BEST OF

Best Secured Personal Loans of 2022

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.

Mar 7, 2022

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Most personal loans are unsecured, so approval is based on your creditworthiness. But if you can’t qualify for an unsecured loan, or you don't get the rate you want on a bad-credit loan, a secured loan is one alternative.

This type of loan requires you to pledge something as collateral in order to borrow money. The downside: If you don’t make timely payments, the lender can seize your asset.

Here's what to know about secured personal loans and where to find them, including online lenders, banks and credit unions.

Note that the information for each lender is specific to its unsecured loans. Qualification criteria and loan details may differ for secured loans.

Best Secured Personal Loans

Our pick for

Secured loans from online lenders

BestEgg
Get rate

on Best Egg's website

Best Egg

4.5

NerdWallet rating 
BestEgg

Est. APR

7.99-35.99%

Loan amount

$2,000-$50,000

Min. credit score

600
Get rate

on Best Egg's website


Min. credit score

600

Key facts

Best Egg secured loans are similar to home equity loans but use items attached to your home rather than the home itself as collateral.

Pros

  • Offers wide range of loan amounts.

  • Provides secured loan option for homeowners.

  • Offers direct payment to creditors with debt consolidation loans.

Cons

  • Origination fee.

  • No rate discounts.

  • No option to choose initial payment date.

Qualifications

  • Minimum credit score: 600; borrower average is 700.

  • Minimum credit history: 3 years and 3 accounts.

  • Minimum income requirement is $3,500; borrower average is $80,000. Borrower must have enough cash flow to cover current financial obligations.

  • Maximum debt-to-income ratio: 40% or 65% including a mortgage; borrower average is 40%.

  • Employment: Must provide proof of income; part-time employees are eligible.

  • Must provide valid U.S. address and Social Security number.

Available Term Lengths

3 to 5 years

Fees

  • Origination fee: 0.99% - 8.99%.

  • Return fee: $15 if payments are not processed.

Disclaimer

Trustpilot TrustScore as of June 2020. Best Egg personal loans, including the Best Egg Secured Loan, are made by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member 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. All uses 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 originator of the Best Egg personal loan,” as applicable. The term, amount, and APR of any loan we offer to you will depend on your credit score, income, debt payment obligations, loan amount, credit history and other factors. Your loan agreement will contain specific terms and conditions. About half of our customers get their money the next day. After successful verification, your money can be deposited in your bank account within 1-3 business days. The timing of available funds upon loan approval may vary depending upon your bank’s policies. Loan amounts range from $2,000– $50,000. Residents of Massachusetts have a minimum loan amount of $6,500 ; New Mexico and Ohio, $5,000; and Georgia, $3,000. For a second Best Egg loan, your total existing Best Egg loan balances cannot exceed $50,000. Annual Percentage Rates (APRs) range from 7.99%–35.99%. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0.99%–8.99% of your loan amount, which will be deducted from any loan proceeds you receive. The origination fee on a loan term 4-years or longer will be at least 4.99%. Your loan term will impact your APR, which may be higher than our lowest advertised rate.  You need a minimum 700 FICO® score and a minimum individual annual income of $100,000 to qualify for our lowest APR. To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. What this means for you: When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents. Best Egg products are not available if you live in Iowa, Vermont, West Virginia, the District of Columbia, or U.S. Territories.

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Upgrade
Get rate

on Upgrade's website

Upgrade

5.0

NerdWallet rating 
Upgrade

Est. APR

6.95-35.97%

Loan amount

$1,000-$50,000

Min. credit score

560
Get rate

on Upgrade's website


Min. credit score

560

Key facts

Upgrade applicants can back their secured loans with a vehicle, the value of which factors into your rate.

Pros

  • Secured and joint loans.

  • Multiple rate discounts.

  • Mobile app to manage loan payments.

  • Direct payment to creditors with debt consolidation loans.

  • Long repayment terms on home improvement loans.

Cons

  • Origination fee.

  • No option to choose your payment date.

Qualifications

  • Minimum credit score: 560.

  • Minimum number of accounts on credit history: 1 account.

  • Maximum debt-to-income ratio: 75%, including the loan you're applying for.

  • Minimum length of credit history: 2 years.

  • Minimum income requirement: None. Lender accepts income from alimony, retirement, child support, Social Security and other sources.

Available Term Lengths

2 to 7 years

Fees

  • Origination fee: 1.85% to 8%.

  • Late Fee: $10.

  • Failed payment fee: $10.

Disclaimer

Personal loans made through Upgrade feature Annual Percentage Rates (APRs) of 6.95%-35.97%. All personal loans have a 1.85% to 8% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. Loans feature repayment terms of 24 to 84 months. For example, if you receive a $10,000 loan with a 36-month term and a 17.59% APR (which includes a 13.94% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $341.48. Over the life of the loan, your payments would total $12,293.46. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early.

