority of personal loans are not secured, which means approval is based on your creditworthiness. If you’re not eligible for an unsecured loan, or you don’t get the rate you want on a low-credit loan then a secured loan is a viable option.

This type of loan requires you to pledge collateral to secure money. The drawback is that if you fail to pay on time, the lender could seize your property.

Here’s what to know about secured and where to look for them, including banks, online lenders as well as credit unions.

Be aware that the information provided by each lender is unique to the lender’s unsecured loans. The criteria for qualification and loan information may be different when it comes to secured loans.

Most personal loans are not secured, which means 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 on a low-credit loan or secured loan is one alternative.

This type of loan requires you to pledge collateral in order to get money. The drawback is that if you don’t pay your loan on time, the lender may seize your assets.

Learn about secured and how 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 secured loans. Qualification criteria and loan information may differ for secured loans.

Best Personal Loans Secured


NerdWallet rating The ratings of NerdWallet are set by our editorial staff. The scoring formulas are based on multiple data points for each financial product and service.

Est. APR

The loan amount

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


on the website of Best Egg.

Upgrade on Upgrade’s website

Best for Secured loans from online lenders

8.24 – 35.97%

$1,000 – $50,000


on Upgrade’s website

OneMain Financial on OneMain Financial’s website

Best to Secured loans from online lenders

18.00 – 35.99%

$1,500 – $20,000


Average score is 600 – 600 –

on OneMain Financial’s site

The 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


on the secure website of NerdWallet.

Navy Federal Credit Union Personal Loan through NerdWallet’s secure website

Best to Secured loans at credit unions

7.49 – 18.00%

$250 – $50,000


on NerdWallet’s secure website

Our pick of Secured loans from online lenders

on the website of Best Egg.

Good Egg 4.5 NerdWallet’s scores are determined by Our editorial department. The scoring formula takes into account the factors we believe to be a good choice for consumers, such as the impact on credit score, rates and fees, customer experience and ethical lending practices.

Est. APR 8.99 — 35.99%

Amount of loan $2,000 – $50,000

Min. credit score of 600

View details

on the Best Egg’s website

View more information

Min. credit score 600

Key details Best Egg secured loans are similar to home equity loans but they are secured by items to your home, rather than the property that is the collateral.

Pros offers a wide variety in loan amounts.

Secured loan option for homeowners.

Offers direct payment to customers with the debt consolidation loans.

Cons Origination cost.

No rate discounts.

There is no choice to choose the first payment date.

Credit Score Minimum: 600; borrower average 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. The borrower should have sufficient cash flow to cover 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 show evidence of income; part-time employees are eligible. Must provide valid U.S. address and Social Security number.

Available Term Lengths of 3 to 5 years

Fees Origination fee: 0.99% – 8.99%. Refund fee: $15 in the event that payments are not completed.

Disclaimer *Trustpilot TrustScore as of June 2020. Best Egg personal loans, including the Best Egg Secured Loan, are offered through Cross River Bank, a New Jersey State Chartered Commercial Bank that is a 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 company. The use 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,” as applicable. The amount, term, and rate of interest for any loan we offer to you will depend on your credit score your income, debt repayment commitments, loan amount, credit history, and many other variables. The loan agreement will have specific conditions and terms. About half of our customers get their money the next day. Following successful authentication, your funds can be deposited in the account of your bank account within 1-3 business days. The amount of funds available following loan approval may vary depending upon your bank’s policies. The amount of loans ranges between $2,000 and $50,000. Residents of Massachusetts have an initial loan amount of $6,500 ; New Mexico and Ohio, $5,000; and Georgia, $3,000. For the second Best Egg loan the total current Best Egg loan balances cannot exceed 100,000. Annual Percentage Rates (APRs) vary between 8.99%-35.99 percent. The APR is the cost of credit per year at a rate and includes the interest rate you pay and an origination fee of 0.99%-8.99 percent of your loan amount to be taken from any loan funds you receive. The origination fee on an loan duration of 4 years or more will be at minimum 4.99 percent. Your loan term 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 to qualify to receive our lowest rate. For example: a 5-year 10,000 loan with 9.99% APR has 60 scheduled monthly payments of $201.81 and a three-year loan of $5,000 loan with 7.99 APR, which is a.75% rate, has 36 monthly scheduled payments of $155.12. To help the government fight the financing of terrorists and money laundering, Federal law requires all financial institutions to gather verification, confirm, and document information that can 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, address, date of birth, and other information that allows us to identify you. We may also ask to see your driver’s license or other identification documents. Best Egg products aren’t accessible if you reside in Iowa, Vermont, West Virginia and in the District of Columbia, or U.S. Territories.

on the website of Upgrade.

