Best Secured Personal Loans of January 2026
Secured loans offer a higher amount, a low APR, and approve bad credit if you agree to put up collateral. People don’t have to go with secured loans instantly. There are many unsecured loans that approve bad credit. Start your search from unsecured loans, and then if you can’t get approved, move to secured loans.
Shop Around! ElitePersonalFinance found the best secured loans of January 2026.
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Loan Comparison Site
Best Secured Personal Loans of January 2026
If you have so-so credit and want to take advantage of lower APRs, you may want to consider secured loans by putting up your vehicle, savings account or certificate of deposit as collateral. With responsible lenders like OneMain Financial, Oportun, and Credit Union 1 offering secured options to borrowers with credit scores as low as 500, now may be an excellent time to evaluate this popular loan while working to rebuild your credit. Let ElitePersonalFinance help you better understand the trade-offs.
Why Should I Trust ElitePersonalFinance
At ElitePersonalFinance, we’re all about loan transparency. Whether you’re using a vehicle in your name, a savings account, or a certificate of deposit as collateral, secured loans offer the option to cut down on your APRs and increase your chances of approval if you’ve had difficulty qualifying in the past.
In our guide, we feature 10 secured personal lenders that meet the mark for reliability, no hidden fees, safe APRs, and more. Whether you’re looking to rebuild your credit or take out a $20,000 loan for your next vacation, our guide will walk you through all of the options available.
Keep reading to learn more about the best secured personal loans, including how secured loans work, reviews on recommended lenders, pros and cons of secured loans, and all of the strategies you need to choose the right secured loan with confidence.
SuperMoney
If you want to compare dozens of secured personal lenders side by side instantly, then SuperMoney is an excellent place to start. Here you can compare everything from APR ranges and repayment terms to loan amounts and fees in an easily digestible format. Many of our top recommendations are already listed here, such as eStylemoney, OneMain Financial, KeyBank, Regions Bank, and Credit Union 1.
One of the best things about SuperMoney is that you can filter lenders by verified user reviews, ensuring you get positive, firsthand feedback. Plus, you don’t need to go through multiple bank portals to check the lowest APR you qualify for.
Thanks to SuperMoney’s excellent aggregator engine, it has received numerous accolades, such as Forbes Advisor’s “Best Loan Comparison Platforms of 2024” with an A+ rating by the Better Business Bureau.
What We Like:
- Both secured and unsecured loan options are available
- Ability to filter lenders by verified reviews
- An easy way to compare secured lenders side by side
- Forbes Advisor’s “Best Loan Comparison Platforms of 2024”
- A+ rating by the Better Business Bureau
What We Don’t Like:
- Not a direct lender
- Hard credit inquiry required for final approval
- Funding times vary by lender
- Secured loans are unavailable in all states
Eligibility & Next Steps:
- 18 years of age or older
- US citizen or permanent resident
- Submit a prequalification form
Terms: SuperMoney is a comparison marketplace that lets borrowers with secured loan offers from banks, credit unions, and online lenders in one place. It does not directly fund or service any loans, and approval is not guaranteed. Actual rates depend on your credit score, income, and the type of loan program you choose. Borrowers with lower credit scores may see higher interest rates or additional requirements. Always read your official loan estimate before signing the contract.
BestEgg
Best Egg’s Vehicle Equity program lets you use your vehicle as collateral to qualify for better rates without giving it up. Loan amounts under the program range from $2,000 to $50,000, with repayment terms of 36 to 60 months.
One of its biggest draws is that you can access up to 250% of your vehicle’s value up to a maximum limit of $100,000. The higher your vehicle equity, the higher your potential loan amount. Note, you will not be eligible for Best Egg’s Vehicle Equity program if you have a type of lien on your vehicle, such as a tax lien or pending judgment.
On top of that, Best Egg is highly recommended, with an A+ rating from the Better Business Bureau and 9,000+ favorable Trustpilot reviews.
