Best Secured Personal Loans of 2026
A secured personal loan may be an option if your credit is less than perfect or you want a lower rate. Compare our picks for the best secured personal loans.
Checking rates is free and won't impact your credit score.
What to know first: How a secured loan can help you
Pledging collateral (something valuable you own) to secure a personal loan can increase your chances of getting approved. You may also qualify for a lower rate or larger loan amount than if you opted for an unsecured personal loan. While some lenders let you specifically apply for a secured loan, others have you fill out the general application, then inform you if you’re eligible for a secured loan option.
✅ No impact to your credit score
Pros, Cons, and Our View
- Time to get funds:
- Same-day
- Availability:
- Lends in all 50 states and Washington, D.C.
- Rate discounts:
- Autopay discount: 0.5 or 0.25 percentage points.
- Soft credit check:
- Yes
- Loan uses:
- Debt consolidation, Credit card consolidation, Home improvement, Medical, Emergency, Wedding, Vacation and Auto
Pros
- Rate discount for autopay.
- Fast funding.
- Joint and secured loan options.
Cons
- Loan features differ for non-customers.
- No direct debt payments to creditors.
- No option to change your payment date.
✅ No impact to your credit score
Pros, Cons, and Our View
- Time to get funds:
- 1 day
- Availability:
- Lends in all 50 states and Washington, D.C.
- Rate discounts:
- AutoPay discount, Direct pay to creditors discount, Auto-secured discount and Existing customer discount
- Min income:
- No minimum requirement
- Soft credit check:
- Yes
- Loan uses:
- Debt consolidation, Credit card consolidation, Home improvement, Emergency expenses (car repair, vet bill, etc), Vacation, Moving/relocation, Wedding, Funeral, Auto/motorcycle/RV/boat financing and Other large purchase
Pros
- Multiple rate discounts.
- Secured and co-signed loans.
- Fast funding.
- Wide range of loan amounts and repayment terms.
Cons
- Origination fee
- No option to choose repayment date
✅ No impact to your credit score
Pros, Cons, and Our View
- Time to get funds:
- 2-3 days
- Availability:
- Lends in all 50 states and Washington, D.C.
- Rate discounts:
- Relationship discount: 0.10 percentage points. and LevelUp rewards program: 0.50 percentage points a year (max. rate reduction of 1.5 percentage points)
- Soft credit check:
- Yes
- Loan uses:
- Debt consolidation, Credit card consolidation, Home improvement, Medical/dental, Emergency expenses (car repair, vet bill, etc.), Vacation, Moving/relocation, Wedding, Funeral, Education expenses, Auto/motorcycle/RV/boat financing and Other large purchase
Pros
- No origination fees.
- Potential rate discount for on-time payments.
- Wide range of loan sizes and terms.
Cons
- You may not qualify if you have bad credit.
- You must become a member of the credit union.
- Funding can take 2-3 days.
✅ No impact to your credit score
Pros, Cons, and Our View
- Time to get funds:
- 1 day
- Availability:
- Lends in all 50 states and Washington, D.C.
- Rate discounts:
- None
- Min income:
- No minimum requirement
- Soft credit check:
- Yes
- Loan uses:
- Debt consolidation, Credit card consolidation, Home improvement, Medical/dental, Emergency expenses (car repair, vet bill, etc.), Vacation, Moving/relocation, Wedding, Funeral, Business expenses, Auto/motorcycle/RV/boat financing, Other large purchase, Bills and rent, Family assistance, Taxes and Purchase of personal vehicle
Pros
- No credit score requirement.
- Wide range of loan amounts.
- Fast funding.
- Range of loan amounts
Cons
- Origination fee.
- Only two repayment term options.
- No direct payment to creditors.
✅ No impact to your credit score
Pros, Cons, and Our View
- Time to get funds:
- Next business day
- Availability:
- Lends in all states except Iowa, Vermont, West Virginia and Washington, D.C.
- Rate discounts:
- None
- Min income:
- Varies by state
- Soft credit check:
- Yes
- Loan uses:
- Debt consolidation, Credit card consolidation, Home improvement, Medical/dental, Emergency expenses (car repair, vet bill, etc.), Vacation, Moving/relocation, Wedding, Funeral, Business expenses, Education expenses, Auto/motorcycle/boat financing and Other large purchase
Pros
- Offers secured and unsecured loans.
- Works with a variety of credit situations.
- Lets you pre-qualify with a soft credit check.
- Will directly pay your creditors when the loan is for debt consolidation.
Cons
- Has an origination fee.
- Requires at least a 600 credit score.
- Doesn't offer co-signed or joint loans.
- Short repayment terms aren't available.
Note that the information for each lender is specific to its unsecured loans. Qualification criteria and loan details may differ for secured loans.
NerdWallet’s picks for the best secured personal loans
We reviewed dozens of data points about affordability, loan terms and borrower flexibility to select the best options for secured personal loans. Still, the right lender for you depends on your financial situation, how much you need to borrow and what type of collateral you can offer.
Learn about our selections for the best lenders for secured personal loans.