Upgrade 5.0 NerdWallet’s ratings are determined by our editorial team. The scoring algorithm takes into consideration aspects we believe are consumer-friendly, including impact to credit score rate and fees, customer service 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 Upgrade’s website

View more information

Min. credit score 560

Key facts Upgrade applicants can back their secured loans by using a vehicle and the worth of that is a factor in your rate.

The pros of secured and joint loans.

Multiple rate discounts.

Mobile app for managing loan payments.

Direct payment to creditors with debt consolidation loans.

Repayment terms for home improvement loans.

Cons Origination fee.

No option to choose your payment date.

Qualifications Minimum credit score 560. Minimum amount of credit accounts in your history: one account. Maximum debt-to-income ratio: 75%, including the loan that you’re applying to. Minimum length of your credit record: two years. Minimum income requirement: None. Lender will accept income from retirement, alimony and 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%. Late Fee: $10. Fee for late payment 10 dollars.

Disclaimer Personal loans that are made using the Upgrade feature Annual Percentage Rates (APRs) between 8.24%-35.97%. All personal loans include a 1.85% to 8.99 per cent origination charge that is taken out of the loan proceeds. The lowest rates are contingent on Autopay and the payment of a portion of existing debts directly. These loans have repayment terms of 24 to 84 months. As an example, if get 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 interest rate and a 5% one-time origination fee), you would receive $9,500 to your account and will be required to make a monthly installment of $341.48. Over the life of the loan the payments would total $12,293.46. The APR on your loan may be different, or even lower and your loan offer may not come with various lengths of term available. The rate you pay for your loan will depend on your credit score, credit use history loan term, and other factors. In the event of late payments, additional fees and charges could increase the price of your fixed rate loan. There is no fee or penalty for paying off a loan early. Personal loans are provided by Upgrade’s bank partners. Information on Upgrade’s bank partners can be found at https://www.upgrade.com/bank-partners .

on OneMain Financial’s website

OneMain Financial 4.0 NerdWallet’s ratings are evaluated by our editorial staff. The scoring algorithm takes into consideration aspects we believe are consumer-friendly, including impact to credit score rates and fees, customer experience and ethical lending practices.

Est. APR 18.00 – 35.99 Percent

Loan amount $1,500 – $20,000

Min. credit score None Average score is 600 – 500

View the full details

on OneMain Financial’s site

View details

Min. credit score None

Key information OneMain Secured loans require a vehicle to serve as collateral. The borrower can also include an applicant who is a co-applicant.

Pros Option: Choose to alter the payment date.

Secured and joint loans.

Fast and quick funding.

Direct payment to the creditors of the consolidation of debt loans.

Cons Rates are higher as compared to other lenders.

Charges origination fee.

No rate discounts.

Pre-qualification does not allow the borrower to see rates they might be able to afford.

Qualifications You must have an Social Security number or taxpayer identification number. Must be 18 or older in most states. Minimum credit score zero. Minimum number of accounts on credit report: None, however applicants with no credit history may not be considered. The minimum income is none. This lender will accept earnings from alimony, employment, retirement, child support, Social Security payments, investments and public assistance.

Available Term Lengths: 2 to 5 years

Fees Origination Fee between $25 and $500 or 1to 10 percent on your loan amount. Late fee: $5-$30 or 1.5 percent to 15 percent of your monthly payment. Non-sufficient funds fee: $15.

Disclaimer Not every applicant will be accepted. Loan approval and actual loan terms are contingent upon the ability of you to satisfy our credit standards (including a responsible credit history as well as a steady income following the month’s expenses, and the ability to provide collateral). If approved some applicants may not be eligible for higher loan amounts or most favorable loan conditions. Higher loan amounts require a first lien on a motor vehicle that is not more than 10 years old, that meets our standards for value, and is registered in your name, and with current insurance. Loan approval and actual loan conditions are contingent upon your residence state and your capacity to meet our credit requirements (including an established credit history, sufficient income after expenses paid monthly and the availability of collateral). APRs tend to be higher for loans that are not secured by the vehicle. For applicants who are highly qualified, they may receive more loan amounts and/or lower APRs than those previously mentioned. OneMain offers origination fees when legal. Depending on the state where you take out your loan the fee for origination may be either flat as well as a proportion of the loan amount. The flat fee amount varies per state, and range from $25 to $500. Percentage-based fees differ by state ranging from 1% to 10 percent of your loan amount, subject to state restrictions on the fees. Visit omf.com/loan-fees to learn more. Loan proceeds cannot be used for postsecondary educational expenses as per the CFPB’s Regulation Z such as college and university costs, or vocational expenses; for any business or commercial purpose; to purchase cryptocurrency assets, securities, derivatives or any other investment that is speculative in nature as well as to fund gambling or other illegal activities. The states in which these loans are offered must adhere to these minimal loan dimensions: Alabama: $2,100. California: $3,000. Georgia If you’re not an existing customer, $3100 minimal loan amount. North Dakota: $2,000. Ohio: $2,000. Virginia: $2,600. The borrower (other other than existing customers) in states like these are subject to the following maximum secured loan dimensions: North Carolina: $7,500. An unsecured loan is an unsecure loan which does not need you to offer collateral (such as the motor vehicle) to the lender. Example Loan: A $6,000 loan with a 24.99 APR, payable in 60 monthly installments would have monthly payment of $176.07. Time to Fund Loans: Funding within one hour after closing through SpeedFunds should be made available to a bank-issued debit card. The process of disbursement via cheque or ACH can take up to two business days following loan closing.

