Your Complete Guide on Where to Find Secured Personal 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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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?

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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.

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% – 20.01%1 $5,000 to $100,000
6.14% – 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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NMLS #1136: Terms & Conditions Apply
1 Includes AutoPay discount. Important Disclosures for SoFi.

SoFi Disclosures

  1. Fixed rates from 5.99% APR to 20.01% APR (with AutoPay). Variable rates from 6.49% APR to 14.70% APR (with AutoPay). SoFi rate ranges are current as of November 15, 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 4.93% 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.

Published in Loans, Personal Finance

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