Best Lenders for Secured Loans

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Student Loan Hero Advertiser Disclosure

Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print to help you understand what you are buying. Be sure to consult with a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time.

Editorial Note: This content is not provided or commissioned by any financial institution. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by the financial institution.

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If you’re looking for a personal loan but don’t have the credit score needed for a traditional loan, there are options for you to access the line of equity you need. Most lenders base your APR and terms on your credit score, but if yours is less than stellar, you could still qualify for a secured personal loan.

A secured personal loan is a loan that uses some kind of collateral, usually a down payment or an asset such as your home or car, to secure the loan. Successfully obtaining and making timely payments on a secured loan is one way to help improve your credit score, so it’s a smart choice all around.

LightStream

LightStream is known for being a lender willing to loan you money for whatever you’re looking for. It promotes that you can “finance practically everything.” Want to buy a horse? No problem. Finance a vacation? You got it. The only exceptions to its lending capabilities are for businesses and education purposes. LightStream also offers a $100 customer satisfaction guarantee if your expectations aren’t met within 30 days.

LENDER
APR
Credit Req.
Terms
Origination Fee
APR 4.99%
To
16.79%
*
Credit Req.Not specified
Terms24 to 144 *Months
Origination FeeNo origination fee

See Offers Secureon Lendingtree's secure websiteAdvertiser Disclosure

LightStream Disclosures

Your APR may differ based on loan purpose, amount, term, and your credit profile. Rate is quoted with AutoPay discount, which is only available when you select AutoPay prior to loan funding. Rates without AutoPay may be higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $10,000 loan at 4.99% APR with a term of 3 years would result in 36 monthly payments of $299.66.

LightStream does not offer preapprovals, so a hard credit check will have to be done to see if you qualify for a personal loan. If you will be using your secured loan for an automobile, you will need to fill out some lienholder paperwork. LightStream’s loans are done 100% online. It’s a convenient and environmentally friendly option for users comfortable with technology, but not if you prefer to talk to someone in person.

Pros

  • Timely funding. In some qualified cases, same-day funding is available.
  • Competitive APR. LightStream vows to beat any competitor’s APR by 0.10% if you can find the rate online.
  • There are virtually no fees with LightStream’s personal loans, as well as no prepayment penalties.
  • $100 cashback customer satisfaction guarantee within 30 days if you’re happy with your loan.

Cons

  • Higher minimum credit. LightStream does require higher minimum credit scores than some other lenders to help meet its high expectations for loans.
  • No preapproval. You have to undergo a hard credit check to see if you qualify.
  • Limits on funding. You can’t use your loan to refinance debt, for education or for a business.

LightStream is a fast and convenient option that is best for individuals with solid credit scores. If you need to avoid hard credit checks or know that your credit score is very low, this loan option may not be the best for you.

Wells Fargo Bank

Wells Fargo offers competitive rates and low rates, especially for customers who already have a relationship with the bank. It also offers a wide variety of loan amounts — from $3,000 to $100,000 — depending on your own credit score and background.

LENDER
APR
Credit Req.
Terms
Origination Fee
APR 5.49%
To
22.99%
Credit Req.Not Specified
Terms12 to 60Months
Origination FeeNo origination fees

Visit Wells Fargo Secureon Wells Fargo's secure website

To qualify for a secured loan through Wells Fargo, you can use a Wells Fargo certificate of deposit or savings account or other assets as collateral against the loan. You can also use your home in some situations. You can change your payment due date one time after your loan initiation, and there is no prepayment penalty if you want to pay off your loan early. But Wells Fargo does charge an origination fee of $75 for secured loans and an annual fee of $25 for secured lines of credit.

Pros

  • Allows you to use your home as collateral.
  • Allows you to preserve your savings and continue to earn interest on your Wells Fargo savings account.
  • Preference is given to Wells Fargo customers. If you are a customer, you may qualify for a lower interest rate.
  • Loan offerings are flexible, from $3,000 to $100,000.

Cons

  • Does require an origination fee of $75.
  • Besides the origination fee, there is also an annual fee of $25 for secured lines of credit.
  • There is no preapproval process, so a hard credit check is required. 

If you qualify and are approved, you can receive the funds in your account in as quickly as one business day. Wells Fargo also offers special benefits for members of the military. If you are an active-duty member or have an active-duty family member, you should contact it directly for a more individualized loan plan specific for military.

