Best Secured Personal Loans in September 2024

If you’re buying a house with a mortgage loan or a car with an auto loan, your new debt is automatically secured by the value of the asset (your house or car). If you default on your loan, the lender has every right to take possession of that asset to recoup their funds.

Most personal loans are unsecured, though, meaning the lender doesn’t require any form of collateral to secure the debt. Securing a personal loan with collateral may be one way to get approved for a loan for which you might not otherwise qualify or even unlock better personal loan terms, since secured loans represent less risk to lenders.

Here are some of the best secured personal loan options available today and what each lender offers.

Our recommendations for the best secured personal loans

Best for Fast funding

OneMain Financial Secured Personal Loan

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Best for Fast funding

OneMain Financial Secured Personal Loan

APR range

18% to 35.99%

Loan amount

$1,500 to $20,000

Payoff period

24 to 60 months

Credit score required

No minimum

Why we like it:

OneMain Financial offers secured personal loans from $1,500 to $20,000, with funding as fast as just one hour. These loans can be secured by a number of different vehicles, including cars, trucks, motorcycles, boats, RVs, campers, and more, as long as you hold the title outright. You can also prequalify for your loan and review available terms and rates online without impacting your credit score.

Secured loans from OneMain Financial aren’t available in all states. Borrowers in Alaska, Arkansas, Connecticut, Maine, Rhode Island, Vermont, and Washington, D.C., will need to look elsewhere. Additionally, secured loans aren’t offered to active-duty military members, spouses, or even some dependents—anyone covered under the Military Lending Act (MLA) is excluded. You’ll also be subject to an origination fee, which can either be a flat dollar amount ($25 to $500) or a percentage of the loan (1% to 10%), depending on your state and loan.

Pros & cons:

Pros:

• Prequalify for offers without affecting your credit.
• Secure loan with a variety of vehicle types.
• Funding in as quick as an hour.

Cons:

• Only titled vehicles are accepted as collateral.
• Not available in all states.
• Not offered to military members, spouses, or certain dependents.

Best for Homeowners

Best Egg Secured Personal Loan

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Best for Homeowners

Best Egg Secured Personal Loan

APR range

5.99% to 29.99%

Loan amount

Up to $50,000

Payoff period

36 to 84 months

Credit score required

Not specified

Why we like it:

Many homeowners borrow against their property with a home equity loan or home equity line of credit (HELOC). If you don’t want to put your family’s house up for collateral, though, a secured loan from Best Egg allows you to still use that asset without risking the roof over your heads.

With a Best Egg secured loan, you can use the fixtures permanently installed in your property as collateral, which includes built-in cabinets, light fixtures, bathroom vanities, and more. You can borrow up to $50,000 in as little as 24 hours, with terms ranging from 36 to 84 months, and you can even check your rates and eligibility online without impacting your credit score.

Since the loan is secured by your permanent fixtures, it’s only available to homeowners. You’ll also need to be okay with a lien being placed on your property for the value of the loan. Lastly, Best Egg secured loans are subject to an origination fee of between 0.99% and 8.99%, which adds to the cost of your debt.

Pros & cons:

Pros:

• Secure your loan with the fixtures in your home, rather than the home itself.
• Funds in as few as 24 hours.
• Check rate online without affecting your credit.

Cons:

• Only available to homeowners.
• Origination fee of up to 8.99%.
• Requires a lien on your property.

Best for Flexible repayment terms

Upgrade Secured Personal Loan

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Best for Flexible repayment terms

Upgrade Secured Personal Loan

APR range

8.49% to 35.99%

Loan amount

$1,000 to $50,000

Payoff period

24 to 84 months

Credit score required

Not specified

Why we like it:

Through Upgrade, you can take out a secured personal loan for as little as $1,000 or all the way up to $50,000, which can be secured by most vehicles that are less than 20 years old. Repayment terms range from two to seven years, giving you added flexibility in repaying your debt, and once approved, funds can be disbursed as quickly as the next business day. You can apply for an Upgrade secured loan jointly with another borrower, which may improve your approval odds or even qualify you for better rates and loan terms. 

Origination fees on secured personal loans can range from 1.85% to 9.99%, which will add to your loan cost. You’re also limited on the types of vehicles you can use to secure the loan. While other lenders will accept recreational vehicles or even motorcycles, Upgrade does not.

Pros & cons:

Pros:

• Wide range of loan repayment terms available.
• Receive funds within one business day.
• Joint applications accepted.

Cons:

• Origination fee of up to 9.99%.
• Cannot secure loan with motorcycles, RVs, campers, ATVs, or commercial vehicles.
• Higher interest rates than other competitor lenders.