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OneMain
Get rate

on OneMain Financial's website

OneMain Financial

4.0

NerdWallet rating 
OneMain

Est. APR

18.00-35.99%

Loan amount

$1,500-$20,000

Min. credit score

None
Get rate

on OneMain Financial's website


Min. credit score

None

Key facts

OneMain secured loans require a vehicle as collateral. Borrowers may also add a co-applicant to an application.

Pros

  • Option to choose your payment date.

  • Offers joint and secured loans.

  • Able to fund a loan the same or next business day.

  • Offers direct payment to creditors on debt consolidation loans.

Cons

  • Rates are high compared to other online lenders.

  • Charges origination fee.

  • No rate discount for autopay.

Qualifications

  • Minimum credit score: None.

  • Minimum income: None; average is $45,000.

Available Term Lengths

2 to 5 years

Fees

  • Origination fee: $25 to $400 or 1 - 10%.

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 $25 to $300. Percentage-based fees vary by state ranging from 1% to 10% 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: North Carolina: $7,500. New York: $20,000. An unsecured loan is a loan which does not require you to provide collateral (such as a motor vehicle) to the lender.

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Our pick for

Secured loans from credit unions

PenFed Credit Union Personal Loan
See my rates

on NerdWallet's secure website

PenFed Credit Union Personal Loan

5.0

NerdWallet rating 
PenFed Credit Union Personal Loan

Est. APR

4.99-17.99%

Loan amount

$600-$50,000

Min. credit score

None
See my rates

on NerdWallet's secure website


Min. credit score

None

Key facts

PenFed offers low starting rates, and members may also qualify for a joint or secured loan.

Pros

  • Soft credit check with pre-qualification.

  • No origination or prepayment fees.

  • Offers joint and secured loan options.

  • Offers mobile app to manage your loan.

Cons

  • No discount for autopay.

  • Does not offer direct payment to creditors with debt consolidation loans.

  • No option to choose or change your payment date.

Qualifications

  • Minimum credit history: Two years.

  • Debt-to-income ratio: Below 55%.

Available Term Lengths

1 to 5 years

Fees

  • Late fee: $29

  • Returned payment fee: $30

  • Membership fee: $5

Disclaimer

Personal Loan rates range from 5.49% to 17.99% APR.Rates and offers current as of May 2022 and are subject to change.* Your actual APR will be determined at the time of disbursement and will be based on your creditworthiness, which includes an evaluation of your credit history and the length of your PenFed membership. Not all applicants will qualify for the lowest rate. Rates quoted assume excellent borrower credit history. Other eligibility requirements may apply. Loan Payment Example: A $50,000 personal loan financed at 5.49% APR would amount to 60 monthly payments of approximately $954.83 each.Loan amount determines rate and term. All loans are subject to a minimum monthly payment of $50.Insured by NCUA. To receive any advertised product, you must become a member of PenFed. Equal Housing Lender.

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First Tech Credit Union Personal Loan
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on NerdWallet's secure website

First Tech Credit Union Personal Loan

5.0

NerdWallet rating 
First Tech Credit Union Personal Loan

Est. APR

6.70-18.00%

Loan amount

$500-$50,000

Min. credit score

660
See my rates

on NerdWallet's secure website


Min. credit score

660

Key facts

First Tech members have access to secured loans backed by a CD, savings account or stocks.

Pros

  • Offers co-sign, joint and secure loan options.

  • Able to fund loans within one business day.

  • Offers direct payment to creditors with debt consolidation loans.

  • Offers wide range of loan amounts and repayment terms.

  • No origination or prepayment fees.

Cons

  • Exclusive to credit union members.

  • Reports payments to only one of the three major credit bureaus.

  • No rate discount for autopay.

Qualifications

  • Minimum credit score: 660.

Available Term Lengths

2 to 7 years

Fees

  • Origination fee: None.

  • Prepayment fee: None.

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Navy Federal Credit Union Personal Loan
See my rates

on NerdWallet's secure website

Navy Federal Credit Union Personal Loan

4.0

NerdWallet rating 
Navy Federal Credit Union Personal Loan

Est. APR

7.49-18.00%

Loan amount

$250-$50,000

Min. credit score

None
See my rates

on NerdWallet's secure website


Min. credit score

None

Key facts

In addition to unsecured loans, Navy Federal offers secured loans backed by a Navy Federal savings account or CD.

Pros

  • No origination fee.

  • Offers wide range of loan amounts and repayment terms.

  • Able to fund loans same-day.

  • Offers co-sign, joint and secure loan options.

Cons

  • Exclusive to credit union members.

  • No option to pre-qualify.

  • No rate discount for autopay.

  • No option to change your payment date.

Qualifications

  • No minimum qualification requirements.

  • Must meet membership requirements.

Available Term Lengths

1 to 5 years

Fees

  • Origination fee: None.

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Our pick for

Secured loans from banks

U.S. Bank Personal Loan
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on NerdWallet's secure website

U.S. Bank Personal Loan

4.5

NerdWallet rating 
U.S. Bank Personal Loan

Est. APR

6.99-19.49%

Loan amount

$1,000-$50,000

Min. credit score

660
See my rates

on NerdWallet's secure website


Min. credit score

660

Key facts

U.S. Bank offers its customers secured loans backed by a certificate of deposit, which is a type of savings account.

