Best Secured Loans for Bad Credit in 2023

secured loans for bad credit
Written by William Jameson
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Secured Loans may sound risky compared to unsecured loans, but they may be the better option for you. Well, secured loans provide you with low-interest rates and long repayment terms in exchange for the temporary security provided by collateralizing your asset. Secured loans are one of the most common ways of getting quick money regardless of your credit. In secured loans such as loans with the car as collateral, loans with your home or land as collateral, etc., the lender is assured of the certainty of your repayment as he is given the right to seize your collateralized property in the unfortunate event that you fail to repay your loan.

In this article, we will cover the know-how and the basics of secured loans and everything related to them. From general questions like “How do Secured loans work?” and “What is collateral? to more detailed queries like “Are there any secured loans for bad credit?” you will find all your doubts answered right here.

Quick Overview:

Credit Union Wells Fargo OneMain Official Oportun Figure
Domain Overall Repayment Terms Poor Credit Small Loans Debt Consolidation
Loan Amount N/A $3,000 – $100,000 $1,500 – $20,000 $300 – $10,000 N/A
Repayment Term 60 months 84 months 60 months 46 months 30 years
APR  3.00% – 6.00% 7.49% – 23.24% 18.00% – 35.99% N/A N/A
Time to get a loan  N/A 1 day 1 day N/A 5 business days
Origination Fee N/A 0.00% $25 or 1.00% of the loan amount N/A 4.99
Overall Rating N/A 3.9/5.0 4.0/5.0 N/A N/A

List of the 10 Best Secured Loans for Bad Credit:

These are some of the best secured personal loans to gain some financial solutions for your personal monetary problems: 

1. Credit Union

Credit Union

Credit Union was originally exclusive to their members working for the same company or industry. Recently, Credit Union has been more lenient with their restrictions allowing the general public to partake. 

Credit Union is one of the best overall secured loans bad credit lenders because of their long repayment terms, low rates, and minimum credit score. Although you may need to be a member to avail of some of these loan plans, yet, the procedure is convenient enough. The loan term is up to 60 months, which is a downside for some borrowers of bad credit-secured loans, as longer repayment terms are preferred by some applicants. One of the ways to go about a Credit Union is by joining and signing up with an account, which immediately makes you a member by making you an owner.


    • Credit Union does not have any minimum credit score requirements.


  • Rates are just 3% to 6% more than your CD or savings earnings rate.


  • The maximum loan repayment term is only up to 60 months.

2. OneMain Financial

OneMain Financial

OneMain Financial does wonders for applicants with bad credit scores as their selection process depends on various factors such as your collateral, current financial condition, etc., and has no minimum credit score requirements. They have unique loan plans customized according to your unique financial requirements. For example, at OneMain Financial, you can get loans with the car as collateral if your credit score makes it otherwise difficult for you to get a loan. 

Onemain Financial is one of the leading lenders for customers who lack access to sound financial plans. They specialize in solving critical financial needs, which include medical needs, home and auto repairs, debt consolidation, and other hefty financial crises. You can get quick money by availing of their same-day fund key features.  

Borrowers can also get direct payments to creditors on debt consolidation loans. OneMain Financial also offers joint plans and secured loans for bad credit borrowers.


  • No minimum credit score
  • Same-day loans are available
  • Reward programs for users


  • Their interest rates are often higher than other lenders.
  • They charge an origination fee.
  • It can take longer than other lenders to release the lien on the collateral after the loan payoff.

3. Oportun


Another amazing place to get secured loans for bad credit is Oportun. Oportun is an AI-driven platform made to facilitate change, like making credit available and accessible to everyone at affordable rates. At Oportun, you will find flexible customer service regardless of your credit score or availed service. Whether you are taking out a personal unsecured loan or secured loans with the car as collateral, their assistance is top-notch.

Opportun often provides services for people who are often subject to the lack of financial help and excluded from the financial mainstream by only having the option to borrow in small amounts. Along with small fund loans, they also offer same-day funds and interest discounts for returning customers. 

Although with Oportun the amount of money you can borrow depends on which state you’re in, on the bright side, you can borrow small amounts, even going as less as $300. However, only returning customers can qualify for loans above $7500.


  • You can borrow funds in small amounts.
  • Same-day disbursal of funds.
  • Returning customers get lower interest rates.


  • You can not change or choose your payment date.
  • The repayment term is only 46 months.

4. Figure


Figure is primarily an online lender that has streamlined the loan application process by making use of technology. This allows you to go through your loan application procedure for secured loans for bad credit completely online, without the hassle of having to keep track of paperwork. Figure is best for busy people who are in need of a quick and easy solution to their financial needs. 