Our choice for Secured loans by credit unions

on NerdWallet’s secure website

First Tech Credit Union Personal Loan 5.0 NerdWallet’s ratings are evaluated by our editorial team. The scoring algorithm takes into consideration aspects we believe are consumer-friendly, including impact to 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 660

View more information

on the secure website of NerdWallet.

View the full details

Min. credit score of 660

Key details First Tech members have access to secured loans which are backed by an CD, savings account or stocks.

Pros Co-sign, joint and secured loan options.

Direct payment to creditor with credit consolidation loans.

Options to choose and change the date of your payment.

Fast funding.

Cons Only available for members of credit unions.

Payments are reported to one credit bureau out of three.

No rate discount.

Qualifications Must be an active member of First Tech Federal Credit Union. Minimum credit score: 666. You must provide a Social Security number and driver’s license or other state-issued ID. Maximum debt-to-income ratio: 50%. Minimum monthly income of $700 if living with others Renting; $1,000 or owning your own home. Minimum credit score: At minimum two accounts with a history of being established.

Available Term Lengths 2 to 7 years

Fees Origination fee: None. Late fee: varies. Check returned fee: $28.

on the secure website of NerdWallet.

Navy Federal Credit Union Personal loan 5.0 The ratings of NerdWallet are determined through our team of editors. The scoring formula considers aspects we consider to be a good choice for consumers, such as impact to credit score, rates and fees, customer experience and ethical lending practices.

Est. APR 7.49 – 18.00 Percentage

Amount of loan: $250 – $50,000

Min. credit score None

View more information

on the secure website of NerdWallet.

View more information

Min. credit score None

Key facts In addition to non-secured loans, Navy Federal offers secured loans secured by a Navy Federal savings account or CD.

Pros Large range in loan amounts.

Quick funding.

Rate discount for some customers.

Co-signing, joint and secured loan options.

Direct payment to creditors with credit consolidation loans.

Cons Only available for members of credit unions.

There is no option to pre-qualify for the use of a soft credit test.

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 requirement.

Available Term Lengths 1 – 5 years

Fees Origination fee: None. Late fee of $29. Fee for returned payments of $29.


What exactly is a personal loan?

Secured personal loan is an loan that you obtain by pledging something you have in exchange for money , which you will repay in time, paying interest.

Lenders have the right to acquire your collateralfor example, a car or funds in a savings or savings account, for instance — however, they’ll only do it if you don’t pay back the loan. Once the loan is paid in full, the lender is no longer able to exercise the power to take your collateral.

As with an unsecured loan, your credit, income and other debts remain central to getting a secured loan, but offering up collateral lowers the risk to the lender. Additionally, the odds of getting approved are better with secured loans and the rate is typically lower.

>> MORE:

How can you obtain a secured loan

The process of getting secured loan is different according to the type of collateral you’re applying for, but here are the steps you’ll need to take:

Ask regarding the loan. Some lenders offer secured loans only if the applicant does not for an unsecured loan. If you can’t pre-qualify with the lender or have any secured loan alternative, contact 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. Use a to see what annually percentage rates, loan amount and repayment time you’ll need to make monthly payments within your budget.

Select one lender. Compare lenders to see what kind of collateral they will accept and what rates they are willing to offer.

Gather documents. Before applying make sure you have the necessary documents that lenders require for an application. This could include a government-issued ID, statement from your bank, W-2s and pay stubs. You may also need documents to secure collateral, like the title to your car.

Apply. The majority of lenders accept online applications. After you’ve submitted your application your application, a decision on approval could take several days, or even longer if a lender must assess the value of collateral.

>> MORE:

Pros and cons of secured loans

Compare the benefits of getting secured loan against the possible drawbacks before you borrow.


Better approval odds. A lender will be more inclined to accept secured loan application.

