Personal loans are typically unsecured because the borrower is not required to provide collateral to obtain the loan. However, these unsecured loans may be difficult to obtain and have high interest rates. Secured personal loans are a better option for borrowers in 2024.
Secured personal loans in 2024 may make credit more accessible to less creditworthy borrowers by leveraging collateral such as the borrower’s home or car. It also increases the borrower’s risk because the lender can seize the collateral to recoup its losses if the borrower defaults. The best secured personal loans in 2024 provide competitive interest rates, flexible repayment terms, and high borrowing limits.
Best Secured Personal Loans of 2024
A personal loan can be used for a variety of purposes, including home improvements and unforeseen expenses. Moreover, most individuals who struggle to obtain loans due to poor credit or high interest rates may benefit from secured personal loans in 2024. Additionally, borrowers should shop around and compare rates from various lenders.
Here are the best secured personal loans in 2024, based on interest rates, fees, repayment terms, and other important factors.
Upgrade
Upgrade is ranked first because it provides online credit and banking services, including personal loans of $1,000 to $50,000 to borrowers. It accepts cosigners and has a minimum credit score of 580. Loans are limited to $50,000, and origination fees may reduce the total amount borrowed. Furthermore, Upgrade is ideal for borrowers with poor credit. Upgrade loans require a credit score of at least 580, no minimum income, and co-applicants. Furthermore, mandated automatic payments may not be suitable for everyone.
OneMain Financial
OneMain Financial provides secured personal loans to borrowers with bad credit, allowing them to qualify for loans even with low credit scores in 2024. In addition, it accepts an assigned automobile as collateral. In addition to current insurance, the lender requires a first lien on the borrower’s vehicle registered in their name.
Additionally, the vehicle must meet OneMain’s loan-to-value requirements. Trucks, cars, and motorcycles are popular collateral. However, other vehicles can also be considered, like boats, trailers, and RVs. OneMain doesn’t charge penalty fees and offers loans up to $20,000. Origination and late fees vary by state, with origination fees ranging from 1% to 10% and late fees from 1.5% to 15%.
First Technology Federal Credit Union
First Technology Federal Credit Union is a secured loan certificate that provides borrowing and investment opportunities. As you repay your loan, your certificate account will earn dividends. Certificate accounts typically pay higher interest rates, but a savings-secured loan benefits from the same.
You may also be eligible for a loan of up to $500,000 based on your credit history and the balance in your certificate account. It offers extra-large loans available with First Tech certificates, earning dividends as payment with a highly-rated mobile app. Furthermore, it requires a First Tech certificate account, and membership eligibility, and is available in California, Oregon, and Washington.
Best Egg
Except Iowa, Vermont, West Virginia, and Washington, D.C., borrowers in every state can access the lending platform Best Egg. Cross River Bank offers personal loans ranging from $2,000 to $50,000. It can assist you in consolidating your other debts and distributing the payments over time since loan proceeds can be used for debt consolidation and the range of terms expense from three to five years.
However, since this lender does not reimburse creditors directly, you will be accountable for managing the reimbursement procedure. Borrowers must also reimburse origination fees, which range from 0.99% to 5.99% of the loan balance. The origination fee is an important consideration when calculating the amount you can save by consolidating your debts with a Best Egg personal loan. However, there is no penalty for borrowers who repay their loans early.
Digital Federal Credit Union
Slightly secured loans are available from the Digital Federal Credit Union (DCU). Notably, its 120-month Savings-Secured Loan has one of the longest loan terms available. This loan has a fixed annual percentage rate (APR) that starts at 3.50% and is secured by your DCU savings account.
Lower credit score borrowers may be qualified because, according to DCU, timely repayment of a savings-secured loan can help you build credit. Skip-A-Payment provides financial assistance, live chat support, and a 120-month loan term. However, it requires a DCU savings account, which is available in all 50 states, as well as membership fees.
Naval Federal Credit Union
Navy Federal Credit Union serves members of the National Guard, the Department of Defense, the armed forces, and their families. It provides secured loans that you can repay with a certificate of deposit or savings account. Navy Federal personal loans have no origination fees, and active duty personnel may be able to receive an interest rate reduction of 0.25%.
Navy Federal Credit Union offers small loans starting at $250 with interest rate discounts for active duty service members. It also offers no origination fees, and the lowest APR on 36-month terms, with no early payoff penalty.
Patelco Credit Union
Patelco Credit Union is a Northern California institution that offers secured personal loans backed by savings accounts and CDs in 2024. Additionally, its savings-secured loans have a low APR of 2.50%, while CD-secured loans have an APR equal to the CD rate plus 2.25%. Also, membership is required for application and approval.
Patelco offers low APRs, no origination fees, and a 100% savings account balance. Membership is required, and FFA membership auto-enrollment is mandatory. Finally, qualifying individuals may be from Northern California, Patelco sponsor companies, or FFA members.
Final Thought
A loan backed by collateral is known as a secured loan. A vehicle, savings account, or even household fixtures can be used as collateral. Any asset you decide should be suitable for the lender’s needs and have enough value to cover the loan. Furthermore, your needs will also estimate which secured personal loan lender is suitable for you. Upgrade is the best option due to its flexible loan terms and simple application process. Lastly, you should note that if you are not eligible for an unsecured loan, you can only use a passenger car as collateral.