Best Secured Loans for Bad Credit of October 2024
Oftentimes, people with bad credit usually face problems while getting a loan. At such times, not being able to get a loan creates financial difficulties.
Secured loans are one way to avoid this situation, but they may not be the answer for everyone. Especially for people with a bad credit score.
To steer clear of such problems, we are here to help you. Today, we will focus on secured loans that attend to the needs of people having bad credit scores.
By choosing these loans, individuals can access loans that don’t need them to pay higher APRs. Additionally, they get higher loan amounts, which come in handy for major expenses. Nonetheless, you will still be risking your collateral.
So, let us see start our topic for today, which is “Best Secured Loans for Bad Credit of October 2024“.
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Best Secured Loans for Bad Credit of October 2024: Key Findings
Loan Amounts:
As mentioned earlier, you can get an amount of up to $2 million depending on the collateral. Usually, collateral such as home equity fetches higher loan amounts. Besides, while applying as a person with a low credit score, you may not get large amounts.
Interest Rates:
The interest rates of secured loans are often lower compared to unsecured loans. Usually, the APR ranges from 2% to 35.99% depending on the loan provider and other factors.
Credit Scores:
The loan providers in this list don’t have any credit requirements for the secured loans they offer. Anyhow, you will need a higher credit score to get a low APR with most providers. When it comes to credit scores, “the bigger the better”.
Income Requirements:
Only a few loan providers have income requirements, that too for getting the best rates. Apart from that, it isn’t mandatory to meet any specific income requirements.
Collateral Requirements:
Different types of assets can be used as collateral for getting a secured loan. Some common examples of collateral include a house, a vehicle, money in a savings account, etc.
Due Diligence:
Please read the agreement carefully before signing, and don’t be afraid to ask questions. Moreover, you can consult a lawyer for additional assistance.
Obtaining the Lowest Rates:
By shopping around, you can land the lowest rate after considering these variables. And our marketplace is an excellent place to start your search.
Best Secured Loans for Bad Credit of October 2024
It might be a bit hard to find the best lender offering secured loans for bad credit. Therefore, it may become hard to find the right option as it requires a lot of time and effort. That’s we came up with this list, which contains the best secured loans for bad credit of October 2024.
| Lender: | Type of Secured Loans: | Loan Amount: | APR: | Min. Credit Score: | Collateral: | Best For: |
|---|---|---|---|---|---|---|
| Upgrade |
| Up to $50,000 | 8.49% to 35.99% | 560 | Less than 20-year-old cars | High DTI Ratios |
| OneMain Financial |
| $1,500 to $20,000 | 18% to 35.99% | 600 to 650 | Less than 10-year-old cars | Highly Qualified Applicants |
| Mariner Finance |
| $1,000 to $25,000 | 18% to 35.99% | None | Less than 10-year-old cars | Individuals with damaged credit score |
| Oportun |
| $2,525 to $20,000 | 5.74% to 35.99% | None | Less than 25-year-old cars (model years) | Low APRs |
| Navy Federal Credit Union |
| $10,000 to $500,000 | Earnings rate plus 2%; 5.74% to 18% | None | Savings Account Share Certificate (CD) Home Equity | Service members and affiliates |
| Credit Union 1 |
| Up to 2,000,000 for HELOC | Earnings rate plus 3%; 6% – 8% | None | Home Equity Share Certificate (CD) Savings Account | Savings/CD secured loan |
Upgrade
 | |
| Loan Amount: | $1,000 – $50,000 |
| APR: | 8.49% – 35.99% |
| Min. Credit Score: | 560 |
| Approval: | 1 Day |
| Terms: | 2 – 7 Years |
| Fees: |
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| Qualification Criteria: |
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| Average Borrower Profile: |
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| Best For: | High DTI ratios |
| Check rates | |
Personal loans made through Upgrade feature Annual Percentage Rates (APRs) of 8.49% – 35.99%. All personal loans have a 1.85% to 9.99% origination fee, which is deducted from the loan proceeds. The lowest rates require Autopay and paying off a portion of existing debt directly. Loans feature repayment terms of 24 to 84 months. For example, if you receive a $10,000 loan with a 36 – month term and a 17.59% APR (which includes a 13.94% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $341.48. Over the life of the loan, your payments would total $12,293.46. The APR on your loan may be higher or lower, and your loan offers may not have multiple term lengths available. The actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed-rate loan. There is no fee or penalty for repaying a loan early.
Upgrade’s secured loan is an Auto Secured Loan with an automobile (car) as collateral. You can get larger loan amounts and lower rates with these. The cars kept as collateral must be owned by the borrower and should not exceed 20 years.
The usual APR rates are around 8.49% to 35.99% with a loan amount of up to $50,000. You can get the best rates by having a good credit score and a higher income.
You should get the necessary documents before submitting an application. Upgrade’s lending partners are Cross River Bank and Blue Ridge Bank, which are FDIC regulated. Therefore, it is legit and safe.
Pros:
- Upgrade provides secured loans of up to $50,000.
- Low APRs are available.
- You won’t incur upfront or prepayment fees.
- A soft credit check during the application doesn’t hurt your credit score.
- You can amend your payment date.
- The auto-pay discount is 0.50%.
- The direct lender works with bad and fair credit borrowers.
- You can apply if you’re unemployed.
- On-time repayment can increase your credit score.
- Upgrade may offer COVID-19 deferrals.
Cons:
- The loan origination fee is 1.85% to 9.99%.
- Upgrade charges late payment and insufficient funds fees.
- The direct lender doesn’t