BEST OF

8 Secured Personal Loans From Banks, Online Lenders

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.

Amrita JayakumarMarch 6, 2020
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Most personal loans are unsecured, based primarily on your creditworthiness. But if your credit score isn't strong enough to snag an unsecured loan, consider a secured loan, also known as a collateral loan.

A secured loan is one that enables you to pledge something you own in return for a lower rate or a larger loan amount. The chances of qualifying still depend on your credit score, income and debt, but pledging an asset can significantly increase the likelihood of approval. The downside: If you don’t make timely payments, the lender can seize your asset, and your credit score will suffer.

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.

Summary of Secured Personal Loans From Banks, Online Lenders

Our picks for

Secured loans from banks

U.S. Bank Personal Loan
See my rates

on NerdWallet's secure website

U.S. Bank Personal Loan

4.0

NerdWallet rating 
U.S. Bank Personal Loan

Min. Credit Score

680

Est. APR

5.49 - 16.99%

Loan Amount

$1,000 - $25,000

See my rates

on NerdWallet's secure website


Min. Credit Score

680

Key facts

U.S. Bank offers unsecured loans and loans secured by automobiles, boats, RVs and motorcycles, as well as deposit accounts. You must be a bank customer with strong credit to qualify.

Pros

  • Competitive rates among similar lenders.

  • Rate discount for autopay.

  • Offers joint loan option.

  • Able to fund loans within one business day.

  • Offers mobile app to manage your loan.

Cons

  • No option to pre-qualify.

  • Charges prepayment fee.

  • Must be an existing bank customer.

  • Available in a limited number of states.

  • May require an in-person visit.

Qualifications

  • Minimum credit score: 680.

  • Your Social Security number or Individual Taxpayer Identification Number (ITIN).

  • Home address and employment information.

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: $50-$100 if loan is paid off within first 12 months.

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Wells Fargo Personal Loan
See my rates

on NerdWallet's secure website

Wells Fargo Personal Loan

4.5

NerdWallet rating 
Wells Fargo Personal Loan

Min. Credit Score

None

Est. APR

5.99 - 24.49%

Loan Amount

$3,000 - $100,000

See my rates

on NerdWallet's secure website


Min. Credit Score

None

Key facts

Wells Fargo allows customers with savings accounts or CDs to use them as collateral to qualify for a loan or get a lower interest rate. Borrowers cannot touch the money in their account for the duration of the loan.

Pros

  • Competitive rates among similar lenders.

  • No origination fee.

  • Joint loan option.

  • Offers wide range of loan amounts and repayment terms.

Cons

  • No option to pre-qualify.

  • Charges $39 late fee.

  • Some features only available to existing customers.

Qualifications

  • Must provide Social Security number.

  • Must provide contact details, including a permanent address, email and telephone number.

  • Must provide employment and income (documentation may be required to verify this information) and monthly mortgage or rent payment amount.

Available Term Lengths

1 to 7 years

Fees

  • Origination fee: None.

  • Late fee: $39.

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Our pick for

Secured loans from credit unions

First Tech Credit Union Personal Loan
See my rates

on NerdWallet's secure website

First Tech Credit Union Personal Loan

5.0

NerdWallet rating 
First Tech Credit Union Personal Loan

Min. Credit Score

None

Est. APR

6.70 - 18.00%

Loan Amount

$500 - $50,000

See my rates

on NerdWallet's secure website


Min. Credit Score

None

Key facts

false

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.

Cons

  • First Tech offers secured loans for its members, with low starting rates and no origination fee.

Qualifications

  • No minimum credit score required.

Available Term Lengths

2 to 7 years

Fees

  • Origination fee: None.

  • Prepayment fee: None.

  • Late payment: Up to $15.

  • Returned payment: $28.

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Our picks for

Secured loans from online lenders

OneMain

on OneMain Financial's website

OneMain Financial

4.0

NerdWallet rating 
OneMain

Min. Credit Score

None

Est. APR

18.00 - 35.99%

Loan Amount

$1,500 - $20,000

on OneMain Financial's website


Min. Credit Score

None

Key facts

OneMain is an option for bad-credit borrowers, but it comes with high starting rates and an origination fee.

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.

Qualifications

  • Minimum credit score: None.

  • Minimum income: Not disclosed; 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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Upgrade

on Upgrade's website

Upgrade

5.0

NerdWallet rating 
Upgrade

Min. Credit Score

580

Est. APR

6.94 - 35.97%

Loan Amount

$1,000 - $50,000

on Upgrade's website


Min. Credit Score

580

Key facts

Upgrade says you may qualify for a lower rate on a personal loan if you secure it with a vehicle.

