Best Secured Personal Loans: Compare Low Rates in April 2026
Upgrade is our top pick for secured personal loans because it accepts multiple forms of collateral, including cars and household fixtures, and offers rate discounts plus other perks
- Secured loans often come with lower rates and lower credit score requirements, but the borrower has to put valuable property at risk for collateral.
- Unlike many secured loan roundups, this one compares lenders that accept multiple forms of collateral, giving borrowers more choice and personalization when shopping for a loan.
- When comparing secured loans, think carefully about the collateral at stake. Losing a car, for example, could make it harder to get to work and worsen your financial situation.
What is a secured personal loan?
A secured personal loan is backed by collateral, or valuable property owned by the borrower. If the borrower doesn’t pay back the loan, the lender has the legal right to repossess, or take possession of, the collateral.
Secured personal loans are riskier for borrowers than unsecured personal loans. Defaulting on a secured personal loan will result in a damaged credit score and the loss of collateral, too.
If secured personal loans carry a higher risk for borrowers than unsecured personal loans, then why would someone choose one over the other? Secured loans can come with benefits that make the extra risk worth it for the right borrower.
Why would someone choose a secured personal loan?
Collateral helps lenders and borrowers share the risk on the loan. If a borrower defaults on the loan, the lender can recoup some of its losses through repossession. Secured personal loans generally come with better approval odds, lower rates and larger loan amounts, in return.
Use a personal loan calculator to compare secured and unsecured loan rates to see if the extra risk is worth it. Repossession usually doesn’t happen until you’re 90+ days past due, but timelines vary by lender. Read your loan agreement and have a solid loan payoff plan to keep your collateral as safe as possible.
| Lender | User rating | APR | Amount | Min. credit score | |
|---|---|---|---|---|---|
|
7.74% – 35.99% (with discounts) |
$1k – $50k |
580 | ||
|
5.99% – 29.99% |
$5k – $50k |
620 | ||
|
Starting at 3.00% |
$500 – $500k |
Not specified | ||
|
11.99% – 35.99% |
$1.5k – $30k |
None |
Read more about how we made our picks for the best secured personal loans.
Best secured personal loans with low rates and unique collateral options
Best for: Secured loans on older cars – Upgrade
- APR (with discounts)
- 7.74% – 35.99%
- Accepts multiple types of collateral
- Fair credit OK
- Offers joint loans
- Has rate discounts for autopay and direct pay (if consolidating debt)
- Customer service is available seven days a week and you can change your due date online
- Have to mail in a form before you can get your loan
- Deducts 1.85% – 9.99% from your loan funds as an origination fee
Upgrade accepts multiple types of collateral on its secured personal loans: cars and home fixtures. Plus, it accepts older cars — the vehicle must be less than 20 years old, when some lenders stop at 10 years.
Online lending platform Upgrade gives you the option to offer two types of collateral: either your paid-off, fully insured car or your home’s permanent fixtures, like built-in cabinets (for eligible homeowners).
Most of Upgrade’s process is online, but you have to mail in one signed form (a limited power of attorney). Until Upgrade gets this form, it can’t send your loan. As a result, Upgrade might not be the best choice if you need a quick loan and plan to use your car as collateral.
To qualify for a loan through Upgrade, you must meet the requirements below:
- Age: Be at least 18 years old (19 in some states)
- Citizenship: Be a U.S. citizen or permanent resident, or live in the U.S. with a valid visa
- Administrative: Have a valid bank account and email address
- Credit score: 580+
To get an auto-secured loan, your car must be:
- Less than 20 years old and have a clean (not salvage) title
- Used for personal reasons (not business or commercial)
- Insured
- Registered in your name and current on taxes/registration
- Paid off (not financed or leased)
Best for: Secured loans with lower rates – Best Egg
- APR
- 5.99% – 29.99%
- Rates as low as 5.99%
- No extra paperwork required
- Can also borrow against your car with a vehicle equity loan
- Deducts 1.49% – 8.99% from every loan as an origination fee
- Doesn’t have the lowest minimum credit score requirements
Best Egg’s Secured Loan + Homeowner Discount uses your home’s permanent fixtures as collateral. By offering this collateral, you could qualify for a 5.99% annual percentage rate (APR). However, you’ll need excellent credit, a low debt-to-income ratio and more to qualify for the lender’s lowest rates.
Only homeowners with sufficient equity qualify for this secured loan. If you aren’t a homeowner, you may be able to borrow against your car’s value with an auto equity loan instead. Unlike most vehicle-backed personal loans, your car doesn’t have to be paid off to get a Best Egg vehicle equity loan
Best Egg uses built‑in home fixtures as collateral but doesn’t require an appraisal. It reviews your credit history and home equity instead.
You must also meet the requirements below to qualify for a Best Egg loan:
- Citizenship: Be a U.S. citizen or permanent resident living in the U.S.
