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9 Best Secured Loans for Bad Credit – Quick Funding

Life is like a roller coaster, and everyone experiences financial ups and downs. One of the worst things that can happen to a person is not having financial stability. Getting credit from lenders can help you get out of this situation, but if you have a bad credit history, it might be hard to get credit. Before making a decision about whether or not to lend to you, the lenders thoroughly examine your credit history.  Your credit score might not be good enough to get you an unsecured loan because lending carries a high level of risk for this.

However, the possibility is not entirely eliminated. You might consider secured loans for bad credit, where the approval rates are higher as lenders can use the collateral to cover losses if the loan is not paid back. The options for secured personal loans for bad credit are listed below where you will also get to know “how secured loans work with collateral service”.

Things to Use As a Collateral to Get Secured Loans for Bad Credit

Things to Use As a Collateral to Get Secured Loans for Bad Credit 

There are two primary types of loan collateral that you can use as security when you want to avail of personal loans: saving accounts and vehicles. 

If you want to use personal loans as security and have enough equity in your car or any other vehicle, some creditors will accept it as collateral. A few banks will accept a savings account or certificate of deposit (CD) as collateral on personal loans. Keep in mind that if you default on a loan, anything you put forward as collateral can be taken away.

It must be kept in mind that if any mistake is made by you related to the borrowed loan then whatever you offer as collateral will be confiscated by them. Before accepting the loan agreements, make sure you understand the conditions that will lead to the loss of collateral and others.

Top Bad Credit Secured Loans With Collateral

1. Wells Fargo

Wells Fargo

Wells Fargo has long been a part of America since the company began transporting people and goods all over the West in stagecoaches in the middle of the 1800s. In today’s time, Wells Fargo offers a large number of banking services that include loans and checking and saving accounts. For a personal loan or any secured credit card from Wells Fargo, you can decrease your APR by using a CD or savings account as collateral, even though It’s possible that collateral won’t help you get approved. 

The account must belong to Wells Fargo if you want to be eligible. How much amount you can borrow from the given range from $3,000 to $250,000 depending on the amount you share as collateral. While you pay back your loan, the interest on your CD or savings account will continue to accrue as usual. 

Important Features

  • A wide range of financial products
  • View your latest FICO score 
  • Help in investing & wealth management
  • Assistance with commercial banking
  • Aid in small business


  • Around 4,700 local banks and 12,000 chargeless ATMs.
  • Some checking a savings account makes it simple to avoid monthly fees. 
  • Excellent mobile app. 


  • Low-interest rates 
  • An overdraft fee of $35 may be assessed 3 times daily.  

2. Finova Finance

Finova Finance

Finova Finance is a newcomer to the finance industry that was established in 2015. In addition to offering a prepaid card, this company focuses on Car Equity Lines of Credit (CELOC). Borrowers with any credit score, from poor to excellent, are eligible for CELOC financing as long as they fulfill the requirements. 

The vehicle must be registered in your name and be free and clear of liens in order to be considered collateral. You will be required to get collision vehicle insurance and pre-paid for some months of comprehensive coverage for the complete duration of the loan. 

The equity in the vehicle must be sufficient to cover your requested borrowing amount. Candidates who are involved in bankruptcy affairs at the moment cannot be eligible. All in all, it is one of the best options for secured loans for bad credit.

Important Features: 

  • Offers quick cash in case of an emergency.
  • High-interest rates and fees.
  • Finova provides loans with longer terms.


  • Quick decision for approval and funding
  • No penalty on prepayments 
  • Get a loan with your paid-off car
  • Secured Personal loans for bad credit


  • Only accessible in a few states
  • Non-standard expenses included

3. OneMain Financial

OneMain Financial

OneMain Financial focuses on personal loans along with consumer loans. Since 1912, the lender has granted loans to over 10 million eligible borrowers. While credit history and income will be taken into consideration when deciding whether to approve or not, OneMain Financial company generally allows a wide range of automobiles as collateral. Trucks, cars, motorcycles, campers, and boats are the kinds of vehicles that are allowable to use as collateral. Security utilized for the loan should go through an evaluation to guarantee its worth. Vehicles accessed as collateral must also be safeguarded against physical harm till the time you repay the entire loan.  