Best for Borrowers with savings

Navy Federal Secured Personal Loan

Best for Borrowers with savings

Navy Federal Secured Personal Loan

APR range

Savings account or CD return rate + 2% or 3%, depending on payoff period

Loan amount

Based on savings balance

Payoff period

Up to 180 months

Credit score required

No minimum

Why we like it:

If you have a savings account or certificate of deposit (CD), but don’t want to touch those liquid funds to cover a big purchase or expense, a Navy Federal secured loan could be the answer. These loans allow you to borrow up to 100% of your CD or savings account value with competitive interest rates and repayment terms of up to 180 months. Your secured loan’s APR is based on the return rate on your collateral account—for CDs and savings accounts, it’s the certificate or share rate plus 2% if the loan term is up to 60 months, or 3% for loan terms of 61 to 180 months for savings-account secured loans only.

Navy Federal is a members-based credit union, so you will need to apply and join before you can apply for a secured loan. These loans are also limited to your secured account’s principal balance amount, meaning that you can’t borrow more than you have in savings. If you want one of the longer loan terms available, you may also be subject to a minimum loan amount.

Pros & cons:

Pros:

• Can be 100% secured by a savings account or CD balance.
• No limit to the amount you’re able to borrow.
• Low interest rates.

Cons:

• Loan minimums apply for longer repayment terms.
• Can only borrow up to your principal balance.
• Must be a member to qualify.

Best for No fees

Regions Bank Secured Personal Loan

Best for No fees

Regions Bank Secured Personal Loan

APR range

CD rate + 5.50%

Savings account return + 4% to 6%

Loan amount

Based on savings balance

Payoff period

Based on loan amount

Credit score required

No minimum

Why we like it:

Regions Bank offers a deposit-secured personal loan for up to 100% of your liquid asset. This means that you can secure your loan with a CD, savings account, or money market account (MMA) to cover large expenses or purchases without touching your savings. The APR on your secured loan depends on how much you’re borrowing and the collateral source. For CDs, you’ll pay 5.50% on top of the CD return rate—it’s 6% plus your savings return rate on loans up to $2,999, and 4% plus your savings return rate for loans $3,000 and over. There are no upfront loan fees and Regions offers an auto rate discount.

The downside, of course, is that you’re securing your loan with a liquid asset, rather than a vehicle or other item. You’ll also need to live near a Regions Bank branch, as loans must be closed in person. Repayment terms may vary and are based on the amount borrowed.

Pros & cons:

Pros:

• No origination or added loan fees.
• Borrow up to 100% of your securing savings.
• No minimum credit score requirement.

Cons:

• No other collateral sources (like vehicles) accepted.
• Closing must take place at a Regions bank location.
• Repayment terms may vary by loan amount.

Best secured personal loans compared

Tips for comparing secured personal loans

Not sure which secured personal loan is right for you? Here are some things to consider when comparing your options.

Look at rates and fees

There are many applicable fees that can add to the cost of your loan. These include origination fees, which are applied at the start of your loan and can frequently be as high as 10% of the borrowed amount. You’ll also need to look at your loan’s interest rate, expressed as APR, to determine the actual cost of borrowing that money. Most lenders charge late and returned payment fees if you aren’t able to make your full payment on time each month.

What loan terms do you need?

Your loan term is the amount of time you’re given to repay your debt, and will determine how much your monthly payment is in the end. Some lenders offer limited repayment terms, which equates to a higher monthly payment requirement. Others may have a wider range of term options, giving you the ability to adjust your monthly payment to meet your budget.

Do you really require a secured loan?

Most personal loans are unsecured, meaning they don’t require any collateral to secure the loan. For many borrowers, this could be the best and easiest option. But if you want to lock in a lower interest rate or can’t qualify for a personal loan on your own, offering to secure the loan with collateral could open up your options.

Can you afford to lose your asset?

Securing a loan with collateral makes the debt less risky for lenders, as they can legally take your asset if you default on your loan. Of course, that makes it more risky for you. If you think there’s any chance you might not be able to fulfill your repayment obligations, seriously consider whether you can afford to lose your securing asset.

How to get a secured personal loan

Here’s a look at how to get a secured personal loan and what to have on hand before you start the process.

Know what you have to use as a securing asset

Not all assets can be used to secure a personal loan, so you’ll need to consider what you have to offer and what lenders will accept. Depending on the lender, this might include a:

• Clean car or truck title.
• Clean recreational vehicle title.
• Savings or money market account balance.
• CD balance.
• Home equity.
• Certain fixtures in your home.

Whichever asset you use may need to be appraised prior to loan approval.

Shop around for lenders

Now it’s time to start looking for lenders. While home equity borrowing options abound, there are only a handful of lenders that offer true secured personal loans these days. The five lenders mentioned above are a great place to start.

Consider each lender’s loan minimum and maximum, how long your repayment term options would be, and what assets are accepted as collateral. Then, see whether you can apply online without affecting your credit.