U.S. Bank: Best for borrowers with good credit
Why we chose this lender: U.S. Bank told NerdWallet it focuses on lending to borrowers with good or excellent credit. Its minimum credit score requirement is 680, which is higher than the other lenders on this list. But even though secured loans are often marketed to borrowers with bad credit, they can also help good-credit borrowers score a lower interest rate.
You can use a certificate of deposit (CD) as collateral for a U.S. Bank personal loan.
What to be aware of: You’ll have to apply in person at a U.S. Bank branch to get a secured loan.
Upgrade: Best for debt consolidation
Why we chose this lender: If you’re getting a personal loan to consolidate debt, Upgrade has a rate discount if you authorize the funds to be sent directly to your creditors. This lender also accepts borrowers with high debt-to-income ratios — up to 75%, including mortgages. Some other lenders only accept lower DTI ratios.
You may be offered the option for a secured loan during Upgrade’s application process. The lender accepts vehicles and fixtures in your house (like ceiling fans, built-in bookshelves and lights) as collateral. Upgrade told us its rates for auto-secured loans can be up to 10 percentage points lower than its rates for unsecured loans.
What to be aware of: Upgrade charges an origination fee that ranges from 1.85% to 9.99%.
Patelco Credit Union: Best for low rates
Why we chose this lender: Patelco Credit Union caps interest rates at 17.9%, making it a great option to get a personal loan at a low rate. Many other lenders charge rates up to 36%.
Patelco lets you use either a vehicle or a savings account as collateral for a secured loan.
What to be aware of: You’ll have to join Patelco Credit Union to get a loan, if you’re not already a member. You can gain membership if you live, work, worship or attend school in certain areas of California or simply by joining the Financial Fitness Association, a nonprofit organization. Patelco will cover your initial Financial Fitness Association membership fees.
Upstart: Best for borrowers with bad credit
Why we chose this lender: Upstart is a fitting borrowing option if your credit score is low, because it doesn’t have a minimum credit score requirement. It considers non-traditional criteria, like your education background and employment history, rather than focusing primarily on your credit score.
If Upstart deems you eligible for a secured loan during the application process, you can use your vehicle as collateral.
What to be aware of: Loans through Upstart may come with an origination fee up to 12%. Most of the lenders we review that charge origination fees tend to cap those fees at 10%.
Best Egg: Best for homeowners
Why we chose this lender: If you own your home, you can use permanent home fixtures (like built-in cabinets, light fixtures and bathroom vanities) as collateral for a Best Egg secured personal loan. This provides less risk than a home equity loan where your entire home is used as collateral.
According to Best Egg’s website, your loan’s rate could be 20% lower if you opt for a secured personal loan over an unsecured one.
What to be aware of: Best Egg charges an origination fee that ranges from 0.99% to 9.99%.
Why should I consider a secured personal loan?
Secured loans are often easier to qualify for than unsecured loans, because they're less risky for lenders. To get a secured personal loan, you must provide a valuable asset you own as collateral. If you fail to repay the loan, the lender can take your collateral to recoup its losses.
Lenders typically offer lower rates for secured loans compared to unsecured loans. You may also find that you’ll qualify for larger loan amounts, especially if the value of your collateral is high.
While secured loans can be more favorable to lenders, you carry the risk of potentially losing your collateral if you default on the loan. Weigh the benefits of getting a secured loan against the potential drawbacks before you borrow.
Pros and cons of secured loans
-
Better approval odds than unsecured loans.
-
Lower interest rates and higher loan amounts than unsecured loans.
-
On-time payments can build your credit score.
-
The lender could take your collateral.
-
Not as widely available as unsecured loans.
-
Funding could take longer.
"Getting a secured personal loan makes sense if you wouldn’t otherwise qualify for a loan without putting down collateral. I’d also recommend a secured loan if it lowers your cost of borrowing or helps you get the loan amount you need. However, you have to be confident you’ll be able to make your monthly payments throughout the life of the loan or accept the possibility of losing what you’ve pledged as collateral."
How to get approved for a secured personal loan
Like an unsecured loan, your credit, income and other debts are central to getting approved for a secured loan. The lender will also consider the value of your collateral.
Some lenders offer secured loans only after you pre-qualify for an unsecured loan and don’t quite meet the lending requirements. If you don’t see a secured loan option, ask the lender directly about secured loans.
What can I use as collateral?
The type of asset you can use as collateral varies by lender. The lenders that NerdWallet reviews allow the following types of collateral for secured personal loans:
- Vehicle: The lender considers the car’s value to determine your loan approval and the loan’s rate. If approved, the lender places a lien on your car’s title.
- Savings account: The lender may require your account to have a certain dollar value and restrict your access to your savings until after you’ve repaid the loan.
- Certificate of deposit or share certificate: Similar to using a savings account as collateral, you may be able to use a certificate of deposit when getting a secured loan from a bank or a share certificate when getting a secured loan from a credit union.
- Home fixtures: Though less common, there are lenders who allow homeowners to secure personal loans with permanent fixtures from their homes, like cabinets, built-in shelves, vanities and light installations.
What happens if I don’t repay the loan?