What We Like:
- Secured personal loans under Best Egg’s Vehicle Equity program
- Lower APRs and unsecured options
- Funding to your bank account by the next business day
- Transparent repayment terms
- Reports on-time payments to credit bureaus
What We Don’t Like:
- Must own your vehicle outright and lien-free
- Origination fees up to 8.99%
- Not available in all states
No cosigner option
Eligibility & Next Steps:
- Must be 18 years of age or older
- US citizen or permanent resident
- Proof of vehicle ownership and insurance required
- Recommended fair to good credit score (600+)
- Apply online through the BestEgg portal
Terms: SuperMoney is a comparison marketplace that lets borrowers with secured loan offers from banks, credit unions, and online lenders in one place. It does not directly fund or service any loans, and approval is not guaranteed. Actual rates depend on your credit score, income, and the type of loan program you choose. Borrowers with lower credit scores may see higher interest rates or additional requirements. Always read your official loan estimate before signing the contract.
KeyBank
Suppose you want to rely on a long-established national bank. In that case, you can leverage KeyBank’s Certificate of Deposit (CD) or savings account program, putting up either as collateral to qualify for lower personal loan rates at roughly a few points above your own deposit earnings. Loans generally range from $2,000 to $5,000, depending on your deposit balance.
Plus, KeyBank has branches in 15 states, allowing for reasonable national coverage.
In terms of awards, KeyBank has earned a Forbes distinction as one of “America’s Best Regional Banks” (2024) and an A+ rating from the Better Business Bureau, both of which are a testament to strong customer support.
What We Like:
- Ability to use a CD or a savings account as collateral
- Earn interest on secured funds while borrowing
- Funding by the next business day
- Excellent customer support
What We Don’t Like:
- Limited to 15 states
- No cosigner options available
- Rates depend on the type of collateral you put up and the balance
Eligibility & Next Steps:
- 18 years of age or older
- US citizen or permanent resident
- Must have a KeyBank CD or savings account
- Submit a completed application through the KeyBank website or in person
Terms: KeyBank offers secured personal loans for borrowers of all credit types using a Certificate of Deposit (CD) or savings account as collateral. Loan amounts generally range from $2,000 to $5,000, with rates dependent on collateral type and balance. No origination fees are charged. Actual rates depend on your credit score, income, and loan program. Always read your official loan estimate before signing the contract.
Regions Bank
If you want to use your savings or certificates of deposit as collateral for improved rates on personal loans, then consider Regions Bank. Loans use your deposit account as security, allowing you to borrow while earning interest on your money. Loan amounts typically range from $2,000 to $50,000, depending on your credit score.
Repayment terms range from 12 to 60 months, with funds being transferred to your bank account by the next business day, making it an excellent choice for emergency cash. Plus, Regions Bank reports on-time payments to all three major credit bureaus, making it a win-win.
What We Like:
- Widely recognized bank
- Lower APRs versus unsecured loans
- Reports on-time payments to credit bureaus
- Ability to earn interest on your collateral
- Quick disbursement of funds
What We Don’t Like:
- Need to open a Regions deposit or CD account
- Primarily focused on existing Regions Bank customers
- Not available in all states
- No prequalification without a credit inquiry
Eligibility & Next Steps:
- 18 years of age or older
- US citizen or permanent resident
- Open a Regions savings or CD account
- Fair to good credit (600+) required
- Complete the loan application through the Regions Bank website or in a branch
Terms: Regions Bank provides secured personal loans for borrowers of all credit types, using a savings or CD account as collateral. Loan amounts typically range from $2,000 to $50,000 with repayment terms of 12 to 60 months. Actual rates depend on your credit score, income, and loan program. Always read your official loan estimate before signing the contract.
OneMain Financial
If you’re a fair-to-good prime credit borrower looking for a secured personal loan, OneMain Financial can be a viable option. Use your vehicle as collateral to secure loans of up to $20,000 at lower APRs, or opt for an unsecured loan.
With more than 1,400 branches nationwide, OneMain offers a nice hybrid of in-person and digital support with predictable fixed payments and same-day approval. There are no prepayment penalties.
What We Like:
- Loans up to $20,000
- Same-day approval and funding
- Fixed and predictable monthly payments
- In-person support at 1,400 branches nationwide
- No prepayment penalties
What We Don’t Like:
- Higher than average APRs
- Fees vary by state
- Higher max loan limits at competitors
Eligibility & Next Steps:
- Must be 18 years of age or older
- US citizen or permanent resident
- Proof of vehicle ownership and insurance required
- Recommended fair to good credit score (550+)
- Apply online through the OneMain website or visit a local branch
Terms: OneMain Financial offers secured personal loans for borrowers of all credit types. Secured loans can use a vehicle as collateral for amounts up to $20,000 with no prepayment penalties. APRs and fees vary by state. Actual rates depend on your credit score, income, and loan program. Always read your official loan estimate before signing the contract.
