Best of

5 Secured Personal Loans From Banks, Online Lenders

Amrita JayakumarJuly 18, 2019

At NerdWallet, we strive to help you make financial decisions with confidence. To do this, many or all of the products featured here are from our partners. However, this doesn’t influence our evaluations. Our opinions are our own.

Secured personal loans let you borrow money against the value of an asset like a car or savings. Secured loans may carry lower interest rates, but they also carry risk.

Our picks for

Secured loans from banks

US Bank Premier Loan
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on NerdWallet's secure website

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on NerdWallet's secure website

Min. Credit Score

None

Est. APR

7.49-17.99%

Loan Amount

$3,000-$25,000

Pros

  • No origination fee.
  • Co-sign option.
  • Offers autopay discounts.

Cons

  • Prepayment penalty.
  • Hard credit pull with application.
  • Must have U.S. Bank account.
Read full review

Qualifications

  • Good or excellent credit.
  • U.S. Bank account open for at least 120 days.

Available Term Lengths

  • 1 to 5 years

Fees

  • Origination fee: None.
  • Late fee: $29 after 5 day grace period.
  • Unsuccessful payment fee: $25.
  • Prepayment fee: 1% of loan amount, ranging from $50 to $100 if loan is paid off within first 12 months.
Wells Fargo Personal Loan
See my rates

on NerdWallet's secure website

Min. Credit Score

660

Est. APR

5.24-18.74%

Loan Amount

$3,000-$100,000

Pros

  • Offers secured loans.
  • Co-sign option.
  • Free credit score access.

Cons

  • false
Read full review

Qualifications

  • Become a Wells Fargo customer.
  • Typically have a good credit score, above 660.

Available Term Lengths

  • 1 to 5 years

Fees

  • Origination fee: None.

Our pick for

Secured loans from credit unions

First Tech Credit Union Personal Loan
See my rates

on NerdWallet's secure website

Min. Credit Score

None

Est. APR

9.00-18.00%

Loan Amount

$500-$50,000

Pros

  • Low rates.
  • No origination fee.
  • Option to directly pay off creditors.

Cons

  • Hard credit pull.
  • Must meet First Tech's membership requirements.
Read full review

Qualifications

  • No minimum credit score required.
  • 2 years of credit history.

Available Term Lengths

  • 2 to 7 years

Fees

  • Origination fee: None.
  • Prepayment fee: None.
  • Late payment: Up to $25.
  • Returned payment: $28.

Our picks for

Secured loans from online lenders

Lightstream

on LightStream's website

on LightStream's website

Min. Credit Score

660

Est. APR

5.49-17.29%

Loan Amount

$5,000-$100,000

Pros

  • No fees.
  • Co-sign option.
  • Low starting rates.

Cons

  • Does not offer pre-qualification on its website.
  • Requires several years of credit history.
Read full review

Qualifications

  • Minimum credit score of 660.
  • No minimum income specified.
  • Maximum debt-to-income ratio varies depending on loan purpose.

Available Term Lengths

  • 2 to 7 years

Fees

  • Origination fee: None.
  • Late fee: None.

Disclaimer: Your loan terms are not guaranteed and may vary based loan purpose, length of loan, loan amount, credit history and payment method (AutoPay or Invoice). Rate quote includes AutoPay discount. AutoPay discount is only available when selected prior to loan funding. To obtain a loan, you must complete an application on LightStream.com which may affect your credit score. You may be required to verify income, identity and other stated application information. Payment example: Monthly payments for a $5,000 loan at 12.8% APR with a term of 3 years would result in 36 monthly payments of $168. Some additional conditions and limitations apply. Advertised rates and terms are subject to change without notice. SunTrust Bank is an Equal Housing Lender. ©2019 SunTrust Banks, Inc. All rights reserved. SUNTRUST, LIGHTSTREAM and the LightStream logo are trademarks of SunTrust Banks, Inc. All other trademarks are the property of their respective owners. Lending services provided by SunTrust Bank.

OneMain

on OneMain Financial's website

on OneMain Financial's website

Min. Credit Score

None

Est. APR

18.00-35.99%

Loan Amount

$1,500-$20,000

Pros

  • Offers lower starting rates on secured loans than unsecured loans.
  • Offers auto equity loans and cash-out refinancing loans.

Cons

  • Requires proof of comprehensive and collision car insurance.
Read full review

Qualifications

  • Minimum credit score: None, average is 600 to 650.
  • Minimum credit history: Not provided.
  • Minimum annual income: None, average is $49,000.

Available Term Lengths

  • 2 to 5 years

Fees

  • Origination fee: Varies by state.

Disclaimer: Not all applicants will qualify for larger loan amounts or most favorable loan terms. Loan approval and actual loan terms depend on your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral). Larger loan amounts require a first lien on a motor vehicle no more than ten years old, that meets our value requirements, titled in your name with valid insurance. Maximum annual percentage rate (APR) is 35.99%, subject to state restrictions. APRs are generally higher on loans not secured by a vehicle. Depending on the state where you open your loan, the origination fee may be either a flat amount or a percentage of your loan amount. Flat fee amounts vary by state, ranging from $30 to $150. Percentage-based fees vary by state ranging from 1% to 5% of your loan amount subject to certain state limits on the fee amount. Active duty military, their spouse or dependents covered under the Military Lending Act may not pledge any vehicle as collateral for a loan. OneMain loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB’s Regulation Z, such as college, university or vocational expenses; for any business or commercial purpose; to purchase securities; or for gambling or illegal purposes. Borrowers in these states are subject to these minimum loan sizes: Alabama: $2,100. California: $3,000. Georgia: Unless you are a present customer, $3,100 minimum loan amount. Ohio: $2,000. Virginia: $2,600. Borrowers (other than present customers) in these states are subject to these maximum unsecured loan sizes: Florida: $8,000. Iowa: $8,500. Maine: $7,000. Mississippi: $7,500. North Carolina: $7,500. New York: $20,000. Texas: $8,000. West Virginia: $14,000. An unsecured loan is a loan which does not require you to provide collateral (such as a motor vehicle) to the lender.