It offers low-interest rates, with almost instant application approval being one of the fastest HELOC banks with loan funds up to $125,000 for borrowers with a credit score of less than 680. Figure provides an easy and convenient paperwork process that is 100% online for its customers, saving you time. With Figure, you can get low-interest rates of up to 3.25%  and a 0.25% discount on interest rates with autopay. Figure has an origination fee of up to 4.99% and offers a loan fund of up to $125,000 if your credit score is lower than 680.


  • Applications for secured loans for bad credit take as less as five minutes and receive instant approval.
  • Paperwork is 100% online.
  • Interest rates can be as low as 3.25% with autopay.


  • An origination fee of up to 4.99%.
  • A maximum loan of only $125,000 if your credit score is less than 680.

5. Wells Fargo

Wells Fargo

Wells Fargo is an American multinational finance company with a rich and credible history to back its popularity. It is one of the lenders with the best repayment terms on bad credit secured loans, with a timeframe ranging up to 86 months. Wells Fargo also offers property and home mortgages and is the second-largest retail mortgage originator in the United States. Generally known as Wells Fargo Home Mortgage, they are the originator of one out of four home loans. 

Wells Fargo services $1.8 trillion in home mortgages, making it one of the largest servicing portfolios in the US. Low rates and high funds are what make this company a lending mogul. Interest rates go as low as 5.74%, with repayment terms as long as 86 months.

However, applicants need to have a Wells Fargo CD or savings account and a minimum credit score of 670, which isn’t easy for applicants looking for a secured loan bad credit score. Wells Fargo serves one in three households and 10% of small businesses and is a leading banking provider in the U.S. market. 


  • Rates as low as 5.74%
  • Long repayment terms of up to 86 months.


  • Applicants need to have a Wells Fargo CD or savings account.
  • Minimum credit score requirement of 670.

6. Best Egg

Best egg

Best Egg is an online lending platform for borrowers looking for secured loans with collateral. Secured loans use your assets attached to the property as collateral rather than the property itself. Property owners get multiple perks along with guaranteed secured personal loans. Best Egg offers a wide range of loan plans but has some downsides like you don’t have the option to choose or change your payment date and you need to have a minimum credit score of 600. Best Egg’s annual percentage rates and origination fees for secured loans for bad credit might be higher than some of its competitors. Despite that, its application process is streamlined, which means that the entire process along with its customer service, is flexible and responsive.


  • A wide range of loan funds is available.
  • Secured loans are available for homeowners.


  • Charge origination fee.
  • No interest rate discount.

7. Upgrade


Upgrade is a neo-bank that offers services such as debt consolidation, re-financing, personal loans for bad credit, secured loans for bad credit, etc. in every state except Iowa, West Virginia, and Washington, D.C. They offer loans to fair-credit borrowers after considering factors like their credit score, free cash flow, debt-to-income ratio, etc. Upgrade also provides collateral on vehicles for borrowers, the value of your vehicle determines the security you can pledge. The secure loan plans can also include joint secured loans for willing applicants. 

Loans usually range from $1,000 to $50,000 and are funded within the following business day. Borrowers are also offered multiple interest rate discounts for different types of loans such as unsecured loans, loans with the car as collateral, loans with the house as collateral, etc. though it usually comes with an origination fee. Secured Personal loans from Upgrade are designed uniquely to make home improvements, big purchases, and most importantly debt consolidation easier for consumers with varying financial backgrounds. However, Upgrade charges origination fees between 1.85% and 8.99%, which can result in high annual percentage rates (APRs).


  • Secured and joint loan options are available for long repayment terms.
  • Multiple interest rate discounts.


  • Charge origination fee.
  • You can’t choose the repayment dates.

8. First Tech

First Tech

First Tech Federal Credit Union is a financial cooperative that is regulated under National Credit Union Administration. Members can use savings accounts, certificates of deposit, and stocks as collateral. First tech offers co-sign, joint, and secured personal loan options for applicants so it can be one of your best options when you want bad credit secured loans.

You can get same-day funding and even choose your own payment date. Although these services are only exclusive to Credit Union members, you can sign up to become an exclusive member and get access to all of their services. The Union provides various financial solutions excluding secured personal loans for bad credit, such as investments, savings, credit and debit cards, online banking, and other services. 


  • Co-sign, joint, and secured loan options are available.
  • You can choose your repayment dates.
  • Same-day funding is available.
  • Provides easy loans to federal employees.