Important Features: 

  • APR Range- 18.00% to 35.99% 
  • Loan Amount- $1,500 to $20,000 
  • Loan Terms- 2 to 5 Years 
  • Minimum Credit Score- Not Revealed 


  • Flexibility in changing loan repayment dates 
  • Quick Funding 
  • Secured and joint loans 
  • Don’t charge prepayment fees 


  • Comparatively interest rates are high 
  • Fees for the origination 
  • No rate reductions 
  • Unable to view potential interest rates prior to pre-qualification

Best Creditors on Auto Collateral Loans for Bad Credit

While getting personal loans with car as collateral can be a good way to borrow money, there are other ways to potentially use your car/automobile to get the cash you need. You might also be able to get paid with your vehicle’s equity through refinancing with a cash-out process.

The basic role of a cash-out refinance is to refinance a client’s vehicle loan so that they can get more money that they owe on it (not higher than its market value), depending on how much equity there is in your automobile. After that, you can pay back your previous loan with the new loan and keep the difference as cash to spend as per your wish. 

To borrow through cash-out refinance, your automobile must not be older than 5 years, be in acceptable working condition, and not exceed 75,000 miles. Additionally, you must have a minimum of two years remaining on your existing auto loan and owe a specific amount (Usually at least $7,500, though the exact amount may vary depending on the lender).

1. LendingTree


LendingTree is an authorized, legitimate, and trusted company, you should feel safe and secure for applying their online application. Through a large number of lending resources, LendingTree assists borrowers in locating a wide range of loan options, including mortgages and secured loans for bad credit. One thing you should be clear about is that LendingTree does not lend money itself, it is the means by which a number of lenders partake in offering lending services. The application can be completed in a few minutes, is free, and there is no obligation.

One problem is that many people are worried about filling out their forms and then getting a lot of calls, even if they are not interested in the offered service. You should be clear about it irrespective of whom you choose to fill out the application form to get the loan.

Additional Information:  

  • Quick reply by numerous lenders.
  • Many quotations within two days of submitting your request.
  • Possibility to obtain a favorable rate, though it’s not assured.
  • It also provides both auto and personal loans.
  • Collateral loans on vehicles for lease buyouts, purchase, and refinance.
  • LendingTree makes a match with a maximum of 5 creditors that suit your credit profile.

2. Auto Credit Express

Auto Credit Express

Auto Credit Express does not directly provide car loans. What they do is, they just work as a medium to connect potential car buyers with auto dealers and creditors who might be able to validate the application for a car loan based on the introductory information of the applicant. There is no assurance that a loan will be easily approved if an applicant makes a contact with an auto dealer or loan provider.

Additionally, Auto Credit Express works to connect car owners with financiers who offer car refinancing. You don’t need to be worried if you have bad credit or have previously been denied a loan. Auto Credit Express provides Subprime loans which means if you do not have a strong financial history, you’re still eligible for the loan. Despite the high APR, these subprime loans might be your last choice based on your circumstances.

To Get Subprime Loan Approval, a Driver Should Have-

  • Held a job that qualifies for 6 months
  • Earnings before tax should be $1,500 to $2,000 per month from only one source. 
  • Employment records of three years.  


  • Specializes in poor credit, repossession, and bankruptcy.
  • Eligibility criteria are more flexible to qualify. 
  • Simple, 30-second form for pre-qualification.
  • Collaborates with lenders who permit co-borrowers and co-signers.
  • Special rates and discounts for military personnel.


  • Buyers can only shop at dealers in the Auto Credit Express network.
  • Hard Inquiry may be done by lenders.
  • Ask for a Social Security Number (SSN) for the application. 

3. Auto Loan

Using will make it easy for a buyer to locate an auto dealership that provides financing to customers who have poor credit. They’ve been assisting people with loans with car as collateral since 1994. 

They connect you with a preferable creditor of your region that can help you to find an ideal choice on the basis of your financial state, whether you have good credit, bad credit, thin credit, or no credit at all. 

