An unsecured personal loan relies entirely on your credit score and income. A secured personal loan uses something you own (a savings account, a CD, a car title, sometimes investment accounts) as collateral. Because the lender can take the collateral if you default, the risk is lower and the APR usually drops by 5 to 15 points compared to an unsecured loan with the same borrower. If you are still weighing the broader category of credit building tools, our credit builder products explainer breaks down all four product types side by side.
This guide ranks the four best secured personal loans of 2026. We focus on savings secured and CD secured loans because they are the cleanest, lowest cost type, and they double as credit builder products. Auto title loans are a different category with much higher risk, so we leave those out. If you have $500 to $10,000 in a savings account or CD, a secured personal loan can let you keep your savings, build credit, and access cash all at once.
How a Secured Personal Loan Works
The typical secured personal loan goes like this:
- You deposit $500 to $10,000 in a savings account or CD at the lender. (For a refresher on how a deposit functions as collateral, that primer covers the basics.)
- The lender approves a loan for some percentage of that deposit, usually 80 to 100 percent
- Your deposit is locked while the loan is active. You cannot touch the money until the loan is paid off
- You make monthly payments on the loan, which the lender reports to all three credit bureaus
- When the loan is paid off, your deposit is released back to you, often with interest
The magic of this product is that you are essentially borrowing against your own money, which dramatically reduces the lender's risk. APRs are often 3 to 8 percent, compared to 18 to 36 percent for unsecured personal loans for the same borrower. Some lenders charge no origination fee. Credit reporting is the same as an unsecured loan, so on time payments build positive history.
The tradeoff is liquidity. You cannot access the cash you put up as collateral until the loan is paid off, which means a secured personal loan is not the right move if you need that money for an emergency. If your credit score is the limiting factor, see our best personal loans for bad credit guide for unsecured options that still approve below 640.
The 4 Best Secured Personal Loans
The lenders below all offer savings secured or CD secured personal loans nationwide. Ranked by APR competitiveness, loan amount flexibility, and reporting practices.
1. OneMain Financial
OneMain offers secured personal loans backed by a paid off car title or other personal property. Loan amounts $1,500 to $20,000 with APRs from 18 to 35.99 percent. The secured version typically unlocks an APR 5 to 10 points lower than the unsecured version for the same borrower. Branch network plus online. Best for: borrowers with a car title but not a large savings balance.
2. Wells Fargo Personal Loan (Savings Secured)
Wells Fargo offers savings secured personal loans for existing customers with eligible savings or CD accounts. Loan amounts depend on your deposit, typically 100 percent of the deposit value. APRs are often 3 to 7 percent, dramatically below unsecured loans. No origination fee. Reports to all three bureaus. Best for: existing Wells customers with $1,000+ in savings.
3. Regions Bank (Savings Secured Loan)
Regions Bank offers savings secured installment loans starting at $250. APRs are competitive (often 5 to 10 percent). Loan term up to 5 years. No prepayment penalty. Reports to all three bureaus. Available primarily in the South and Midwest where Regions has branches. Best for: small dollar credit builders in the Regions footprint.
4. Navy Federal Credit Union (CD Secured Loan)
Navy Federal offers CD secured loans against existing share certificates. APR is typically the CD rate plus 2 percent, which often lands at 4 to 6 percent total APR. Loan terms up to 60 months or the CD maturity, whichever comes first. No origination fee. Reports to all three bureaus. Best for: military and DoD affiliated borrowers with an existing Navy Federal CD.
A Note on Credit Builder Loans (Same Mechanics, Easier Access)
The four lenders above all require an existing relationship or a sizeable deposit. If you do not yet have $1,000+ in savings or an established bank relationship, a Self credit builder account uses essentially the same mechanics in reverse. You make monthly payments first into a locked savings account, and at the end of 12 to 24 months you receive both the savings and a positive installment loan history reporting to all three bureaus. Plans start at $25 per month with no large upfront deposit. It is the easiest way to get the credit building benefit of a secured loan without the existing bank balance. Our best credit builder loans breakdown compares the most popular options.