Oportun
One of the leading fintech lenders on the market today, Oportun allows those with limited credit history to take out secured loan options that use vehicle collateral. It offers loan amounts from $2,525 to $18,500, contingent on your vehicle’s value. Note, you must own your car outright and be title-free and clear of any liens.
On the Oportun website, it clearly states that its secured loans offer lower APRs than traditional title loans and that funds are available fast with direct deposit. Payday loans can cost up to four times more. Plus, Oportun reports on-time payments to credit bureaus, helping you build positive credit over time.
Lastly, Oportun has enjoyed excellent feedback across the board, with more than 100,000 5-star reviews on Google and Trustpilot, with past and current customers citing everything from an easy, quick process to loan transparency. It is also an A+ accredited business by the Better Business Bureau and is rated the #1 savings app of 2025 by Bankrate.
What We Like:
- Loan amounts from $2,525 to $18,500
- More than 100,000 5-star reviews on Google and Trustpilot
- Three ways of contact (live chat, phone, and in person)
- Rated #1 savings app of 2025 by Bankrate
- A+ accredited business by the Better Business Bureau
What We Don’t Like:
- APRs of up to ~35.99%
- Must own your vehicle outright
- Maximum amounts vary by state
Eligibility & Next Steps:
- Must be 18 years of age or older
- US citizen or permanent resident
- Proof of vehicle ownership and insurance required
- Recommended fair to good credit score (550+)
- Apply online through the Oportun website
Terms: Oportun offers secured personal loans for borrowers of all credit types using a vehicle as collateral. Loan amounts range from $2,525 to $18,500. Actual rates and fees depend on your credit score, income, and loan program. Always read your official loan estimate before signing the contract.
Navy Federal Credit Union
The foremost banking institution for retired and active military personnel and their families, Navy Federal Credit Union offers Savings Secured Loan and Certificate Secured Loan options with loans starting at $250 up to the value of your savings or certificate account used as collateral. Repayment terms go up to 60 months.
One of the best things about Navy Federal Credit Union’s Savings Secured Loan and Certificate Secured Loan options is that borrowers earn interest immediately throughout the entire loan term, with on-time payments reported to credit bureaus, making it an excellent credit-building tool. Plus, its strong member focus offers plenty of personalized service and perks like no prepayment penalties, so you can pay off your loans comfortably without added fees.
What We Like:
- Lower APRs than traditional unsecured loans
- Earn dividends on secured savings or certificates of deposit
- Reports on-time payments to credit bureaus
- Repayment terms up to 60 months
- No prepayment penalties
What We Don’t Like:
- Not the longest loan terms
- Locked savings or certificate account funds for the entirety of the term
Eligibility & Next Steps:
- Must be a Navy Federal Credit Union member
- Open a savings or certificate account
- Application through the Navy Federal Credit Union website or mobile app
Terms: Navy Federal Credit Union offers secured personal loans for borrowers of all credit types using a savings or certificate account as collateral. Loan amounts start at $250 up to the value of the collateral offered, with repayment terms up to 60 months. Actual rates depend on your credit score, income, and loan program. Always read your official loan estimate before signing the contract.
Credit Union 1
Credit Union 1 offers a Secured Loan that allows members to borrow as low as $250 and up to the value of their security deposit account, with repayment terms up to 60 months. Thanks to this setup, expect lower APRs than traditional unsecured loans.
Like Navy Federal Credit Union members, Credit Union 1 members can earn dividends on savings while paying their loans on time. On-time payments are also reported to Experian, Equifax, and TransUnion.
All in all, the combination of flexible repayment options and excellent APRs lower than traditional unsecured loans makes Credit Union 1 a winner.
What We Like:
- Repayment terms up to 60 months
- On-time payments reported to credit bureaus
- Ability to earn interest on secure savings
What We Don’t Like:
- Must be a Credit Union 1 member to apply
- Open a deposit or share certificate account
- Locked funds in savings until the loan balance is paid off
- Not available in all states
Eligibility & Next Steps:
- 18 years of age or older
- Open a savings or certificate account for collateral
- Apply online through the Credit Union 1 website
Terms: Credit Union 1 offers secured personal loans for borrowers of all credit types using a deposit or certificate account as collateral. Loan amounts range from $250 up to the value of the collateral, with repayment terms of up to 60 months. Actual rates depend on your credit score, income, and loan program. Always read your official loan estimate before signing the contract.