Pros

  • Allows secured, co-signed and joint loans.

  • Offers rate discount with direct payment to creditors on debt consolidation loans.

  • Rate discount for autopay.

Cons

  • Charges origination fee.

  • Charges late fee.

Qualifications

  • Minimum credit score: 580.

  • Minimum annual income: 35,000; average borrower income is $87,000.

  • Minimum credit history: 3 years.

  • Minimum number of accounts on credit history: 2.

  • Minimum monthly free cash flow: $800.

  • Maximum debt-to-income ratio: Varies between 55% and 65% including the loan you’re applying for and mortgage payments. To see your post-loan DTI, calculate your monthly payments on a personal loan, and then add them to your debt-to-income calculation.

  • Average loan amount is $10,000.

  • Average repayment term is 40 months.

Available Term Lengths

3 to 5 years

Fees

  • Origination fee: 2.9% to 8%.

Disclaimer

Personal loans made through Upgrade feature APRs of 6.94%-35.97%. All personal loans have a 2.9% to 8% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. For example, if you receive a $10,000 loan with a 36-month term and a 17.98% APR (which includes a 14.32% 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 $343.33. Over the life of the loan, your payments would total $12,359.97. 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. Personal loans issued by Upgrade's lending partners. Information on Upgrade's lending partners can be found at https://www.upgrade.com/lending-partners/. Accept your loan offer and your funds will be sent to your bank or designated account within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes the transaction. From the time of approval, funds should be available within four (4) business days. Funds sent directly to pay off your creditors may take up to 2 weeks to clear, depending on the creditor.
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Avant

on Avant's website

Avant

4.0

NerdWallet rating 
Avant

Min. Credit Score

550

Est. APR

9.95 - 35.99%

Loan Amount

$2,000 - $20,001

on Avant's website


Min. Credit Score

550

Key facts

Avant says its secured loan is an alternative to an auto title loan. Adding a vehicle to secure a loan with this lender could get you more favorable rates and terms.

Pros

  • Able to fund loans the next business day.

  • Option to change your payment date.

  • Soft credit check with pre-qualification.

  • Offers secured loan option.

Cons

  • Charge an origination fee.

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

  • No co-sign or joint loan option.

Qualifications

  • Minimum credit score of 550.

Available Term Lengths

2 to 5 years

Fees

  • Administrative fee: Up to 4.75%.

  • Late fee: $25 (most states).

  • Unsuccessful payment fee: $15 (most states).

Disclaimer

A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33. Minimum loan amounts may vary by state. If approved, the actual rate and loan amount that a customer qualifies for may vary based on credit determination and other factors. An administration fee of up to 4.75% will be deducted from the loan proceeds. Avant branded credit products are issued by Webbank, member FDIC
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Oportun

on Oportun 's website

Oportun

3.0

NerdWallet rating 
Oportun

Min. Credit Score

None

Est. APR

19.90 - 35.99%

Loan Amount

$300 - $10,000

on Oportun 's website


Min. Credit Score

None

Key facts

Oportun offers personal loans that can be secured by a vehicle. The lender says it may offer borrowers more money or a lower APR with a secured loan.

Pros

  • Soft credit check with pre-qualification.

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

  • Accepts borrowers new to credit.

  • Offers small loans starting at $300.

Cons

  • Available in a limited number of states.

  • Borrowers cannot choose or change their payment date.

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

  • Reports payments to two of the three major credit bureaus.

Qualifications

  • Valid identification.

  • Proof of income.

  • Proof of address.

  • Up to four references.

  • Be 18 years or older.

Available Term Lengths

6 to 46 months

Fees

  • Origination fee: $0 - $300.

  • Late fee: Fixed amount or percent, $15 max.

Disclaimer

Loans subject to credit approval and may include an origination fee. Monthly payment options may not be available; Biweekly and semi-monthly payment options are standard. For example, a $5,000 loan in California would have 66 biweekly payments of $119 over 30 months at a 37.6% APR. Terms may vary by applicant and state and are subject to change. To apply, you must be at least 18 years old, must reside within our service area (AZ, CA, FL, ID, IL, MO, NJ, NM, NV, TX, UT and WI) and must not have applied for a loan with us during the past 90 days. While a prior credit history is not required to qualify, Oportun will request and consider credit checks for all applicants. California loans made pursuant to a California Financing Law License. For loans made in other states and for other information, visit oportun.com, which includes our state licenses. This is an advertisement for a consumer loan. ©2020 Oportun, Inc. All rights reserved.
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Want to compare more options? Here are our other top picks:

*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.

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 March 6, 2020

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