For borrowers with near-prime credit scores (601 to 660), median personal loan interest rates hovered around 25% APR from 2018 through 2023, according to TransUnion, reaching 26.9% by the first quarter of 2024.
If those borrowers had looked into a secured loan instead—which relies on collateral like a car or savings account to secure the loan—some might have been able to lower their APR or borrow more. And applicants who got rejected may have been approved.
If you're considering a personal loan, learn how secured loans work and how they compare to unsecured personal loans to determine which is best for you.
Compare secured loan rates
The partner lenders below all offer secured loan options.
44
Credible rating
Fixed (APR)
8.99% - 35.99%
Loan Amounts
$2,000 to $50,000
Min. Credit Score
600
Check Rates
on Credible’s website
View Details
Overview
Best Egg is a solid lender for a wide range of borrowers and, notably, scored second for personal loan satisfaction in J.D. Power's Consumer Lending Study. It offers competitive rates, reasonable loan terms and amounts, and personal loans for fair credit. You'll need a FICO score of at least 600 to qualify, but the lower your score, the higher your APR may be. The APR includes the interest rate and origination fees, which range from 0.99% to 9.99% with Best Egg.
Note that if you successfully prequalify with Best Egg, you may be more likely to be approved for the loan relative to other lenders you prequalify with. Based on Credible data, borrowers who chose to apply for a loan with Best Egg were more than twice as likely to be approved (relative to most other Credible partners).
Loan amount
$2,000 to $50,000
Fees
Origination fee, late fee, unsuccessful payment fee, check processing fee
Discounts
None
Eligibility
Available in all states except DC, IA, VT, and WV
Min. income
None
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as 1 to 3 business days after successful verification
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Read full review
4.54.5
Credible rating
Fixed (APR)
9.99% - 35.99%
Loan Amounts
$1,000 to $50,000
Min. Credit Score
600
Check Rates
on Credible’s website
View Details
Overview
Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Repayment terms
2 to 7 years
Fees
Origination fee
Discounts
Autopay and direct pay
Eligibility
Available in all states
Min. income
Does not disclose
Customer service
Soft credit check
Yes
Time to get funds
1 business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Read full review
3.93.9
Credible rating
Fixed (APR)
18.00% - 35.99%
Loan Amounts
$1,500 to $20,000
Min. Credit Score
540
Check Rates
on Credible’s website
View Details
Overview
OneMain Financial has multiple options for bad-credit personal loans. There is no minimum credit score required (if you apply directly with OneMain), which means you could get a loan with bad credit (FICO below 580). Plus, cosigners are allowed — a cosigner is someone (ideally, with good credit) who promises to repay the loan if you can't, which can make it easier to qualify or lower your rate. And, secured personal loans are available. You secure a loan with collateral, which may also help you qualify or lower your rate.
Rates are higher than competitors and OneMain charges origination fees as either a flat fee up to $500, or a percentage from 1% to 10% (depending on your state of residence). Note that even if you prequalify for a personal loan with OneMain, getting approved isn't a given.
Loan amount
$1,500 to $20,000
Fees
Origination fee, unsuccessful payment fee, late fee
Discounts
None
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
Min. income
Does not disclose
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as 1 to 2 days after acceptance
Loan use
All except business, and education
Read full review
All APRs reflect autopay and loyalty discounts where available | LightStream disclosure | SoFi Disclosures | Read more about Rates and Terms
Best secured personal loans
- Best Egg: Best close rates if pre-approved
- One Main: Best for bad-credit personal loans
- Upgrade: Best for fair credit
- Navy Federal: Best for military
Best Egg: Best close rates if pre-approved
Best for high close rates if pre-approved
Best Egg
4
Credible Rating
Check Rates
on Credible’s website
Est. APR
8.99 - 35.99%
Loan Amount
$2,000 to $50,000
Min. Credit Score
600
Pros and cons
Secured loans available
Low minimum income requirement
Scored second in J.D. Power's Consumer Lending Satisfaction Study
Funds in 1-3 business days
High close rate on loans through Credible platform
Origination fees
No discounts
Not available in DC, IA, VT, or WV
More details
Overview
Best Egg is a solid lender for a wide range of borrowers and, notably, scored second for personal loan satisfaction in J.D. Power's Consumer Lending Study. It offers competitive rates, reasonable loan terms and amounts, and personal loans for fair credit. You'll need a FICO score of at least 600 to qualify, but the lower your score, the higher your APR may be. The APR includes the interest rate and origination fees, which range from 0.99% to 9.99% with Best Egg.
Note that if you successfully prequalify with Best Egg, you may be more likely to be approved for the loan relative to other lenders you prequalify with. Based on Credible data, borrowers who chose to apply for a loan with Best Egg were more than twice as likely to be approved (relative to most other Credible partners).