They can also help if you have been denied collateral loans on vehicles previously because of your poor credit history. Because they have partnered with the largest auto dealer network in the country which has received training in specialized finance, they are able to assist auto buyers with the majority of credit options. 

They help a number of people to provide the desirable dealerships at their location on a daily basis. If you start by filling out their secure, free online application right now, you could be the next to get collateral loans.

 Important Features: 

  • No-obligation application with zero fees.
  • Specially designed for bankruptcy, poor credit, beginner buyer, and subprime auto loans. 
  • Reasonable payments and zero application fees. 
  • On the same day, you can get approval. 

Best Creditors on Home Collateral Loans for Bad Credit

A credit check is still required to get a cash-out to refinance credit or home equity, even if you use your house as collateral. While having low credit scores can make it harder to get approval for a loan, having additional equity improves the chances of getting one even if you have a bad credit score.

Getting a network of online lenders to get quotes on a home loan can frequently offer many quotes simultaneously using a single form. Online lending resources, such as the ones listed below, can link numerous creditors from all over the nation to make it simpler to locate the ideal match. 

1. Rocket Mortgage

Rocket mortgage

If you are looking to apply for a house loan completely online, Rocket Mortgage can be the best choice out of all the mortgage lenders. Its simplified pre-approval procedure and easy access to client support make it best for other competitor lenders. Rocket Mortgage provides a wide range of mortgage options and is endorsed by the greatest mortgage creditor, Quicken loans. 

Rocket mortgage connects you with a suitable mortgage and helps you to complete the online application process, irrespective of whether you need assistance or know what you specifically want.

Best for: 

  • People who are trying to apply for a mortgage to buy a house.
  • People with excellent credit who wish to examine their mortgage options.
  • Home purchasers who are trying to review their mortgage options and have good credit scores.
  • Homeowners who are seeking to refinance in a couple of upcoming weeks. 


  • Quick and smooth online application process.
  • 24/7 customer support to concerns about new loan availability.
  • Low-interest rate as compared to other mortgages.
  • If required you can work with a loan officer by phone.


  • Credit checks can help you to get customized interest rates that can affect your credit score.
  • Do not provide lines of credit or home equity loans.
  • High initiation fee as compared to other lenders.

2. eMortgage


Once you provide some basic information about which property and the type of loan you are interested in, they connect you with a maximum of 5 engaged Mortgage lenders in their lender network and transmit your request to them.

It just takes barely a few minutes to complete the process and then you can pick the loan plan which best suits your requirements. Because they believe that Home Is Where The Heart Is, they offer an online form that is free and you are not required to accept any quote.

Although applying for a mortgage does not have to be complicated, the process can be intimidating. This is the reason, eMortgage connects with the mortgage creditors network to assist individuals seeking to either buy a new house or try to get their current one refinanced.

When it comes to the use and collection of the personal information of their customers as well as all website visitors’ personal information, they are dedicated to maintaining great privacy and security. 

Important Features: 

  • Grab the latest mortgage rates from the best bank and lenders.
  • Quick comparison and pick up the best mortgage lender with zero fees and zero obligation.
  • Can compare the running mortgage rate at the same time.
  • Choose the mortgage lenders that best suit your needs. 
  • Compare rates from prequalified as well as approved lenders— completely free and online. 

3. Quicken Loans

Quicken loans

Rocket Mortgage, the well-known brand with a tool for online loan application and approval, is owned by Quicken Loans. In each of the fifty states, Quicken Loans offers a wide range of mortgages. The lender gives a large number of refinance and purchase choices, such as cash-out refinancing and an adaptable-term service called YOURgage, which lets borrowers choose between 8 and 29 years to repay their loan.

Mortgages and services for refinancing are Quicken Loans’ specialties. Quicken Loans gives you loan options, rates, and costs when applying for a mortgage or refinance may it be online or via phone call. These secured loans for bad credit can be closed where and when according to the customer’s choice.

The following are some types of personal loans: 

  • Fixed loan of 15 years
  • Fixed loan of 30 years
  • Loans with flexible rate
  • Veterans Administration (VA) loans
  • Federal Housing Administration (FHA) loans
  • Jumbo Loans 
  • YOURgage customized term loans with a fixed rate
  • Refinance for cash, with a shorter payment or term

Home equity lines of credit (HELOCs), bridge loans, home equity loans, United States Department of Agriculture (USDA) loans, and “interest-only” loans are not offered by the lender. 