- Administrative: Have a personal checking account, email address and physical mailing address
- Residency: Live in an eligible U.S. state (Best Egg operates in most states, with a small number excluded)
- Credit score: 620+
Best for: Secured loans for rebuilding credit – First Tech Credit Union
- APR
- Starting at 3.00%
- A safer way to build or improve your credit score
- Small loans available
- No origination fees
- Must join the credit union (but it’s easy to become a member)
- Need money in a First Tech savings account to use as collateral
First Tech Federal Credit Union markets its Savings Secured Loan as a way to rebuild credit history if you have bad or little credit. This loan uses a First Tech savings account as collateral, and as long as you’re approved, you can borrow as little as $500. First Tech will report your loan payments to the credit bureaus, potentially helping you build your score.
However, a Savings Secured Loan from First Tech isn’t only for those with bad credit. It can also help you gain access to cash while keeping the nest egg you already have. Either way, you need a sufficiently funded savings account to use as collateral to get this loan, so it may not work for everyone.
You must meet at least one of the following criteria to join First Tech:
- Work for a partnering employer
- Be related to a current First Tech member
- Live in Lane County, Ore.
- Become a member of the Computer History Museum or Financial Fitness Association (First Tech may pay for your first year of membership, and you don’t have to maintain membership to keep your First Tech account)
Best for: Secured loans for bad credit – OneMain Financial
- APR
- 11.99% – 35.99%
California residents must borrow at least $3,000
- Can get your money within an hour after finalizing your loan
- Also accepts motorcycles, boats, RVs and trailers (many lenders only take cars) as collateral
- Has physical branches for in-person help
- Rates aren’t competitive for good credit
- Charges an origination fee on every loan
- Can only borrow up to $30,000
It can be hard to get a same-day secured loan if you have bad credit. With OneMain, you could have your loan within one hour of signing your documents if you have a bank-issued debit card and get your funds via direct deposit.
OneMain requires your car to be 10 years or newer if you want a big loan, although it might accept a car older than that for smaller loans. Borrowers with 670+ credit might also want to explore other lenders, as 11.99% is on the higher end as a starting APR on a personal loan.
OneMain Financial does not have a formal minimum credit score requirement, but it will review your credit history to determine whether you qualify for a loan. If it approves you, you must provide:
- Government-issued identification (such as a driver’s license or passport)
- Proof of residence (such as a rental agreement or utility bill)
- Proof of income (such as pay stubs or tax returns)
OneMain loans are not available in Alaska, Arkansas, Connecticut, District of Columbia, Massachusetts, Rhode Island, Vermont or in U.S. territories.
Choosing the right collateral
A collateralized loan is any loan that requires collateral, including mortgages, home equity loans, most car loans and, although less commonly, personal loans. The personal loan lenders featured in this article accept vehicles, permanent home fixtures and savings accounts as collateral.
| Type of collateral | What is it | Key considerations |
|---|---|---|
| Vehicle | Your paid-off personal vehicle | May lose transportation to work if repossessed; usually requires full coverage car insurance |
| Permanent home fixtures | Home features such as built-in cabinets, ceiling fans and light fixtures | May be hard or impossible to sell home or refi mortgage until loan is paid off |
| Savings account | Your sufficiently funded savings account (varies by lender) | May need to join a credit union or bank; money required for collateral |
A little more than 5% of Americans are delinquent (or late) on at least one auto loan, according to a LendingTree study. While this stat applies to auto loans, the idea is the same for any secured loan: Even if it doesn’t seem likely, default can happen. Before taking out a secured personal loan, consider whether you could afford to lose the asset tied to it.
Secured loans, bad credit and predatory lending
There’s no strict definition of predatory lending, but the National Consumer Law Center (NCLC) has repeatedly proposed a 36% APR cap on personal loans of $1,000 or less, with lower APRs on larger loans.
Because secured loans can have lower credit requirements, you may end up encountering a predatory lender if you have bad credit. In fact, there’s a good chance you’ll find more than one lender in your area offering predatory secured loans, especially title loans and pawn shop loans.
Title loans: Car title loans are like car-secured loans but come with very high APRs and short loan terms, around 15 or 30 days. Payments may be unreasonably high, since you have such a short time to pay back what you borrowed plus interest and fees.
Pawn shop loans: Pawn shops give you a loan based on the value of your item, but much less than what it’s worth. You could have several weeks to several months to pay back your loan, interest and fees, depending on where you live.
Ask LendingTree experts
When does offering collateral improve a borrower’s situation, and when does it turn an expensive loan into a riskier one?
Collateral could help you save money on rates or qualify for loans that you otherwise wouldn’t, but it’s only a solid option if you know you can afford to pay back what you borrowed. When you offer collateral, you’re betting on your ability to make payments. If you’re just not sure you can afford the payments, look at emergency loans instead.
Compare secured personal loan rates with LendingTree
Based on LendingTree marketplace user data, borrowers who compare at least six personal loan offers and choose the one with the lowest rate can save about $2,731 on average in total interest over a three-year term.
