Secured loans are easier to qualify for than unsecured loans, but that doesn’t mean everyone is approved. Even if you offer collateral, you’ll still need to meet the lender’s credit requirements. The lender will also have rules about what it will accept as collateral.
The best way to see if you’re eligible is by prequalifying for a personal loan. Prequalification only uses a soft credit pull so it doesn’t hurt your credit score.
Best Secured Personal Loan Rates From 3.50% in September 2025
In the first half of 2025, LendingTree users borrowing under $35K had an APR 2.93% lower on average if they closed with a secured loan compared to unsecured
Updated on:
August 29, 2025
How Does LendingTree Get Paid?
LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
Expert insights on secured personal loans
LendingTree chief consumer finance analyst and author of “Ask Questions, Save Money, Make More: How To Take Control of Your Financial Life” |
“If you’re borrowing a large amount of money, a secured personal loan may be the right move. That’s because offering collateral can boost your approval odds and lower your interest rate, which is a really big deal when your loan amount is large and the payoff period is long.” |
Why do millions of Americans trust LendingTree?
25+ years in business. 110+ million Americans served. $260+ billion in funded loans.
SECURITY
Instead of sharing information with multiple lenders, fill out one simple, secure form in five minutes or less.
SAVINGS
We’ll match you with up to five lenders from our network of 300+ lenders (America’s largest) who will call to compete for your business.
SUPPORT
We provide ongoing support with free credit monitoring, budgeting insights and personalized recommendations to help you save.
Best Egg: Best secured loans for homeowners
5.99%-29.91%
36 to 84 months
$5,000-$50,000
Home fixtures
0.99% - 9.99%
Pros
- Doesn’t use your entire house as collateral, just your fixtures
- Accepts credit as low as 580
- Can also borrow against your car with a vehicle equity loan
Cons
- Will be hard to sell your home until your loan is repaid
- Must make at least $100,000 a year and have 700+ FICO Score to get lowest rates
- Will keep at least 0.99% out of your loan as an origination fee
What to know
Best Egg’s Secured Loan + Homeowner Discount is a unique loan that uses your home’s fixtures as collateral. By fixtures, Best Egg means bathroom vanities, built-in cabinets and shelves, and other elements permanently attached to your home.
It will be hard — if not impossible — to sell your home while you’re paying off your loan. If you stop paying, Best Egg will repossess the home’s fixtures. That’s a risk that most homebuyers aren’t willing to take.
How to qualify
Best Egg uses your home’s permanent fixtures as collateral, but no appraisal is needed. Instead, Best Egg will review your credit history and home equity to see if you qualify.
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: Not live in the District of Columbia, Iowa, Vermont, West Virginia or U.S. territories
- Credit score: 580+
Digital Federal Credit Union (DCU): Best secured loans for rebuilding credit
Starting at 3.50%
Up to 120 months
Up to your savings account balance
Savings account
None
Pros
- Loan specifically designed to help you rebuild your credit
- Can skip a payment once every 12 months, up to three times per loan
- Customer service available via live chat
Cons
- Requires you to have cash in a DCU bank account
- DCU is a credit union, so must become a member first
- Must pay a small fee ($10+) to join a partner organization if you don’t qualify through work or where you live
What to know
If you’re looking for quick cash, this loan won’t work. Digital Federal Credit Union’s Savings-Secured Loan is designed to improve your credit. In order to borrow money, you have to have funds in your DCU share (or savings) account. Then, you can borrow up to your account balance.
DCU reports your payments to the major credit bureaus, including TransUnion, Experian and Equifax. If you make your payments on time, your credit score should tick up. You have to join DCU before you can open an account or get a loan. If you don’t qualify for membership through traditional means, you can join a partner organization. Organization memberships come with fees ranging from $10 to $120+.
How to qualify
As a credit union, you must be a DCU member to take out a loan. It does not specify its minimum credit score requirements, but to join the credit union, you must:
- Live, work, worship or go to school in certain Massachusetts communities
- Work for a participating employer
- Join a participating association (annual dues between $10 and $120+)
- Open a DCU savings account with a deposit of at least $5
OneMain Financial: Best for bad credit, same-day secured loans
18.00%-35.99%
24 to 60 months
$1,500-$20,000
Car (less than 10 years old), motorcycle, boat, trailer or RV
$25 to $500, or 1.00% - 10.00%
Pros
- Can send money to your bank account the same day you finish your loan
- Also accepts motorcycles, boats, RVs and trailers (many lenders only take cars) as collateral
- Has physical branches in case you want in-person help
Cons
- Although you can qualify with a 500 credit score, rates are high
- Charges expensive origination fees, late payment fees and returned payment fees
- Can only borrow up to $20,000
What to know
It can be hard to get a same-day loan when you have bad credit. With OneMain, you could have your loan within one hour of signing your documents. You just need a debit card and to agree to get your funds via direct deposit.