First Tech Credit Union
With more than 650,000 members nationwide, First Tech Credit Union is one of our favorite secured personal loan banks. It offers loans as low as $500 using your savings account as collateral, along with repayment terms from 24 to 84 months. Choose between Share Secured and Certificate Secured loans, both of which let you earn dividends on your collateral, making them excellent choices for credit builders.
Expect APRs on secured personal loans to fall as low as 4%, depending on the type of collateral provided, which is a much better deal than unsecured loans at traditional banks.
Lastly, First Tech Credit Union has stepped up to the plate with numerous awards, such as an A+ rating by the Better Business Bureau and Forbes distinction as “Best Credit Union for Personal Loans” (2024)
What We Like:
- Loans as low as $500
- Repayment terms from 24 to 84 months
- More than 650,000 members nationwide
- Share Secured and Certificate Secured options are available
- A+ rating by the Better Business Bureau
- Forbes distinction as “Best Credit Union for Personal Loans” (2024)
What We Don’t Like:
- Not available in all states
- Locked funds until payoff for secure loans
- Slightly longer funding times compared to traditional banks
Eligibility & Next Steps:
- 18 years of age or older
- US citizen or permanent resident
- Existing First Tech savings or certificate account holder
- Apply online through the First Tech Credit Union website or in person
Terms: First Tech Credit Union provides secured personal loans for borrowers of all credit types using a savings or certificate account as collateral. Loan amounts start at $500 with APRs as low as 4% and repayment terms from 24 to 84 months. Actual rates depend on your credit score, income, and loan program. Always read your official loan estimate before signing the contract.
Upgrade
Upgrade is another leading online lender offering a combination of secured (vehicle titles or deposit accounts) and unsecured personal loans. Loan amounts range from $2,000 to $50,000, with repayment terms of 24 to 84 months, and flexible repayment options that make monthly budgeting easier.
One of the best things about Upgrade is its digital-first model, which promises lower APRs than competitors and is backed by a network of FDIC-insured banking partners. Plus, some lenders report on-time payments to all three credit bureaus so that you can improve your credit profile over time.
In addition, Upgrade has won numerous accolades, such as an A+ rating from the Better Business Bureau and recognition by Forbes Advisor as a “Best Online Lender for Fair Credit” (2024)
What We Like:
- Loan amounts from $2,000 to $50,000
- Secured loans through vehicle titles and deposit accounts
- Reports on-time payments to Experian, Equifax, and TransUnion
- Funding by the next business day
- Excellent suite of financial tracking tools, including free credit monitoring
What We Don’t Like:
- Origination fees up to 9.99%
- No in-person service
- Loan product availability depends on the state
Eligibility & Next Steps:
- Must be 18 years or older
- US citizen or permanent resident
- Minimum recommended credit score of 580+
- Proof of income and collateral documentation required
- Apply online through the Upgrade website
Terms: Upgrade offers secured personal loans for borrowers of all credit types. Loan amounts range from $2,000 to $50,000 with fixed APRs between 8.49% and 35.99% and repayment terms from 24 to 84 months. Origination fees may go up to 9.99%, depending on the lender. Actual rates depend on your credit score, income, and loan program. Always read your official loan estimate before signing the contract.
What Are Secured Personal Loans?
Secured personal loans are loans that require you to put up collateral, such as a vehicle, savings account, or certificate of deposit. They typically offer lower APRs than unsecured personal loans, which is possible because you’re lowering the lender’s risk. As a result, you can benefit from lower APRs and higher loan limits, even when you have a less-than-ideal credit score.
Our list of recommendations comes with no shortage of secured personal loan programs. For example, US Bank offers secured personal loans, allowing you to put up a savings account or certificate of deposit as collateral while continuing to earn interest.
Keep in mind that if you fail to repay the loan, the bank reserves the right to repossess your vehicle, savings balance, or certificate of deposit, so you should clearly understand all the risks involved with this type of loan, which we cover extensively throughout our guide.