Loan amount
$2,000 to $50,000
Fees
Origination fee, late fee, unsuccessful payment fee, check processing fee
Discounts
None
Eligibility
Available in all states except DC, IA, VT, and WV
Min. income
None
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as 1 to 3 business days after successful verification
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
One Main: Best for bad-credit personal loans
Best bad credit personal loans
OneMain Financial
3.9
Credible Rating
Check Rates
on Credible’s website
Est. APR
18.00 - 35.99%
Loan Amount
$1,500 to $20,000
Min. Credit Score
540
Pros and cons
Flexible eligibility requirements
Offers secured options
Competitive bad-credit loans
Physical presence
Availability
Origination fees
High starting APR
More details
Overview
OneMain Financial has multiple options for bad-credit personal loans. There is no minimum credit score required (if you apply directly with OneMain), which means you could get a loan with bad credit (FICO below 580). Plus, cosigners are allowed — a cosigner is someone (ideally, with good credit) who promises to repay the loan if you can't, which can make it easier to qualify or lower your rate. And, secured personal loans are available. You secure a loan with collateral, which may also help you qualify or lower your rate.
Rates are higher than competitors and OneMain charges origination fees as either a flat fee up to $500, or a percentage from 1% to 10% (depending on your state of residence). Note that even if you prequalify for a personal loan with OneMain, getting approved isn't a given.
Loan amount
$1,500 to $20,000
Fees
Origination fee, unsuccessful payment fee, late fee
Discounts
None
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
Min. income
Does not disclose
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as 1 to 2 days after acceptance
Loan use
All except business, and education
Upgrade: Best for fair credit
Best for fair credit
Upgrade
4.5
Credible Rating
Check Rates
on Credible’s website
Est. APR
9.99 - 35.99%
Loan Amount
$1,000 to $50,000
Min. Credit Score
600
Pros and cons
Fair credit borrowers eligible
Autopay and direct pay discounts
Can fund in as little as 1 business day
Mobile app
Secured loans available
High maximum origination fee
Cosigners not accepted on home improvement loans
Low J.D. Power ranking
More details
Overview
Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Repayment terms
2 to 7 years
Fees
Origination fee
Discounts
Autopay and direct pay
Eligibility
Available in all states
Min. income
Does not disclose
Customer service
Soft credit check
Yes
Time to get funds
1 business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Navy Federal: Best for military
Navy Federal Credit Union is open to members of the armed forces and Department of Defense personnel, along with their family and household members. It offers loans secured by both savings accounts and certificates of deposit held with Navy Federal.
The rates for savings secured loans sit at the share rate plus 2% for terms up to 60 months and plus 3% for terms up to 180 months. Certificate secured loans are available in terms up to 60 months, at a rate of the certificate rate plus 2%.
Good to know
The share rate is equivalent to the APY on the savings account you’re using as collateral.
What is a secured personal loan?
A secured loan gives the lender rights to a valuable asset it can sell if you don't repay what you owe. Mortgages and auto loans are examples of secured loans that use your home and vehicle as collateral, respectively.
Much like their unsecured counterparts, secured personal loans can be used for almost anything, from vacations to home improvements to debt consolidation. You'll need to pledge collateral though, which on a secured personal loan can take various forms, such as a vehicle, savings account, or certificate of deposit. Best Egg will even accept the fixtures in your home.
How does a secured loan work?
When you take out a secured loan, you give the lender permission to record a lien on the asset you offer as collateral. This lien gives the lender the right to take your asset and sell it if you miss payments. It also tells other lenders that you've already used this asset as collateral.
For example, say you borrow $5,000 and secure the loan with your car. A few years into your loan, you lose your job. You've paid down the balance to $2,000, but you can't pay any more. The lender could seize your car and sell it at auction to get its $2,000 back. But even if the lender recoups what you owe, you would lose the asset and your credit score would take a hit.
Repossession
If a lender seizes your asset to sell, you could still be on the hook for additional payment. Continuing the example above, let's say the car sells for $1,500. After late fees, additional interest and auction fees, you owe the lender $2,400, not $2,000. Since it only recouped $1,500 of that amount, you could be billed for the remaining $900.
On the other hand, if your car sells for say, $4,500, the lender should send you a check for the difference of $2,100 between the sale price and what you owed.
Secured vs. unsecured personal loans
It's important to understand the differences between secured vs. unsecured loans when you're shopping around. A secured personal loan requires you to pledge an asset, like a savings account or vehicle, that the lender can take if you don't repay the loan. An unsecured loan doesn't.
You may want to apply for a secured loan if you were approved for an unsecured loan but the amount was too low or the APR was too high. A secured loan can also be a good choice when you can't qualify for an unsecured loan.
Where can I get a secured loan?
