Whether you’re looking to finance home repairs or consolidate debt, a personal loan might help meet your financial needs.
If you have less-than-stellar credit, however, you might need to know where to find secured personal loans. Unlike unsecured personal loans, secured loans are backed by collateral, such as your car, savings, or home.
By borrowing against an asset, you could qualify for the funds you need. However, you must be careful to keep up with monthly payments, or you could lose your collateral.
Where to find secured personal loans offered by banks and private lenders
You can use a personal loan to cover a variety of expenses. A July 2017 survey of American adults by comparison site Finder.com and research provider Pureprofile found that:
- 31% of survey respondents used a personal loan for vehicle expenses.
- 26% used it to pay bills.
- 21% used it to cover expenses from an unexpected emergency.
- 19% used it to pay school tuition fees.
- 15% used it to consolidate debt.
Several banks, private lenders, and credit unions offer personal loans, depending on the kind of collateral you have to back the debt.
Here’s a chart showing where to find secured personal loans offered by top banks and private lenders. The interest rates and terms were current as of April 12, 2018. Make sure to check with the lender to confirm the most recent information.
|Lender||Amount you can borrow||APR range||Repayment term||Collateral you can use|
|Mariner Finance||$1,000 to $25,000 (can vary by state)||Varies||Varies||Car, boat, or home|
|Zions Bank||Minimum $1,000||Fixed or variable rate||Flexible short-term options||Certificate of deposit (CD) or savings account|
|OneMain Financial||$1,500 to $25,000 (except in some states)||17.59% to 35.99%||24, 36, 48, 60 months||Car, truck, motorcycle, camper, recreational vehicle, or boat|
|PNC||$2,000 to $100,000||Fixed rates||Terms vary||Qualified assets, excluding real estate|
|Wells Fargo||$3,000 to $250,000||5.50% to 13.79% fixed||Varies||CD or savings account|
|TD Bank||Minimum $5,000 (no maximum)||7.17% variable rate (will not exceed 18.00%)||12 to 60 months||CD, savings account, or money market savings|
|BB&T||Varies||Varies||Varies||Life insurance, savings account, CD, mutual fund, brokerage account, bonds, car, or home|
|Finova Financial||Varies||Up to 30.00%||12 months||Car|
There could be other options too, such as local banks that offer secured personal loans in your neighborhood.
You also might want to explore online-only lenders, though most of them offer only unsecured personal loans to borrowers with strong credit. One exception is LightStream, which sometimes offers secured personal loans to buy a car.
Where to find secured personal loans offered by credit unions
Credit unions tend to have competitive terms and personalized customer service. To join a credit union, you’ll need to meet its membership requirements.
Many credit unions let you back a secured personal loan with a share account or a certificate. A savings account offered by credit unions typically is called a share account, whereas a CD is called a certificate or a share certificate. Because you can’t withdraw savings from a certificate until its term is up, it likely will have a higher rate of return than a regular savings account.
Some credit unions, such as First Tech Federal Credit Union, also let you use stocks of companies listed on certain stock exchanges as collateral for a secured personal loan.
Here are some federal credit unions that offer secured personal loans. The interest rates and terms were current as of April 12, 2018. Contact the lender for the most recent information.
|Credit union||Amount you can borrow||APR range||Repayment term||Collateral you can use|
|Digital Federal Credit Union||Minimum of $200||3.50% for savings-secured loans; certificate rate + 3.00% for certificate-secured loans||Up to 120 months for savings-secured loans; up to 60 months for certificate-secured loans||Certificate or savings account|
|First Tech Federal Credit Union||$500 to $500,000 for certificate- and savings-secured loans; $25,000 to $1 million for stock-secured loans||3.00% for certificate- and savings-secured loans; 4.25% for stock-secured loans||Up to certificate maturity period for certificate-secured loan; up to 96 months for savings-secured loan; up to 144 months for stock-secured loan||Stocks, certificate, or savings account|
|America First Credit Union||Varies||3.10% variable for share-secured loans; certificate rate + 3.00% for certificate-secured loans||Varies||Savings or certificate account|
|Golden 1 Credit Union||Varies; no maximum||Varies||Varies||Funds in your term-savings certificate account or savings account|
|Navy Federal Credit Union||Varies||Share rate or certificate rate + 2.00%||Up to 180 months for share-secured loans; up to 60 months for certificate-pledged loans||Share or certificate account|
|Randolph-Brooks Federal Credit Union||Varies||Varies||Up to 60 months||Share or certificate account|
|Security Service Federal Credit Union||Varies||Varies||Varies||Share account|
|State Employees’ Credit Union||Varies||5.00% to 9.25%||Up to 120 months||Share account|
Decide what collateral you can offer
Besides determining where to find secured personal loans, you also need to figure out what kind of collateral you have to back your loan. Financial institutions often require one of these assets:
- Car, motorcycle, boat, or another vehicle
- Savings accounts, CDs, certificates, or share accounts
- Investments, though typically retirement savings accounts are excluded
- Home equity
By borrowing against the value of your asset, you can qualify for a loan with decent terms. But remember: If you don’t repay your loan, you risk losing that asset.