What Are the Pros and Cons of Secured Loans?
Here are the pros and cons of secured loans:
Pros:
Easier Approval
One of the best things about personal loans is that they offer easier approval for struggling borrowers.
Secured personal loans backed by collateral, such as vehicles or certificates of deposit, are an excellent choice for those looking to rebuild their credit history.
For example, Oportun provides secured personal loans for borrowers with little to no credit history by using a car as collateral, with loan amounts ranging from $2,525 to $18,500. At the same time, it’s very popular among fair-credit applicants with credit scores up to 550, thanks to reliance on collateral value rather than credit scores.
Low APRs
Another benefit of secured personal loans is that they offer lower annual percentage rates than unsecured loans, thanks to the lower risk posed to the lender. Whether you use a vehicle title, savings account, or a certificate of deposit, reputable lenders like Regions Bank and Key Bank can offer APRs up to 4% lower than comparable unsecured loans, allowing you to save hundreds of dollars over the life of a loan.
For example, we’re big fans of Key Bank’s CD secured loan, which uses your deposit as collateral while allowing you to keep earning interest on your deposits.
All in all, the combination of earnings potential and low APR makes secured personal loans a viable option.
Ability to Build Credit
My third benefit of secured personal loans is that they double as credit-building tools. Most of our recommended lenders (e.g., Navy Federal Credit Union, Credit Union 1, and Oportun) report on-time payments to the three major credit bureaus: Equifax, Experian, and TransUnion.
At the same time, we’re big fans of Navy Federal’s Savings Secured Loan and Certificate Secured Loan, thanks to their ability to help rebuild credit by borrowing against your own deposits. With 35% of your FICO score comprising on-time payment history, every little bit helps.
Different Types of Collateral
Different assets, such as certificates of deposit, savings accounts, and your vehicle, can be used to secure personal loans.
For example, Best Egg’s Vehicle Equity Program allows you to use your vehicle as collateral. In contrast, Regions or KeyBank lets you use CDs or savings accounts to earn interest while borrowing. Whether you’re looking for quick funding or applying certificates of deposit towards low-cost credit, all options are ripe for the taking.
Cons:
Risk of Losing Collateral
One of the most significant downsides to securing a loan on your own is the risk of losing your collateral if you fall behind on payments, because you’re putting up assets such as a car, a savings account, or a certificate of deposit. Lenders have the right to repossess your asset if you do not comply with the loan terms. This can be especially disastrous, especially if you use your vehicle for a daily commute.
For example, suppose you use your vehicle to secure a OneMain Financial or Oportun secured loan and miss three consecutive payments. In that case, the lender reserves the right to repossess your vehicle and sell it to recover as much as possible. If you’re looking to take out CD-secured loans from KeyBank or Regions Bank, then you may have your certificate of deposit liquidated entirely if you do not pay off the loan in full.
Not Available in All States
Keep in mind that secured loans are not available nationwide, depending on the lender. For example, two of our recommended lenders, KeyBank and Regions Bank, do not operate at all stations, so you may need to turn to online lenders to cover.
Keep in mind that programs like Best Egg’s Vehicle Equity Program must adhere to state-specific laws, which can affect your loan terms, including eligibility requirements.
That’s why we highly recommend using online marketplaces like SuperMoney to compare competing offers side by side, with the added benefit of checking whether the lender is licensed to operate in your state.
Additional Fees
Although you can expect to pay lower APRs with secured loans, any number of fees can come into play, including origination fees and valuation costs.
For example, Best Egg charges origination fees up to 8.99%, while OneMain Financial has state-specific fees that can creep up your borrowing costs. Do not forget that vehicle-secured loans require that you maintain full insurance coverage for the entirety of the loan terms. In contrast, there are minimum account balance requirements for CD or savings account loans from Regions and KeyBank.
With that said, we encourage you to read all the fine print carefully to ensure you can comfortably pay off your loan. Even if the interest rate looks attractive, these fees can reduce the net savings compared to an unsecured alternative.
Locked Funds
If you decide to use savings or a certificate of deposit as collateral for a secured loan, keep in mind that funds will be locked for the entire loan, providing additional insurance to the lender. This could limit your flexibility, especially in emergencies. You can only withdraw when the balance is paid in full, affecting liquidity.
Why People Should Choose Secured Loans?