  • Advantageous app and website
  • Solid rating in customer support service
  • Well-known market lenders
  • A range of services available across the nations 


  • Limited availability of creditors’ fee information online
  • Higher rates and APRs as compared to a national average
  • Do not disclose their landed location

How Do Secured Loans Work for Bad Credit?  

If you are facing so many obstacles in borrowing with poor credit, you might be able to get secured loans for bad credit. This kind of secured loan could give you a way to borrow money. When you apply for a loan that is secured, you put up any acceptable asset in the form of loan security.

A secured loan may be easier to obtain if compared to an unsecured loan which provides this kind of security to a lender, because lending companies are aware that they have the right to use that asset to get their money back, in the event that you fail to repay the loan. This is especially true if your credit is bad. 

However, if you are going through a financial crisis to repay the loans on time, you run the risk of losing the asset that you put up.

What is the Easiest Type of Secured Loans for Bad Credit? 

Unlike home or auto loans, Secured personal loans for bad credit are used for many different purposes, in contrast to home or auto loans, which must be accessed to purchase those particular items. Some personal loans won’t be used to purchase something that has value as collateral due to the wide range of purposes of personal loans. 

As a consequence of this, collateralized or secured personal loans are among the ones that are offered the least frequently, with several high-level banks denying them in any case. If it’s on the positive side, on the basis of the amount of loan and your credit history, collateral may not be necessary at all in order to access a personal loan.

Personal loans of smaller size with terms that are shorter might be accessible in any event, for those with unfortunate credit.

How Do Secured Loans Work With a Home As Collateral?

Even though using loans with car as collateral, you might have something else that is much more beneficial— Your Home. The equity in a customer’s home can frequently be utilized to acquire financing by a loan of cash-out refinance or Home Equity Line of Credit, in short (HELOC), just like the equity in any vehicle. HELOCs, also known as secondary mortgages, are other loans that come from sources other than your first mortgage and use your home’s equity as collateral in relation to the new loan. 

Cash-out home refinances loans, on the other hand, allow you to refinance your home to get more money than you owe—but not higher than its actual value—and keep the variation as cash.

Simplest Ways to Find Best Secured Loans for Bad Credit 

Online lenders, banks, and credit unions all offer these loans for bad credit holders. There are a few essential considerations to keep in mind when comparing options of secured loans for bad credit. For instance, you must consider the following appropriate approach.

  • What kind of collateral is necessary to secure the loan.
  • The loan’s annual percentage rate (APR) and interest rate.
  • Whether or not the interest rate on a loan is variable or fixed.
  • Any charges made by the lender, such as penalties for late payments or origination fees. 
  • The range of loan amounts and the repayment terms. 
  • Requirements for the loan, including income and credit scores. 

By comparing loan terms and rates with multiple lenders, you can get an estimate of how much a secured loan will likely cost. A secured loan online calculator can also be used to compare them, estimating your monthly repayments and total interest cost.

Beware of the Collateral You Use

Every person has been trying to get money by offering their services and goods for 1000s years but that does not assure that each one of us is able to achieve that goal. Loans with car as collateral or anything else would be unnecessary if everyone always paid their debts in full.

Whatever method you use to get the money you need, always keep in mind that collateral can be confiscated and sold to others when necessary if you fail to repay the loan as per the terms & conditions. 

Agree to use an asset as collateral only if you are confident that you will repay the loan or are ready to lose your asset.

Points to Remember After Choosing a Lender 

Even after selecting secured loans for bad credit, you must follow certain things in a mandatory manner. We have provided some of those crucial details here under the direction of an expert.