If you don’t repay a secured personal loan as promised, the lender can take ownership of your collateral. If the lender reports loan payments to the three major credit bureaus — Equifax, Experian and TransUnion — your credit score will likely drop as well.
Costs of secured loans vs. unsecured loans
Having a secured personal loan with a lower annual percentage rate than an unsecured personal loan means you’ll have lower monthly payments and overall interest costs.
Let’s say you got two loan offers: One for an unsecured loan with a 25% APR and another for a secured loan with a 20% APR. Here's the difference in costs between those two options for a three-year, $15,000 loan.
Loan examples | APR | Monthly payment | Total interest | Total loan cost |
Unsecured loan | 25% | $596 | $6,470 | $21,470 |
Secured loan | 20% | $557 | $5,068 | $20,068 |
» MORE: Secured vs. unsecured loans: What’s the difference?
See what personal loan costs you can expect by plugging your desired loan amount, repayment term and estimated rate into our personal loan calculator below. Here are the average rates of loan applicants who pre-qualified for unsecured loans through NerdWallet over the last 30 days, categorized by credit score band:
- Bad credit (scores from 300 to 629): 27.19%.
- Fair credit (scores from 630 to 689): 23.84%.
- Good credit (scores from 690 to 719): 19.54%.
- Excellent credit (scores from 720 to 850): 14.95%.
Note: Rates for secured loans may be lower than those above.
- Total interest over 3 years
- $1,157.12
- Total loan payment
- $11,157.12
How to get a secured personal loan
The process for getting a secured loan can vary based on your lender and its requirements for the type of collateral you’re using, but here are some of the basic steps you’ll take:
- Check your credit and budget. Pull your credit reports and review your cash flow to check what a lender will see when evaluating your application. If possible, find opportunities to build your credit before applying. For example, you can dispute any errors on your report to potentially boost your score. Also, make sure you have enough money left over each month to afford the new loan payments.
- Assess the value of your collateral. If you’re using a savings account to secure the loan, review the balance and past statements. To determine the value of your car, use a pricing guide such as Edmunds or Kelley Blue Book.
- Research lenders and pre-qualify. Compare lenders to see what kind of collateral they accept and their rates. Pre-qualify with multiple lenders to compare loan offers.
- 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 to verify ownership of your collateral, such as a car title.
- Apply. Most lenders have online applications, but some may require you to apply in person. If the lender has to assess the collateral’s value, an approval decision may take longer than it would for an unsecured loan.
» MORE: How to get a personal loan
Additional secured borrowing options
Here are other loan options requiring collateral.
Home equity loans and HELOCs: Home equity loans or home equity lines of credit (HELOCs) serve as 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.
401(k) loans: You may be able to borrow a portion of the money in your 401(k) plan for a period of up to five years. When you take out a 401(k) loan, however, you’re missing out on potential market gains and compound interest from your retirement savings.
Use caution with high-interest secured loans
Pawnshop loans and car title loans are two types of secured loans that can have rates well above 100%. Consumer advocates say 36% is the highest APR a personal loan should have to be considered affordable.
Only consider these high-interest secured loans if you’ve exhausted other options.
Also be aware of predatory lending tactics — like a lender refusing to disclose rates or encouraging you to borrow a larger amount than you requested. Check the lender’s license and read customer reviews to avoid loan scams.
Alternatives to secured personal loans
Since secured loans require you to risk a car, savings account or other collateral — and because they’re not as widely offered by lenders — it’s a good idea to compare other options.
Unsecured personal loans: See if you qualify for an unsecured personal loan before trying to get a secured loan. If your credit score is low, try qualifying with online lenders and credit unions over traditional banks. You could boost your chances of loan approval if you apply with a co-signer or co-borrower who has better credit or a higher income.
» COMPARE: Best personal loans for borrowers with bad credit
Cash advance apps: Cash advance apps let you borrow a few hundred dollars from your upcoming paycheck. They usually don’t require a credit check, but they can come with fees and may request optional tips.
Buy now, pay later: Many major retailers offer “buy now, pay later” plans that break up the cost of an item or service over a few weeks or months. A popular plan is four biweekly payments with no interest. BNPL plans typically don’t involve a hard credit check.
Family loan: Borrowing money from a trusted family member or friend could help you avoid a credit check and high interest rates. Establish a loan agreement so both parties understand how the money will be repaid.
How we chose the best personal loans
Our team of consumer lending experts follows an objective and robust methodology to rate lenders and pick the best.
30+
Lenders reviewed
30+
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.
25+
Categories assessed
25+
Categories assessed
Each lender is evaluated across five weighted categories and 27 subcategories, covering affordability, eligibility, consumer experience, flexibility, and application process.
60+
Data points analyzed
60+
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.
Star rating categories
We evaluate more categories than competitors and carefully weigh how each factor impacts your experience.
5.0
Overall score
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.
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. Our ratings award fewer points to lenders with practices that may make a loan difficult to repay on time, such as charging high annual percentage rates (above 36%), underwriting that does not adequately assess consumers’ ability to repay and lack of credit-building help. 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.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodologies for personal loans and our editorial guidelines.
Explore more
Discover additional loan resources and tools
Learn more about personal loans
