| Lender | Best for… | APRs | Loan terms | Loan amounts | Collateral required |
|---|---|---|---|---|---|
 | Secured loans for homeowners | 5.99% - 29.99% | 36 to 84 months | $2,000 - $50,000 | Home fixtures |
 | Secured loans with flexible term lengths | Starting at 3.50% | Up to 120 months | Up to your savings account balance | Savings account |
 | Large secured loans | Starting at 3.00% + certificate account rate | Up to certificate maturity | $500 - $500,000 | CD account |
 | Small secured loans | Starting at 4.00% | Varies based on loan amount | Starting at $250, minus fees | Savings account |
 | Secured loans for bad credit | 8.49% - 35.99% | 24 to 84 months | $1,000 - $50,000 | Car less than 20 years old |
We chose the loans above based on certain types of collateral. Please note that some of these lenders offer other secured loans that may better suit your needs, depending on the collateral you’re willing to put up.
| 1 | 2 |
|---|---|
| APRs | 5.99% to 29.99% |
| Loan amounts | $2,000 - $50,000 |
| Loan terms | 36 to 84 months |
| Origination fee | 0.99% - 8.99% |
| Collateral required | Home fixtures |
| Pros | Cons |
|---|---|
Does not use home itself as collateral Extended loan term available Competitive APRs for excellent-credit borrowers | Requires an origination fee Must be a homeowner May default if you sell your home before loan is repaid |
Best Egg’s Secured Loan + Homeowner Discount is a unique loan that uses your home’s fixtures as collateral. Eligible fixtures could include bathroom vanities, built-in cabinetry and other elements permanently attached to your home.
Like any secured loan, this product comes with some risk. Best Egg will place a lien on your fixtures while your loan is open. If you sell your home before paying off your loan, you could default. If this happens, your entire loan balance could be due immediately. Best Egg may also repossess your home’s fixtures from the new owner.
Still, this loan may be worth it. Best Egg states that borrowers may save an average of 20% on their APR by using collateral (as opposed to getting an unsecured loan). Just be sure that you understand how this product works before signing on the dotted line.
Read our full Best Egg personal loan review.
Although Best Egg uses your home’s permanent fixtures as collateral, it doesn’t need to appraise those fixtures’ value. Instead, Best Egg will review your credit history and home equity to ensure you qualify. You must also be a U.S. citizen or permanent resident living in the U.S., the age of majority in your state and have a personal checking account, email address and physical address to apply.
Best Egg loans aren’t available in the District of Columbia, Iowa, Vermont, West Virginia or U.S. Territories.
| 1 | 2 |
|---|---|
| APRs | Starting at 3.50% |
| Loan amounts | Up to your savings account balance |
| Loan terms | Up to 120 months |
| Origination fee | None |
| Collateral required | Savings account |
| Pros | Cons |
|---|---|
Skip-A-Payment program available in case of financial hardship Live chat 120-month loan term | Must have DCU savings account Physical branches only in MA and NH Fee required to join a participating organization if you don’t meet DCU’s other membership eligibility requirements |
As a credit union, you must be a DCU member to take out a loan. However, DCU membership is open to those in all 50 states. If you don’t live, work, worship or go to school in certain communities in Massachusetts or work for a participating employer, you’ll need to join one of DCU’s participating organizations. Although all these organizations charge a membership fee, they are open to anyone.
Also, you’ll need to open and fund a DCU savings account, since this is what you’ll be borrowing against. Finally, DCU will likely review your borrowing history to determine eligibility, although it doesn’t disclose its credit-related criteria.
| 1 | 2 |
|---|---|
| APRs | Starting at 3.00% + certificate account rate |
| Loan amounts | $500 - $500,000 |
| Loan terms | Up to certificate maturity |
| Origination fee | None |
| Collateral required | Share certificate account |
| Pros | Cons |
|---|---|
Offers extra-large loans to those with extra-large share certificate accounts Share certificate continues to earn dividends as you pay your loan Highly-rated mobile app | Must have First Tech certificate account Must meet membership eligibility requirements Physical locations only in California, Oregon and Washington |
First Technology Federal Credit Union’s Certificate Secured Loan can be a good way to invest and borrow at the same time. As you pay back your loan, the funds in your certificate account will continue to earn dividends. Although the same is true for a savings-secured loan, certificate accounts generally earn more interest.
