Annie Millerbernd
Kim Lowe
Secured personal loans let borrowers pledge collateral in order to borrow money. The best secured loans have low minimum credit score requirements that help you qualify and get the money you need.
Checking rates is free and won't impact your credit score.
Best for Secured loans from online lenders
2025 NerdWallet award winner
7.74 - 35.99%
$1K - $50K
600
2 to 7 years
Upgrade accepts lower credit scores than similar lenders, and it offers multiple rate discounts for its personal loans.
Read our review of UpgradeUpgrade accepts lower credit scores than similar lenders, and it offers multiple rate discounts for its personal loans.
Read our review of UpgradeBest for Secured loans from online lenders
6.99 - 35.99%
$2K - $50K
600
3 to 5 years
Best Egg is worth considering for borrowers looking for a secured loan or to consolidate debt.
Read our review of Best EggBest Egg is worth considering for borrowers looking for a secured loan or to consolidate debt.
Read our review of Best EggBest for Secure loans from online lenders
35.95 - 35.95%
$300 - $10K
None
1 to 5 years
Oportun loans may be a fit for borrowers with no credit history looking to cover a small expense or emergency.
Read our review of OportunOportun loans may be a fit for borrowers with no credit history looking to cover a small expense or emergency.
Read our review of OportunBest for Secured loans from online lenders
18.00 - 35.99%
$1.5K - $20K
None
2 to 5 years
OneMain prioritizes a borrower’s ability to repay on a loan application. Rates are high, but this lender provides fast funding to borrowers with low credit scores.
Read our review of OneMain FinancialOneMain prioritizes a borrower’s ability to repay on a loan application. Rates are high, but this lender provides fast funding to borrowers with low credit scores.
Read our review of OneMain FinancialBest for Secured loans from online lenders
6.70 - 35.99%
$1K - $75K
None
3 to 5 years
Upstart personal loans offer fast funding and may be an option for borrowers with low credit scores or thin credit histories. Upstart is a solid financing choice for large purchases.
Read our review of UpstartUpstart personal loans offer fast funding and may be an option for borrowers with low credit scores or thin credit histories. Upstart is a solid financing choice for large purchases.
Read our review of UpstartBest for Secured loans from credit unions
8.99 - 18.00%
$250 - $50K
None
6 months to 5 years
Navy Federal Credit Union offers flexible personal loans to military members, veterans and their families.
Read our review of Navy Federal Credit Union Personal LoanNavy Federal Credit Union offers flexible personal loans to military members, veterans and their families.
Read our review of Navy Federal Credit Union Personal LoanOur team of consumer lending experts follows an objective and robust methodology to rate lenders and pick the best.
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Lenders reviewed
We review over 35 lenders, including major banks, top credit unions, leading digital platforms, and high interest installment lenders operating across multiple states.
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Each lender is evaluated across five weighted categories and 27 subcategories, covering affordability, eligibility, consumer experience, flexibility, and application process.
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Data points analyzed
Our team tracks and reassesses hundreds of data points annually, including APR ranges, fees, credit requirements, and borrower tools, ensuring up to date, accurate comparisons.
We evaluate more categories than competitors and carefully weigh how each factor impacts your experience.
NerdWallet’s review process evaluates and rates personal loan products from more than 30 financial technology companies and financial institutions. We collect over 60 data points and cross-check company websites, earnings reports and other public documents to confirm product details. We may also go through a lender’s pre-qualification flow and follow up with company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
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Note that the information for each lender is specific to its unsecured loans. Qualification criteria and loan details may differ for secured loans.
A secured personal loan is a loan you get by providing something you own, typically a vehicle or savings account, in exchange for borrowed money that you repay over time. If you fail to repay the funds, the lender can take your collateral in lieu of repayments.
Secured loan amounts are typically from a few hundred dollars to $50,000 and may be tied to the value of your collateral. Annual percentage rates are from 6% to 36% and repayment terms are from one to seven years.
» LEARN MORE: What is a secured loan?
To get a secured loan, your collateral must meet a lender’s requirements. For example, you usually have to own your car to get an auto-secured personal loan. A lender may require that your pledged investment or savings account have a certain dollar value. Typically, the collateral’s value must be equal to or greater than the loan amount.
Like an unsecured loan, your credit, income and other debts are central to getting approved for a secured loan, but offering collateral lowers the risk to the lender. In turn, approval odds can be better for secured loans, and the rate is typically lower.
» MORE: Secured vs. unsecured loans: What’s the difference?
If you qualify, the lender will place a lien on your collateral, which may give them the right to take it if you fail to repay the loan.
