Best Secured Loans for Bad Credit
Get the best secured personal loans with convenient monthly payments. Bad credit borrowers are welcome.
Written By:
Edited By: Janice Myers
Posting Date:
Applying for a secured loan will make you provide reliable collateral (be it your car or house). But what do you do if your credit score isn’t excellent? You may rely on secured loans for bad credit and solve your financial problems.
Most banks and credit unions don’t want to deal with a poor credit history. But we’ve compiled a short list of companies that accept your bad credit score and provide convenient interest rates. Choose your secured loan option and apply today!
Discover the Best Secured Bad Credit Personal Loans to Get Online
★★★★★
Est.APR
6.40% – 35.99%
Loan amount
$1,000 – $50,000
Min Score
300
More About
PROS
- Quick access to loan funds;
- No prepayment penalties;
- Flexible monthly payments;
- Beyond credit score verification (soft credit check);
- Flexible loan amounts.
CONS
- Origination fees up to 10%;
- High annual percentage rate;
- Co-signers aren’t allowed;
- Limited repayment loan terms.
REQUIREMENTS
- Be at least 18 years old;
- Prove your US citizenship or permanent residence;
- Provide your bank account information
- Show your monthly income (at least $2,000 monthly income) by providing pay stubs, tax forms, or bank statements;
- Have fair credit (at least 300);
- Provide an active email address and phone number.
WHO IT’S FOR
Poor credit borrowers who can’t qualify for traditional personal loans.
FEES
- Origination fees up to 10%;
- $15 late fee
- $15 NSF fee
★★★★☆
Est.APR
18% – 35.99%
Loan amount
$1,500 – $20,000
Min Score
None
More About
PROS
- Joint and secured loans are available;
- Wide range of loan options for low credit;
- Pre-qualifying doesn’t affect your credit score;
- Convenient options for debt consolidation.
CONS
- Relatively high interest rates;
- Charges origination fees;
- APRs are not disclosed when pre-qualify.
ELIGIBILITY REQUIREMENTS
- At least 18 years also;
- Permanent US resident;
- Income confirmation;
- Valid bank account or debit card.
WHOM IT SUITS
Borrowers with credit issues who want to avoid predatory lenders.
FEES
- Origination fees: 1% to 10%, or $25 to $500, depending on the state;
- Late payment fees: $5 to $30, or 1.5% to 15% of your loan amount;
- Non-sufficient funds fees: $10 to $50 per payment returned.
★★★★☆
Est.APR
8.49% – 35.99%
Loan amount
$1,000 – $50,000
Min Score
Doesn’t specified
More About
PROS
- No prepayment penalties;
- Multiple rate discounts;
- Next-day funding;
- The due date may be changed;
- Direct payments for debt consolidation.
CONS
- APRs may be high;
- Origination fees are charged;
- Late fees may be applied.
ELIGIBILITY REQUIREMENTS
- Be a U.S. citizen, a permanent resident, or living in the U.S. on a valid visa;
- Be at least 18 years old (19 in Alabama and some other states);
- Give a working email address;
- Provide valid bank account details;
- Confirm a sufficient monthly income to cover your loan payments.
WHOM IT SUITS
Fair-credit borrowers who need the money quickly.
FEES
- Origination fees: 1.85% to 9.99%;
- Late payment fees: $10;
- Non-sufficient funds fees: $10 per payment returned.
★★★★☆
Est.APR
9.116% – 29.99%
Loan amount
$2,000 – $45,000
Min Score
640
More About
PROS
- Low annual percentage rate;
- Wide range of available loan amounts;
- Same-day funding in some circumstances;
- Accessible for fair credit borrowers.
CONS
- High origination fee (up to 9%);
- No cosigners are allowed for joint loans;
- It is not available in all states.
- Limited term lengths range from 36 to 60 months.
REQUIREMENTS
- Be at least 18 years old;
- Prove your US citizenship or permanent residence;
- Provide your bank account information
- Show your monthly income (at least $2,000 monthly income) by providing pay stubs, tax forms, or bank statements;
- Have fair credit (at least 640);
- Provide an active email address and phone number.
WHO IT’S FOR
Poor credit borrowers who need to make a significant debt consolidation.
FEES
- Origination fees of up to 9%
- $15 late fee
- $15 NSF fee
★★★★☆
Est.APR
8.99% – 25.81%
Loan amount
$5,000 – $100,000
Min Score
None
More About
PROS
- Low interest rates
- Co-borrowers are allowed
- No prepayment penalties
- Flexible loan amounts
- Wide repayment terms
- No origination fee
CONS
- Good credit is required
- Late fees might apply
- No co-signer option available
- No physical branches
REQUIREMENTS
- Be at least 18 years old
- Prove your US citizenship or permanent residence
- Provide your bank account information and social security number
- Show your monthly income by providing pay stubs, tax forms, or bank statements
- Provide an active email address and phone number
WHO IT’S FOR
Applicants with good to excellent credit scores who want to consolidate debt, make major purchases, and cover significant medical bills.