When a Secured Personal Loan Beats an Unsecured One
Three situations make a secured loan the clear winner:
- You have a low credit score (below 640) and want a low APR loan. The collateral can drop your APR from 28 to 6 percent on the same loan amount, which saves hundreds in interest
- You are building credit and want to keep your savings. A secured loan reports positive payment history to all three bureaus while letting you keep most of your money in the account at the end (since you get the deposit back)
- You want a forced savings discipline. The deposit acts as locked savings while the loan is active, which can be a forcing function if you tend to dip into emergency funds
For borrowers with strong credit (700+) and no need for credit building, an unsecured loan from a competitive online lender is usually simpler and offers similar APRs without locking up your cash. For very small dollar needs, the best small personal loans under $5,000 guide compares unsecured small loan lenders side by side.
Collateral Types and Their Risks
Not all collateral is created equal. The four main types of secured personal loan collateral, ranked by risk:
- Savings account or CD: Lowest risk. You are borrowing against your own cash, the deposit is FDIC insured, and the worst case is you lose the deposit (not your home or car)
- Investment accounts (margin loans): Medium risk. APRs are very low (often under 7 percent), but a market drop can trigger a margin call that forces you to deposit more cash or sell securities
- Vehicle title: Higher risk. If you default, the lender can repossess your car. Use only if you can comfortably afford the monthly payment with margin to spare
- Home equity: Highest risk. A home equity loan is technically secured, and defaulting can put your home in foreclosure. Use only for major, planned expenses (renovation, refinancing), never for short term cash needs
For most readers of this article, savings secured and CD secured loans are the right answer. They offer the credit building benefits of any secured loan with almost none of the downside risk.
How to Apply for a Secured Personal Loan
The application process is slightly different from an unsecured loan because of the collateral verification step.
- Open a savings account or CD at the lender if you do not already have one. Some lenders require this for 30 to 60 days before borrowing against it
- Deposit your collateral amount. The loan amount is typically 80 to 100 percent of your deposit
- Apply for the loan, providing standard documentation (ID, income, address)
- The lender places a hold on your deposit account, formally pledging it as collateral
- The loan disburses to your checking account, often within 1 to 3 business days
The whole process typically takes 1 to 7 days. Existing customers with an eligible deposit can sometimes get approved same day.
Final Thoughts
Secured personal loans are an underused product, especially for borrowers in the 580 to 700 FICO range. Putting up a savings account or CD as collateral can drop your APR by 5 to 15 points, save hundreds in interest, and still build credit on the way through. OneMain works if you have a car title but no savings. Wells Fargo, Regions, and Navy Federal all offer competitive savings or CD secured loans for existing customers. Compare two or three options based on minimum deposit, APR, and term length. Then set up autopay and let the on time payments work for your credit score over the next 12 to 60 months.
Frequently Asked Questions
Can I get my collateral back if I pay off the loan early?
Yes. As soon as the loan is fully paid off, the lender releases the hold on your savings or CD. The deposit is yours again, along with any interest it earned during the loan period. Some lenders also release a portion of the collateral as you pay down the loan, freeing up cash before the loan is fully repaid.
What happens if I default on a secured personal loan?
The lender takes your collateral to cover the unpaid loan balance. For a savings or CD secured loan, this means your deposit is seized. The lender may also report the default to the credit bureaus, which damages your score. Defaulting on a secured loan is unusual because the lender simply takes the money you already gave them, but the credit damage is real.
Will a secured personal loan build my credit?
Yes. All four lenders on this list report to the three major credit bureaus. On time monthly payments build positive history just like any other installment loan. The credit building effect is identical to an unsecured loan, but the APR is much lower, which means more of your payment goes to principal instead of interest.
Is a secured personal loan or a secured credit card better for building credit?
Both work. A secured credit card builds payment history and revolving credit utilization, while a secured personal loan builds payment history and installment credit mix. The credit builder loan vs secured credit card breakdown covers the trade offs in detail. The strongest credit building strategy uses one of each, since FICO rewards a diverse mix of revolving and installment accounts.