There are many reasons why people choose secured loans. One of them is their substantially lower APRs compared to unsecured personal loans. By putting up a vehicle, a savings account, or a certificate of deposit that’s collateral, you cut down on lender risk, which also translates to higher borrowing limits.
Secondly, secured loans work very well for people with damaged credit histories. Three of our top recommendations, Oportun, OneMain Financial, and Credit Union 1, allow borrowers with scores as low as 500 to take out secured loans to compensate for their lack of credit. Plus, on-time payments are reported to the three major credit bureaus, which allows secured loans to be a powerful credit building tool that can eventually help you qualify for a lower APRs with good to excellent credit.
What Are The Risks of Secured Loans?
The number one risk with taking out a secured loan is that you risk losing your collateral if you do not make payments. Whether you’re using a vehicle, a savings account, or a certificate of deposit, lenders reserve the right to take it away if you become delinquent on your loan, which could disrupt other aspects of your life, such as your ability to commute to work.
In the case of savings and CDs, funds can be fully liquidated, which can also cut into your emergency rainy day fund or ability to save for other things.
To add, expect additional costs with secured loans, which can include any number of extra fees, including origination fees and vehicle inspection fees. Plus, you may even face early withdrawal penalties for CD-backed loans. Not to mention your funds remain locked for the entire loan duration, which limits liquidity.
Before taking out a secured loan, we always recommend that you understand the full consequences and make sure its lower APRs or higher borrowing limits are worth it.
Can I Get a Secured Personal Loan With Bad Credit?
Yes, it is very possible to get a secured personal loan with bad credit. One of the most significant advantages of choosing secured personal loans is the ability to secure lower APRs by using a savings account, a certificate of deposit (CD), or even a vehicle title as collateral.
This means that if you have a low 600 credit score or even a high 500, you could still qualify at places like US Bank, which allows users to use their own savings accounts as collateral.
Keep in mind that although bad-credit borrowers can take out secured loans, it doesn’t guarantee automatic approval. Expect your complete financial profile to be assessed, including your employment history and income stability, as well as your debt-to-income ratio, to ensure you can comfortably manage monthly payments without defaulting. Plus, you may even need to attend a branch in person to finalize the collateral agreement.
That’s why we constantly preach choosing a loan amount you can afford and enrolling in automatic payments to keep your credit score in check.
How to Pick The Best Secured Personal Loan?
Here’s a step-by-step guide on how to pick the best secured personal loan:
Start Search With SuperMoney
One of the best ways to get started on picking the best secured personal loan is by using aggregator sites like SuperMoney, where you can see offers from banks, credit unions, and fintech lenders all in one spot. They provide easy side-by-side comparisons of everything from loan amounts to collateral requirements with a single soft credit check.
Plus, you can expect complete transparency. It even tells you which lenders report to credit bureaus and whether or not they charge origination fees. Once you receive an offer you’re comfortable with, you can proceed with applying directly through the lender’s website.
Break Down Collateral Options
What you decide to use as collateral will influence your approval decisions and the terms you receive.
For example, Best Egg’s Vehicle Equity Program allows you to use your vehicle as collateral. In contrast, OneMain Financial will enable you to secure up to $20,000 with same-day approval on a secured vehicle loan.
If you prefer to use savings accounts or certificates of deposit, consider top options like KeyBank, Regions Bank, or Navy Federal Credit Union, which will also allow you to keep earning interest while borrowing at lower APRs than with unsecured loans.
Consider Your Credit
Not every lender has the same credit eligibility criteria. If you have a fair to below-average score between 550 and 650, you stand a greater chance with Oportun and OneMain Financial. In turn, KeyBank, Regions, or Upgrade are better suited to borrowers with good to excellent credit (680+).
At the same time, Best Egg is suitable for credit scores in the 600 range, so you have more than enough options in our guide to match your credit profile and improve your chances of approval.
How Can I Apply for a Secured Loan?
Here are the steps you can take to apply for a secured loan:
Decide What Type of Collateral You Wish to Put Up
The first step in applying for a secured loan is to determine the type of collateral you want to put up, based on your risk tolerance.
If you have no liens on your vehicle, you may take advantage of an auto-secured loan, which can offer lower interest rates than traditional unsecured loans. Programs like Best Egg’s Vehicle Equity or OneMain provide funds in as little as two business days for putting up your vehicle. Note that if you miss any payments, your vehicle will be repossessed.
