How to Get a Secured Loan with Bad Credit

What To Know FirstBankrate gathered data on loans for individuals with bad credit by comparing lenders and their rates as well as information on how someone with poor credit can get the best possible loan

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Account for all personal income, including salary, part-time pay, retirement, investments and rental properties. You do not need to include alimony, child support, or separate maintenance income unless you want it to have it considered as a basis for repaying a loan. Increase non-taxable income or benefits included by 25%.Loan reason

Check Your Personal Loan Rates

Answer a few questions to see which personal loans you pre-qualify for. The process is quick and easy, and it will not impact your credit score.

Bankrate’s scores for personal loan lenders evaluate 11 data points related to loan costs and terms, as well as customer experience.

The annual percentage rate (APR) includes your interest rate, plus any loan fees. It reflects the total cost of borrowing.

The term is the length of time you have to repay the loan. Personal loans generally have terms ranging from two years to five years, though some lenders offer longer terms.

The max loan amount is the largest sum a lender will give. This amount may not be available to borrowers who don’t have good or excellent credit.

4.7Bankrate ScoreAPR from

5.99%3 or 5 year termTerm

3-5yrMax. loan amount

  • Get a personal loan up to $50,000 with a fixed APR from 5.99% to 35.99%,Get money in as little as one business day, upon approval and verification,Join more than 450,000 customers at a trusted company with an A+ BBB rating,Use it for almost anything: consolidate debt or other unexpected expenses
  • DISCLOSURE UPDATE AS OF 07.2021 Trustpilot TrustScore as of June 2020. Best Egg personal loans, including the Best Egg Secured Loan, are made by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender or Blue Ridge Bank, a Nationally Chartered Bank, Member FDIC, Equal Housing Lender. “”Best Egg”” is a trademark of Marlette Holdings, Inc., a Delaware corporation. All uses of “”Best Egg”” refer to “”the Best Egg personal loan””, “”the Best Egg Secured Loan””, and/or “”Best Egg on behalf of Cross River Bank or Blue Ridge Bank, as originator of the Best Egg personal loan,”” as applicable. The term, amount, and APR of any loan we offer to you will depend on your credit score, income, debt payment obligations, loan amount, credit history and other factors. Your loan agreement will contain specific terms and conditions. About half of our customers get their money the next day. After successful verification, your money can be deposited in your bank account within 1-3 business days. The timing of available funds upon loan approval may vary depending upon your banks policies. Loan amounts range from $2,000 – $50,000. Residents of Massachusetts have a minimum loan amount of $6,500; New Mexico and Ohio, $5,000; and Georgia, $3,000. For a second Best Egg loan, your total existing Best Egg loan balances cannot exceed $50,000. Annual Percentage Rates (APRs) range from 5.99% – 35.99%. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0.99% – 5.99% of your loan amount, which will be deducted from any loan proceeds you receive. The origination fee on a loan term 4-years or longer will be at least 4.99%. Your loan term will impact your APR, which may be higher than our lowest advertised rate. You need a minimum 700 FICO® score and a minimum individual annual income of $100,000 to qualify for our lowest APR. To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. What this means for you: When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your drivers license or other identifying documents.

    Max Loan Amount

    4.6Bankrate ScoreAPR from

    2-5yrMax. loan amount

  • No prepayment penalties, application fees, late fees, or hidden fees. Because no one wants to do that
  • You can consolidate all your credit card payments down to one monthly, affordable, fixed-rate payment between 5.99% and 24.99% APR
  • 8 lenders that offer secured personal loans

    While most personal loan lenders offer only unsecured loans, there are some that allow borrowers to secure personal loans with collateral. Here are eight lenders that offer secured personal loans.

    Keep in mind that some of the lenders in the following table are Credible partners — each of them has been marked with an asterisk.

  • Stock
  • First Tech Share Certificate
  • First Tech Savings Account
  • Car
  • Motorcycle
  • Navy Federal savings account
  • Navy Federal certificate of deposit
  • Car
  • Truck
  • Motorcycle
  • Boat
  • Camper
  • RV
  • Savings account
  • Certificate of deposit
  • Home
  • All APRs reflect autopay and loyalty discounts where available |

    What is a secured personal loan?