  • Credit Union member exclusive
  • Reports to only one of the three major credit bureaus
  • No interest rate discount

9. Navy Federal

Navy Federal

Navy Federal is a global and the largest natural member credit union in the United States, both in asset size and in membership. They offer both secured loans for bad credit and unsecured loans. They also provide collateral of CD(Certificate of Deposit) and Navy Federal savings accounts. You can get fast funding with multiple interest rate discounts. However, it’s exclusive to Credit Union members and does not offer the choice of payment date to the borrower. 

Most U.S. credit unions generally operate physical branches in only a few metropolitan areas or a single state. However, Navy Federal operates branches in many U.S. metro areas as well as in some overseas locations, totaling up to 356 branches worldwide as of October 2022. Additionally, members can also transact through the CO-OP network of more than 30,000 ATMs in the U.S.A. and Canada, without facing any surcharges or fees.


  • They offer a wide range of loan amounts and types even to people who have a complicated credit history, for example, secured personal loans for bad credit.
  • The funding process is fast.
  • Interest rate discounts.


  • Credit Union member exclusive offers are not available without signing up.
  • You can not change or choose your repayment dates. So, if you have secured loans, for example, loans with the car as collateral, your car will be confiscated.

10. LightStream


LightStream is one of the best choices for applicants looking for secured loans for bad credit. It is a division of SunTrust bank and naturally provides secured personal loans along with collateral on cars and other vehicles for secured vehicle title loans and auto loans to borrowers. Borrowers can offer the vehicles they are financing or own as collateral for their personal secured loans. 

They have long repayment terms from 24 months to 144 months for loan amounts ranging from $5000 to $100,000. Their interest rates usually range from 5.99% to 23.99%. LightStream offers services where you can get apply and receive same-day funds with fixed low-interest rates and zero origination fees. They also offer APR discounts if you choose to repay through autopay. Their application process is streamlined so you only need to go to their official website, make an account, and move ahead with the loan plan that is prepared for you. Their website will also help you make up your mind if you want to take secured personal loans for bad credit from them.


  • Vehicle owners can pledge their cars or other vehicles as security and take loans with the car as collateral.
  • Long repayment terms for most loans.
  • No origination fee.


  • Need a minimum credit score of 660

What are Secured Loans?

Secured Loans are a type of personal loan where the lender is granted the temporary right to possess the debtor’s asset or property for the duration of the repayment period to “secure” the loan in case the debtor fails to repay it. Collateral is how you can get secured loans for bad credit.

what are secured loans?

Once the repayment period is over, and you have paid your debt in its entirety, along with its respective interest, the lender or bank’s right to your property expires, and the collateral is duly returned to the original owner. 

Secured Loans are easier to get compared to unsecured loans, even with bad credit, as you are at financial risk and hence, have the incentive to pay your loan back. Secured loans can be of multiple types, like loans with the car as collateral, loans with your house as collateral, loans with your stocks and investments as collateral, etc. 

How to Get a Secured Loan?

Now that the question of “how do secured loans work” is answered, let’s discuss the processes involved in getting one. Secured loans are low-risk and low-interest personal loans, but they come with the catch of collateral. Therefore, being well-informed while applying for secured loans for bad credit is always important.


Inquire about the loan plan, including the interest rate and the repayment term. Sometimes lenders only offer you secured loan options if you do not qualify for unsecured loans, so in such a case, inquire with a lender and check your options out.


Check your cash flow thoroughly to ensure how much interest rate you can afford and how much repayment you can offer each month. Even though secured loans for bad credit generally do not have extremely high-interest rates, it is still wise to keep track of them.

Pick a Lender

Picking the right lender based on your financial condition is vital, so compare different lenders and check out different loan plans.

Gather and Verify Documents

Check the documents required by your chosen lender and verify them. These can include Government IDs, Bank Statements, Proof of Identity, etc., along with your collateral documents.


Most lenders provide online applications, so the application process can be very convenient. Loans with collateral usually take some time to get approved due to the lender’s assessment of the collateral’s value.

Is a Secured Loan the Right Choice for You?

A Secured Loan can be the right choice for you if you need a better credit score. You might want to opt for bad credit personal loans with collateral.

If you don’t qualify for an unsecured loan. Some lenders even provide no minimum credit loans. Though having some asset that can qualify as collateral in such a case is vital for the applicant. You can even get a secured loan with bad credit if you have an asset that can be pledged as collateral.

Things to Use as Collateral to Qualify for a Secured Personal Loan?