In turn, consider a savings- or CD-secured loan from Regions, KeyBank, Navy Federal, Credit Union 1, or First Tech if you already have cash reserves. This will allow you to qualify for a lower APR and earn interest. However, understand that your funds will be locked, so liquidity is limited until you pay off the loan in full.
Check Your Eligibility
The next step to take to get a secured loan is to determine your baseline eligibility.
You’ll always be required to be 18 years of age or older, a US citizen or permanent resident, and provide proof of income through W-2s, electronic pay stubs, or bank statements. If you’re taking out an auto-secured loan, you’ll need a vehicle title in your name, valid registration, and full insurance coverage.
Plus, consider your debt-to-income ratio. This is the ratio of your gross monthly income to your recurring debts. If your DTI is above 40%, consider a longer term or a larger certificate of deposit balance.
Estimate Value and Loan-to-Value (LTV)
Your LTV will determine any secured loan you qualify for. Expect LTV to be capped at around 70% to 120%, depending on the program type. For example, secured loans typically offer a balance of up to 100% of the pledged amount.
If you’re taking out an auto-secured loan, it’s essential to use Kelley Blue Book to determine the vehicle’s value based on the make, trim, mileage, and condition.
How We Picked These Lenders
In researching the best secured personal loan lenders, we took into consideration all different types of institutions, from nationally recognized banks to online lenders. We even focused on aggregator sites like SuperMoney and credit unions.
Here are all of the criteria we use to assess every lender for inclusion on our list:
Loan Transparency
One of the first things we look for with any bank is complete transparency into all loan terms and conditions, including APR ranges, fees, repayment terms, collateral requirements, and loan-to-value (LTV) limits. We prioritize fine print that clearly discloses all of this information in an easy-to-understand format, along with the requirement that on-time payments are reported to the credit bureaus to build your credit profile.
For example, Best Egg does an excellent job of explaining its Vehicle Equity Program, providing complete details on the rules and all lien restrictions. At the same time, Regions Bank and KeyBank provide clear and concise language on how savings and CD-secured loans work, including how the process of earning interest while borrowing continues. In turn, Upgrade does an excellent job of clearly outlining all of its origination fees and funding timelines, allowing you to enjoy a more predictable loan structure.
Customer Service Quality
Another area we strongly considered was the quality of customer service across all our recommended banks. They should have at least three support channels, including phone, chat, and email, with highly responsive support and thousands of positive borrower reviews on their website.
For example, Oportun probably has more than 100,000 five-star reviews, praising everything from its speedy transactions to its friendly customer service. In turn, Navy Federal and Credit Union 1 work overtime to provide personalized services, financial tools, and credit-building resources.
If we see a high level of activity regarding late responses or the handling of complaints, then these banks did not make our list.
APRs, Fees, Loan Limits, and Funding Speed
All of our lenders are fair and competitive across APRs, fees, loan limits, and funding speed. Our preferred lenders offer lower-than-average secured APRs, minimal fees, speedy processing, and flexible repayment terms. Kudos to Upgrade, Best Egg, and OneMain Financial, which offer a same-day funding option.
At the same time, we appreciate the flexibility of collateral. For example, Best Egg offers vehicle equity loans that let you borrow up to 250% of your car’s value. At the same time, lenders like Credit Union 1, Navy Federal, or KeyBank have favorable programs that allow you to put your savings or CDs up as collateral while earning interest.
Lender Reputation/Awards Won
One of the top things we look for in all our recommended lenders is industry recognition. All of the leading publications, including Forbes Advisor, Bankrate, NerdWallet, Money.com, and the Better Business Bureau, have consistently offered positive reviews. For example, SuperMoney was named one of Forbes Advisor’s “Best Loan Comparison Platforms of 2024,” while almost all of our other choices have earned an A+ rating from the BBB. Let’s not forget about #1 Savings App of 2025 by Bankrate distinction for Oportun, as well as an A+ BBB accreditation.
Whenever we see that these awards are won, it only tells us that banks are emphasizing consumer-first policies and clear, transparent loan terms. Anytime you’ve earned national recognition, you deserve to be considered in our evaluations.
All in all, loan transparency, customer service quality, loan structure, and lender reputation were key criteria considered when evaluating the best secured personal loans for this guide.