  • Negotiate- It’s never a bad idea to inquire about whether the creditor will reduce the annual percentage rate (APR), eliminate a fee you don’t want to pay or change the loan term.
  • Request a Blank Copy of All the Forms You Will Sign at Closing- While they are not required to do so, the majority of trustworthy creditors will. Review the forms with a trusted individual at home. If you have questions about something, ask the lender.
  • You Should Request Copies of the Actual Documents that You Will be Asked to Sign from the Lender- Although the creditor may not be required to provide you with all completed documents prior to closing, it is never a bad idea to inquire.
  • Check to See if you can Pay for the loan- Do the calculation! Determine if your month-to-month income is sufficient to cover each payment and all of your additional monthly costs and bills. If it’s not, a foreclosure could cause you to lose your home and any equity in it.
  • If the Property’s Actual Mortgage is Being Refinanced, Inquire About Escrow Solutions- Is there an escrow amount for the property owner’s insurance and property taxes included in the monthly payment? If not, also include this kind of amount in your budget.

Frequently Asked Questions (FAQs)

Q1. Are secured personal loans easier to qualify for?

Typically, a secured loan is preferable to an unsecured loan because it has simpler eligibility requirements, a lower interest rate, and the ability to borrow a greater amount. The only drawback is that if you fail to follow their reasonable terms and conditions to pay back their money, there is a high chance that the lender can take back your property.

Q2. What is a secured personal loan for bad credit? 

A secured loan is one in which the borrower pledges an asset like a property, car, equity, etc. before receiving the loan. The amount of the loan is typically determined by the collateral’s value. 

To encourage borrowers to make timely payments on a secured loan, creditors accept collateral. After all, paying back the loan and avoiding repossession is highly motivated by the possibility of losing one’s home or automobile. There are also available secured loans for bad credit. 

Q3. What alternatives are available for secured personal loans? 

Consider getting an unsecured personal loan instead of a secured one. Since there is no collateral to protect the lender in case you default on repayment or otherwise, your interest rates will go up. However, you will not lose your home, stocks, CDs, or savings account as collateral.

A credit card is another alternative to a secured personal loan. Although interest rates will rise, some creditors provide introductory APRs as low as 0%. You can also earn travel rewards or cash back with rewards offering credit cards. 

Q4. What banks do collateral loans? 

Today’s time there are many such banks that can offer you loans according to collateral. If you want to know about these, then connect with those brokers who can connect you with many collateral loan providers and those names have been given on this page. You can then choose a lender who fulfills your maximum requirements like secured loans for bad credit.

Q5. How to use a house as collateral for a loan with bad credit? 

Before you make any decisions regarding borrowing money with your home as collateral, you should consult a financial guide, an attorney, or another trusted individual. Make contact with a number of creditors, such as mortgage agencies, savings and loan associations, credit institutions, and banks. Find out from each lender which loan would be best for you.

Q6. What is acceptable collateral for bad credit secured loans? 

For secured loans for bad credit, you will typically need to put something that the lender can consider as your collateral.  If you are an owner of your home or partially sharing ownership, you probably would use it as security for a secured loan. Because of this, secured loans for bad credit are sometimes also called second mortgages or homeowner’s loans. Alternatively, jewelry, vehicles, stocks, bonds, or many more valuable assets may be accepted as collateral by some creditors. 

Q7. Which Secured Loans for Bad Credit are Trustworthy?

Personal or business loans that necessitate some kind of collateral as a prerequisite for borrowing are known as secured loans. When your credit scores aren’t good enough to get an unsecured loan or when a large size loan is being used to buy a specific asset, a lender can ask for collateral. Borrowers may be able to save money on interest with secured loans because they are less risky to lenders.

However, some of these loans, such as secured loans for bad credit and short-term repayment loans, may charge more in interest. Read the information on this page if you want to know how secured loans work, which lenders you can trust, or what precautions you should take when using collateral. 

Author Profile

Susan Anderson
Meet our Author of Our Editorial Team, Susan Anderson. She is an experienced writer and financial expert who has been writing about credit cards, card offers, services, and other related topics for more than twenty years. With her in-depth knowledge on the matter and her ability to distill complex topics into useful information for readers, Susan has become a go-to source for reliable credit card advice. In addition to her work at the editorial team, she also contributes to major publications such as The Wall Street Journal and With her expertise and industry experience, she is able to provide sound advice on all aspects of credit responsibly while helping people save money in the process.

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