Falling behind on your payments could mean losing your car through repossession or your home through foreclosure. So before risking your valuable possessions, make sure you understand the terms and conditions of your loan and determine whether you can pay it off in a timely manner.
Use our personal loan calculator to figure out the estimated monthly payments and interest charges you might encounter on a loan.
If the costs seem too high, you might want to reconsider taking out a secured personal loan.
Beware of predatory lenders and sky-high interest rates
You should compare rates and terms offered by several lenders to find one that offers the best loan for your situation. Taking the time to find a low interest rate could save you hundreds, if not thousands, of dollars over the life of your loan.
If you have subpar credit, you might not have many borrowing options. Predatory lenders are well aware of this. They can take advantage of people facing tough financial circumstances by charging high fees and interest rates that could exceed the principal on the loan.
You should avoid loans with sky-high interest rates. If not, it could leave you with major debt you might not be able to pay back.
If you’re concerned about a lender’s background, check online or with the Better Business Bureau for reviews. And make sure to carefully read all the terms and conditions of a secured personal loan before signing on the dotted line.
Note: Student Loan Hero has independently collected the above information related to secured personal loan rates and terms. None of the financial institutions have provided or reviewed the information shared in this article.
Interested in a personal loan?Here are the top personal loan lenders of 2018!
|Lender||APR Range||Loan Amount|
|1 Includes AutoPay discount. Important Disclosures for SoFi.
2 Includes AutoPay discount. Important Disclosures for Payoff.
3 Important Disclosures for FreedomPlus.
4 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
5 Important Disclosures for LendingPoint.
6 Important Disclosures for LendingClub.
All loans made by WebBank, Member FDIC. Your actual rate depends upon credit score, loan amount, loan term, and credit usage & history. The APR ranges from 6.16% to 35.89%. For example, you could receive a loan of $6,000 with an interest rate of 7.99% and a 5.00% origination fee of $300 for an APR of 11.51%. In this example, you will receive $5,700 and will make 36 monthly payments of $187.99. The total amount repayable will be $6,767.64. Your APR will be determined based on your credit at time of application. The origination fee ranges from 1% to 6% and the average origination fee is 5.49% as of Q1 2017. There is no down payment and there is never a prepayment penalty. Closing of your loan is contingent upon your agreement of all the required agreements and disclosures on the www.lendingclub.com website. All loans via LendingClub have a minimum repayment term of 36 months or longer.
7 Important Disclosures for Earnest.
8 Important Disclosures for Avant.
* The actual rate and loan amount that a customer qualifies for may vary based on credit determination and other factors. Funds are generally deposited via ACH for delivery next business day if approved by 4:30pm CT Monday-Friday. Avant branded credit products are issued by WebBank, member FDIC.
** Example: A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33
* Important Disclosures for Upgrade Bank.
Upgrade Bank Disclosures
** 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.
|7.73% – 29.99%||$1,000 - $50,000||Visit Upstart|
|6.26% – 14.87%1||$5,000 - $100,000||Visit SoFi|
|6.99% – 35.97%*||$1,000 - $50,000||Visit Upgrade|
|8.00% – 25.00%2||$5,000 - $35,000||Visit Payoff|
|4.99% – 29.99%3||$10,000 - $35,000||Visit FreedomPlus|
|5.99% – 18.99%4||$5,000 - $50,000||Visit Citizens|
|15.49% – 34.49%5||$2,000 - $25,000||Visit LendingPoint|
|6.16% – 35.89%6||$1,000 - $40,000||Visit LendingClub|
|6.99% – 18.24%7||$5,000 - $75,000||Visit Earnest|
|9.95% – 35.99%8||$2,000 - $35,000||Visit Avant|