Frequently Asked Questions
What credit score do I need to qualify for a secured personal loan?
Thankfully, secured loans are easier to qualify for than unsecured loans, allowing those with limited credit histories to benefit. Many lenders approve applicants with credit scores of 550 to 650 because the risk to the lender is lower. Programs like Oportun, OneMain Financial, and some credit unions are offering this opportunity, including larger loan amounts and more favorable terms.
Can I use my car or savings account as collateral for a secured loan?
Yes, secured loans typically use a vehicle title, a savings account, or a certificate of deposit (CD) as collateral. Vehicle-secured loans use your car’s equity, but you need a clean title and the vehicle to be outright yours. In turn, savings- or certificate-of-deposit-secured loans have to be in your name, and let you borrow against your deposit while continuing to earn interest.
Expect higher loan amounts with vehicles, lower APRs, and no risk of losing your vehicle with savings- and certificate-of-deposit-secured loans.
Does a secured personal loan help build my credit score?
Yes, secured personal loans can do an excellent job and help boost your credit score, since lenders report on-time payments to Experian, Equifax, and TransUnion. Remember that 35% of your FICO score is based on payment history, so we encourage you to pay on time every time to boost your credit standing.
How long does it take to get approved and funded for a secured loan?
Approval and funding times depend on the lender, but you can expect secured loans to offer same-day approval or funding within the next business day. With banks and credit unions, it can take anywhere from 1 to 3 business days, since your savings account or certificate of deposit must be verified before the loan is approved.
What happens if I can’t repay a secured personal loan?
If you cannot repay a secured personal loan, then the lender reserves the right to repossess your vehicle or liquidate your savings account or certificate of deposit. Repossession can occur as early as 60 days of delinquency.
On top of that, credit bureaus will hear about your missed payments, which will affect your credit score and make it difficult to take out another loan in the future. We encourage you to stay on top of your payments.
Are secured personal loans easier to qualify for than unsecured loans?
Yes, secured personal loans are easier to qualify for than unsecured loans, since you’re putting up collateral that reduces the lender’s risk. Remember that secured loans are based on the value of collateral, which offers increased flexibility to borrowers with a 500 credit score. Keep in mind that you will need to provide proof of income and identity verification to qualify.
Can I get a secured loan from a credit union even if I’m not a long-time member?
Yes, it is possible to get a secured loan from a credit union as soon as you open up a new savings or certificate of deposit account. Keep in mind that you generally need to be part of an employer group or have specific affiliations, such as retired or active military personnel, to sign up. Institutions like Navy Federal, Credit Union 1, and First Tech offer excellent secured loan options.
Do secured personal loans offer lower APRs than traditional bank loans?
Secured personal loans have lower APRs than traditional unsecured bank loans, since there is less risk to the lender. APRs are usually several percentage points lower, especially when using your savings account or certificate of deposit as collateral. Keep in mind that vehicle-secured loans rely on your car’s equity and condition to determine the rate and loan amount.
How much can I borrow with a secured loan based on my collateral?
Borrowing limits for secured loans depend on several factors, including your loan-to-value ratio. For example, savings-secured and CD-secured loans allow you to borrow up to 100% of your deposit value. In contrast, vehicle-secured personal loans offer anywhere from 70% to 250% of your vehicle’s value, depending on the loan program.
That’s why we’re big fans of programs like Best Egg’s Vehicle Equity Program, which allows you to borrow up to $50,000 based on your vehicle equity.
Is it better to use my vehicle or savings account as collateral for a secured loan?
Whether you use your vehicle or your savings account as collateral depends on your goals and risk tolerance. With a savings account or a CD secured loan, you have no risk of losing your transportation and can keep earning interest while you continue to borrow. In turn, using a vehicle as collateral can help you net larger loan amounts and quicker approval, albeit at the risk of losing your vehicle if you fail to make on-time payments.
Conclusion
All in all, secured loans from our top lenders can offer those with less-than-stellar credit an opportunity to enjoy lower APRs and more flexible repayment terms at the expense of putting up their vehicle, savings account, or certificate of deposit as collateral. If you have a clear repayment plan and do not take out loans that you cannot afford to pay, then you stand a shot at a worthwhile lending opportunity to cover whatever expenses you need.