    A secured personal loan is a type of personal loan that is secured by some type of collateral. This differs from most personal loans, which are generally unsecured.

    Secured personal loans can be less risky for lenders than unsecured personal loans, as the lender can take the collateral to make up for any losses if you stop paying on the loan.

    Because of the reduced risk, you might be able to get a larger loan amount or lower APR with a secured personal loan compared to an unsecured personal loan.

    Where to get a secured personal loan

    You can find secured loans through a few different places. Make sure to review all your options before taking out a secured personal loan.

  • Online lenders: While there are many online lenders that offer personal loans, you’ll have to do your research to find out which ones offer secured ones. LightStream, however, does offer motorcycle and new car loans as secured loans.
  • Banks: Many brick-and-mortar banks offer home and auto loans, but Wells Fargo is the only major national bank that offers a secured personal loan where you can secure a loan through your personal savings account.
  • Credit unions: Your local credit union may offer a few different secured loans, including mortgages, vehicles, and some for personal reasons. Some national credit unions offer secured personal loans, like Navy Federal Credit Union, but it’s best to check with the ones in your community first.
  • Our top picks of timely offers from our partners

    Getting a loan when you have bad credit or no credit history can be tough. Like most financial products, borrowers have to submit an application listing their income information and agree to a credit check before getting approved for a loan. Lenders prefer to work with customers who have a proven track record of paying their bills on time and earning enough money to stay on top of their debt while honoring all terms and agreements.

    A good credit score starts at 670 on the FICO scale (661 for VantageScore). Anything over 740 is considered very good, and above a 800 FICO score (or 781 VantageScore) is considered excellent.

    If your credit score is less than 670, you may feel like your score is a roadblock to getting access to good financial products. However, there are a few lenders that work with such candidates, helping them to borrow money for emergency expenses including medical bills and auto repairs, refinancing high-interest debt or even consolidating debt payments.

    But proceed with caution: Lenders may charge higher interest rates or tack on origination fees, early payoff penalties and late fees to borrowers they consider to be “”riskier.”” Therefore, if you have less-than-perfect credit, its important to do your homework before signing on the dotted line to make sure youre comfortable with the terms of the loan.

    Select rounded up the top personal loans for bad credit, looking at fees, interest rates and flexible repayment options for different credit scores. We tried to prioritize loans with no origination or sign-up fees, but since this list is for borrowers with lower credit scores, many of the loans you see below come with added costs.(Read more about our methodology below.)

    For loans with no origination fees, check out our best personal loan list.

    How to choose the best personal loan

    Updated: Sep 28, 2021

    What is a personal loan?

    An unsecured personal loan is a fixed-rate loan that is not backed by collateral and is repaid in monthly installments over a specific term, usually two to seven years. When you need money to cover a large expense or to consolidate your debt, consider a personal loan. You can use the funds for almost any purpose.

    To qualify you, lenders look at factors including your credit score, credit report and debt-to-income ratio. You can get a personal loan from some major banks, credit unions and online lenders.

    What rate should I expect?

    Here’s what interest rates on personal loans look like, on average:

    Hows your credit?

    25.3% (Lowest scores unlikely to qualify).

    Source: Average rates are based on aggregate, anonymized offer data from users who pre-qualified in NerdWallet’s lender marketplace from July 1, 2020, to July 31, 2021. Rates are estimates only and not specific to any lender.

    Borrowers with good to excellent credit (690 and higher on the FICO scale) typically get the lowest interest rates and can borrow larger amounts. They also have the most options when it comes to shopping for a loan.

    Those with fair to bad credit (FICO scores below 690) may have to look a little harder and pay a higher rate for a personal loan. Some online lenders target low-credit borrowers, offering loans with rates from 18% to 36% APR. Having steady income, low debt, a long credit history and a record of on-time payments will improve your chances of being approved.