OneMain Financial

OneMain Financial offers both secured and unsecured loans. It has the option for you to use your assets, such as your car, as collateral.

LENDER
APR
Credit Req.
Terms
Origination Fee
APR 18.00%
To
35.99%
Credit Req.Not specified
Terms24-60Months
Origination FeeVaries

See Offers Secureon Lendingtree's secure websiteAdvertiser Disclosure

OneMain Financial Disclosures

All loans subject to OneMain’s normal credit policies. Loan approval and actual loan terms depend on your ability to meet OneMain’s standard credit criteria (including credit history, income and debts) and the availability of collateral. Collateral requirements would include a first lien on a motor vehicle that meets our value requirements, titled in your name with valid insurance. Collateral offered must meet our criteria. The lowest annual percentage rate (APR) shown represents APRs for top 10% of loans closed. Maximum APR is 35.99%, subject to state restrictions. APRs are generally higher on loans not secured by a vehicle. Active duty military, their spouse or dependents covered under the Military Lending Act may not pledge any vehicle as collateral for a loan. OneMain loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB’s Regulation Z, such as college, university or vocational expenses; for any business or commercial purpose; to purchase securities; or for gambling or illegal purposes. Residents in the following states are subject to the following loan size restrictions: Alabama residents: $2,100 minimum loan amount. California residents: $3,000 minimum loan amount. Florida residents: Unless you are a present customer, $8,000 maximum loan amount for unsecured loans. Georgia residents: Unless you are a present customer, $3,100 minimum loan amount. Iowa residents: Unless you are a present customer, $8,500 maximum loan amount for unsecured loans. Maine residents: Unless you are a present customer, $7,000 maximum loan amount for unsecured loans. Mississippi residents: Unless you are a present customer, $7,500 maximum loan amount for unsecured loans. North Carolina residents: Unless you are a present customer, $7,500 maximum loan amount for unsecured loans. New York residents: Unless you are a present customer, $20,000 maximum loan amount for unsecured loans. Ohio residents: $2,000 minimum loan amount. Texas residents: Unless you are a present customer, $8,000 maximum loan amount for unsecured loans. Virginia residents: $2,600 minimum loan amount. West Virginia residents: Unless you are a present customer, $7,500 maximum loan amount for unsecured loans. An unsecured loan is a loan which does not require you to provide collateral (such as a motor vehicle) to the lender.

OneMain Financial is one of the few financial institutions listed that requires you to visit a branch in person to complete your application and get your loan. On one hand, that is helpful because that also means you only need a soft credit check online to get prequalified. But if you’re not located near a branch or you want an online-only loan service, that won’t be available for you. Because each loan is specific to its branch, there are no set fees, meaning origination and annual fees for loans may vary by state.

Pros

  • Loan amount flexibility. You can borrow as little as $1,500 (and up to $20,000).
  • Preapproval is available. You will fill in some basic information online to allow OneMain Financial to do a soft credit check for preapproval of your loan so that it won’t affect your credit score.

Cons

  • No online approval. If you are preapproved from your online application, you will have to visit a branch in person to complete your loan process.
  • Set fees for annual and origination fees vary by state, so you will have to check with the branch closest to you.

Although you do have to visit a branch in person to complete your loan approval, there are 1,600 branches in 44 states. Chances are good that there may be a branch near you. If you’re not located near an in-person branch, OneMain Financial is not a good option for you.

First Technology Federal Credit Union

LENDER
APR
Credit Req.
Terms
Origination Fee
APR 10.25%
Credit Req.Not Specified
Terms1 to 7Years
Origination FeeNo origination fees

Visit First Tech Federal Credit Union Secureon First Tech Federal Credit Union's secure website

First Tech Federal Credit Union has a variety of different offerings that allow you to choose from stock or savings account options for your personal secured loan. By using the credit union’s savings account loan, for instance, you may be approved for an APR as low as 3%. But in using the savings option, you will pay the APR as well as the fee for the savings account. The exact fee you will pay for a savings account will vary based on which type of account you choose; for example, the Membership Savings account requires that you at least sell one share as a condition of membership and have a minimum balance of $5. A CareFree Savings account, on the other hand, only requires a $0.01 minimum deposit to open. There are also options to access lines of equity through stock accounts, although those do require minimum investments and have higher APRs.

