Best for Poor Credit : OneMain Financial
If you default on your loan, Wells Fargo will use your CD or savings account to repay the outstanding loan amount. This means you may have an early withdrawal penalty if a CD is used.
The minimum loan amount is $3,000. No matter the amount you borrow, the origination fee is still $75. While it offers rates as low as 5.25%, that’s for well-qualified borrowers. Your rate may be as high as %, which is still better than many lenders offer. Usually, the shorter the repayment term, the better your rate is. Plus, some checking accounts qualify you to receive a 0.50% interest rate discount.
To get a loan with Wells Fargo, even though it’s secured by your collateral, you must have a credit score of at least 670 and sufficient income. Apply online, provided you have an account, and receive a decision in minutes. Once approved, you can track your loan progress using Wells Fargo’s yourLoanTracker.
If you have poor credit, you can still obtain a secured personal loan with OneMain Financial. There’s no minimum credit score because it goes by your current debt, credit history, collateral, and ability to pay. However, a higher score will still earn you a better interest rate.
OneMain Financial strictly provides personal loans to consumers and specializes in helping those with poor credit. In fact, because it has no minimum credit score, it’s the best secured personal loan option for people with less-than-stellar credit. Interest rates are 18% to %, based on the borrower’s credit score. Loan terms are 24, 36, 48, or 60 months, but you won’t pay a prepayment penalty if you pay it off early.
To secure a OneMain Financial personal loan, you can apply online, but then you must visit one of www.installmentloansgroup.com/installment-loans-mo its 1,500 branches located in 44 states.
Often, your interest rate and the amount available to borrow don’t quite match what the site tells you that you’re pre-approved for. This is because OneMain Financial uses stricter guidelines than you might when determining your debt and income. For example, you may think you make $60,000 per year and have a 15% debt-to-income (DTI) ratio, but OneMain Financial might not count your $25,000 in variable dog sitting income, which impacts both your DTI ratio and the income they consider for the loan.
If you’re a current customer, earn points for participating in the courses, enrolling in direct pay, reading its articles, and interacting with the site. Redeem your points for gift cards to places like Amazon, Lowe’s, and Target. You can also earn $100 for every friend you refer, up to a total of $500.
Best for Low Rates : First Tech Federal Credit Union
You’ll have a difficult time finding lower secured personal loan rates than those at First Tech Federal Credit Union (FTFCU)-as little as 3%. There are also no application fees, origination fees, or annual fees to deal with.
This lender offers financial literacy courses for free, and even provides incentives to take them
First Tech Federal Credit Union has locations in eight states, but you can still become a member if you’re not near a branch. To join, you have to work for one of its participating employers or be a member of the Computer History Museum or Financial Fitness Association. The latter two options are available digitally, so you can join from anywhere in the U.S. With rates as low as 3%-lower than any of the lenders we considered-it’s the best secured personal loan option if you want low rates. Plus, there’s no prepayment penalty, application fee, origination fee, or annual fee.