Lower interest costs and higher loan amounts. Because the risk that you will lose money reduced for the lender the loan may be granted a bigger loan at a lower cost.


The lender may use your collateral. If your car is collateral for the loan and you’re in need of it in order to go to work, say you lose it, it could put you in a worse situation than you were before borrowing.

Not as readily available as the 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 A line of credit or home equity loan or line of credit is a second mortgage that allows you to access cash based on the value that your house. As with the initial 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 takes into account information such as your car’s model, make and year — along with your credit score and financial situationto determine your rate. If they approve, you give the lender your vehicle’s title, and they return it when the loan is paid off. These are different from auto title loans that can come with triple-digit APRs (more about them below).

CD loans If you own an account with the bank, you might be eligible to utilize it as collateral to secure a personal loan. The rates are typically low — typically starting at a few percentage points higher than the CD rate — and it’s one way to access funds without having to withdraw the CD before the due date and incurring an interest.

401(k) loans: An employer-sponsored 401(k) plan may allow employees to borrow from their retirement accounts for up to five years. The rates are typically low for 401(k) loans, but when you borrow from the account, you’re losing out on the gains in the market and compound interest from the retirement funds.

Where to get an secured personal loan

Banks: Banks typically provide 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 access that money up until loan is repaid.

Credit unions: Some credit unions provide share-secured loans which is a different name used to describe savings-secured loans. They will keep your savings as you pay the loan.

In the event that your financial institution does not offer theseloans, you might be eligible for an unsecure loan as Credit unions tend to have less stringent requirements for borrowing and lower APRs.

>> MORE:

Online lenders: The majority of online lenders that provide secure loans require a vehicle to serve as collateral. Some allow you to apply for the loan in advance, while other lenders may offer the possibility only after you’ve tried applying for an unsecured loan.

A lot of lenders allow you to check your rate on an unsecured loan without impacting your credit, so it doesn’t hurt to take the loan with several lenders.

You can use the NerdWallet lender marketplace to compare rates on unsecured loans.

Secured loans to avoid

: Pawnshops let you hand your valuables to them to get cash which you have to repay within a couple of weeks. These loans may have 200% APRs and can be difficult to pay back. If you do not repay, the pawnshop will retain your possession.

High-interest short-term loans typically ranging from several hundred or thousands of dollars. Because they’re hard to repay on time, this kind of loan can lead to repeat borrowing, which can result in the cycle of debt. Avoid auto-secured loans with rates that exceed 36%, the most expensive rate that consumers believe an affordable loan can have.

>> MORE:

The last update was on December 13, 2022

Methodology NerdWallet’s review process examines and scores personal loan products from over 35 institutions. We collect more than 45 points of data from every lender and interview representatives from the company and compare the lender with others that seek the same type of customer or offer similar to a personal loan product. NerdWallet writers and editors conduct a full fact check and update each year, but we also conduct updates every year when needed.

Our star ratings give points to lenders who provide consumers-friendly features such as soft credit checks to pre-qualify, competitive interest rates and no charges, transparency of rates and conditions, flexible payment options, fast funding times, accessible customer service, and reporting of payment information to credit bureaus, and financial education. We also look at regulatory actions filed by agencies such as that of the Consumer Financial Protection Bureau. We assess these elements in accordance with our analysis of which ones are the most significant to consumers and the impact they have on consumers’ experiences.

This method is only applicable to lenders that set interest rates at 36%, the highest rate that experts in the field and consumer advocates are in agreement with as the ideal rate to consider the loan that is affordable. NerdWallet does not receive compensation for our star rating. Find out more about our and our .

To summarize our choices… NerdWallet’s Top Secured Personal Loans for 2023: Best for Secured loans from online lenders: Best for Secured loans from online lenders : The best for Secured loans from online lenders : Best for Secured loans from credit unions: Best in Secured loans from credit unions

Commonly asked questions What do you mean by a personal loan?

An secured personal loan is one type of loan which requires collateraltypically a vehicle or bank account. Apart from your credit score and income The lender considers the value of the collateral in determining whether you are eligible and the amount they can loan you, as well as your interest rate. You repay this type of loan in fixed monthly installments, much like an unsecured loan. However, unlike an unsecured loan, the lender may use your collateral should you do not pay back.

Are secured loans easier to get?

Secured loans are easier to obtain than other loans since you can use something you own as collateral to secure the loan, which the lender can take if you don’t repay the loan. This makes the loan more secure for the lender and therefore the criteria for credit and income are usually softer on a secured loan.

About Annie Millerbernd, author of Annie Millerbernd. She is a private loans writer. Her writing has been featured on The Associated Press and USA Today.

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