Pros

  • High borrowing amounts. With the savings secured and the certificate secured loan, you can borrow up to $50,000.
  • Many uses for loans. You can use your personal loan for a variety of reasons, from debt consolidation to education.
  • Most loans are approved or denied within 24 hours.
  • No origination, prepayment or annual fees. 

Cons

  • All loans require some kind of investment in the credit union, whether it be a stock purchase or opening a savings account.
  • Although there are no fees for the loan itself, using a savings secured loan requires you to pay any applicable fees or maintain the minimum balance on your savings account.
  • The loan structure and choices can be a little overwhelming to sort through online, and there are limited in-person offices.
  • It does require a hard credit check.

First Tech Federal Credit Union is a good option if you’re ready to get serious about rebuilding your credit. Choosing its secured loans forces you to choose either a savings or stock account that will simultaneously build your credit score. If you’re looking for a quick loan without included memberships and other add-ons, it might not be a the best choice for you.

Digital Federal Credit Union

A savings secured loan with Digital Federal Credit Union (DCU) lets you keep your money in a savings account so that you don’t burn through any of your savings using it as collateral. Using your savings as collateral lets it continue to earn interest per the saving account rates. Its secured loans offer low interest rates and, like other secured loans, provide an affordable way to build or raise your credit score. There are two options for secured loans through DCU: borrowing against your savings account balance or borrowing against your DCU certificate accounts.

LENDER
APR
Credit Req.
Terms
Origination Fee
APR 7.50%
Credit Req.Varies
Terms60Months
Origination FeeNo origination fees

Visit Digital Federal Credit Union Secureon Digital Federal Credit Union's secure website

For a savings secured loan, you can borrow for up to $200. You can borrow as little as $200, so you can even use the loan as a stepping stone to building your credit.

Pros

  • Term flexibility. You can borrow up to $200 through a savings secured loan.
  • Payment protection. You can purchase payment protection insurance in the event that something unexpected happens, so it won’t further hurt your credit score.
  • Focus on education. DCU is a big proponent of educating you on your own credit. It offers a StreetWise Consumer Education Program to help you understand your finances better.

Cons

  • A savings secured personal loan requires a DCU savings account, as well as a minimum balance. If you don’t have any savings to spare, it might not be a good option for you.
  • Hard credit check for loan approval.
  • Becoming a DCU member with a $5 minimum deposit for a Primary Savings account is required to apply for a loan.

DCU is best for a borrower who is focused on raising their credit score. Low interest, term flexibility and a low minimum borrowing rate, along with a consumer education program, mean that you have a lot of tools at your disposal to increase a low credit score. There are membership requirements based on your location and if whether you have relatives who are members, so there is no universal qualification.

Interested in a personal loan?

LendingTree allows you to compare rates from multiple lenders by filling out one easy form. Advertiser Disclosure

Student Loan Hero Advertiser Disclosure

Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print to help you understand what you are buying. Be sure to consult with a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time.

Advertiser Disclosure

Student Loan Hero Advertiser Disclosure

Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print to help you understand what you are buying. Be sure to consult with a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time.

RATES (APR)loan amount
5.99% – 17.88%1 $5,000 to $100,000
5.69% – 35.99% $1,000 to $50,000
6.98% – 35.89%* $1,000 to $50,000
99.00% – 199.00%2 $500 to $4,000
5.99% – 24.99%3 $5,000 to $35,000
5.99% – 29.99%4 $7,500 to $40,000
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1 Includes AutoPay discount. Important Disclosures for SoFi.