Having an asset that qualifies as collateral increases your chances of getting a secured loan as it reduces the financial risk for the lender. The lender always has the option to seize the collateral and pay off the loan balance. You can use multiple assets as collateral depending upon the type of secured loan; some of the most commonly used security assets are:

  • Property

You can use your property in a mortgage loan. Mortgages are a type of loan used in financing a property or real estate. This property can be collateral, and the lender has the right to the property if the loan is not repaid within the repayment period. Using property or real estate is one of the most common assets in secured loans for bad credit.

  • Car or Other Vehicles

Your vehicle can serve as collateral. Use the vehicle you have as loan security for vehicle title loans. You can also use the vehicle you’re financing as collateral for auto loans. Loans with the car as collateral can provide quick cash, but you need to have the title of full ownership of the car. Some lenders might also restrict you from borrowing more than 50%of the car’s value. Collateral loans on vehicles come in two types, vehicle title loans, and auto loans.

  • Stocks and Investments

If you’re a stockholder with eligible stocks, you can use them to pledge security for your personal loans. Getting secured loans for bad credit isn’t difficult and more so if you’re using your stock holdings as collateral though some lenders can limit how much of your stock holdings you can pledge as security.

  • Jewelry

Precious metal, authentic gemstones, and expensive jewelry can serve as eligible assets as collateral and provide you with lump sum money for your personal needs. Pawnbrokers accept jewelry as collateral, and banks can also take jewelry as security if of high value.

  • Fine Art

Art can be used as an asset for security by Fine art owners though it comes with the risk of lenders selling the art in question to minimize or pay off the loan balance. Fine art has a high value in the market, so some lenders may even offer thousands of dollars for some art collections.

  • Miscellaneous 

You can use numerous other things to pledge security for your loans, such as antiques, collectibles, precious metals, life insurance policies, cash savings, future paychecks, bonds, etc. 

What are the Alternatives to Secured Personal Loans?

If you find that getting a secured personal loan is not up to your taste, you may opt for an unsecured Loan. Unsecured loans often come with exorbitant interest rates due to the lack of collateral, which exposes the lender to a much higher risk in the case of a default. On the positive side, you are not at risk of losing your collateral assets such as a house, property, car, stocks, jewelry, etc.

Credit cards are also an option when looking for alternatives to secured loans. Although the interest rates are much higher, they are still worth looking into if you are trying to avoid collateral.


Q1. Can you get a secured loan with bad credit?

Although a higher credit score will earn you a better interest rate, you can still get secured collateral loans for bad credit from lenders like OneMain Financial and LendingTree. You still need to provide the lender with collateral, Government ID, Proof of Income, and Proof of Address.

Q2. What credit score is needed for a secured loan?

Meeting a minimum credit score requirement is not mandatory to apply for a secured loan; many lenders today offer secured loans to applicants with bad credit. Although having a higher credit score helps you reduce interest rates, it is optional as long as you pledge eligible collateral. 

Q3. What are the easiest loans to get with bad credit?

The easiest loans for bad credit borrowers are pawn shop loans, payday loans, HELOC loans, cash advances, student loans, secured loans, etc. However, most of these come with high-interest rates and collateral yet getting secured loans for bad credit can be a better option compared to other alternatives.

Q4. Is it harder to get a secured loan?

No, secured loans are far easier to qualify for in comparison to unsecured loans. Secured Loans come with collateral which means the lender possesses way less risk in case you default, which means it is easy to get a secured loan regardless of your credit score.


Secured loans are a quick and easy way to get money to fix your monetary issues even though they come with the risk of collateral, which is a severe problem for people prone to default. Financial literacy about loans and management can help you with this and make the repayment process of your bad credit secured loans much easier, with zero risk to your assets. Secured loans come with a lower interest rate than unsecured loans, which can be exactly what you are looking for as meeting their requirements isn’t difficult.

About Post Author

William Jameson

As one of the members of our editorial team, William Jameson is responsible for driving the vision of what we want to communicate on our website about the latest financial services, loan offers, and credit card offers. With more than 10 years of experience in content creation and copywriting, William Jameson is an expert in his craft. He has a Bachelor’s degree in Communications from the University of California and has held various positions within journalistic outlets prior to joining our team. With his knack for concise yet informative pieces, He ensures that every article published in City Hall News contains valuable information that readers can take away with them.
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About the author

William Jameson

As one of the members of our editorial team, William Jameson is responsible for driving the vision of what we want to communicate on our website about the latest financial services, loan offers, and credit card offers. With more than 10 years of experience in content creation and copywriting, William Jameson is an expert in his craft. He has a Bachelor’s degree in Communications from the University of California and has held various positions within journalistic outlets prior to joining our team. With his knack for concise yet informative pieces, He ensures that every article published in City Hall News contains valuable information that readers can take away with them.

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