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Other types of secured personal loans
Auto-secured and savings-secured loans aren’t the only options out there. Other secured personal loans include:
-
Certificate of deposit (CD) loan
This loan uses an existing CD as collateral. A CD is a type of investment account that you usually open at a bank or credit union. You can typically borrow up to the amount of your CD balance. -
401(k) loan
This product is a bit different from a personal loan. If you have a 401(k), which is a retirement savings plan from your job, you might be able to borrow money from it as a 401(k) loan. The interest you pay goes back into your own 401(k). But leaving your job early may require repaying the loan all at once or facing a penalty. -
Home equity loan or HELOC
Home equity loans and HELOCs use the equity you’ve built up in your home as collateral. These loans also aren’t personal loans, but they tend to offer large loan amounts at affordable interest rates. However, if you’re unable to repay the loan, the lender can seize your home.
Alternatives to secured personal loans
The best personal finance strategy is the one that fits your specific situation. If a secured personal loan doesn’t seem like a good fit, research the alternatives below.
If you need money now but are having trouble qualifying
Consider buy now, pay later, an auto equity loan or a joint loan if you’re having trouble qualifying for a personal loan, even with collateral. These options may be easier to qualify for but come with trade-offs, like smaller loan amounts or shared responsibility and access to the loan.
- Buy now, pay later (BNPL): You can split purchases (including groceries and, in some cases, bills) by using BNPL. The most common plan is called Pay in Four. You’ll put 25% down at checkout, then pay off your remaining balance over three installments, which are due every two weeks.
- Auto equity loan: Auto equity is how much value you have in your vehicle, minus what you currently owe on your auto loan and depreciation. An auto equity loan lets you borrow from that.
- Paycheck advance app: You may be able to borrow from your paycheck early by using a paycheck advance app. Loans are usually small, especially at first, but you may be able to unlock larger amounts over time with responsible use.
If establishing or improving your credit score is your goal
Not everyone opts for a secured loan to borrow money. Secured forms of credit can be easier to get, so some borrowers who can’t qualify for a traditional loan or card start use secured loans to build credit.
- Secured credit card: A secured credit card works like a regular credit card, except that you make a cash deposit first. This serves as your credit limit. The card issuer may offer you a traditional card over time.
- Credit-builder loan: Instead of giving you a lump sum of money, the lender holds it in a certificate of deposit or savings account. Then, you make monthly payments to unlock those funds. The lender will report your monthly payments to the credit bureaus, helping you establish a credit history.
How we chose the best secured loans
We reviewed more than nine lenders that offer secured personal loans to determine the overall best four options. To make our list, lenders must offer secured loans with competitive APRs. We also considered the type of collateral each lender requires.
Then, we assessed each lender or marketplace across four categories: eligibility and access; cost to borrow; loan terms and options; repayment support and tools.
According to our systematic rating and review process, the best secured personal loans come from Upgrade, Best Egg, First Tech Federal Credit Union and OneMain Financial.
Our categories
We assess how easy it is for people to qualify and apply. This includes state availability, soft-credit prequalification, membership requirements, funding speed and whether borrowers with less-than-excellent credit can get a loan.
We evaluate how affordable the loans are based on minimum and maximum APRs, loan fees and rate discounts. Lenders with unclear or potentially predatory costs receive lower scores.
We consider repayment term flexibility, loan amount ranges and whether options like secured loans, joint loans or direct-to-creditor payments are offered — plus whether the lender clearly communicates these options.
We evaluate borrower experience after funding: customer service access, hardship or forbearance programs, payment flexibility and digital tools like mobile apps or credit monitoring.
Our process
We gather data directly from companies through their websites, disclosures and direct communication with company representatives. Our editorial team verifies and updates information regularly. We value transparency and award less favorable scores when lenders obscure or omit details.
Our editorial team applies the same scoring model and standards to every lender. Lenders cannot pay to influence our ratings.
Why trust our methodology?
Our writers and editors dig through the facts, contact lenders directly and even go through the application process ourselves if it helps better explain what you can expect. As a Certified Financial Education Instructor℠, I’m committed to breaking down complex financial details so people can make confident, informed decisions with their money.
Jessica’s experience in editing and financial education helps shape LendingTree articles that are clear, accurate and truly useful to readers. Her certification means our recommendations are built on a foundation of consumer-first financial knowledge — not just numbers.
Frequently asked questions
Secured loans can be easier to get because offering collateral makes the loan less risky for the lender. If a borrower defaults on a secured personal loan, the lender will repossess the borrower’s collateral — such as a car, home fixtures, savings account or other assets used to secure the loan. This helps make up for what the lender loses in loan principal and interest.
The credit score you need for a secured loan depends on the lender’s guidelines. Typically, credit score requirements are lower for secured loans than for unsecured loans, but lower credit scores generally get higher rates. Collateral for bad credit loans may also have to be higher-value to help make up for the borrower’s weaker credit profile.
Other than the traditional risks that come with a personal loan (a damaged credit score for late payments, extra debt, etc.), the biggest risk of a secured loan is the possibility of losing your collateral. If you fall too far behind on your loan (usually 30 to 90 days, but this varies by loan and state), the lender may repossess your collateral.