SoFi Disclosures

  1. Fixed rates from 5.99% APR to 17.88% APR (with AutoPay). Variable rates from 6.49% APR to 14.70% APR (with AutoPay). SoFi rate ranges are current as of November 4, 2019 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. If approved for a loan, to qualify for the lowest rate, you must have a responsible financial history and meet other conditions. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, years of professional experience, income and other factors. See APR examples and terms. Interest rates on variable rate loans are capped at 14.95%. Lowest variable rate of 6.49% APR assumes current 1-month LIBOR rate of 1.81% plus 3.08% margin minus 0.25% AutoPay discount. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.
  2. To check the rates and terms you qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull.
    See Consumer Licenses.
  3. Minimum Credit Score: Not all applicants who meet SoFi’s minimum credit score requirements are approved for a personal loan. In addition to meeting SoFi’s minimum eligibility criteria, applicants must also meet other credit and underwriting requirements to qualify.
  4. If you lose your job through no fault of your own, you may apply for Unemployment Protection. SoFi will suspend your monthly SoFi loan payments and provide job placement assistance during your forbearance period. Interest will continue to accrue and will be added to your principal balance at the end of each forbearance period, to the extent permitted by applicable law. Benefits are offered in three month increments, and capped at 12 months, in aggregate, over the life of the loan. To be eligible for this assistance you must provide proof that you have applied for and are eligible for unemployment compensation, and you must actively work with our Career Advisory Group to look for new employment. If the loan is co-signed the unemployment protection applies where both the borrower and cosigner lose their job and meet conditions.
  5. Terms and Conditions Apply: SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet SoFi’s underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, a responsible financial history, years of experience, income and other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Business Oversight under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (www.nmlsconsumeraccess.org)
2 Includes AutoPay discount. Important Disclosures for Opploans.

Opploans Disclosures

Direct Deposit required for payroll.

Opploans currently operates in these states: . *Approval may take longer if additional verification documents are requested. Not all loan requests are approved. Approval and loan terms vary based on credit determination and state law. Applications processed and approved before 7:30 p.m. ET Monday-Friday are typically funded the next business day.

  1. To qualify, a borrower must (i) be a U.S. citizen or permanent resident; (ii) reside in a state where OppLoans operates; (iii) have direct deposit; (iv) meet income requirements; (v) be 18 years of age (19 in Alabama); and, (vi) meet verification standards.
  2. NV Residents: The use of high-interest loans services should be used for short-term financial needs only and not as a long-term financial solution. Customers with credit difficulties should seek credit counseling before entering into any loan transaction.

  3. OppLoans performs no credit checks through the three major credit bureaus Experian, Equifax, or TransUnion. Applicants’ credit scores are provided by Clarity Services, Inc., a credit reporting agency.

  4. Based on customer service ratings on Google and Facebook. Testimonials reflect the individual’s opinion and may not be illustrative of all individual experiences with OppLoans. Check loan reviews.

  5.  

    Rates and terms vary by state.

3 Includes AutoPay discount. Important Disclosures for Payoff.

Payoff Disclosures

  1. All loans are subject to credit review and approval. Your actual rate depends upon credit score, loan amount, loan term, credit usage and history. Currently loans are not offered in: MA, MS, NE, NV, OH, and WV.
4 Important Disclosures for FreedomPlus.

FreedomPlus Disclosures

  1. All loans available through FreedomPlus.com are made by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender. All loan and rate terms are subject to eligibility restrictions, application review, credit score, loan amount, loan term, lender approval, and credit usage and history. Eligibility for a loan is not guaranteed. Loans are not available to residents of all states – please call a FreedomPlus representative for further details. The following limitations, in addition to others, shall apply: FreedomPlus does not arrange loans in: (i) Arizona under $10,500; (ii) Massachusetts under $6,500, (iii) Ohio under $5,500, and (iv) Georgia under $3,500. Repayment periods range from 24 to 60 months. The range of APRs on loans made available through FreedomPlus is 5.99% to a maximum of 29.99%. APR. The APR calculation includes all applicable fees, including the loan origination fee. For Example, a four year $20,000 loan with an interest rate of 15.49% and corresponding APR of 18.34% would have an estimated monthly payment of $561.60 and a total cost payable of $7,948.13. To qualify for a 5.99% APR loan, a borrower will need excellent credit on a loan for an amount less than $12,000.00, and with a term equal to 24 months. Adding a co-borrower with sufficient income; using at least eighty-five percent (85%) of the loan proceeds to directly pay off qualifying existing debt; or showing proof of sufficient retirement savings, could help you also qualify for the lowest rate available.
* Important Disclosures for Upgrade Bank.

Upgrade Bank Disclosures

* Personal loans made through Upgrade feature APRs of 6.98%-35.89%. All personal loans have a 1.5% to 6% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. For example, if you receive a $10,000 loan with a 36-month term and a 17.98% APR (which includes a 14.32% 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 $343.33. Over the life of the loan, your payments would total $12,359.97. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. 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. Personal loans issued by WebBank, Member FDIC.

** Accept your loan offer and your funds will be sent to your bank via ACH within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes this transaction. From the time of approval, funds should be available within four (4) business days.

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