Best Secured Personal Loans of 2023

OneMain Financial strictly provides personal loans to consumers and specializes in helping those with poor credit. In fact, because it has no minimum credit score, it's the best secured personal loan option for people with less-than-stellar credit. Interest rates are 18% to 35.99%, based on the borrower's credit score. Loan terms are 24, 36, 48, or 60 months, but you won't pay a prepayment penalty if you pay it off early. 

To secure a OneMain Financial personal loan, you can apply online, but then you must visit one of its around 1,400 branches located in 44 states.

Often, your interest rate and the amount available to borrow don't quite match what the site tells you that you're pre-approved for. This is because OneMain Financial uses stricter guidelines than you might when determining your debt and income. For example, you may think you make $60,000 per year and have a 15% debt-to-income (DTI) ratio, but OneMain Financial will only count your $25,000 in variable dog-sitting income if it's verifiable (which is typical for most lenders).

OneMain offers educational resources for free. Articles cover a range of topics such as money management, debt consolidation, and more.

Figure is an online lender renowned for its blockchain technology. When you consolidate your debt using a Figure HELOC, which is a type of secured loan that uses your home’s equity as collateral, you’ll pay a significantly lower interest rate compared to credit cards and many auto loans. This makes it the best secured personal loan option for debt consolidation, and you’ll receive a 0.25% APR discount when you opt into a credit union membership and sign up for autopay. 

Figure offers these loans completely online, and you can decide in minutes. Because it uses an online video notary, this also means you don’t have any paperwork to fill out at loan closing. While longer than other types of secured loans, you can receive funding in as little as five business days.

You can borrow up to $400,000, depending on your credit score. There is a one-time origination fee of up to 4.99%, but there are no prepayment penalties. You can select loan terms of five, 10, 15, or 30 years. To qualify for a loan with Figure, you must have a credit score of at least 620, which is higher than most lenders. 

It’s no secret credit unions tend to have much lower fees than banks—this is because they’re member-owned. Credit Union 1 is on our list because of its low rates and no minimum credit score or prepayment penalties.

Secured personal loans use money in a savings account or CD held at the credit union for your collateral. Your interest rate is whatever your savings or CD earnings rate plus 3% to 6%. The credit union determines your rate by your credit history, though there is no minimum credit score required—most credit unions look at your history as a whole versus just an isolated numerical score, and Credit Union 1 is the same.

You can apply online, over the phone, or in person at its more than 5,000 branches nationwide, thanks to Co-Op Shared Branching. Your first payment isn’t due for up to 60 days, although you can have it sooner if you choose. And as a member, you have access to online courses and tutorials to improve your financial literacy.

Oportun advertises itself as an alternative lender and has no minimum credit score. Even if you don’t have any credit history, you can still potentially qualify for a secured personal loan. The lender does a soft pull of your credit to determine eligibility before doing a hard pull for the loan itself. This is the best secured personal loan option if you need only a small amount—the minimum loan is $300.

The collateral used for a secured personal loan with Oportun is your vehicle. To pledge your car, you can’t have any liens on the title, and you must own it—so it must be fully paid off. You also must be the sole owner of the vehicle.

Once approved for a loan and your car meets requirements, you receive funding in as little as 24 hours. Your car must not be older than 25 years and have under 250,000 miles on it. They don’t accept vehicles registered outside of your state, nor do they take alternative fuel vehicles or electric models. 

This isn’t a title loan because your interest rate is capped at 36.00% APR. Payment terms vary. You won’t have a prepayment penalty, but an origination fee and tax stamp fee are calculated into your APR, depending on your state of residence.

Wells Fargo was founded in 1852 and is the fourth-largest bank in the United States by assets. While many lenders cap their repayment terms at five years, a Wells Fargo personal loan offers up to 7 years to repay at rates as low as 8.49%, making it the secured personal loan with the best repayment terms. Plus, you can borrow up to $100,000, provided you have that much in a CD or a savings account with them.  

Wells Fargo will use your CD or savings account to repay the outstanding loan amount if you default on your loan. This means you may have an early withdrawal penalty if a CD is used. 

The minimum loan amount is $3,000. While it offers rates as low as 8.49%, that’s for well-qualified borrowers. Your rate may be as high as 24.49%, which is still better than many lenders offer. Usually, the shorter the repayment term, the better your rate is. Plus, some checking accounts qualify you to receive a 0.25% interest rate discount. 

To get a loan with Wells Fargo, even though your collateral secures it, you must have sufficient income. Apply online, provided you have an account, and receive a decision in minutes. Once approved, you can track your loan progress using Wells Fargo's yourLoanTracker.