Pros

  • Offers a 0.5 percentage point rate discount for setting up autopay.

  • No origination or prepayment fees.

  • Offers wide range of loan amounts.

  • Able to fund loans within one business day.

  • Offers mobile app to manage your loan.

Cons

  • No option to pre-qualify.

  • Available in a limited number of states.

  • May require an in-person visit.

Qualifications

  • Minimum credit score: 660.

  • Maximum debt-to-income ratio: 60% (includes housing).

Available Term Lengths

1 to 5 years

Fees

  • Origination fee: None.

  • Prepayment fee: None.

  • Late fee: $29 after 5-day grace period.

  • Unsuccessful payment fee: $25.

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What is a secured personal loan?

A secured personal loan is a loan you get by pledging something you own in exchange for borrowed money that you repay over time with interest.

Lenders have the right to take your collateral — a vehicle or money in a savings account, for example — but they’ll only take it if you fail to repay the loan. Once the loan is paid in full, the lender no longer has the right to take the collateral.

Like an unsecured loan, your credit, income and other debts are still central to getting approved for a secured loan, but offering up collateral lowers the risk to the lender. In turn, approval odds are better for secured loans and the rate is typically lower.

How to get a secured loan

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:

  1. Inquire about the loan. Some lenders offer secured loans only after an applicant does not pre-qualify for an unsecured loan. If you can’t pre-qualify with the lender, or you don’t see a secured loan option, ask the lender directly about secured loans.

  2. Check your budget. Review your cash flow to find out how much you can afford to pay toward the loan each month. Use a personal loan calculator to see what annual percentage rate, loan amount and repayment term you’d need to keep monthly payments affordable.

  3. Choose a lender. Compare lenders to see what kind of collateral they accept and what rates they offer.

  4. Gather documents. Before you apply, gather the documents most lenders require for an application. These can include a government-issued ID, bank statements, W-2s and pay stubs. You may also need documents for the collateral, such as a car title.

  5. Apply. Most lenders have online applications. Once you submit, an approval decision may take a couple of days or longer if a lender has to assess the collateral’s value.

Pros and cons of secured loans

Weigh the benefits of getting a secured loan against the potential drawbacks before you borrow.

Pros

  • Better approval odds. A lender is more likely to approve a secured loan application.

  • Lower interest rates and higher loan amounts. Because the risk of losing money is lower for the lender, you may be approved for a larger loan at a lower rate.

Cons

  • The lender could take your collateral. If your car is collateral for a loan and you need it to get to work, for example, losing it could put you in a worse situation than before you borrowed.

  • Not as widely available as unsecured loans. Many banks, credit unions and online lenders offer only unsecured loans.

Secured loan examples

Home equity loans and HELOCs: 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.

Auto-secured loans: 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).

CD loans: 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.

401(k) loans: 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.

Where to get a secured personal loan

Banks: Banks usually offer a savings- or CD-secured loan. An account you already have with the bank will be collateral, and you can’t access that money until the loan is repaid.

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, you may qualify for an unsecured loan, because credit unions are known to have softer borrower requirements and lower APRs.

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.

Many lenders let you check your rate on an unsecured loan without affecting your credit, so it doesn’t hurt to take the steps to pre-qualify with multiple lenders.

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

Secured loans to avoid

Pawn loans: Pawnshops let you hand over valuables in exchange for cash that you must repay, typically within a couple of weeks. These loans can have 200% APRs and may be difficult to repay. If you don’t repay, the pawnshop will keep your item.

Car title loans: These are high-interest, short-term loans of usually a few hundred or thousand dollars. Because they’re difficult to repay on time, this type of loan can encourage repeat borrowing, which can lead you into a debt cycle. Avoid auto-secured loans with rates above 36%, the highest rate consumer advocates say an affordable loan can have.

Last updated on March 7, 2022

Methodology

NerdWallet’s review process evaluates and rates personal loan products from more than 35 financial institutions. We collect over 45 data points from each lender, interview company representatives and compare the lender with others that seek the same customer or offer a similar personal loan product. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.

Our star ratings award points to lenders that offer consumer-friendly features, including: soft credit checks to pre-qualify, competitive interest rates and no fees, transparency of rates and terms, flexible payment options, fast funding times, accessible customer service, reporting of payments to credit bureaus and financial education. We also consider regulatory actions filed by agencies like the Consumer Financial Protection Bureau. We weigh these factors based on our assessment of which are the most important to consumers and how meaningfully they impact consumers’ experiences.

This methodology applies only to lenders that cap interest rates at 36%, the maximum rate most financial experts and consumer advocates agree is the acceptable limit for a loan to be affordable. NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodologies for personal loans and our editorial guidelines.

To recap our selections...

NerdWallet's Best Secured Personal Loans of 2022

Frequently asked questions