If you're wondering where to get a secured loan, check out banks, credit unions, and online lenders. Be sure to shop around, because offerings vary. Terms often range between two to eight years; interest rates could be as low as 2.25% and as high as 35.99%, depending on the lender and the type of collateral. Origination fees can range from 0% to 9.99% or more, depending on the lender, your loan amount, and credit profile.
Tip
You might find the best deal through a credit union, if you qualify for membership. Secured personal loans are not as widely available as unsecured personal loans, however, so researching your options may take some patience.
What can I use as collateral for a secured loan?
Any valuable asset can be used as collateral if you can find a willing lender.
Banks, credit unions, and online lenders often accept vehicles, such as cars, trucks, motorcycles, boats, recreational vehicles (RVs), or trailers. The vehicle must be paid off, titled in your name, and worth at least as much as you want to borrow.
An acceptable financial asset could be a savings account, money market account, certificate of deposit, investment account, or cryptocurrency. You won't be able to withdraw assets from your account while it's securing your loan balance.
Through secured personal loans from specialty lenders, you may have additional collateral options, including fine art, collectibles, jewelry, diamonds, and gold bullion.
Connect with several lenders, as collateral options vary.
Pros and cons of secured personal loans
Is a secured loan a good idea? Compare the pros and cons, then decide for yourself.
Pros
- Chance for lower rates
- Could mean larger loans
- Opportunity to build credit
Cons
- Risk of loss
- Limits on collateral usage
- Few online lenders offer secured personal loans
Pros
- Chance for lower rates: Collateral means less risk for the lender and could mean a lower interest rate for you.
- Could mean larger loans: The more valuable your collateral, the more you may be able to borrow.
- Opportunity to build credit: Timely payments can build your credit history and score.
Cons
- Risk of loss: The lender can take your pledged assets if you don't repay your loan.
- Limits on collateral usage: If your collateral is a financial asset, you'll lose access to the portion that secures your loan. The lender will gradually release it as you make payments. If you're in the military, you can't use your vehicle as collateral.
- Few online lenders offer secured personal loans: Aside from a handful of mainstream lenders, your best bet to find a secured personal loan may be through a local credit union.
Alternatives to secured personal loans
Knowing your alternatives can help you decide whether a secured personal loan is right for you. Think about whether one of the options below would be a better fit.
- Unsecured personal loan: This allows you to avoid the risk of pledging collateral, though you'll likely need a good or better credit score (a FICO score of 670 or higher) and your rate may be higher than on a secured loan (even with good credit).
- Credit card: Borrow as needed instead of taking a lump sum. Repayment is open-ended, offering more flexibility but potentially costing much more in interest. Secured credit cards are also available. These often require that you pledge a savings account or security deposit at the same bank as collateral.
- Use a co-borrower or a cosigner: A cosigner or a co-borrower with strong credit could enable you to borrow more, get a lower rate, or avoid pledging collateral. A cosigner does not have access to the funds, and is only pursued for payments if you miss them. A co-borrower, which is a much more common option, shares access to the loan proceeds and makes loan payments jointly with you.
- Home equity loan or line of credit: You may be able to pledge your home as collateral and borrow against part of its value if you have enough equity. While you could face foreclosure if you can't make payments, these loans tend to come with lower rates and higher limits than personal loans, with repayment terms up to 30 years.
- Sell something: You could raise money while ridding your home of unwanted possessions.
- Pay cash: Create a savings plan and budget if your goal is a nonessential purchase, or not immediate. Put money away as you can with a specific goal in mind.
FAQ
What credit score do I need for a secured personal loan?
In general, a FICO score of 670 or higher will give you greater odds of approval, but the minimum credit score for a personal loan varies by lender. No credit score may even be acceptable. And some lenders may not check your credit score when you secure your personal loan with a savings account or CD.
Can I get a secured loan with bad credit?
You may be able to get a secured loan with bad credit. Some lenders, like One Main, work with borrowers with lower credit scores. Secured loans are often easier to qualify for than unsecured loans (though you may also be able to get an unsecured loan with bad credit) because the collateral you pledge reduces the risk for the lender, though you risk losing it if you miss payments.
What is collateral?
Collateral is an asset that secures your loan. It's something valuable you own and pledge to the lender as evidence that you plan to repay what you borrow. Collateral can include your home, a vehicle, a savings account or certificate of deposit, jewelry, etc. If you miss payments, the lender can seize and sell the collateral.
How much of a secured loan can I get?
The answer depends on what collateral you have and how lenders appraise it.
You can sometimes get a secured loan for the same amount or less than your collateral's value. With a $2,000 certificate of deposit, for example, you may be able to borrow $2,000 with a secured loan.
Meet the expert:
Amy Fontinelle
Amy Fontinelle is a personal finance journalist with work featured in Forbes Advisor, The Motley Fool, Investopedia, International Business Times, MassMutual, and more.