Summary of Secured Personal Loans From Banks, Online Lenders

LenderBest ForEst. APRMin. Credit ScoreLearn More
US Bank Premier Loan

US Bank Premier Loan

See my rates

on NerdWallet's secure website

Secured loans from banks

7.49-17.99%

None

See my rates

on NerdWallet's secure website

Wells Fargo Personal Loan

Wells Fargo Personal Loan

See my rates

on NerdWallet's secure website

Secured loans from banks

5.24-18.74%

660

See my rates

on NerdWallet's secure website

First Tech Credit Union Personal Loan

First Tech Credit Union Personal Loan

See my rates

on NerdWallet's secure website

Secured loans from credit unions

9.00-18.00%

None

See my rates

on NerdWallet's secure website

Lightstream

LightStream

on LightStream's website

Secured loans from online lenders

5.49-17.29%

660

on LightStream's website

OneMain

OneMain Financial

on OneMain Financial's website

Secured loans from online lenders

18.00-35.99%

None

on OneMain Financial's website

LenderBest ForEst. APRMin. Credit ScoreLearn More
US Bank Premier Loan

US Bank Premier Loan

See my rates

on NerdWallet's secure website

Secured loans from banks

7.49-17.99%

None

See my rates

on NerdWallet's secure website

Wells Fargo Personal Loan

Wells Fargo Personal Loan

See my rates

on NerdWallet's secure website

Secured loans from banks

5.24-18.74%

660

See my rates

on NerdWallet's secure website

First Tech Credit Union Personal Loan

First Tech Credit Union Personal Loan

See my rates

on NerdWallet's secure website

Secured loans from credit unions

9.00-18.00%

None

See my rates

on NerdWallet's secure website

Lightstream

LightStream

on LightStream's website

Secured loans from online lenders

5.49-17.29%

660

on LightStream's website

OneMain

OneMain Financial

on OneMain Financial's website

Secured loans from online lenders

18.00-35.99%

None

on OneMain Financial's website

*Terms listed are for unsecured loans and may vary for secured loans.

Where to get a secured personal loan

Secured loans from banks: Among the nation’s largest banks, U.S. Bank and Wells Fargo allow customers with assets including boats or savings accounts to use them as collateral to qualify for a loan. Borrowers that pledge savings accounts typically cannot touch that money for the duration of the loan.

Secured loans from credit unions: Some credit unions offer CD-secured loans, typically to build credit or get cash quickly at a lower rate than other types of loans. Credit unions are a good first stop for most types of loans, because they consider borrowers with poor credit and provide affordable loans.

Federal credit unions offer a maximum annual percentage rate of 18% to their members, although there may be extra application fees.

Secured loans from online lenders: A secured loan from a reputable online lender will carry a maximum APR of 36%. The rate, the amount borrowed and the length of the loan will be based on both your credit and the value of your collateral.

Some lenders let you apply for a secured loan upfront, but others may show you the option only after you’ve tried applying for an unsecured loan.

Most online lenders let you check your rate without affecting your credit, so it doesn’t hurt to take the steps to pre-qualify for an unsecured loan at multiple lenders. You can use NerdWallet’s lender marketplace to compare rates in one place.

» MORE: Pre-qualify with multiple lenders on NerdWallet

What can you use to secure a personal loan?

Your car: The vast majority of secured personal loans use a car as collateral. These loans — known as auto equity loans — let you borrow money against the market value of your paid-off car.

A lender that accepts your car as collateral may require that you insure it for physical damage, naming the lender as loss payee in the event it’s totaled. If you already dropped collision and comprehensive coverage on your paid-off car to save money, lenders may sell you optional credit insurance, which is often more expensive than the cheapest full coverage.

There are two other options to borrow against your car:

  • Auto refinance is an option if you still owe money on your car but have substantial equity. Refinancing replaces your original loan with a new loan at a higher amount. You keep the extra cash. (You’re likely to qualify for a refinance if your credit has improved or interest rates have dropped.)
  • Auto title loans, which typically have annual percentage rates as high as 300%, don’t require a credit check and carry a higher risk of having your vehicle repossessed. NerdWallet does not recommend auto title loans.

Your savings: If you have money in a savings account, it’s cheaper to use that money rather than get a personal loan that charges interest. If you must hang on to your savings or need more money than what’s in your account, some lenders will make secured personal loans with savings accounts or certificates of deposits as collateral. You likely won’t have access to your account or CD until you repay the loan.

It can make sense to secure a loan against a CD — instead of a savings account — because withdrawing money from a CD can incur an early withdrawal penalty. You’ll want to compare that penalty with the interest charge on a personal loan.

Last updated on July 18, 2019

Methodology

NerdWallet's ratings for personal loans award points to lenders that offer consumer-friendly features, including soft credit checks, no fees, transparency of loan rates and terms, flexible payment options, accessible customer service, reporting of payments to credit bureaus and financial education. We also consider the number of complaints filed with agencies like the Consumer Financial Protection Bureau. This methodology applies only to lenders that cap interest rates at 36%, the maximum rate financial experts and consumer advocates agree is the acceptable limit for a loan to be affordable. NerdWallet does not receive compensation of any sort for our reviews.

To recap our selections...

NerdWallet's Secured Personal Loans From Banks, Online Lenders