You can qualify for a OneMain Financial secured loan as long as you have a 500 credit score. But just like any bad credit loan, expect high rates and fees. OneMain requires your car to be 10 years or newer if you want a big loan. It might accept a car older than that on smaller loans.
How to qualify
OneMain Financial isn’t very transparent about its personal loan eligibility requirements, but it’s possible to qualify even with a credit score as low as 500. Before closing on a loan, you’ll be required to 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.
Upgrade: Best secured loans on older cars
7.99%-35.99% (with discounts)
24 to 84 months
$1,000-$50,000
Car less than 20 years old
1.85% - 9.99%
Pros
- Cars up to 20 years old can qualify
- Can still qualify with a 580 credit score
- Can change your due date online
Cons
- Have to mail in a form before you can get your loan
- Only accepts cars, no motorcycles or RVs as collateral
- Will deduct 1.85% - 9.99% from your loan funds as an origination fee
What to know
Online loan marketplace Upgrade uses your car as collateral on its secured loans. Every lender has its own collateral rules, one of them is vehicle age. Upgrade accepts cars up to 20 years old. Some lenders and companies have a cutoff of 10 years.
Most of Upgrade’s process is online, but you do need to mail in one signed form (a Limited Power of Attorney). Until Upgrade gets this form, it can’t send your loan. You might also be required to get the form notarized.
How to qualify
To qualify for a loan through Upgrade’s lender network, 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)
When banks compete, you win
You'd shop around for flights. Why not your loan? LendingTree makes it easy. Fill out one form and get lenders from the country’s largest network to compete for your business.
Tell us what you need
Take two minutes to tell us who you are and how much money you need. It’s free, simple and secure.
Shop your offers
Our users get 18 personal loan offers on average. Compare your offers side by side to get the best deal.
Get your money
Pick a lender and sign your loan paperwork. You could see money in your account in as soon as 24 hours.
What LendingTree users are saying
Larry Miller
Lending tree made it easy to find lenders willing to give me a loan. It was easy and simple process and I was able to get a personal loan to reduce debt. Thank you.
Garret Kelley
Fast and easy. First time Personal Loan and lots of places denied me because of because of credit history, I have always paid on time and am current since I started up using credit 3 years ago. That's not enough for alot of places but LendingTree found me a loanholder who would work with me!
customer Crissie P
Lending tree was able to match me quickly with a great personal loan provider. We got a great rate and a low payment. Now we can finish our remodel. Great experience overall. From start to finish it was seamless.
How secured loans work
Step 1
Get approved and paid
A lender will evaluate both your creditworthiness and your collateral. Once approved, you’ll get a lump sum and the lender will place a lien on your collateral.
Step 2
Make monthly payments
You’ll repay the loan in equal installments while continuing to use your collateral normally.
Step 3
Close out the loan
When you make your final loan payment, the lender removes the lien and you keep your collateral. If you default, however, the lender can repossess your collateral.
Pros and cons of secured loans
| Pros | Cons |
|---|---|
| Lower rates. Secured loans typically have lower interest rates than unsecured loans. Easier to qualify for. Secured loans could be a good option if you’re building credit or have a lower score. Higher loan amounts. Offering collateral can help qualify for a bigger loan. | Can be risky. Aside from hurting your credit score, not paying back a secured loan means you can lose your collateral. Not as common. Most personal loans are unsecured. Can be predatory. Certain types of secured loans (like title loans and pawn shop loans) can be predatory. You can find plenty of predatory loans online, too. Possible fees. Can come with an origination fee. The lender will take this out of your loan before sending it to you. |
How to find a secured loan with LendingTree
Tell us what you need.
Fill out one quick form to access America’s largest network of lenders.
Get free offers.
Let us do the shopping and get offers from up to five lenders at once. Checking rates won’t hurt your credit.
Compare and save.
You could save up to $3,138 by shopping around. Find your best rate and we’ll help you along the way.
How we chose the best secured loans
Accessibility
We look for lenders with fewer barriers to approval, lower credit requirements, wider geographic access and faster funding.
Rates and terms
We prioritize lenders that offer low starting rates, minimal fees, flexible terms and APR discount opportunities.
Repayment experience
We choose lenders with strong reputations, convenient self-service tools, responsive support and borrower-friendly perks.
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. According to our systematic rating and review process, the best secured personal loans come from Best Egg, Digital Federal Credit Union (DCU), OneMain Financial and Upgrade.
Why trust our methodology?
Senior managing editor and Certified Financial Education Instructor℠ |
“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
A secured loan can be a good idea for the right person, especially if you have less-than-perfect credit or want a lower rate. Secured loans come with extra risk, though. The lender can repossess your collateral if you get too far behind. Always use a personal loan calculator before to make sure you can afford a monthly loan payment.
Upgrade’s lender network offers auto-secured loans to borrowers with credit scores 580 and higher. But ultimately, the credit score needed for a personal loan varies by lender (which is why it’s so important to shop). Also, the lower your credit score, the higher your rate. Generally, you’ll need at least good credit (670+) before rates start to become more affordable.