What’s more, depending on your credit profile and how much you have in your certificate account, you could borrow up to $500,000.
Like other credit unions, you must join First Tech before you can open an account. If you work for a partnering employer, have a family member who is currently a member or live in Lane County, Ore., you can join.
If you don’t meet these requirements, you’ll have to sign up for the Computer History Museum or Financial Fitness Association. However, First Tech will pay for your first year of membership, and you’re not required to maintain membership to keep your First Tech account.
After you join First Tech, you’ll need to have a certificate account to take out a Certificate Secured Loan. These require a minimum opening balance of $500. You may also need to meet the credit union’s credit requirements, which are undisclosed.
| 1 | 2 |
|---|---|
| APRs | Starting at 4.00% |
| Loan amounts | Starting at $250, minus fees |
| Loan terms | Varies based on loan amount |
| Origination fee | None |
| Collateral required | Savings account |
| Pros | Cons |
|---|---|
Low minimum loan amount No origination fee Interest rate discount may be available for automatic payments | Only available in 16 states Higher APR than some Charges late payment fee |
| 1 | 2 |
|---|---|
| APRs | 8.49% - 35.99% |
| Loan amounts | $1,000 - $50,000 |
| Loan terms | 24 to 84 months |
| Origination fee | 1.85% - 9.99% |
| Collateral required | Car less than 20 years old |
| Pros | Cons |
|---|---|
Low minimum credit score required 84-month term available Don’t need to tie up money in a certificate or savings account | Potential for high origination fee Not all cars qualify as collateral High maximum APR |
At just 580, Upgrade’s minimum credit score requirement is lower than many lenders. And using your car as collateral for Upgrade’s Auto Secured Loan could further boost your personal loan approval odds.
It’s important to note, however, that those who do have bad credit could pay an APR as high as 35.99%. You may want to choose Upgrade’s minimum loan term to pay less interest over the life of your loan (although an extended 84-month term is available).
Read our full Upgrade personal loan review.
To get an Auto Secured Loan through Upgrade, your car must meet some eligibility requirements. First, it must be less than 20 years old. You must also have insurance and own it outright. It has to be registered in the state that you live in and it cannot have a salvage title. Only personal vehicles are eligible.
Upgrade will also evaluate your overall creditworthiness by reviewing your credit score, debt-to-income ratio and payment history. Applicants need to be U.S. citizens, permanent residents or living in the U.S. with a valid visa. Lastly, you must be of legal age, have a bank account and email address.
A secured loan is a type of personal loan that requires collateral. Collateral could be personal property like your home or your car. Collateral could also be money, typically held in a savings or investment account. If you don’t pay back your loan, the lender can take ownership of your collateral. This is called repossession.
When comparing secured vs. unsecured loans, secured loans are easier to qualify for and usually come with a lower interest rate. This is because putting collateral on the line reduces some of the lenders’ risk. In other words, the lender can recoup something of value, even if you default on your loan.
Secured loans aren’t inherently good or bad, but whether they are a good idea depends on your situation and the terms you qualify for. You must also consider the possibility of losing your collateral. Reviewing your budget, risk tolerance and loan offers can help you decide if a secured loan is right for you.
Secured loans aren’t necessarily easy to get, but they are easier to get than an unsecured loan. This is because you risk losing your collateral if you don’t pay back your loan. Still, not all applicants will qualify. You must still meet the lender’s eligibility requirements before it will approve you for a secured loan.
Usually, but the minimum credit score needed for a secured loan is typically lower than that of an unsecured personal loan. If you have no or bad credit, you may want to look into a no-credit-check personal loan, instead. APRs on these types of loans are high, but they can come in handy when used responsibly or during a financial emergency.