Understand your budget

Your secured loan’s monthly payment will be determined by the loan amount, your repayment term, and your loan’s interest rate. Consider what you can afford each month and what your budget will allow, then back-calculate how much you can reasonably borrow.

Apply

Most lenders will allow you to apply for your secured personal loan online, often without affecting your credit score. You can then review your loan terms and options before deciding to proceed with your loan.

If you find the right loan for you, you can choose to move forward with the process. In some cases, you may need to visit a local branch location to finalize the loan, while other lenders will let you do everything online.

Provide required documentation

Be ready to provide the lender with your personal information, such as your name, birthdate, contact info, and Social Security number, at minimum. If securing your loan, you’ll also need to provide information about the asset, such as the year, make, model, and mileage of a vehicle.

Sign your loan documents and get funded

Once your loan is approved, it’s time to sign your promissory note—or your personal guarantee to repay the debt as promised or lose your securing asset—and get funded. If your loan is being sent by ACH transfer or wire, you may need to provide the lender with your preferred account’s routing and bank account number.

Alternatives to secured personal loans

Not sure if a secured personal loan is right for you? Here are some alternatives to consider.

Unsecured personal loan

Most personal loans are unsecured, which gives you access to a lump sum installment loan without risking any of your valuable assets. If you’re able to qualify for an unsecured personal loan based on factors like your income and credit score, this may be the best choice to get the cash you need without offering any collateral to a lender.

Tap into home equity

If you own your home (even if you have a remaining mortgage balance), you may be able to tap into its equity with a home equity loan or home equity line of credit (HELOC). While this is still a form of secured loan, it can give you access to more funds—and often at a lower interest rate than a secured personal loan. In the case of a HELOC, you’ll get an open and revolving line of credit that you can tap into as needed for years to come, regardless of what expenses may arise.

Use a credit card

If you are facing a sudden expense, unexpected repair, or big purchase, a credit card can be one option to consider. If you have available credit, you can charge the purchase to your card and either pay the balance in full by the end of the next statement cycle (saving you interest charges), or carry the balance for a few months until you can repay the debt. Many credit cards also offer cash advances against your line of credit, though these typically come with fees and higher interest rates.

If you have a credit card with an introductory 0% APR offer on purchases, you may even be able to pay off your large purchase over a number of months without incurring any finance charges.

Secured personal loans: key considerations

These are some of the most important things to keep in mind if you’re looking at a secured personal loan.

Can you pay off a secured personal loan early?

Many lenders will allow you to repay your personal loan (secured or unsecured) ahead of schedule. By paying off your secured loan early, you can save yourself money on interest charges and free up those monthly funds even sooner. As long as your lender doesn’t charge a prepayment penalty, you can feel free to contribute a little—or a lot—extra to your payment each month.

Credit score impact

Even when taking out a secured personal loan, your credit score may be a factor for eligibility. This means that lenders will usually conduct a soft pull (soft inquiry) on your credit to pre-qualify you for the loan and propose initial loan terms, then conduct a hard pull (hard inquiry) once you decide to move forward with the loan. This inquiry can affect your credit score, even if you don’t end up taking out a loan.

Additionally, your new loan will affect your credit in a few different ways. It will lower your overall age of accounts, increase your total debt burden and debt-to-income ratio, and increase your overall new credit percentage. Each of these factors plays into your credit score calculation.

Interest rate

A secured personal loan typically has a lower interest rate than an unsecured loan, all other factors being the same. That’s because a secured loan is considered less risky for lenders and provides them with simple recourse if you default.

Even still, your loan will have an interest rate attached to the debt. The higher your rate, the more your loan will cost you each year and over the course of repayment.

TIME Stamp: Secure loans present more risk to you, less to lenders

Taking out a secure personal loan can be one way to access needed funds if you have a lower credit score, limited credit history, high debt-to-income ratio, or otherwise can’t qualify for an unsecured loan. These loans are backed by a collateral asset, such as a vehicle title or savings account, and present less risk to lenders. For this reason, it may be easier to qualify for a secured personal loan and borrowers may find that interest rates are also lower on average. However, by securing a loan with collateral, borrowers should note that they are risking that asset if they default on their repayment.

Frequently asked questions (FAQs)

Is it easy to get a secured personal loan?

In general, it is easier to get a secured personal loan than an unsecured loan, because the collateral asset securing the loan makes it less risky for lenders. However, borrowers will still need to meet certain criteria for borrowing, which may involve their credit score, income, age, location, and debt-to-income ratio.

Are secured loans better for bad credit?

If you have bad credit or a limited credit history, secured loans may be a better option and more accessible than unsecured loan options. Not only can it be easier to qualify for a secured loan product, borrowers may also find that their loan terms—including repayment options and interest rate—are better when offering collateral.

Do banks prefer secured loans?

Banks, and lenders in general, may prefer secured loans as they are less risky than unsecured debt. However, not all banks or financial institutions offer secured loans.