Secured loans are typically repaid in equal monthly installments, and most lenders report payments to the three major credit bureaus — Equifax, Experian and TransUnion. This means if you stop making payments, you risk losing the collateral and your credit score will likely drop.
Once the loan is repaid, the lender no longer has the right to take your collateral.
A home equity loan or line of credit is a second mortgage that lets you access cash based on the value of your home. As with the initial mortgage, a lender can take your house if you don’t repay.
» MORE: HELOC vs. home equity loan
With an auto-secured loan, the lender considers information like the car’s make, model and year — in addition to your credit and finances — to decide your rate. If approved, you send the lender your title and they return it once the loan is paid off. These are different from auto title loans, which can have triple-digit APRs (more on those below).
If you have a certificate of deposit with a bank, you may be able to use it as collateral for a personal loan. Rates are usually low on CD loans — typically starting a couple of percentage points above the CD rate — and it’s one way to access funds without withdrawing the CD early and paying a penalty.
An employer-sponsored 401(k) plan may allow employees to borrow from their retirement account for up to five years. Rates are usually low on 401(k) loans, but by borrowing from the account, you’re missing out on market gains and compound interest from your retirement savings.
Pawnshops let you hand over valuables in exchange for cash that you must typically pay back within a couple of weeks. Short repayment terms and APRs up to 200% may make pawn loans difficult to repay. If you fail to repay this loan, the pawnshop will keep your item.
These are high-interest, short-term loans of usually a few hundred or thousand dollars. Because they’re often difficult to repay on time, car title loans can encourage repeat borrowing, which can lead you into a debt cycle. Avoid auto-secured loans with rates above 36%, which is the highest rate consumer advocates say an affordable loan can have.
Weigh the benefits of getting a secured loan against the potential drawbacks before you borrow.
Banks: Secured loans from banks are usually backed by a savings or CD account you already have with the bank. You can’t access that money until the loan is repaid.
» MORE: Best bank loans
Credit unions: Some credit unions offer share-secured loans, which is another term for savings-secured loans. The credit union will hold onto your savings while you repay the loan.
If your credit union doesn’t offer these but your credit score is somewhat low, you may still qualify for an unsecured loan, because credit unions are known to have softer borrower requirements and lower APRs than other types of lenders.
» MORE: Top credit unions for personal loans
Online lenders: Most online lenders that provide secured loans require a vehicle as collateral. Some let you apply for this loan upfront, but others may show you the option only after you’ve tried applying for an unsecured loan.
» MORE: Compare the best online loans
Many lenders let you pre-qualify to check your rate on an unsecured loan without affecting your credit, which may help you decide between secured and unsecured loans.
The process for getting a secured loan can vary based on the type of collateral you’re using, but here are some of the steps you’ll take:
» MORE: How to get a personal loan
If you have bad credit (a score in the high 500s or lower), here are a few tips to prepare for a secured loan application.
Because secured loans require you to risk a car or savings account — and because they’re somewhat rare — it’s a good idea to compare other options before you borrow.
Bad-credit unsecured loans: Before you pledge collateral on a secured loan, check to see if you qualify for an unsecured loan. Some online lenders tailor their personal loans to bad-credit borrowers, and let you pre-qualify with a soft credit check to preview your rate and loan amount.
Family loan: A trusted friend or family member may lend you necessary funds and charge little or no interest, if you’re comfortable asking.
Other ways to make money: A side gig could provide a one-time cash influx or a steady supplement to any other full- or part-time work.
Secured credit card: With a secured card, you put down a deposit for the lender to hold while you make purchases and pay them off. In exchange the lender reports the payments to the credit bureaus, helping to build your score.
Credit-builder loan: A credit-builder loan is a tool that helps borrowers build credit history but doesn’t provide any short-term cash. With this type of loan, the lender holds the loan amount in a bank account while you make payments. The lender reports your payments to the credit bureaus, and once you’ve repaid the full loan amount, the funds are released to you.
Local financial assistance programs: A local church or community organization may provide free food, help with rent and utility bills or transportation to job interviews. Call 2-1-1 from any phone in the U.S. or visit 211.org.
Medical bill assistance: For help with medical bills, consider asking your physician’s office to set up a no-interest payment plan, try to negotiate for a lower bill or work with a medical bill advocate.
Secured loans may be easier to get than unsecured loans because they're less risky for lenders. Borrowers with fair and bad credit may have a better chance of qualifying.
Secured loans can have lower rates than unsecured loans because the lender can take your collateral if you fail to repay, which makes it less risky for the lender.
If you miss too many secured loan payments, the lender can take the collateral you pledged for the loan. This may be the funds in a savings account or your vehicle.