FEES
- Optional fees (up to 6%)
BadCredify evaluates lenders based on more than 70 rating criteria, including interest rates, repayment terms, eligibility requirements, fees, consumer experience, affordability, and more. Find out more about our full methodology.
What are Secured Personal Loans with Bad Credit, and How Do They Work?
A secured loan is a financial product that is backed by collateral. Collateral can take many forms, but it might be a vehicle, a savings account, house furnishings, or another valuable item.
Backing your secured loans for bad credit with collateral lowers the lender’s risk since the company can seize your collateral for repayment if you default on your secured loan. Because secured loans appear to lenders to be less dangerous, they may accept a poor credit history and give lower interest rates than unsecured loans.
What is less dangerous for the lender is not always less risky for you as the borrower. If you can repay your secured loan amount, you may retain the collateral you used to secure it.
How to apply for a secured personal loan?
To apply for a secured loan, you must follow these simple steps:
- Access the lender’s website and check its eligibility criteria.
- If you meet all of them and can prove the ownership of your collateral, complete the application online or visit its office during working hours.
- Provide the needed information and submit the loan request.
- Wait for the approval decision.
- If approved, the lender will transfer the money in your bank account in 24 hours.
Get a Personal Loan for Your Needs
- Applying does not affect your credit score
- Safe and secure application
- Convenient monthly payments
- Any credit score is accepted
Bad Credit Secured Loans vs. Unsecured Loans
Secured and unsecured loans have a lot of differences that help you make an informed decision. Let’s examine them step by step:
Collateral
Secured loans are backed by collateral, be it a vehicle, house, savings, or investment account. Meanwhile, unsecured personal loans don’t require any type of collateral.
Interest Rates
According to the loan agreement, a secured loan has lower interest rates thanks to used collateral that ensures lenders can repay it on time. An unsecured loan has a higher interest charge because the lender carries the risk of non-repayment.
Loan Amounts
The maximum loan amount you can get through a secured loan (up to $50,000) is more significant than an unsecured loan ($15,000).
Credit Score Requirements
When you borrow money through secured loans, the credit requirements may be easier to meet. With an unsecured bad credit personal loan, it is harder to meet these rules because most lenders require at least fair credit scores.
Funding Time
The funding period of a secured loan may take longer because the loan provider could request the appraisal of your collateral. But with unsecured loans, it could be faster.
How to Compare Personal Secured Loans for Bad Credit?
If you want to find the best personal secured loans for bad credit, here are several factors to consider:
Interest Charges and Additional Fees: Look for interest rates that may increase the loan payments. Frequent expenses include origination fees, administrative costs, and late payment fees.
Collateral: Search for lenders that allow you to use many types of collateral. Your home, savings account, motorcycle, or boat are several options that you can use to get a secured loan.
Credit requirements: Although not every lender releases its minimum credit score, it’s worth studying whether you can fulfill a lender’s borrowing standards when applying for secured loans.
Co-signer availability: while lending secured loans, many lenders offer the option of bringing a co-signer. It could decrease your interest and improve the repayment terms.
Loan Amounts: Getting a secured loan with bad credit will decrease your chances of applying for higher loan amounts. That’s why ask your lender the maximum loan amount you may get.
Uses: Many lenders will limit how you can use your loan. So, choose a lender that doesn’t have any rules on how and where you can spend your money.
Customer reviews: Read all the reviews and discover the experiences of the former customers to see how their financial needs were fulfilled.
Methodology
BadCredify studied hundreds of data from more than 50 of financial companies, including traditional banks, credit unions, fintechs, and particular interest financing organizations. We’ve made it to analyze and rate personal loan providers. We investigated and assessed APRs, loan amounts and periods, fees, and other factors.
We weighted the obtained data to rank the lenders in our database and establish star ratings. They are based partly on what consumers said were the most significant qualities of a personal loan and lender in our research. We classified those characteristics into four categories:
- Loan expenses (advertised annual percentage rate, fees, and other additional factors);
- Loan terms (interest rate, loan amount, and three other factors);
- Borrowing conditions (credit score requirements);
- Online applications or pre-qualifications.
Frequently Asked Questions
Depending on your credit score, you can borrow up to $50,000.
Most of our selected lenders accept poor credit ratings (below 680).